Posts by Jeff Macke
- Jeff Macke at Yahoo Finance3 hrs ago
Adam Sandler will produce and star in four movies that will be seen exclusively on Netflix (NFLX) starting in 2015. The news comes just days after the streaming service infuriated theater owners with plans to release a "Crouching Tiger, Hidden Dragon" sequel for subs the same day it hits theaters next summer.
The math behind the film industry is notoriously flaky. As with anything rooted in art, and, yes, Adam Sandler movies are art, it's impossible to put an exact price tag on the moods, feelings or loyalty it inspires. Movie references are the lingua franca of entire generations. "Greed is Good" defines Wall Street as a concept and film title more than a quarter century after the movie came out in December of 1987, just two months after the crash.
- Jeff Macke at Yahoo Finance18 hrs ago
Crude prices bounced slightly on Wednesday but it did little to calm nerves in stressed out global markets. Futures of WTI Crude dropped $3.41 on Tuesday, the biggest one day drop since 2012. For 2014 WTI is off 6.4%.
In a vacuum that would be a positive. Alas, markets never operate independently. When crude falls too far, too fast it’s not a boon for the consumer. It’s a sign of global dislocation in markets somewhere. In this case the most likely explanation is the soaring value of the U.S. dollar, the benchmark currency against which all other assets are priced.
That’s a problem. As is so often the case, it’s probably related to something the Fed is doing. In the attached clip Lee Munson of Portfolio LLC explains.
“This is about the Fed messaging to the market that we’re not going to get any inflation.” By implication that means stimulus has failed, deflation becomes a risk and a bunch of assets start falling in price. Gold sitting on $1,200 and stocks suddenly giving away almost all of their 2014 gains on the Dow Jones Industrial Average (^DJI) are further examples of problematic markets.
Time for your daily dose of Trending Tickers, the stocks that you're tracking as measured by Yahoo Finance ticker searches. Making the list today:
American Airlines (AAL) shareholders are experiencing some motion sickness. The entire industry is lower today on confirmation of the first case of Ebola in Dallas, Texas. Investors are concerned that some tourists may blanch at the prospect of spending 20 hours sealed in an aluminum Petri dish with 300 strangers until this Ebola thing is under control. Despite that headwind American shares still higher by nearly 40% in 2014.
Ebola made its official debut in the U.S. yesterday. Government officials announced that a man identified only as a "traveler" had been hospitalized in Dallas. This "Typhoid Larry" arrived in the U.S. from Liberia on September 20th. He reportedly started showing symptoms four or five days later and was hospitalized Sunday. So far three Dallas Fire and Rescue workers and several ER employees are off work and "under observation." The rest of America remains free to panic.
The news of course sent speculative bio-tech stocks soaring. The biggest gainer was Tekmira (TKMR) , a Canadian biotech company that saw shares spread 25% higher after the bell. Tekmira shares have doubled since August when it announced that it was working with the U.S. Department of Defense on an Ebola counter-measure drug called TKM-ebola.
Time is a flat circle for Ford (F) shares which are stuck in reverse for the second straight day. The stock is off another 2% today and nearly 10% this week after taking down earnings guidance yesterday. New CEO Mark Fields told analysts to expect $6 billion in profit this year, more than a billion less than expected. He blamed higher warranty costs and weak volumes in South America and Russia. Ford is now counting on strong sales for the all-new aluminum F-150 and share gains out of Lincoln on a product ravamp and slightly nutty ads.
eBay (EBAY) shares are higher after the company announced it will split with PayPal sometime next year. After the split the two will trade as entirely separate companies, bringing to fruition a plan very much like the one laid out by shareholder activist Carl Icahn 9 months ago.
As current eBay head John Donahoe told the New York Times, after a “deliberate” review eBay and its board “got to the same place Carl got early on”. Donahoe and CFO Bob Swan will end up getting carried out on their shields after battling Icahn for months. The two will give up operational roles after overseeing the split though each is expected to retain an advisory role.
There is almost nothing unique about October, at least not in an investable sense. It's a mental trap, almost irresistible precisely because it's so simple.
People in general are superstitious lab rats hardwired to see patterns where none exist. That's because the world is an enormous, frightening place. There is an impossible amount of stimulus to process, almost all of it random. If we took in everything all at once our minds would be blown. It’s impossible. As a result our brains work off instinct, taking in only a fraction of what’s before us and filling in the rest from our generally unreliable memories.
For instance, we all know October is when stocks crash! We base that on a sample size of three. October 1987, 1929 and to a lesser degree 2008 we’re all horrible. Those memories stick out and as a result October is regarded as terrifying.
The reality is that October is pretty bland. It’s the 6th best month of the year, according to Ryan Detrick’s awesome SeeitMarket.com.
GoPro (GPRO) shares are higher! Again! The company unveiled the Hero4. The latest addition to the selfies on a stick, helmet or vest cam line-up can shoot in 4K, has a gazillion pixels and promises to give you the life of professional surfer Laird Hamilton. We live in an age of miracles. GoPro went public in June at $24 a share. Today shares are over $85 giving the company a market cap of just under $11 billion.
Disney (DIS) shares are off slightly but the company is breathing a sigh of relief. Late last week Disney managed to reach an out of court settlement with the family of Jack Kirby. That name may not ring a bell but Kirby was the mind behind characters like Iron Man, the X-Men, Hulk and Groot, among others. Kirby's characters form the backbone of the multi-billion dollar Marvel franchise. A win in court could have set the stage for endless fights between copyright owners and "for hire" artists behind the iconic characters and brands that form the non-verbal backbone of capitalism. The case had been in play since 2009 when Disney bought Marvel for $4 billion.
- Jeff Macke at Yahoo Finance3 days ago
Like Jimmy’s crew after the Luftansa heist in Goodfella’s investors who cashed out in Alibaba’s (BABA) record-setting IPO are itchy to put their windfall to work. The biggest of the outside investors is already making noise in an unlikely place. SoftBank is trading down over 1% in Japan on a Hollywood Reporter story that the Japanese company is in talks to acquire DreamWorks Animation (DWA) for $3.4 billion.
DreamWorks CEO Jeffrey Katzenberg would be part of the deal, according to these reports. The former Disney (DIS) executive who started the original DreamWorks in 1994 with Steven Spielberg and David Geffen. DreamWorks Animation was spun off as a freestanding operation in 2004. Results have been mixed, to be polite. Until this rumor started picking up shares were down 37% in 2014 after disappointing results for "Mr. Peabody and Sherman" and "How to Train Your Dragon 2." The latter only earned $176 million at the box office, short of the original’s take and a huge disappointment given the weak competition.
- Jeff Macke at Yahoo Finance5 days ago
Janus Capital Group (JNS): Shares surged on news that Bill Gross is leaving PIMCO and going to work for Janus starting on Monday. It's a coup for Janus to be sure but within minutes of this news crossing people were questioning the circumstances under which once and possibly current Bond King was leaving PIMCO. Sure enough "sources" started suggesting Gross was on his way out, possibly as soon as tomorrow. Is this huge move in Janus Capital shares justified? Maybe. Suffice it to say bringing in a notoriously "difficult" personality to work in a remote office wouldn't normally qualify as a turnaround plan.
BlackBerry (BBRY) shares higher after the company posted a smaller quarterly loss and CEO John Chen says the tech company would double its software revenue next year. Perhaps more importantly, Chen suggested Blackberry could be cash flow positive by the end of this year. Taking bankruptcy out of the equation is a monster accomplishment for the well respected Chen. Shares of Blackberry are up more than 25% this year.