Posts by Jeff Macke

  • Super Bowl, Valentine's Day spending point to a booming consumer

    Jeff Macke at Yahoo Finance 2 hrs ago

    U.S. stocks are flat in the early going after a pretty good smacking yesterday. The S&P 500 (^GSPC) fell 1.3% and the Dow Jones Industrials  (^DJI) did even worse after weak earnings from Caterpillar (CAT) and Microsoft (MSFT). So far corporate earnings have been a bit of a disaster with the exception of Apple (AAPL) which reported the single greatest quarter in the history of business last night.

    Alas, Apple is an outlier in every way. For companies that don't have $178 billion on the balance sheet the picture is much gloomier. Durable good orders missed estimates badly yesterday. More than 1/5th of the S&P 500 has reported and sales growth is all but non-existent for last quarter. CEOs are cutting cap-ex and talking layoffs.

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  • CAT, Microsoft decimate the Dow, Corning bucks downtrend

    Jeff Macke at Yahoo Finance 21 hrs ago

    Caterpillar (CAT) is today's Dog of the Dow (^DJI) dropping more than 7%. The company not only came up short on estimates but also warned that slowing global growth would lead to a weaker than hoped 2015. CAT’s a cyclical company and always has been. Nothing odd about fluctuations in demand. What is strange is management highlighted $4.2B in stock repurchases as a good thing for shareholders. Not only did earnings per share decline anyway but the average price of CAT shares over the last year was about $100. Today you can buy all the Caterpillar stock you want for less than $80. Repurchased shares are retired but if the company was a fund they would be down about $850 million on those repurchases. Might be best to stick to earth moving equipment, gang. It's a tough enough job already.

     

  • The blizzard trade: Making money in bad weather

    Jeff Macke at Yahoo Finance 1 day ago

    In case you missed it winter storm Juno has shutdown most of the Northeast this week. I'm kidding. Of course you've heard about it already. This is the media capital of the world and apparently the natives don't know how to shovel. When it snows schools, public services and just about everything else comes to a screeching halt. The only things that stay open are the retailers and media outlets reporting on the weather.

    Things may be sunny and cozy where you are right now but at some point you'll be hit by some sort of extreme climate hiccup that closes down your town. While most folks will take that as an excuse to slack off, I've got three tips for profiting from weather extremes:

    3. Go out and play. If you're stuck at home because your school district cancelled or your bus is in a ditch it's a hassle, but also an opportunity to get your mind right. Take a little vacation. Go sledding. Build a snowman. The world will still be here when the storm ends. As usual, the better rested you are the better able you'll be able to handle any real emergencies that might come your way.

  • Snow stocks rally, CEO Barbie booted and Avon's renewed takeover chatter

    Jeff Macke at Yahoo Finance 1 day ago

    Mattel (MAT) is down by 5% after the man behind CEO Barbie, Bryan Stockton resigned as Chairman and CEO today. Shares are tumbling less out of sadness than because the toy maker also told investors preliminary fourth quarter and full-year sales will likely drop by as much as 7%. Part of the problem is Barbie has not been pulling her weight, sales of the iconic doll have been in decline for a few years. Plus Disney's (DIS) Elsa is eating Barbie's lunch these days. The company's interim CEO Christopher Sinclair starts today.

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  • The Super Bowl ad line-up deflates bullish investor expectations

    Jeff Macke at Yahoo Finance 2 days ago

    Stocks are down slightly as U.S. traders try to get their minds around the implications of extreme leftists taking power in Greece. We've got a busy week so I'm going to go ahead and spoil the suspense: it doesn't matter what Greece does. Greece was scary in 2011 and 2012. Today problems at the Greek system at UVA matters more to your long-term investing health.

    To get the market's field position out of the way, the S&P 500 (^GSPC) dropped about half a percent Friday in relatively subdued trading. We're still in a trading range. That's not so bad considering almost 20% of the 500 biggest stocks in our world have now reported and the results have been fairly terrible.

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    That may not be an investment thesis but it is yet another reason to root against the Pats and consider hedging your portfolio by taking the Seahawks and the 2 points.

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  • Box IPO soars, Starbucks shares hit record while DreamWorks dwindles

    Jeff Macke at Yahoo Finance 4 days ago

    Box (BOX) is soaring to the clouds on its first day of trading. The cloud-based storage company’s initial public offering priced at $14 a share last night, above the $11 to $13 expected range, valuing the company just under $2 billion. That struck some investors as quite a bargain since it was 30% lower than where Box was valued in its latest round of private financing. Some investors seem to agree as the stock opened over $20 a share and hasn't looked back since. Does that make shares a buy now? I'm not claiming to be an expert on the company but I will say I don't know anyone who has gotten rich buying IPOs on the first day of trading.

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  • Deflation talk dominates on Wall Street and in the NFL

    Jeff Macke at Yahoo Finance 5 days ago

    Stocks are basically flat this morning as traders around the world wake up wondering what in the name of Bill Cosby the ECB dumped in the punch bowl with QE Europe. In case you missed it the S&P 500 (^GSPC) tacked on 1.5% after ECB President Mario Draghi announced that the central bank would be buying € 60 billion euros a month of bond securities until September 2016. At the moment that equates to $1.2 trillion in U.S. dollars but with the way the euro is collapsing that number seems likely to go lower before the punch bowl is removed.

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    The global theme of the year so far is deflation. Whether it's footballs in New England, Tom Brady's reputation or consumer prices everything except stocks is in some way deflating. Listen.... you can actually hear hissing if you listen closely.

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  • Investors 'luv' Southwest as Verizon and Lands End slide

    Jeff Macke at Yahoo Finance 5 days ago

    Time for you're Thursday edition of trending tickers, the stocks you're following based on Yahoo Finance ticker searches.

    Airlines are rocking today led by Southwest (LUV). LUV is up more than 6% after the pioneer discount airline reported earnings of 55-cents for the fourth quarter, 4 cents ahead of expectations. Southwest said passenger revenue was up 2.6% compared to last year. The real source of the beat was fuel costs which fell 14.1% year over year, inclusive of hedges. For the coming quarter Southwest said it expects to save about half a billion just on fuel savings.

    Those are you're trending tickers. Tell us what you think in the space below or tweet us at #trending tickers.

  • McDonald's & Starbucks are more important than Davos

    Jeff Macke at Yahoo Finance 6 days ago

    Stocks are bouncing along in a subdued manner after finishing up about 1/2 a percent yesterday. This morning, the headlines are going to be all about the ECB and their knock-off QE program. Normally we'd be forced to care about such things. Today, though, I'm leaving the economic navel gazing to Europeans and the self-proclaimed thought leaders of the world at their Swiss clam bake in Davos.

    Here in America we've got two of the great consumer brands of all time reporting earnings in the next 24 hours. Trust me on this: What we hear from Starbucks (SBUX) tonight and McDonald's (MCD) tomorrow morning will impact your immediate financial future more than anything coming out of Davos.

  • 'The Interview' boosts Sony/Netflix, IBM's blues and time to buy Whole Foods

    Jeff Macke at Yahoo Finance 6 days ago

    Sony (SNE) is up more than 5%. The company seems to have snatched victory from the jaws of humiliating defeat at the hands of North Korean hackers last year. First Sony managed to get more than $40 million in video on demand and box office revenues from the poorly reviewed film (which I actually enjoyed). Yesterday Netflix (NFLX) announced that it will be streaming the movie starting this Saturday. Given the price of content being paid lately it's not a reach to assume The Interview will end up turning a profit. That sets up a nice sequel about a movie studio that conspired to make itself the apparent victim of a sophisticated hack by a third world country just to gin up interest in a stoner comedy about North Korea.

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