- Bernice Napach at Daily Ticker19 hrs ago
Consumer prices are still rising at a rate below the Fed's 2% annual target but they're creeping higher, weighing on households already under pressure from stagnant incomes. Consumer prices in March rose 0.2%, or 1.5% over the past 12 months, largely because food prices are climbing. Food prices were up 0.4% in March -- but three times as much for just meat, poultry fish and eggs. On an annualized basis that selective food index was up 5.1%. Beef prices alone are at a 27-year high. Related: How 4 companies control almost all the meat you eat
- Morgan Korn at Daily Ticker22 hrs ago
Monday's stock market rally may have convinced investors that the carnage is over but "scars still remain" from last week's big selloff, says The Daily Ticker's Aaron Task. Monday's rally helped the major indices erase some recent losses but they're still down for the month and year.
"This selloff is largely emotion driven," explains Yahoo's Jeff Macke in the video above. "Investors have to manage their emotions."
Ukraine's crackdown on pro-Russian separatists, China's slowing economy and other geopolitical concerns are priced in to the market and cannot be blamed for the dramatic drop in momentum stocks, notes Macke.
- Nicole Goodkind at Daily Ticker23 hrs ago
Leggings and sweatpants, once thought exclusively to be for the gym, have now surpassed jeans as the pants of choice…at least for teens. Activewear now comprises 28% of teen apparel purchases, up from 6% in 2008. And "Athleisure" wear (an industry term for athletic wear that can be worn away from the gym) makes up 14.4% of purchases.
In a semi-annual study released this week by Piper Jaffray, teens ranked the top fashion trend as leggings/lululemon (LULU) and the top clothing brand as Nike (NKE). Denim, which typically ranks in the top 10 fashion trends, was nowhere to be found.
- Aaron Pressman at Daily Ticker1 day ago
Tim Cook may have wanted to double down on secrecy at Apple (AAPL), as he said a few yeas ago, but give the company’s size and global scale, it’s proving impossible. As we draw closer to this year’s Apple updates, the level and detail of leaks is again on the rise. When your global supply chain has to start ramping up to make tens of millions of phones, there is seemingly no way to prevent the constant leaks.
Last week, we got a round up of rumors covering the entire product line from KGI Securities analyst Ming-Chi Kuo, considered more reliable than most (though hardly perfect, I’m still waiting for my iPhone with 128 GB of storage. He did get the gold case option and fingerprint sensor correct, however.)
- Nicole Goodkind at Daily Ticker1 day ago
More bad news ahead for General Motors (GM) as the public sifts through the 250,000 documents released by lawmakers last week that highlight the carmaker’s 10-year denial of auto-safety problems.
GM CEO Mary Barra is waiting on two more reports that address how to deal with compensation for victims and repercussions for GM. GM reports earnings on April 24, and the outlook may be negative for the first time in four years given the recent recall of nearly 7 million cars.
Related: GM’s image problem worsens
Recent email revelations show that GM senior executives have known about the cars’ switching problems since at least 2011. Barra testified that she did not became aware of the problem until last December.
So what does this mean for the stock? “It’s certainly one of the cheapest car companies in the universe right now,” says David Nelson, chief strategist at Belpointe. “And sometimes buying headline risk like this can be an opportunity.”
- Bernice Napach at Daily Ticker1 day ago
Stocks opened slightly higher Monday following a big beating last week that left the Nasdaq (IXIC)down 3.1%, its biggest weekly percentage decline in almost two years. The Dow (^DJI)slipped 2.4% last week.
The major averages could fall even further says David Nelson, chief strategist at Belpointe Capital.
- Aaron Task at Daily Ticker1 day ago
After a rapid rotation out of high-flying growth stocks and into value names, the bull market's music seemed to stop last week -- save for the faint sound of Martha and the Vandellas' "Nowhere to Run" playing in the background.
But while the selling has spread beyond formerly high flying tech and biotech names, David Winters, manager of the $2.3 billion Wintergreen Advisers funds, says there's still great value in value stocks.
As as "the bloom has come off the rose" of the "most speculative securities" investors are "realizing you'd rather go for the steak than the sizzle," Winters says. "We think there's a lot of steak out there that's available for big discounts: you can get filet mignon for chuck prices."
Winters' favorite cuts of beef (stock) include:
- Nicole Goodkind at Daily Ticker4 days ago
On April 3 David Letterman announced that he would be retiring sometime in 2015. Letterman has been the driving force behind the “Late Show With David Letterman” for 21 years. CBS Corporation (CBS) has announced that Comedy Central’s Stephen Colbert will be next in line to host the long-running, late-night show. The financial terms of Colbert's five-year contract have not yet been revealed.
What this means for CBS is unclear. Fresh competition from younger late-night hosts like Jimmy Fallon, Jimmy Kimmel and Seth Meyers has hurt Letterman's numbers. Both the Tonight Show and Jimmy Kimmel have outperformed Late Show in the 18-49 age demographic in 2014.
Stephen Colbert’s “The Colbert Report” has earned two Peabody Awards and 27 Emmy nominations.
"Stephen Colbert is one of the most inventive and respected forces on television," said CBS chief executive Leslie Moonves in a press release.
- Morgan Korn at Daily Ticker4 days ago
David Winters, CEO of Wintergreen Advisers, won't back down from his battle with the world's largest soda maker. Winters has openly criticized Coca-Cola's (KO) proposed 2014 equity compensation plan, calling it "potentially highly dilutive to shareholders"..."unnecessary"..."unsupported by any strategic rationale" and "a bad precedent for corporate America." And that's not all.
In a March 21 letter to Coca-Cola's board of directors, Winters characterizes the proposal as an "outrageous grab" and an “excessive transfer of wealth” from Coca‐Cola shareholders to the company’s senior management.
- Bernice Napach at Daily Ticker4 days ago
The last thing the stock market needed today was more bad news, but that's just what it got when JPMorgan (JPM)reported a 19% decline in first quarter earnings.
Profits at the country's largest bank fell $1.26B from a year ago to $5.27B, or $1.28 a share, well below expectations of $1.40 a share. Revenues were off 8.5% to $22.3 billion
A major reason for the profit drop: a decline in the bank's mortgage business. Mortgage loan originations plummeted $17 billion, or 68% from the year before.