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| Weekly Wrap Up |
The markets were unable to maintain their momentum last week. After two weeks of gains, and with the Dow periodically hovering around and above the 10,000 level, there just wasn't enough good news this week to continue the trend. The week was nothing short of a roller-coaster ride, as the major indices continued their upward trend on Monday, only to fall the next two days, rise once again on Thursday, then fall back down on Friday. The net change was a minor loss, with the Dow slipping 23 points, and the Nasdaq losing only 2 points. The Dow Jones managed to close above the 10,000 three days last week, but ended the week at 9,972. Most of the week's economic chatter focused on the housing market. On Monday, the homebuilder confidence index fell, as the end of the first-time homebuyers credit draws near. On Tuesday, new home construction was reported to have risen less than anticipated. At the end of the week, we had nest that, home prices continued to fall in August, and existing home sales climbed in September, as individuals cashed in on the homebuyers credit. The other economic news drawing the market down was a continued jump in unemployment rates. In corporate news, the earnings season continued, with many companies reporting results. Companies doing better than expected included Hasbro (HAS: Charts, News, Offers), Apple (AAPL: Charts, News, Offers), McDonalds (MCD: Charts, News, Offers), and American Express (AXP: Charts, News, Offers), while disappointing news came from Coca-Cola (KO: Charts, News, Offers) and Boeing (BA: Charts, News, Offers). Many companies also reported significant job cuts, including Sherwin-Williams (SHW: Charts, News, Offers), Pfizer (PFE: Charts, News, Offers), and Yahoo (YHOO: Charts, News, Offers). Crude oil futures ended the week at $80.72 per barrel, for a weekly increase of $2.19 per barrel. More Market News
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| Economic News |
Have We Really Hit The Bottom Of The Real Estate Housing Market?
Everyone's so anxious to call the "bottom" of the real estate housing crisis.
Why? There's no accolade for being right. It’s not as if we're going to see a 65 percent surge in housing prices over the next six months (and watch out for that kind of momentum in the stock market - it just feels wrong when the real unemployment rate is approaching 16 percent nationally).
All there is at the bottom of the real estate housing market is pain for millions of homeowners who have lost their homes to foreclosure, even as they've lost their jobs and whatever few thousand bucks they had left in their 401(k)s. And for those who are still in their homes, their net worth has fallen as their home prices have dropped 30 to 40 percent. (Source: CBS MoneyWatch) Click here to read the full article
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Will Holiday Shoppers Be Merry or Miserly?
For retailers and consumer-focused businesses, it's now time for what Mattel (MAT: Charts, News, Offers) Chief Executive and Chairman Robert Eckert calls "the early fall jitters."
The 2009 holiday season is approaching quickly, and with nearly 1 in 10 Americans officially out of work there are plenty of reasons to be worried. As merchandise is being shipped to them, stores have no guarantee that shoppers will show up to buy. Fears are heightened by memories of last year's disastrous fourth quarter.
"We're coming off probably the worst holiday season in memory," says Doug Hart, a partner in the retail practice at BDO Seidman, an accounting and financial services firm.
Holiday retail sales dropped 3.8% last November and December, reflecting consumer panic as the U.S. navigated through an unprecedented financial crisis. (Source: BusinessWeek) Click here to read the full article
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Recovery gains momentum with sixth straight increase in leading indicators
More evidence that the U.S. economy is on a GDP growth track: the Index of Leading Economic Indicators jumped 1.0 percent in September, The Conference Board announced Thursday -- its sixth straight monthly increase. Except for average workweek and building permits, all of the leading indicators contributed positively to the index in September.
Ken Goldstein, economist for The Conference Board, said in a statement, "The LEI has risen for six consecutive months and the coincident economic index has increased in two of the last three months. These numbers strongly suggest that a recovery is developing. However, the intensity of that recovery will depend on how much, and how soon, demand picks up." (Source: Daily Finance) Click here to read the full article
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| Business News |
Boeing Posts Wider Loss
Boeing (BA: Charts, News, Offers) on Wednesday posted a larger-than-expected quarterly loss on costs related to its long-delayed 787 Dreamliner program, but the world's second-largest planemaker reaffirmed that the aircraft is on track to fly this year.
The loss, combined with a lowered 2009 earnings outlook, sent shares down in early trading, although most of the details in the earnings statement had been previously publicized.
"The surprise was they reiterated the (787) schedule," said Alex Hamilton, senior managing director at Jesup & Lamont.
"I always look at these as opportunities to kind of reset the bar," Hamilton said. "I think there's a lot of scepticism growing on the street about their delivery schedule." (Source: The New York Times) Click here to read the full article
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The New York Times to cut 100 newsroom jobs, or 8 percent, by year’s end
The New York Times (NYT: Charts, News, Offers) said Monday it will cut 100 newsroom jobs and an unspecified number elsewhere amid industrywide declines in advertising revenue.
The Times will offer voluntary buyouts at first but will resort to layoffs if it cannot meet the targets.
"I hope that won't happen, but it might," Executive Editor Bill Keller wrote in a memo to staff.
The Times, flagship of The New York Times Co., cut its newsroom work force by 100 positions last year mostly through buyouts, but Keller said then that the newspaper had to make a "relatively small" number of involuntary cuts to meet that target. (Source: Breaking News 24/7) Click here to read the full article
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Coca-Cola 3rd-quarter profit rises slightly
The Coca-Cola Co. (KO: Charts, News, Offers) said Tuesday its third-quarter profit inched higher, though sales fell as consumers continued to limit soft drink purchases and the stronger dollar took a toll on revenue.
The world's biggest beverage maker said it earned $1.896 billion, or 81 cents per share, compared with $1.890 billion, or 81 cents per share, a year earlier.
Results in the most recent quarter ended Oct. 2 included a 1-cent restructuring charge.
Atlanta-based Coca-Cola said revenue slumped to $8.04 billion from $8.39 billion. Foreign currency exchange dragged down revenue by 6 percent.
Analysts polled by Thomson Reuters, who usually exclude one-time items from their estimates, forecast profit of 81 cents per share on revenue of $8.11 billion.
Shares of Coca-Cola fell $1.14, or 2.1 percent, to $53.65 in morning trading Tuesday. (Source: Google News) Click here to read the full article
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| Technology Focus |
Apple's profit climbs 47% in its 'most profitable quarter ever'
Apple Inc.'s (AAPL: Charts, News, Offers) fiscal fourth-quarter profit soared 47%, surprising Wall Street and providing perhaps the strongest signal yet that technology companies may be leading the economy out of the doldrums.
Fueled by brisk back-to-school sales of its MacBook notebook computers and continued momentum of its popular iPhone, the Cupertino, Calif., company said it posted its "most profitable quarter ever."
Its earnings of $1.67 billion far exceeded analysts' expectations and were another sign that the technology sector might be a bellwether for a larger recovery. Apple's results followed others in recent weeks that have beaten Wall Street's forecasts, including Google Inc. (GOOG: Charts, News, Offers) reporting Friday that its quarterly profit jumped 27%. (Source: Los Angeles Times) Click here to read the full article
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Yahoo Profits are Symbol of Broken System
Yahoo Profits are Symbol of Broken System
According to Tech Crunch, Internet giant Yahoo (YHOO: Charts, News, Offers) tripled its profits this quarter, boosting its income by $130 million.
As a share holder, you'd be pretty pleased, and as part of management, the picture is decidedly better than it was last year when its share price plummeted after it rejected an offer from Microsoft (MSFT: Charts, News, Offers).
However, if you worked for Yahoo, you probably lost your job.
It turns out, Yahoo's profits are based almost entirely on the $169 million cost cutting measures it took (2400 workers were let go), while of course protecting corporate bonuses. (Source: The Huffington Post) Click here to read the full article
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Nokia sues Apple for patent infringement
Nokia (NOK: Charts, News, Offers) is suing Apple (AAPL: Charts, News, Offers) over 10 patents the Finnish phone maker says it owns related to wireless handsets.
The largest handset maker in the world is suing the maker of one of the most popular, the iPhone, because, according to a statement released by Nokia on Thursday, Apple has refused to license any of the patents in question. All iPhone models dating back to the original introduced in 2007 are infringing, according to Nokia. Nokia is asking the U.S. District Court in Delaware for an injunction on sales of iPhones and for unspecified damages.
"The basic principle in the mobile industry is that those companies who contribute in technology development to establish standards create intellectual property, which others then need to compensate for," said Ilkka Rahnasto, vice president, legal and intellectual property at Nokia. "Apple is also expected to follow this principle. By refusing to agree to appropriate terms for Nokia's intellectual property, Apple is attempting to get a free ride on the back of Nokia's innovation." (Source: CNET News) Click here to read the full article
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| Your Money |
Why You Should Keep Contributing to Your 401k
With the way the market is behaving, you may be tempted to pull money out of your 401(k) right now or greatly reduce your contributions. When you see your 401k continue to drop even though your adding money every paycheck, it may feel as if you are just throwing money away. If you're considering stopping to contribute to your 401k, please reconsider it.
Don't stop saving for retirement. Even if you think you're wealthy enough to forego putting money in your 401(k), you could end up seriously shortchanging your retirement savings potential by reducing your retirement plan balance or elective salary deferrals. (Source: Good Financial Cents) Click here to read the full article
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Should you sell home without agent?
In today's tough housing market, some sellers are looking to cut costs by selling their property without using a real estate agent.
Sellers who skip the listing agent and offer their home as a "for sale by owner" -- or FSBO (pronounced FIZZ-bo) -- have the potential to save thousands of dollars in agent's fees, says Piper Nichole, author of "The For Sale By Owner Handbook."
But FSBO sellers should be prepared to do a lot of legwork to manage the sales process, with no guarantee of a final sale, she says.
Here are five questions experts say homeowners should ask themselves before selling a home on their own. (Source: Bankrate) Click here to read the full article
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| Trivia Question |
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What was the highest value currency in the United States?
(answer below) |
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| Market Overview |
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| DJIA |
9,972.18 |
-23.73 |
| S&P |
1,079.60 |
-8.08 |
| NYSE |
7,066.80 |
-67.16 |
| NASDAQ |
2,154.47 |
-2.33 |
| 10Yr |
3.475% |
+0.06 |
| Dollar |
75.6 |
-0.17 |
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| October 23, 2009 |
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| Trivia Answer |
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| The $100,000 Gold Certificate issued in 1934 |
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