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H-P leads hardware stocks down, but broad sector rises
Last update: 9:37 a.m. EST Feb. 19, 2009
SAN FRANCISCO (MarketWatch) -- Technology stocks put in a mixed early trading performance Thursday as the overall sector rose, but several hardware leaders followed Hewlett-Packard Co. (HPQ:Hewlett-Packard Co.
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Last: 31.54-2.54-7.45%
HPQ 31.54, -2.54, -7.4%) into the red. H-P shares fell $1.88, or 5.5%, to $32.19 after the company gave a disappointing quarterly report and outlook late Wednesday. With H-P in the lead, other computer stocks such as IBM Corp. (IBM:International Business Machines
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Last: 90.00-1.51-1.65%
IBM 90.00, -1.51, -1.6%) , Dell Inc. (DELL:dell inc com
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Last: 8.40-0.25-2.86%
DELL 8.40, -0.25, -2.9%) and Apple Inc. (AAPL:Apple Inc
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Last: 91.97-2.40-2.54%
AAPL 91.97, -2.40, -2.5%) lost ground. However, the tech-heavy Nasdaq Composite Index ($COMPQ:Nasdaq Composite Index
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Last: 1,476.86+8.89+0.61%
$COMPQ 1,476.86, +8.89, +0.6%) rose more than 13 points to 1,480 due to gains in other tech areas.
Morning Sydney.
WFMI +34%
WOW...+364%!!!!!!!!!!!!
Nice play
marked ur board!
Nice recomendation. Great buying spot here.
Nice one Lucy! Still room to get in that one?
Have you seen FONR? +54%
Anyone have advice on post stimilus bill winners?
The Bull's Case for Investing in Gold
Next stop $1,000? Gold has climbed more than $160, about twenty percent, in the last four weeks, and no matter where it goes from here over the short-term, some bulls think the long-term price is headed higher
The price of the shiny yellow metal, now trading around $970 an ounce, is dependent, for the most part, on the value of the dollar. When the buck falls, gold rises, and vice versa. Some experts predict that even though the U.S. dollar has rallied since the financial crisis began, the greenback will resume its decline later this year or in 2010, for a couple of reasons.
First, the obvious: the supersize U.S. budget deficit, which has gone from a $128 billion surplus seven years ago to a to a more than $1 trillion deficit now. The government’s inability to pay off its debts each year has led to inflation, the devaluing of the dollar and a seven-year rally in the price of gold. But some analysts say the second reason, President Obama’s $787 billion stimulus plan and other spending to prop up the economy, could have a bigger impact on the value of the dollar. To pay for that stimulus, the U.S. will have to print a lot more money, rack up an even higher deficit (potentially $1.6 trillion by the end of this year, some economists predict) and likely bring inflation back with a vengeance. “In the long run, there are more negative than positive forces on the dollar,” says Geoff Somes, senior economist with State Street Global Advisors.
All that sounds great for gold, but it’s still not a sure thing. Deflation, not inflation, is what worries some analysts in the short term. And when the dollar rose last fall, gold lost around 20 percent of its value. Still, many pros recommend gold as a kind of insurance policy against losses elsewhere in one’s portfolio.
Gold The Bright Shining Star
Today's climate of extreme fear sent Gold on its way to $1,000.00
Gold has been trending higher since mid October, but yesterday was the day it broke out of it's "ascending triangle" formation as money poured out of bonds and stocks into the shiny stuff.
I believe this particular security could have legs far beyond today's simple fear driven rally. Consider the following. Where is the money going to come from to bail us out of our current predicament? In a sense, we are going to simply print it. It isn't going to come from tax revenues.
When the market really catches on to how much we are going to have to print, the excess supply will bring back Mr. Bernake's next nightmare- the "I" word- INFLATION.
Yes, we could inflate our way out of this recession/budding depression. And, if we do, watch the Shiny Stuff make an 18 month move to who knows where. The old highs of $2,500 might not be a pipe dream. There is a whole sub culture of doomsdayers who have been calling for the end of the financial world for the last twenty years, and there's a possibility they might finally be right. The aging generation of gold bugs who long for the ra ra days of the '80's when gold was the only thing to own might have one more hey day.
As the storm clouds gather, you can't afford not to have GLD in your portfolio. I'm not ready to call a big move in junior mining stocks yet- they are huge cash gobblers, and there's no cash around for them to gobble up quite yet. Stand by on those ideas if capital starts to flow to juniors.
I missed the "house Of Cards" on CNBC, but plan to look it up. Certainly plenty of blame to go around. I side more with the home owner since typically they are "SOLD" into the dream of owning a home by society, and are further convinced by a mortgage brooker who is really a salesman. Usually, they aren't even aware of the adjusting rate wautung around the corner.
I think the biggest hold up in our economical nightmare is the mortgage crisis. I couldn't agree more with your opinion, We should have stopped the forclosure spiral. I don't think we will see any major signs of recovery untill that is addressed. Instead we are trillions into attempted reform with companies like GM and Chrysler thinking they have an allowance from Dad.
Roger that! Great call, and I love your quote about bashing factories!!
Have you seen these hot ones?
CW +12.38%
FONR +54%
Mr. Bigz watchlist always on my favorites list.
CRGN steady biulding. +15.5%
MESA almost 11 million in volume, +58%
Thanks Lucy,
IGTP a good one! Added it to the radar. Have you been watching MESA? Massive day
Hopefully once some of these struggling homeowners get assurance of protection we will see money loosen up.
Housing starts plunge nearly 17% to record-low 466,000 rate
8:30 a.m. EST Feb. 18, 2009Comments
WASHINGTON (MarketWatch) - Construction on new U.S. housing units plunged 16.8% in January to a seasonally adjusted annual rate of 466,000, the Commerce Department reported Wednesday, far below the weakest levels of the post-World War II era. Housing starts have dropped at double-digit rates for three straight months. At this rate, starts would fall to zero by the end of the year. Starts are down a record 56% in the past year and are down 79% from the peak three years ago. Housing starts in January were much worse than expected. Building permits, less volatile than the housing starts data, fell 4.8% to a seasonally adjusted annual rate of 521,000, also a record low
Hate the game, hate the big ceo's, and hate General Motors.
Wall Street pointed to a modestly higher open Wednesday, a day after stocks were pummeled by growing concerns about the weakening global economy.
Thanks again Brent. Definatly watching MTRE
Good Eye. Loks like a good addition to Neohydro Technologies Corp.
HI Sydney, congrats on the new board! Are you watching anything in the information technology sector that might get some of the stimilus spending?
"I Just Culled 50% Of My Watchlist "
ME TOO! What do you mean about the level of input on this board?
Sounds like you have strength left in your trading ability. I understand why after looking at the charts you guys have on this board. Marking board fosho, and watching your picks!
Market & Research Corp. (MTRE.OB) a good buy here? Where do you think it's going to go?
http://chart.finance.yahoo.com/c/1y/m/mtre.ob
Do you think this one is going to keep going up? Data in certainly the way of the future.
Looks clean! Thanks brent. DO you know where I can find any more info? I checked yahoo finance, and pinksheets
Thanks for the recomendation. I have been watching pennies lately too. Had a pretty nice December, but looking for something, what are you into?
Roger that Cowboy. What do you think the price of a liter will be in two years? By my math, water costs more than the super unleaded I put in my car. Anyone who doesn't believe in the benefits of drinking water over soda & coffee etc is silly. The body is over 70% water for one thing, and so is the earth. Not a coincidence.
Very interesting Soapy Bubbles. Lots of recent news out
http://finance.yahoo.com/q?s=entg
HI RuLiquid.
I followed a few of your posts. Checking out MOVT. As for the markets, another tough day, When do you think we will start to see a turn aroud?
No Kidding, we Really need it! I am loading up on COYN in the mean time. Probably the first in line for the stimilus package law enforcment $$$$$...
http://finance.yahoo.com/q?s=COYN.OB
GM getthepaper. Doing well, you?
Looking forward to the stimilus package creating that spark in the market!!!
Quite a time to take such a bold step, but Microsoft thinks they will have success presenting an interactive sales environment.
Doing well except for the market imo...
Great Post MerlinA. Hit the nail on the head! All the recent PR has been announcing the future for AOAG. Blue Horseshoe knows his stuff.
Have been following your picks lately, thought I'd say hi! Marked you btw. Your board looks pretty strong. Time to rally the troops to start spending, the masses follow!
Why saving is killing the economy
Saving more and cutting debt might sound like a good plan to deal with the recession. But if everyone does that, it'll only make matters worse
NEW YORK (CNNMoney.com) -- It wasn't that long ago that many economists worried that Americans were saving too little.
Today, the growing concern is that Americans are starting to save too much.
It's not that the savings rate today is high by historic measures, or by comparisons to some other countries. But it has moved sharply higher in recent months -- at a time when what the economy needs most is for consumers to be spending more freely.
"In the long-term, it's best for Americans to save more. But right now, with the economy underwater, it's the worst time for that," said Rich Yamarone, director of economic research at Argus Research.
The savings rate, as calculated by the Commerce Department, hit 3.6% in December, or the equivalent of $36 for every $1,000 of after-tax income.
Talkback: Are you saving more?
That's up from 0.8% in August, or only $8 of every $1,000 of income. And since the average income for Americans is flat to slightly down during the past few months, the only way the savings rate can rise is for spending to fall.
"That's a lot of spending that's not happening," said Mark Zandi, chief economist for Moody's Economy.com. He said the jump in the savings rate since last summer is "the difference between an economy that is growing and one that is struggling mightily."
The government calculates savings by totaling up after-tax income and subtracting spending. The remainder is considered savings by the government even if consumers are using the leftover money for investing or paying down debt instead of saving it in a bank.
In months when income spikes due to special circumstances -- such as May 2008, when most taxpayers got economic stimulus checks of between $600 to $1,200, and December 2004, when Microsoft paid investors a big one-time dividend -- that can cause a significant jump in the savings rate.
But excluding those months, the savings rate this past December was the highest since September 2001.
The credit party is over
Until the economic upheaval of the past year, the savings rate was at historic lows, averaging only 0.5% from the start of 2005 through April 2008. The savings rate occasionally even fell below zero, indicating that Americans were dipping into savings to keep spending at a high level.
Keith Hembre, chief economist for First American Funds, said the low savings rate earlier this decade was due to consumers spending beyond their means for years.
And they could afford to do so as long as the stock market was rising and surging real estate prices allowed people to turn their homes into an ATM machine that consumers thought had a limitless supply of money.
But once the stock market and housing market bubbles burst, Hembre said consumers had no choice but to spend more modestly.
"I think we're at a secular shift here in terms of consumption and broader spending behavior," he said.
Some say the sudden rise in the savings rate since last summer is due primarily to Americans worried about their jobs and the economy. Others say it's a product of the drop in stock prices and 401(k) balances, which have prompted Americans to cut back on spending and replenish their retirement accounts.
In addition to the desire to save more, Americans are seeing their access to credit cut off, which is raising the savings rate as well. Plunging housing prices have made it difficult for many to tap home equity lines of credit, and lenders have also tightened standards for credit cards.
Figures from the Federal Reserve show that consumer debt fell for the first time on record in the third quarter. Since then, consumer borrowing has continued to decline.
Saving isn't the problem...except when everybody's doing it at once
To be sure, a high savings rate is not a bad thing for the economy. From the mid-1950's through the mid-1980's, the savings rate was in the 8% to 11% range.
Money that was saved in those decades helped fuel economic growth because much of the savings were invested in businesses, which in turn used the investments to make more products and hire more workers.
But economists say the real problem is the sudden rise in the savings rate.
"Saving is a good thing and paying debt is a good thing, but not overnight," said Zandi. "If we go from zero to 10% in a year or so, you'll have a severe downturn that can become self enforcing."
Yamarone added that the usual economic benefits tied with a higher savings right aren't evident now because consumers' "savings" aren't being put to use the way they normally would be. Banks, after all, are less willing to use deposits to make new loans.
"Consumers' cash might not be going into their mattress, but it's not going into the economy either. They're just going to stuff Vikram Pandit's mattress," he joked, referring to the CEO of Citigroup, one of the nation's largest banks.
No prob Jstops. Gm to you. Thought you'd likie this one too;
Microsoft To Open Retail Stores
Microsoft is getting into the retail business. The company announced today that it's hired David Porter, a 25-year Wal-Mart vet, as vice president of retail stores. He will head up Microsoft's "efforts to create a better PC and Microsoft retail purchase experience" through its own stores.
This is a risky move. Microsoft (MSFT) will be competing with its vast retail channel, which ranges from Best Buy (BBY) to Costco (COST). And last we checked, the retail industry is in the garbage. Even Apple is suffering.
If done right, Microsoft might be able to show consumers the benefits (if any) of having a Windows computer, Xbox 360, Windows Mobile phone, and Zune, all in one place. At very least, they could do a better job than Best Buy at showing off PCs. (We're not sure how well the gurus Microsoft hired last fall to do that at other big-box stores worked out.)
Conceivably, they might convince more people to buy PCs -- or at least to buy newer PCs with Windows 7.
Going pretty well. Have had to hold on a little. Averaged down on a few to remain positioned. Cmon stimilus...
Stimulus: How it may affect your wallet
Congress has finalized the economic recovery plan. Here's a look at some of the provisions geared at financial relief for individuals.
Food stamps and hard choices
How effective will the $789.5 billion stimulus plan be in reviving the economy?
It will help a lotIt will help, but more will be neededIt's not nearly enoughIt costs too much or View results
NEW YORK (CNNMoney.com) -- Key lawmakers in the Senate and House have reached a compromise on a final economic recovery package.
The new stated topline price tag: $789.5 billion. That's below both the $820 billion House-passed version and the $838 billion Senate-passed version.
The compromises that the House, Senate and White House made have changed the scope of a number of provisions, including those affecting individuals directly. In some cases, they either reduced or expanded a benefit relative to what appeared in the Senate or House versions of the bill.
Here's a look at some of the provisions that will have a direct affect on individuals in their paychecks, on their tax returns, and with regard to their unemployment benefits and health insurance if they've lost a job.
The information below is based on materials put out by the key committees in the House and Senate as well as House Speaker Nancy Pelosi, D-Calif.
Making Work Pay Credit: The bill provides a $400 credit per worker and a $800 credit per dual-earner couple. The full credit would be paid to people making $75,000 or less ($150,000 per dual-earner couple). A partial credit would be paid to those making above those amounts but no more than $100,000 ($200,000 for couples).
The credit would also be refundable, which means that even very low-income families who don't make enough to owe income tax would be able to claim it.
For most working individuals, the credit will be paid over time at roughly $15 per period, assuming 26 pay periods in a year. Estimated cost: $116 billion.
One-time payments to those who don't work: For retirees, disabled individuals and others who don't work, the bill provides a one-time $250 payment. Estimated cost: $14.2 billion.
Break for higher income families: The bill includes a one-year provision to protect middle- and upper-middle-income families from having to pay the Alternative Minimum Tax. The AMT was intended primarily for high-income taxpayers but has in recent years threatened to engulf those lower down the income scale. Estimated cost: $470 billion.
Temporary deduction for car buyers: The bill would let those who buy a new car, light vehicle, recreational vehicle or motorcycle in 2009 deduct state and local sales taxes as well as any excise tax charged in the purchase. The deduction would be available to those earning less than $125,000 ($250,000 for joint filers). Estimated cost: $1.7 billion.
Temporary credit for home buyers: The bill increases the size of an existing temporary and refundable first-time home buyer credit to $8,000, up from $7,500. It also removes the requirement under current law that the credit be paid back if the buyer stays in the home for at least three years. And it would extend the credit's expiration date to Dec. 1, 2009, from July 1. Those eligible for this credit must have purchased a home after Jan. 1, 2009, and before Dec. 1, 2009.
The full credit is available to those making $75,000 or less ($150,000 for joint filers). Estimated cost: $6.6 billion.
New temporary college credit: The bill introduces the American Opportunity Tax Credit, which would be in effect for 2009 and 2010. It expands the existing Hope Scholarship tax credit and would be worth as much as $2,500 for higher education expenses, up from $1,800 currently.
The full credit would be available to those making less than $80,000 ($160,000 for joint filers). Those making between those amounts and $90,000 ($180,000 for joint filers) would get a partial credit. And the break would also be partially refundable, meaning lower income families with little or no tax liability could now claim some of the credit. Estimated cost: $13.9 billion.
Temporary Pell Grant increase: The bill increases the maximum Pell Grant by $500 to $5,350 in 2009 and $5,550 in 2010. Estimated cost: $15.6 billion.
Temporary expansion of child tax credit: The bill increases eligibility for the child tax credit by lowering the income threshold that must be met for the credit to be refundable. The threshold would be lowered to $3,000 for this year and next. That will allow lower income families to claim more of the credit than under current law. Estimated cost: $14.8 billion.
Temporary increase in earned income tax credit: The credit will be temporarily increased to 45% from 40% of qualifying earnings for low-income families with three or more children. It also includes a marriage penalty relief provision for couples who qualify for at least a portion of the credit. Estimated cost: $4.6 billion.
Direct lifeline benefits
Health insurance help for the jobless: The bill includes provisions to help eligible jobless workers pay for health insurance under Cobra. Cobra coverage allows newly unemployed workers to keep health insurance provided by their former employers for a period of time.
For workers who have been laid off between Sept. 1, 2008, and Dec. 31, 2009, the government will subsidize 65% of their premiums under Cobra for up to 9 months.
Those people laid off between Sept. 1, 2008, and the day the stimulus law goes into effect, and who did not sign up for Cobra, will get an additional 60 days to do so and receive the subsidy.
The subsidy will be limited to those whose income for the year is $125,000 or less ($250,000 for couples filing jointly). Estimated cost: $24.7 billion.
Another provision provides states funding to help pay for expanded Medicaid rolls for workers who've lost their jobs and can't afford health care on their own or can't get Cobra coverage because their former employer doesn't offer a health care plan. Estimated cost: $87 billion.
Unemployment benefits: The bill provides jobless workers with an additional 20 weeks in unemployment benefits, and 13 weeks on top of that if they live in what's deemed a high unemployment state, of which there are now about 30. Estimated cost: $27 billion.
In addition, the weekly unemployment benefit will temporarily increase by $25 on top of the roughly $300 jobless workers currently receive. Estimated cost: $8.8 billion.
Plus, the first $2,400 of benefits in 2009 would be exempt from federal income taxes. Estimated cost: $4.7 billion.
Food stamp payments: The bill includes a provision would increase food stamp payments by 13.6%, so a family of four would see an additional $80 on top of the $588 per month they receive currently. Estimated cost: $19.9 billion.
The bill also provides assistance to help local groups providing food and shelter, elderly nutrition services such as Meals on Wheels, and a program to help food banks re-stock their shelves. Estimated cost: $350 million.
Other help for needy families: The bill provides funding to states to create a contingency fund through 2010 for the welfare program called Temporary Assistance for Needy Families, which provides cash assistance to the needy. Estimated cost: $2.4 billion.
10-4 Blue. Followed you through december (.005 to .125!!!) got out just before the top and am positioned again thanks to you.
The name change will do wonders for the sheeple (90% of the market as you say), not to mention being a gold stock in these economical times. The belts will loosen any day now post this bill passing. Dont miss out!!
AOAG @ .o3 Look at the charts. December (.005 to .125) was nothing!!!
Name change coming through any day. Will also benefit greatly frpm haven investing trend sure to further develop. Dont miss this one. More on this and others to come