Economic News Archive

The Latest at Navellier Growth

Here's at some of my latest comments about everything from investing in China to solar stocks to the best ETFs to buy right now.

Dell's Lousy Quarter

The computer-maker saw its earnings plunge by 54%.

Continue to Avoid Netease.com

NTES shares have now pulled back more than 10% from a 52-week set in late September. I told my Global Growth subscribers to sell this stock in early October and lock in a dramatic 67% gain. We certainly made the right choice with our sale, since it protected our big profits.

Geithner Sees More Economic Growth

The Treasury Secretary sees the economy growing in this quarter and into next year.

CPI +0.3%

Today's CPI report was in line with expectations.

Top Solar Stocks for 2010

In summer of 2008, when crude oil prices were cruising at record highs, it was easy to see the appeal of solar stocks. But now that oil is off nearly 50% from its highest point last year, it appears alternative energy stocks have lost their appeal. Solar stocks in particular have been battered and fallen out of favor. However, there are still some solar stocks that are shining bright right now and have big growth potential for 2010.

Heat Continues to Boil

SmartHeat soars again today.

Producer Prices and Target's Earnings

Target's earnings and today's PPI report are related. Here's why.

SmartHeat Soars 34%

The China-based firm's earnings doubled over the past year.

GM Posts $1.15 Billion Loss

Over the last five years, GM has lost $88 billion.

Best Dividend Stocks to Buy Now

The last two years have been some of the worst for dividend cuts in half a century. In fact, the fourth quarter of 2008 was one of the worst periods for dividend cuts since the late 1950s when Standard & Poor's began tracking this trend. In an economic environment where traditional dividend distributors like Dow Chemical (DOW) and General Electric (GE) have either reduced or eliminated payouts to shareholders just to save cash, it's getting harder to find good stocks with good dividends. Harder yes ... but not impossible! Here are my favorite dividend stocks to buy now.

Trade Deficit Widens; Eurozone Out of Recession

After five straight declines, the trade deficit grew in September.

ESPN Gives Disney a Boost

Disney posts a nice earnings gain, but I want to see more evidence of a turnaround.

Forget the Automakers–Profit From the Parts

For more than 12 months, the auto industry has been pelted by a hailstorm of bad news. But Ford's third-quarter earnings results and the latest monthly auto sales figures indicate that the industry–and the economy–may be on the mend. But don't put on your party hat just yet. With weak consumer spending and high unemployment, the auto industry still faces an uphill battle.

Walmart's Earnings Top Forecasts

Walmart posts improving earnings, but it's due to cost control not growth.

Green Mountain's Earnings

The coffee stock beats estimates but guides below the Street for this quarter.

Four Dates that Will Define November

There's an old market saying that you should "sell in May and go away." This theory worked very well from 1950 up to 2004, but it's broken down ever since then. In fact this year, the stock market began its incredible run in March, and it made a new high just a few days ago. I still think the environment is going to be good for stocks, but the difference now is that Wall Street is going to be far more selective in November. Since this is a key month for investors, I want to point out four dates on the calendar and what each means for you as an investor. The first one, in fact, is today!

The Business Boom in Brazil

"The biggest concentration of billion dollars in investment per square kilometer in the world."

Weight Watchers Is Still a Sell

The weight-loss company beat earnings, but it's still not my top stock in the field.

The 2009 Gold Rush

The Indian Fed buys 200 tons of gold.

Kraft Makes Hostile Bid for Cadbury

The war for the candy stock is starting to get rough!

The Debt Clock

Here's a look at our financial commitments.

Unemployment Reaches 10.2%

The jobless rate reaches a 26-year high.

Babes, Booze and Betting–Guilty Pleasures Investors Should Live Without

Hard economic times won’t stop consumers from indulging in their vices—gamblers will keep betting, bar-hoppers will keep drinking and smokers will keep puffing. But as more signs of an economic recovery are emerging every day, cashing in on “corruption” doesn’t trigger the same rush it did just a few months ago. Here are some guilty pleasures that you should really give up to keep your portfolio safe:

Hansen Misses Earnings

The Monster Energy drink stock falls three cents short of Wall Street's consensus.

Starbucks Raises Guidance

The coffee-shop chain continues its remarkable turnaround.

Our 145% Profit in Medifast

Shares of the health and diet stock are at another 52-week high.

Looking at Insurance Stocks; Earnings from Allstate and Prudential

Insurance companies are posting major gains from last year thanks to much better weather.

3 Stocks for the New 'Net Boom

It's 2001 all over again! Internet-based stocks are booming, from retailers to video game designers to service companies. There's no stopping these blowout companies that are tapping into the tremendous potential of the World Wide Web. A decade ago, investors were speculating on the untapped potential of the Internet ... but these three companies have proven numbers to show how to leverage the Web for huge profits.

Gold Continues to Rise, How to Play the Rally

The yellow metal is close to $1,100 an ounce. Here are some of my favorite gold stocks.

Productivity Soars to Six-Year High

Worker productivity soars 9.5%.

Two New IPOs Hit Wall Street

The market for initial public offerings is going to get a big test this week with two new issues; both Hyatt Hotels and Ancestry.com plan to debut on the exchanges. With the stock market being in such a sour mood for the past two years, the demand for initial offerings has understandably dried up, so a lot of eyes will be watching these IPOs.

The Fed Leaves Rates Unchanged

Here's today's policy statement:

Stocks and Gold Are Up this Morning

Stocks are up slightly ahead of the Fed's announcement.

Cutting Edge Biotech Stocks to Buy Now

All throughout the recession, large-cap biotech companies held their own despite the difficult economic circumstances. Why? Because medicine and treatments simply will not be cut out of family budgets even in hard times. Now that the recovery is under way, it seems Wall Street is more interested in the little guys–one-drug biotech stocks that could rally double-digits on a single breakthrough. With all of this added attention, it's important to know which biotechs are the safest bets for your money. That's why I've put together a list of five biotech stocks to buy now.

Peet's to Buy Diedrich Coffee

It's a coffee merger!

Buffett Buys Burlington Northern

The legendary investing tycoon is hitting the rails!

Navellier Seminars

I'll be speaking this week near Portland and Seattle.

Ford Earns Surprising Profit

The car company made $1 billion last quarter.

CIT Group Files for Bankruptcy

The 101-year-old company is now the fifth-largest bankruptcy in U.S. history.

Tessera Posts 76% Earnings Surprise, But It Isn’t Enough

Tessera Technologies (TSRA) is one of my favorite stocks. This company licenses its technology to some of the biggest names in the tech industry. Ahead of Thursday's earnings I predicted that this growing tech company would beat analyst expectations by about 14%. Well, the stock blew out even my optimistic outlook, but this was not enough to get investors in the buying mood.

Medifast Reports Blowout Earnings!

Just a few short days ago, I posted an article singing the praises of Medifast Inc. (MED). If you remember, this is the doctor-approved, weight loss option of choice for thousands of people. Well, the company just reported its third-quarter results that were even better than even I was expecting. Here are the details:

Dresser-Rand Profits Increase 59%!

What an amazing earnings season this has been! One of my earnings picks for NavellierGrowth.com readers was Medifast Inc. (MED). They reported a 21% earnings surprise and the stock shot up by as much as 17% as a result. This is excellent news for the company, but it isn’t the only NavellierGrowth.com company that beat earnings this week. Dresser-Rand Group (DRC) was another stock that I targeted for a strong quarter. And the company didn’t disappoint.

The #1 Overlooked Opportunity in the Energy Sector

This week as earnings season marches on, there’s a quiet opportunity brewing that I want to tell you about before Friday. For one reason or another, energy stock Dresser-Rand Group (DRC) is being overlooked right now and offers an excellent opportunity for short-term gains of 8%–10% when it posts its third-quarter earnings report. Here are the details:

Talking Stocks on Fast Money

Here's my appearance on Fast Money yesterday.

More Telecom Earnings

Here's my take on the earnings news from Motorola and Sprint.

Office Depot Vs. OfficeMax

Difficult times for the office supply stores.

GDP +3.5%

After four straight down quarters, GDP is finally rising again.

The Best Tech Stock You've Never Heard Of: TSRA

This earnings season there are three key ingredients that make for a stellar earnings report and subsequent run-up in stock price: increasing sales, earnings growth and positive earnings surprises. One stock I expect to deliver all three when it reports this Thursday is Tessera Technologies (TSRA). Here's why...

Get Skinny and Rich With Medifast

Most folks when asked what they’d like to change in their lives will give you an answer that centers on their health and/or finances. They’ll tell you they want to be skinnier and make more money. Very few companies can actually help you achieve these goals, yet one company that is helping people lose weight while offering an incredible opportunity to investors is Medifast Inc. (MED)—which is scheduled to report earnings this Thursday.

Seven Housing Stocks to Sell

We got more bad news on housing today, but here are seven housing stocks that no one should own.

Apollo Shares Take Hit on SEC Probe

Apollo Group had a very good earnings report but the stock is down on news that the SEC is looking into its accounting.

Strong Earnings for Peet's Coffee

Peet's Coffee just came out with great earnings and raised guidance. Find out my top buys among coffee stocks.

The Emerging Market for Small Nuclear Reactors

Japan's major nuclear reactor manufacturers have begun developing small nuclear power systems. Toshiba, Mitsubishi and Hitachi have all gotten involved.

Housing Is Still Hurting

Today's Case-Shiller Index showed that home prices rose for the third straight month, but are still way down from a year ago.

How Investors Should Prepare for Thursday's GDP Report

Wall Street is on pins and needles this week in anticipation of the GDP report that will be issued this Thursday morning at 8:30 am ET. Traders all around the world will be glued to their monitors to see what the government report has to say. This report will have a major impact on stock prices and could shape the entire investing environment for the rest of the year and beyond. Here's why:

AMGN a Victim of Investor Sentiment

Amgen looks like a great stock on paper, and has outstanding fundamental grades. So why did Wall Street just decide to panic and dump shares of this stock if all the numbers indicate the company is doing well?

Amazon, Ebix and Diedrich Coffee Continue to Rally

Stocks started out strong today, we even cracked 1,090 again for the S&P 500, but we're now back in the red.

A Look at the Week Ahead

This will be another busy week for earnings, plus Wall Street is eagerly waiting for Thursday's GDP report.

Verizon Delivers Earnings Surprise

Wall Street is pleased over Verizon's earnings beat but I'm still not impressed.

Are Airlines Still in a Downward Spiral?

To say that I fly a lot is an understatement. I'm constantly traveling between my Reno and Florida homes, I do about two free seminars per month in all corners of the country, and there are literally dozens of institutional investors or Wall Street experts that I meet with regularly around the world. So planes and airports are always on my mind! In the past week, a number of airline companies reported earnings. That gives me a perfect opportunity to give you my opinion of these companies. And I'm talking, of course, of whether you should invest in these picks–not whether you're going to have enough legroom over the holidays.

Cashing In on the Wireless Revolution

Mobile broadband has changed the way people access the Internet, especially in the U.S. You no longer have to be sitting behind a desk and tied to a cable—wireless devices are more convenient than that. Not only do they slip into your pocket, but you can talk on them and browse the web, and most of them have computing capabilities and a built-in GPS. These devices are also becoming increasingly more affordable. For investors, this "mobile" trend screams profit opportunity. Here’s how you can capitalize on it:

More Earnings; Hershey, OxyPete and Alexion

The Dow is back over 10,000 this afternoon thanks to more good earnings news.

Leading Economic Indicator at 2-Year High

Today's report on leading economic indicators were up again, although jobless also rose. See my latest articles at Navellier Growth.

McDonald's Profits Rise

The fast-food stalwart had a decent earnings report for the third quarter. Here's my take.

China Continues Rapid Growth

In case there was any doubt that China is the global economic leader right now, the latest numbers make that point crystal clear. On Thursday, we learned that China's economy grew at a vigorous 8.9% in the third quarter from the same period a year earlier.

Stock Smackdown: GOOG vs. YHOO

Competition is the name of the game on Wall Street. Companies are constantly scrambling to claim a piece of the spotlight and attract the bulk of the buying pressure away from industry peers. Among investors, perhaps the most widely talked about battle is the one between the Internet search giants, Google (GOOG) and Yahoo (YHOO). Now that both industry behemoths have reported their latest quarterly earnings, investors can get a clear reading on how these companies are performing at present and how they will continue to perform in the months to come.

The Dollar Break $1.50 Against the Euro

The U.S. dollar continues its freefall.

Bank Earnings: Morgan Stanley, Wells Fargo, Northern Trust, KeyCorp, US Bancorp

Today is a big day for bank earnings. Here's a look at some top reports.

Producer Prices Plunge -0.6%

Today's PPI report shows wholesale deflation, but next month's report may be quite different.

Badmouthing the Greenback

My take on why it's a near impossibility that the U.S. dollar will firm up anytime soon.

Apple's Profits Soar

Apple stunned Wall Street by reporting earnings growth of 47%.

The Coffee Surge

Here are two outstanding coffee stocks.

Navellier Seminars

I'm holding two seminars in North Carolina this week.

What's on Tap this Week

This is going to be a big week for corporate earnings reports.

Industrial Production Rises Again

The Federal Reserve reports that industrial production rose for the third straight month.

Medifast and Green Mountain Coffee Named Best Small Companies

Two of my top-rated Emerging Growth stocks are recognized by Forbes.

Now the Bad Earnings

The market is under pressure this morning from a few poor earnings reports.

Earnings: JPM, C, GS Beat Estimates—But Are They Good Buys?

Yesterday's announcement from JPMorgan Chase (JPM) that it obliterated estimates sparked a buying party on Wall Street that pushed the Dow above the Holy Grail of index levels (10,000). But the bulls backpedaled today after Citigroup's (C) earnings report gave investors a real taste of the trend that is likely to dominate banks' third-quarter announcements–namely, failed consumer loans. Even JPM isn't sheltered from poor consumer credit. This begs the question: How have the company's investment banking counterparts fared? Transparency from banks like Citigroup (C) and Bank of America (BAC) is especially important this earnings season, and frankly, the outlook for some of these companies leaves much to be desired.

Thursday Earnings Roundup

Here's a rundown of some of today's earnings reports.

Earnings Outlook Wednesday After-Hours

Here's my CNBC appearnce from Wednesday at 5. I'll be on twice a day during earnings season.

The Fed Is Divided on Inflation

The latest Fed minutes show division at the central bank on inflation. My take is that stagflation will make a comeback.

Earnings Outlook #3

This is Wednesday's earnings discussion on CNBC.

Intel Leads the Market Higher

The Dow is close to 10,000 this morning thanks to Intel's earnings report.

Earnings Outlook on CNBC

Here I am on CNBC discussing the third-quarter earnings outlook.

GM Will Sell Hummer

General Motors has reached a deal to sell its Hummer brand to a Chinese company.

Top Stories at Navellier Growth

Here are some major items impacting the markets.

Cisco to Buy Starent for $2.9 Billion

Cisco makes its second big merger move of the month.

Why You Should Expect a Lower Dollar

The dollar's strength is fading fast. Just last week, the greenback hit a 14-month low against major currencies. While this has angered our Asian and European counterparts, this bodes well for the U.S. economy. You see, a weak currency makes U.S.-made goods cheaper abroad. This, subsequently, drives foreign sales even while the American consumer is still pretty stingy at home. I expect the dollar to remain weak for some time, and play an important role in pulling the U.S. economy out of the recession. Here's why:

CNOOC Takes on ExxonMobil

Exxon may no longer be the big kid on the block in the world oil market.

Wall Street Makes New 2009 Highs

The bull still charges. The major indexes are at new highs this morning.

OxyPete Gains from Citigroup Fire Sale

Occidental Petroleum picks up Citi's highly profitable energy trading unit.

A Closer Look at the Weak Dollar

Here's what it means when the U.S. dollar gets weak.

Earnings From Marriott and Pepsi

There are more earnings reports coming in and gold continues to rally.

Make Sure You Have Enough International Exposure

Here's part of a recent interview I did with SmallCapInvestor.

Alcoa's Earnings Plunge but Top Expectations

Alcoa's earnings plunge from 33 cents a share to just four cents a share, but it still beat the consensus forecast.

Auto Stocks Crash With No Clunkers Cash

In the "post clunker" era, automakers are in a world of hurt once more. General Motors (GM) saw September auto sales that were the worst, falling 45% to 156,000 cars and light trucks. Chrysler's sales drop as a percentage was close behind, dropping 42% to 62,000. It looks like without "cash for clunkers," new car sales have flat-out collapsed.

Monsanto Beats the Street, But Don't Be Too Impressed

Monsanto beats earnings, but the stock is still a Sell.

Is It Too Early for Fertilizer Stocks?

Mosaic (MOS), a blue chip fertilizer stock, reported fiscal first-quarter earnings Monday. The numbers weren't good–results included a disappointing -91% decline in profits, a -66% drop in revenue and a -34% earnings surprise. Ouch! But shares of Mosaic did a strange thing the day after this report ... they rallied 5%! It's all due to a weak dollar and rising commodity prices. But has the party in agricultural chemicals started too early?

Gold Soars to New All-Time High

After 19 months, gold has finally made a new all-time high.

Brocade Puts Itself Up for Sale

Shares of Brocade are up nicely today as the company will put itself up for sale.

Rio Wins 2016 Olympics

Rio will host the Olympics, so what does it mean from Brazilian stocks?

My Worries about the Job Market

With today's jobs report depressing Wall Street, here are my thoughts on what will impact the jobs market going forward.

The September Jobs Report

The hoped-for turnaround in the jobs market didn't happen last month.

Merger mania, but who's next?

Stock mergers are starting to ramp up again on Wall Street. This is a very healthy sign for investors. It tells us two things. First, that companies are out there willing to spend money if the price is right. Only a few months ago, no one was willing to spend any money no matter what the price. This also tells us that there's plenty of cash out there waiting to pounce. So who's next? I have my eye on one healthcare stock in particular ...

Dyncorp DCP - The best defense stock

The heads of the G-20 nations recently gathered in Pittsburgh to discuss the world economy, but I was struck by much the leaders were focused on defense and non-economic matters. This is hardly surprising considering we have a new president and there are still many trouble spots around the world. That means defense stocks are in focus ... and DynCorp is my favorite pick in that industry.

Global blue chip stocks are thriving

There's no doubt that China is a huge engine of worldwide economic growth right now. Officially, Beijing says the nation's economy grew at nearly an 8% annual rate in the second quarter. The result has been a surge in Chinese stocks. The average China holding doubled from December 31 to August 1 of this year. But China isn't alone in its economic strength. The nation's explosive growth will be duplicated in other emerging markets in the coming months. That's why I want to encourage investors right now to start thinking about other emerging markets and get in on the ground floor of the surge.

Mixed Economic News Today

The market is digesting higher jobless claims but also improved consumer spending reports.

Looking Ahead to Friday's Employment Report

Today's GDP report was much better than expected.

The Stock Market Is Cleaning House

The market is preparing itself for a very strong earnings season.

$3.5 Trillion In Cash on the Sidelines

There's still plenty of cash to fuel this rally.

Bet On Better Earnings

Here's my appearance on Bloomberg TV.

Shanda Games Goes Public

Shanda Interactive spun-off its Shanda Games unit today in the biggest IPO of the year.

Shares of RIMM Down Sharply

Shares of Research In Motion have been down by as much as 15% today due to a disappointing forecast.

Jobless Claims Fall

Today's report on jobless claims showed a fall, but I expect the unemployment rate to continue to rise.

The Fed Leaves Rates Alone

The FOMC decided on no change to current interest rate policy.

Autozone's Earnings Rise 11%

Autozone is down today although the company reported healthy earnings growth.

China's Greentech Revolution

China's green technology market has the potential to grow to $1 trillion by 2013.

Inflation on the Rise

Last week's economic reports show that inflation is still a concern.

The Dollar Is the New Yen

For the carry-trade, the U.S. dollar has replaced the yen.

Amazon: Wal-Mart of the Web

The New York Times asks, "Can Amazon Be Wal-Mart of the Web?"

Top News Today

Here are some important stories impacting the stock market today.

Tessera Guides Higher

Tessera Technologies is rallying today on news of higher revenue guidance.

Amazon Soars 8.6%

Shares of Amazon had a strong rally yesterday. Here's my take.

Consumer Inflation and Industrial Production

We got a very good report on industrial production.

PPI and Retail Sales

We got very good news this morning on retail sales.

President Obama's Speech on Wall Street

Here's the text of the speech President Obama gave at Federal Hall on Wall Street today.

"Obscene and Growing"

John Dorfman quotes me today at Bloomberg.

Wall Street Fears a Trade War

Wall Street is lower in today's trading on fear of an emerging trade between the U.S. and China.

Preview of the October Blue Chip Growth Issue

Here's a quick preview of what I'll have to say in the October issue of Blue Chip Growth.

The "Lehman Crash" One Year On

As bad as some indicators may look today, we live in a much better world than on September 15, 2008. Although the chilling date of 9/11 will live forever "in infamy," Monday, September 15, 2008 was almost as shocking to Wall Street.

After marathon weekend meetings, the government decided NOT to bail out the prestigious firm of Lehman Brothers. On the same day, the Fed forced Bank of America to pony up $50 billion in stock for Merrill Lynch, and AIG's stock collapsed almost 90% on rumors of bankruptcy.

Consumer Sentiment Improves

The latest reading on consumer sentiment shows a big increase from last month, and it was well ahead of expectations.

The Recession May Finally Be Over

Yesterday's Beige Book report from the Federal Reserve shows that economic activity is stabilizing or improving in the vast majority of the country.

Inflation Shifts Front and Center

Now that the economy is finally showing signs of improvement, economists are beginning to worry about inflation.

A Lost Decade

Over the last ten years, the economy has managed to create a net loss of over 200,000 jobs.

Kraft Makes Bid for Cadbury

Kraft Foods stunned Wall Street by making a $16 billion bid for Cadbury PLC.

The August Jobs Report

Today's jobs report showed that the unemployment rate jumped to 9.7% for August.

Asia Hits Another Speed Bump

China is the single most profitable place to invest right now, but there's no denying that recent events have weighed on stocks. Consider that the average Chinese stock doubled from December 31 to August 1. Explosive growth like that simply cannot continue forever.

While many stocks have deservedly surged due to tremendous profits and booming sales, other companies have been swept up in the general enthusiasm over the region with no proof to back up their success. It's important not to get caught up in the knee-jerk reaction of the broader market.

Uncle Sam's Debt Is Becoming Too Much to Bear

The White House recently said the national debt will grow by $9 trillion over the next decade, up from its previous forecast of $7 trillion.

Ebix Hits New High

In just six months, Ebix is up 190% for us!

Disney (DIS) in Buy Marvel (MVL) is $4 Billion Stock Deal

Shares of Marvel are up as much as 26% today.

The Shift to High-Quality Stocks Is Imminent

Labor Day traditionally marks a dreaded turning point for the markets, but this year the turn is shaping up to be one for the better. The cash on the sidelines is currently higher than it was in 2003, 1990 and 1982, which represented previous high cash peaks. After each of these cash-heavy periods, market rallies averaging over 32% followed.

The market will get excited when the earnings environment is expected to turn positive in the upcoming months. By the fourth quarter, the earnings for the S&P 500 are expected to rise by 270%! As this happens, the market will start to reward high-quality stocks.

Don't be Tempted by Dell and Intel

Both Dell and Intel are up today, but I still have them rated as Sells.

GDP & Jobless Claims

The market is digesting this morning's report on Q2 GDP and last week's jobless claims.

Aeropostale (ARO) Breaks $40

Shares of the teen retailer continue to rally.

The Cloud over the Sunshine State

The economy and housing market in Florida are in rough shape and may not get better soon.

Obama Nominates Bernanke

It's official -- Obama is going to renominate Bernanke.

How a Weaker Dollar Will Fix the Economy

The U.S. dollar was weak again last week and that's good news for the economy.

Navellier Seminars

I'm holding two Navellier Seminars in the Midwest this week.

Report from Jackson Hole, Wyoming

The Federal Reserve held its annual meeting last week in Jackson Hole, Wyoming and Ben Bernanke sounded optimistic.

Leading Economic Indicators Up…Retail Sales Down

So far, this is a business-led recovery, with earnings increases based on cost-cutting more than on consumer sales.

Obama Lowers Deficit Estimate

Finally some good news on the budget. It looks like the deficit is somewhat less massive than previously thought.

The Top 2009 Stock Performers Sell for Around $10 a Share

Junk stocks have been doing very well this year. Looking back to the start of the last bull market in 2003, there were 42 S&P 500 stocks under $10 a share and they were a good place to invest then, too. Those 42 stocks were up 439% through July 31, 2008.

Junk bonds are also doing well so it follows that the stocks of those companies that hawk junk bonds are also beating the blue chips, so far. In 2009, the big S&P winners are the 81 companies with weak credit ratings ("BB" or lower), the cutoff point for "junk" bonds.

The Market for New Vehicles Is Heating Up

The Cash for Clunkers program has caused demand for new vehicles to soar.

4 Pet Stocks to Beat the Recession

Recession-resistant stocks sometimes come in unexpected sectors.

For example, the retail sector isn't typically the first place you'd look for recession-resistant stocks, but pet-related stocks can offer savvy investors big rewards.

It seems pets become instant members of the family, and are refused no creature comfort, even in times when the rest of the family is cutting back the budget sharply.

Here are four pet stocks that are well-positioned to ride out this recession and thrive.

Southwestern Energy Remains a Solid Buy

Even though supply continues to outpace demand for crude oil and natural gas, energy stocks like Southwestern Energy continue to be good buys.

Consumers Are Grumpy

The market looks to open lower this morning and one reason is a poor earnings report from Lowe's.

Outlook for Third-Quarter GDP

We're already at the mid-point of the third quarter. Here's my take on future economic growth.

July CPI and Industrial Production

The market got two important economic reports this morning.

Weak Retail Sales

Wall Street is up slightly this morning, no thanks to weak retail sales numbers.

Budget Deficit Triples...as Bond Rates Double

Tax collections on the federal level are on track to fall 18% this fiscal year which is the biggest drop since the Great Depression. Through July 31, the U.S. government's budget deficit rose to $1.3 trillion.

Due to the record budget deficit and a weak U.S. dollar, Treasury yields last week rose to the highest level in two months. The 10-year Treasury bond yield rose from 3.66% to 3.89% last week and should crack the 4% barrier soon. Last December 18, the 10-year Treasury bond yield was only 2.08%, so yields have almost doubled this year.

The Improving Environment for Earnings

Although Wall Street thinks that Q3 earnings will be negative, I think they'll finally break into positive territory. Here's why.

China's GDP Shows Strong Growth

China's economy continues to grow. In fact, it's probably growing much faster than official estimates.

Crude Oil Prices Rise Due to Weakening Dollar

The price for oil has been rising even though the world is awash in crude oil. Expect to see even higher prices as the dollar gets weaker.

Productivity Surges at Fastest Pace in Six Years

A report from the Labor Department shows that workers are doing more with less which is an important key for renewed economic growth.

Beware of Data-Mining

Analysts on Wall Street will look for any data relationship, no matter how silly. Investors need to avoid these games.

Cash for Non-Clunkers to the Rescue!

Last Thursday, the U.S. Senate approved an additional $2 billion for the Cash for Clunkers program, but are all these old trade-in cars really "clunkers"?

Emergent BioSolutions Soars 20%

Shares of biotech Emergent BioSolutions are up 20% today on the news of strong earnings.

Surprisingly Strong Jobs Report

Wall Street is happy that today's jobs report was much stronger than anyone expected.

Lincoln Educational Services (LINC) Rises on Strong Earnings

Lincoln Educational Services is up nicely today thanks to a great earnings report.

ADP Reports 371,000 Jobs Lost Last Month

ADP said that the economy shed 371,000 jobs last month but Wall Street is still focused on Friday's official report.

Near a Bottom in Housing

The latest data shows that personal income was down in June which indicates that many Americans aren't seeing green shoots.

Personal Income Down in June

The latest data shows that personal income was down in June which indicates that many Americans aren't seeing green shoots.

The July ISM Manufacturing Index Rises

The ISM manufacturing index rose to its highest level since Lehman Brothers went bankrupt.

Preview for the Week Ahead on Wall Street

Wall Street still has lots of earnings reports left, plus the big employment report is due this Monday.

The Inventory for $1 Million Homes Now Stands at 20.7 Months

The federal government is running the mortgage market and the social re-engineering of America is underway.

The Economy Is Bouncing Back

On Friday, we received the initial estimate for second-quarter GDP that indicates the economy was contracting at a much slower rate from April to June–a decline of -1% for the quarter, compared with estimates that were as bad as -1.5%. Considering Q1 numbers indicate the economy shrank by -6.4% in the first three months of 2009, this is a dramatic improvement that indicates the worst is well behind us.

Q2 GDP -1%

The government reported that second-quarter GDP dropped by 1%. Here's what it means.

Green Mountain Coffee Roasters (GMCR) Rallies After Earnings

As I expected, Green Mountain Coffee Roasters easily beat Wall Street's earnings forecast.

Opening Bell

Here's a look at some top stories impacting the market this morning.

Wright Express (WXS) Jumps on Earnings Report

Shares of Wright Express have been up by as much as 12% today thanks to a good earnings report. Here's my take.

Finding Profits in Foreign Stocks

Although the market lost ground yesterday, one of my favorite China stocks was up 23%. Find out more.

"Fundamentals Really Matter"

Shawn Price, one of my top analysts, was quoted in yesterday's Wall Street Journal.

Finally, Some Green Shoots

In the last two weeks, the S&P 500 index has surged over 11% thanks to what's shaping up to be the best earnings season in over a decade.

The economy is finally showing real evidence of green shoots. The Conference Board announced that the index of Leading Economic Indicators (LEI) for June rose 0.7%, which represents the third-straight monthly gain for the index. General Motors reported that its second-quarter sales only fell 15% globally compared with the same quarter a year ago due to strong demand in Asia, which rose an impressive 38%.

Housing Slowly Improves

After 34 months of nothing but declines, the housing market finally shows signs of life.

Amgen Rallies on Strong Earnings

Amgen is up today after reporting strong results for the second quarter. Here's my take.

Uncle Sam's Speeding Spree

The Federal Reserve still has a lot of money left over in its $1.25 trillion quantitative easing program.

June New Home Sales Rise 11%

After a lot of bad news, we may be seeing a turnaround for the housing market.

MarketWatch: Bernanke Meets the Public

MarketWatch notes a rare move, Ben Bernanke has become much more public lately.

Preview for the Week Ahead on Wall Street

This will be another important week for earnings. Wall Street is also gearing up for Friday's GDP report which will be our first look at how well the economy did last quarter.

Netflix's Earnings Rise 22%

Netflix is fighting off the recession. The company just posted another solid quarter.

Earnings Roundup for July 23

Earnings season is kicking into overdrive. Here's a look at some of today's earnings reports.

Today's Economic Reports

The market is doing very well today. In addition to a slew of earnings reports, there were two important economic reports.

Breakout for Emerging Growth Stocks

The new recommendations from the last issue of Emerging Growth are up an average of 16% which is three times that of the overall market.

Earnings Round-Up for Today

Here are some highlights of major earnings reports from today.

Apple's Earnings Rise 15%

Shares of Apple are up today on a very strong second-quarter earnings report.

Earnings Reports to Watch

There are a lot of big-name blue chips rolling out their quarterly reports in the next week. Here are some of the highlights to watch:

Yingli Green Energy (YGE) Soars

Yingli Green Energy (YGE) is rallying nicely today thanks to news of a new solar subsidy in China.

"Tentative Signs of Stabilization"

Ben Bernanke heads to Capitol Hill this morning, and he finally has some optimistic comments.

Is the Recession Ending?

The latest leading indicators show good news for the economy. This is the third straight monthly increase.

Foreign Investors Are Fleeing the Dollar

Treasury Secretary Tim Geithner hit the road recently in an attempt to soothe foreign investors' concerns about the fate of the U.S. dollar. The latest statistics show that foreigners have been dumping dollars -- and I can hardly blame them.

The latest round in the blame game is that everyone seems to be mad at the Federal Reserve. The real blame, however, lies with Congress. Uncle Sam is poised to spend twice as much as it will take in this year.

Higher deficits mean higher debt. Higher debt means more Treasury auctions. More Treasuries flooding the market will mean higher rates. Not only is the dollar in trouble, it's in BIG trouble.

Preview for the Week Ahead on Wall Street

This is another busy week for earnings -- over 150 S&P 500 companies are due to report this week. Also, Ben Bernanke heads to Capitol Hill for a two-day testimony.

More Earnings: Bank of America, Citigroup

The earnings parade continues. Today we got more news from major banks. Both Bank of America and Citigroup beat analyst estimates.

Medifast Breaks Out to New 52-Week High

Shares of Medifast (MED) broke out to a new 52-week high this morning. Earnings are due soon and I'm looking for a big earnings surprise.

JPM's Stellar Quarter

JPMorgan Chase just reported earnings that were seven times what Wall Street was expecting.

Nice Rally for Stocks

Wall Street seems happy today thanks to a good earnings report from Intel. The June report on industrial production was weak, but it could have been a lot worse.

The Return of Stagflation

This morning's report on consumer prices shows that inflation is popping up. Let's take a closer look at the details.

The New GM

GM is out of bankruptcy. The White House wants GM and Chrysler to act as independent companies. What's my view?

Reports on Retail Sales and Producer Prices

The stock market is most flat today. Wall Street is currently digesting two economic reports; retail sales and wholesale inflation.

Goldman Sachs Posts Huge Quarter, J&J Beats the Street

Today's earnings report from Goldman Sachs has Wall Street rubbing its eyes in disbelief. Here's what I have to say.

Are Stocks Still the Best Investment for the Long Run?

Convention wisdom says that the stock market returns 10% a year on average, but some new research says that that might not be the case. Here's my opinion.

Budget Deficit Tops $1 Trillion

The Treasury Department just reported that for the first time ever, the federal budget deficit is over $1 trillion! Worst of all, we still have three months left in the fiscal year!

Yen Drops as U.S. Bank Stocks Rally

The dollar is down today as Wall Street is waiting to hear the latest earnings report from Goldman Sachs (GS). According to some, it will be a blockbuster.

Preview for the Week Ahead on Wall Street

This will be the most important earnings season in a long time. Here's a preview of some of the major events of this week.

Most Economists Oppose Another Stimulus

The latest buzz is that we need another, larger stimulus bill to help the economy get back on its feet. Most economists are against the idea. Here's my take.

Ross Stores Raises Forecast

The retail sales report was pretty rough for June, but Ross Stores (ROST) continues to thrive. The shares just hit a new 52-week high.

Retail Sales Continue to Fall

The retail sales report for June came out this morning and it shows that many retailers continue to suffer. There are, however, a few retailers I like.

Alcoa Reports Third Straight Quarterly Loss

Earnings season got underway yesterday as Alcoa (AA) reported its third loss in a row. Some analysts are happy that their results topped expectations. See what I have to say.

Amgen Soars 17% on New Study

Shares of Amgen are soaring today on news that its experimental bone medicine does a better job than one of its top rivals. This is causing analysts on Wall Street to raise their price targets for AMGN.

S&P's Earnings to Drop for Eleventh Straight Quarter

The earnings for the S&P 500 will be down for the eleventh straight quarter. While most analysts expect earnings to drop by as much as 20%, it may not be so bad. Read why a weak dollar could help.

How's GM's Bankruptcy Going?

General Motors is expected to emerge from bankruptcy soon, but don't think of investing in it. In an official statement, GM said that its stock will have no value even under the most optimistic scenarios.

ISM Nonmanufacturing Index Hits Highest Level Since September

The ISM nonmanufacturing index rose to 47.0 from 44.0, a point above the consensus, 46.0. This is good news. Let's hope we see more.

A Second Stimulus?

Last week's jobs report was awful so now some people are clamoring for another stimulus bill. The problem is that most of the money from the first stimulus bill hasn't even been spent yet!

Preview for the Week Ahead on Wall Street

This week will mark the beginning of second-quarter earnings season. Get ready because this is when the winners are separated from the losers. See what else is on tap for this week.

Today's Employment Report

The government just released its employment report for the month of June, and the results indicated more bad news for the economy.

The Flight to Quality Begins

Corporate insiders have been selling their stocks 20 times more than they've been buying. Find out what this means for your portfolio.

A Preview of Tomorrow's Jobs Report

Tomorrow, the government will release its employment report for the month of June. I expect to see more bad news, but it won't be nearly as bad as it was a few months ago.

Lincoln Educational Services (LINC) Hits New High

Although the market is down this morning, shares of Lincoln Educational Services (LINC) have broken out to a new 52-week. See why I continue to like this stock.

The Morning Market

The stock market is pulling back this morning on a bad consumer confidence report. Shares of Apollo Group (APOL), however, are up strongly on very good earnings.

Madoff Gets 150 Years

The judge just sentenced Bernie Madoff to 150 years in prison. That was the most he could do.

Fuqi International (FUQI) Jumps 18%

In the last three-and-a-half months, shares of Fuqi International (FUQI) are up over 470%. Find out why I like this stock right now.

The Fed Will Continue Gunning the Printing Press

The Federal Reserve said last week that it will continue to policy of quantitative easing . This means more pain for the U.S. dollar.

Preview for the Week Ahead on Wall Street

Here's a look at what to expect for the week before the July 4th holiday.

Personal Incomes Up

News of a rise in personal incomes doesn't seem to be enough to lift the market today. That's probably because much of the 1.4% rise in incomes in May can be attributed to stimulus package, which gave one-time $250 payments to people receiving a variety of social security benefits.

Bed Bath and Beyond Earnings Help Boost Market

Higher oil prices and a better-than-expected earnings report from Bed Bath & Beyond (BBBY) sent stocks higher today.

Lennar Corp. Helps Pull Market Back from Bad Jobless Report

The stock market got spooked this morning by a report that jobless claims rose well above the consensus estimates. But the downward push was quickly reversed when homebuilder Lennar Corp (LEN) reported a 63% increase in orders for new home sales over the first quarter.

Durable Goods Report Boosts Stocks, Especially Tech Stocks

Investors were pleasantly surprised by a durable goods report released this morning that showed orders for big-ticket items rose 1.8% in May, well above the consensus estimate, which forecast a drop of 0.9%.

The Stock Market May Need to Take a Rest

After 14 straight weeks of climbing, Wall Street may need to take a rest. Over the weekend, G8 finance ministers expressed their alarm at higher bond yields.

Earnings Outlook #2

Here I am on Tuesday discussing earnings on CNBC.

Consumer Sentiment Edges Up Slightly

The Michigan consumer sentiment index rose to 69.0 from 68.7, which was just below Wall Street's consensus of 69.5. This is a surprise. Consumer sentiment should soon falter due to rising unemployment and higher gas prices.

What General Motors Needs to Do

The new GM is on its way to becoming a very boring company. Instead of making extremely dull cars, GM needs to regain its passion.

Treasury Allows TARP Repayment

The big news today is that the Treasury Department will allow 10 major banks to pay back $68 billion in TARP money. The Treasury hasn't said which ten, but I assumed it's the banks that fared the best during the stress test. This would be banks like Goldman Sachs (GS) and JPMorgan Chase (JPM).

Rift Opens between the U.S. and Germany

The German government thinks we're not taking the threat of inflation seriously -- and I agree.

Unemployment Jumps to 9.4%

The Labor Department reported that that nation's unemployment rate jumped to 9.4% last month which is the highest reading in over 25 years. Despite the awful news, Wall Street is actually pleased because payrolls dropped by only 345,000.

Oil Is on the Rise

As I've been predicting, the huge government spending is putting pressure on the dollar and that's causing commodity prices to rise.

The First-Quarter GDP Report

On Friday, the Commerce Department reported that U.S. GDP in the first quarter was revised up to a 5.7% annualized decline from its initial estimate of a 6.1.

The First-Quarter GDP Report

On Friday, the Commerce Department reported that U.S. GDP in the first quarter was revised up to a 5.7% annualized decline from its initial estimate of a 6.1

Washington Is Now Considering a Value Added Tax

The U.S. government's budget deficit has grown so large that Uncle Sam is now considering additional revenue ideas like a European-style Value Added Tax.

California Steaming

California faces a fiscal mess, but no one in the state is willing to do what's needed. The state is left with little alternative but to spend less and layoff state employees.

Decision Time for General Motors

June 1 is D-Day for General Motors. Or more accurately, it's B-Day because a bankruptcy filing is a very real possibility. I expect that President Obama will try to mask the nine-week GM plant shut down by announcing a "cash for clunkers" program.

Recessions End with Powerful Bull Markets

As painful as the past 18 months have been, history shows us that painful bear markets often lead to big returns. USA Today recently noted some of our research.

Europe Is Feeling the Pain

Economists think the U.S. economy will turnaround by August. In Europe, however, the picture is very bleak. My view is that the dollar will continue to weaken.

Inflation Unchanged for April

The government released the Consumer Price Index report for April today and it showed that there was no inflation last month. On a year-over-year basis, prices fell by 0.7% which is the biggest drop in over 50 years.

Only 6% of Stimulus Has Been Spent

I know I must sound like a broken record when I talk about Uncle Sam's awful fiscal policies. Earlier I mentioned that we ran a deficit during April (tax month) for the first time in a quarter of a century. The deficit is projected to balloon by fourfold this year.

Fiscal 2009 Budget Deficit Balloons

I've been warning investors about the dire straits of the U.S. government's finances. The Treasury just reported that it ran a deficit during April, which is tax month, for the first time in 26 years.

The Economy Is Poised for a Turnaround

The good news is that the earnings for this past earnings season were about 10% better than expected. Looking forward, economists now expect second-quarter GDP to decline by 2% before turning positive in the third quarter as consumer spending improves.

Why the Dollar is in Trouble

It's hard to explain to folks just how bad our government's finances are because the numbers are so staggering. This year, the federal government is spending nearly twice what it will bring in through taxes. It's so much money that to balance the budget every taxpayer over $75,000 would have to be taxed at 100%!

Today's Trade Report

The government reported today that the trade deficit widened in March for the first time in eight month. Both imports and exports fell, but exports fell by slightly more, 2.4% to 1.0%. A weakening U.S. dollar is now driving crop prices higher and should eventually boost exports. Since 46 cents of every dollar that the federal government spends is borrowed, the dollar's demise is inevitable. Until exports perk up, the economy will continue to flounder.

Preview of This Week on Wall Street

This week will probably be quieter than the previous few weeks since earnings season is almost over. The big news this week will be the reports on wholesale and consumer inflation. If the news shows that inflation is creeping up, this could mean big trouble for the bond market.

The Stress Test Is Over–What's Next?

Last week, the government released the results of its bank stress test. Wall Street seems relieved but I still have some problems with how the tests were conducted.

Unemployment Jumps to 8.9%

The Labor Department released the jobs report for April and as expected, the numbers are ugly. The economy lost 539,000 jobs last month, and the unemployment rate rose from 8.5% to 8.9%. If there is a silver lining it's that economists were expecting job losses of 610,000 so we did a little better than expectations.

The Stress Test Results Are Out

The New York Times reports: "Federal regulators told the country's 19 largest banks that they must raise $75 billion in extra capital by November, a more upbeat verdict on the health of the financial system than the industry had feared just two months ago. "Ten of the 19 bank holding companies deemed "too big to fail" by the Obama administration will be required to raise additional capital, according to the results of the government's stress tests, released late Thursday afternoon. But the 10 banks will have to raise much less capital than some analysts had expected as recently as a few days ago.

The Results of the Navellier Bank Stress Test

The results of the government's stress test on several leading banks are due on Thursday. Before we see the official results, here are the ratings my team and I have given to the 18 publicly traded banks undergoing the test.

ADP Report Shows Job Losses Less Than Forecast

We had some potentially good news today. The employment report from ADP, a private firm, showed the payrolls dropped by 491,000 last month. Wall Street is expecting a decline of 645,000.

Bernanke Says Growth Will Resume Later This Year

Ben Bernanke shared some optimistic words, which should help the market.

Healthy Banks Could Fail the Stress Test

Thanks to yesterday's rally, the stock market is up slightly for the year. That's a nice turnaround from where we were two months ago. This may soon be a tough week. First we have the biggest week ever for Treasury auctions. If they don't go well, then you can expect the dollar to fall and inflation to perk up.

Uncle Sam Needs Money

The U.S. government needs to borrow huge amounts of money to finance our budget deficits. The Fed has helped pick up the slack but this will come at the expense of the U.S. dollar.

Preview for this Week on Wall Street

Earnings season is beginning to wind down. The two big news items this week will be the release of the bank stress test results on Thursday and the employment report on Friday. We may see the first signs that the economy is stabilizing.

Fed Makes Policy Statement

The Fed made a policy statement today. The Fed apparently wants to expand the quantitative easing. This will certainly help weaken the U.S. dollar.

First-Quarter GDP Dropped By 6.1%

The government reported today that the economy fell by 6.1% during the first three months of the year which is more than the 4.7% drop expected by economists. The bright spot is that consumer spending increased by 2.2%. During the fourth quarter of 2008, the economy contracted by 6.3%. This is the first estimate of first-quarter GDP growth. This number will be revised at the end of May and again at the end of June.

Morning Headlines

The market is holding on to some gains this morning. Here are some top headlines...

Currency Wars: China Attacks the Dollar

China has attacked the U.S. dollar and our fiscal policies. But our other major trading partners want to see a stronger dollar. Meanwhile, the British pound is in serious trouble.

Preview for this Week on Wall Street

This is the final week of April. We're going to more earnings reports plus we're going to get our first peak at how well the economy did in the first quarter. On Monday, Baidu (BIDU), Southwestern Energy (SWN) and Verizon (VZ) report earnings. On Tuesday, the report for consumer confidence is released.

Fed Releases Stress Test Details

The Federal Reserve has released the details of the government's stress test (here's the Fed's statement). These tests were designed by the Fed to see how much of a downturn the 19 largest banks can take. The idea is that a stress test would calm investors' fears. Basically, I think the tests are designed so everyone can pass. There will be a lot of testing, but not much stress.

Why the Market Could Easily Go Up 30%

The stock market has been rallying impressively over the past several weeks. But I'm preparing for a period of stagflation where the economy will experience anemic growth and rising inflation.

Leading Economic Indicators

The index of leading economic indicators dropped by 0.3% last month which was 0.1% more than expected. The weak spots were the falling workweek, rising jobless claims, faster delivery times, lower building permits and a drop in stock prices.

Consumer Prices Fell 0.1% Last Month

The Labor Department reported that consumer prices slid 0.1% last month. The CPI posted its first annual drop since 1955.

The Federal Government Is Becoming a Fiscal Disaster

April 15 is Tax Day so I want to remind everyone to get those returns in on time. As the rate things are going, the Feds need every dime they can get. The reality is that the U.S. government is rapidly becoming a fiscal disaster.

Economic News This Morning

There were a few important economic news items this morning. Here's a brief summary: Retail sales dropped 1.1% last month. This was a surprise since economists expected an increase of 0.3%. This is a bit disappointing after last week's same-store sales. The fact that Easter was in March a year ago might have been a factor.

Obama Charms the World

Last week saw the big G20 Summit in London. There were lots of important discussions and issues, but the real accomplishment of the meeting was a renew sense of optimism.

Unemployment Hits 8.5%

One of the reasons why the stock market rallied yesterday was that the Financial Accounting Standards Board relaxed some of its accounting rules. I'm certainly glad for yesterday's rally, but let's be frank: If a company wants to fudge a bit on their numbers, they now have a chance.

The ECB Cuts Rates

Today looks to be another good day for stocks. The market has almost made back everything it lost during the nasty two-day downturn of last Friday and Monday. The bad economic news this morning was the jobless claims report. Jobless claims rose 12,000 last week to 669,000. This is bad but we knew it was coming. The major report will be tomorrow's employment report for March, and I'm expecting more bad news.

Don't Fall for Lies About the Economy

Here's a little secret that's been floating around Wall Street, but no one is afraid to say out loud: The economy is doing better than most people realize.

Consumer Confidence Is Still Low and Housing Prices Are Down

There were two important economic news items today. Consumer confidence improved slightly in March, but February was still the lowest reading since records began in 1967. Confidence and the economy tend to feed off each other. When consumers feel more optimistic, the economy improves and in turn, lifts consumers' sentiments. We're currently watching the reverse.

"The Gentlemen's Club"

MarketWatch has a great article which quotes a statement from the People's Bank of China's website saying that the U.S. financial system is a "gentleman's club." Clearly, the U.S. is going to be made the scapegoat at next week's G20 meeting in London.

GDP Revised Downward

The government reported today that the economy shrank by 6.3% in the fourth quarter which was slightly below the earlier forecast of a decline of 6.2%. The major factor for the revision is that businesses had cut their inventories faster than originally believed.

What to Expect from Next Week's G20 Meeting

Next week, finance ministers will gather in London at the G20 meeting to discuss the global recession, and what steps they can take to avoid it becoming a global depression. What's concerning other countries today is the U.S. government's massive spending spree. The U.S. dollar is already feeling the pain, and I think it's only just begun.

Ditch the Dollar?

Next week, the G20 will be meeting in London to discuss reforming the world's financial system. One idea that's been floated is to ditch the dollar as the world's reserve currency. Any move like that won't happen at a meeting by a lot of men and in women in nice suits. Instead, it will be a judgment of the world's investors. The latest person to call for replacing the dollar as the world's reserve currency is Zhou Xiaochuan, who's a governor at People's Bank of China (aka the Chinese Fed).

Bank Plan to Be Announced Today

This is going to be an important week for the stock market. The biggest news will be the unveiling of the Obama administration's bank rescue plan later today. In fact, Asian markets have already rallied strongly in anticipation. Clearly, the markets prefer certainty over uncertainty.

My Take On Geithner's Bank Plan

After a rough few weeks for the Obama administration, the president hopes to turn things around with the unveiling of his bank rescue plan. The plan needs to get the toxic assets off the balance sheets of many banks. That way, banks can resume lending and hopefully, the rest of the economy will recover.

Sector Performance During Quantitative Easing

Here's a look at how different Japanese stock sectors performed when they used quantitative easing (3/19/2001 ‐ 3/9/2006): Basic Resources.....................................130.0% Insurance...............................................129.2% Oil & Gas................................................120.5% Chemicals................................................90.4% Autos & Parts...........................................72.6% Utilities.....................................................62.0% Financial Services.....................................59.2% Retail........................................................48.2% Industrial Goods & Services......................48.2% Construction Materials..............................41.6% Personal & Household Goods....................38.5% Banks........................................................36.7% Food & Beverage.......................................24.4% Travel & Leisure.........................................19.4% Health Care................................................-8.7% Media........................................................-10.0% Telecom....................................................-10.6% Technology...............................................-26.2% (Source: Ned Davis Research)

Congress Passes 90% Tax on AIG Bonuses

Congress just passed a 90% tax on AIG's bonuses. What a joke! They didn't write the bill correctly the first time, so they just wrote a new bill to get the money back. I think Milton Friedman said that he was glad for government incompetence because it at least made the government less efficient.

The Fed Is Loading Up on Long-Term Treasuries

The Federal Reserve announced today that it will start buying $300 billion in long-term Treasury bonds and $750 billion in mortgage-backed securities. That's over $1 trillion that Bernanke & Co. are adding to the economy.

Today's CPI Report

The Consumer Price Index (CPI) rose by 0.4% last month which was 0.1% more than Wall Street expetected. The core rate, which excludes volatile food and energy prices, rose by 0.2% and was also 0.1% higher than expectations.

What the Fed May Do

The Federal Reserve is meeting today in Washington. These policy meetings used to be big events but since the Fed has basically done away with interest rates, the meeting outcomes aren't such a big deal anymore.

The Geography of a Recession

The New York Times has a fascinating graphic showing the unemployment rate by county across the country. Notice how the job losses have hurt the West Coast hard as well as some spots in Michigan and the Deep South, while the Great Plains have hardly been touched.

Why China Isn't Happy With the U.S. Economy

One of the major concerns I've had of the U.S. government's economic policy (both Bush and Obama's) is that it's bitten off more than it can chew. This has serious repercussions for investors, especially holders of U.S. dollars.

Geithner Needs to Resign

Election Day happened in November, but the stock market votes every day and the results are in: Tim Geithner needs to resign as Treasury Secretary. Not only will it help the market, but I believe it will spare the Obama administration a lot of embarrassment.

Unemployment Rate Soars to 8.1%

The Labor Department reported this morning that the unemployment rate rose to 8.1% last month. That's the highest rate in over 25 years. The economy shed 651,000 jobs in February. The job losses for December and January were also revised higher. Over the past three months, the economy has lost nearly two million jobs. That's an average of over 150,000 job losses per week. Honestly, we got lucky today. It could have been much worse.

Deficits Spell Declines for the Dollar

Runaway deficit spending is taking its toll and its only a matter of time before the dollar drops drastically. There's just no way this U.S. currency can stay firm during such deficit spending.

When the Budget Deficit Is High, These are the Stocks to Buy

Where do we go from here? Well, the only thing that's certain is more partisan bickering, escalating federal budget deficits and the eventual collapse of the U.S. dollar. This means we must stay selective with our stocks and look for opportunities with an international footprint that will benefit from the weakening greenback.

Obama's Speech: What It Means for Investors

Last night, President Obama spoke to a joint session of Congress to lay out his economic plans. His plan has three major points. The first is to set up a new lending fund designed to get bank lending back on its feet. The crucial issue for the administration is to take the toxic assets off the balance sheets of banks. Once that happens, banks will be in much better shape to resume lending.

Why the Stimulus Package Failed to Stimulate Wall Street

As the $787 billion spending plan was being hammered out in Congress, many investors were asking, "How much will this plan help the U.S. economy?" By February 17, when President Obama was signing the bill into law, most people had discovered the disappointing answer:

Not much.

My Thoughts on the Geithner Bank Plan

Earlier, I criticized Treasury Secretary's Geithner's bank bailout plan. More specifically, I called on him to resign before he embarrasses Obama even more. The plan still lacks a lot of detail but here are my thoughts on the four major points.

Why I'm Pleased with Today's CPI Report

The Consumer Price Index report for January came out this morning, and it was inline with forecasts. Consumer prices rose 0.3% last month. Core prices rose 0.2% which was 0.1% above consensus.

Obama Signs the Economic Stimulus Bill

The Washington Post reports: "President Obama today signed into law a $787 billion economic stimulus plan that he said begins "the essential work of keeping the American dream alive in our time."

Auto Bailout Plans Unclear, Auto Stocks in Trouble

Is the auto bailout going to work? Now that the economic stimulus bill has been passed and signed, the next big test for the Obama administration will be how to deal with our dysfunctional car companies. The government loaned the car companies billions of dollars, and the deal called for them to come up with their survival plans. The deadline for those plans is today.

The Senate Passes the Stimulus Bill

The vote was 61 to 37. The CBO says that the bill will cost $838 billion over the next 10 years. Now the House and Senate need to get together to work out a final bill.

Geithner Stimulus Plan Off by $1.5 Trillion

Earlier today, Treasury Secretary Tim Geithner announced his plans to bailout the American banking system, and Wall Street gave him a big thumbs-down. Frankly, it's time for Geithner to do President Obama a big favor and resign before he embarrasses himself any more.

Actually, today's announcement was really a bailout plan for the previous bailout plan which became hugely unpopular.

Geithner Announces Bailout Plan

This morning, Treasury Secretary Tim Geithner announced the government's plan to bailout the U.S. banking system. Here's are the details of Geithner's bailout plan:

According to Buffett's Method, Stocks Are Attractive

Fortune has a great graph showing the relationship between the stock market and the Gross National Product. This is an important metric because, according to Warren Buffett, stocks are attractive when their market value is 70% to 80% of GNP. We're at that point now.

Stimulus Bill Clears Hurdle

The economic stimulus just cleared a big hurdle earlier this evening. The Senate voted 61-36 to shut down debate. This paves the way for a vote on the bill tomorrow. However, even when the bill passes, we're still not done. Leaders from the House and Senate will have to get together to work out the differences between their respective bills.

Stimulus Bill Showdown

Today is going to be an eventful day in Washington and on Wall Street. President Obama is putting a lot of pressure on the Senate to pass the stimulus bill. The Democrats are going to hold a procedural vote later today which will gauge how much support they have. This could have a big impact on trading. The president isn't leaving anything to chance--he's going to hold a prime-time news conference in an effort to build support for the stimulus plan.

The Bad Bank Plan Is Taking Shape

The first act by the new Treasury Secretary Tim Geithner seems to be the creation of a huge new "bad bank" to buy toxic assets and dispose of them.

The Fed Seems Overwhelmed with Financial Crises

At the Federal Open Market Committee's two-day meeting last week, with the Federal Funds rate already near zero (ranging between 0% and 0.25%), the Fed effectively ran out of bullets. The market responded with a rise in the three-month Treasury bill rate, which more than doubled from 0.11% to 0.24% in the wake of last week's troubling Treasury auction. Despite the fact that short-term rates doubled last week, the Fed hinted that it would consider buying long-term Treasury bonds to monetize some debt, which is a fancy way of saying that they would print more money.

Unemployment Graphic

MSNBS has a fascinating graphic showing the rise in unemployment across the 50 states over the last two years.

Today's Awful Jobs Report

Ugh. The U.S. economy lost 524,000 jobs last month and the unemployment rate is now 7.2%. Last year, the economy shed 2.6 million jobs.