The euro zone's disinflation has spurred fears of Japan-style deflation, possibly keeping yields on the German bund depressed for the long haul.» Read More
Investors can now get this once-hated name on sale.Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
Stocks closed broadly lower at the end of a light-volume trading session as continued weakness in financial stocks brought down the major indexes. The Dow fell 56 points, closing near the lows of the trading session, while the S&P 500 and Nasdaq Composite ended with respective losses of 0.9% and 0.6%, respectively.
A reader writes in: It's Saturday and I'm enjoying a quiet afternoon. Suddenly there's a loud knock at the front door. I'm not expecting anyone so I'm curious to see who knocking so aggressively. I open the door and there's a woman standing there with a clipboard. She asks to speak to the owner of the house, Mr. X (not his real name). I advise the woman that he doesn't live here anymore, I am a renter and he is my landlord.
While July existing home sales came in in line with expectations, the pace is still weak and the increase in inventory (to 9.6 months supply at the current sales pace) is especially unwelcome. This occurred before the recent credit crunch, so the concern is that difficulties in the mortgage market may further impact sales in August.
I said the word bupkiss on TV this morning. Is that kosher? I just couldn’t think of a better word, for all my years of hifalutin network journalism experience. It’s just that everyone wanted to talk about the July existing home sales numbers, how sales were essentially flat, and that was better than many folks had predicted, and yadda yadda, isn’t that nice?
The 2.3% rise in the Dow last week, coupled with lower volume and lower volatility, has given the markets what it wants mosts: time. Time allows market participants to readjust risk. JP Morgan, in a note to clients this morning, said "The key issue for the months ahead will be to figure out the impact of tighter credit conditions on economic growth."
Reinvesting company payouts is a strategy too good to ignore. Let Cramer explain.Investing can be confusing. Luckily, Cramer has mapped out some road rules for all you Home Gamers trying to navigate the jungle that is Wall Street. Think of it as "Mad Money 101" –- some fundamental advice to keep in mind as you play the market. Whether you're a first time investor or a seasoned financier, it's always good to remember the basics.
Stocks start the week on a weak note as investors await existing home sales data at 10 am New York time. A flurry of takeover headlines is getting attention, most importantly the revised deal by three private equity firms for Home Depot's service unit. The three buyers, Bain Capital, Carlyle Group and Clayton, Dubilier and Rice, agreed to buy the unit for $8.5 billion, 18% less than the original price agreed in June.
Economic confidence among U.S. small business owners fell in August as a slowing housing market soured sentiment, and 41 percent said they had recent cash flow troubles, according to a survey released Monday.
The risk of massive defaults on subprime mortgages and heavy debts now poses a bigger threat to U.S. economic prosperity than terrorism, a panel of U.S. business economists said on Monday.
Job losses in the U.S. construction sector could top one million if a housing downturntips the economy into recession and tighter access to credit dampens business investment.Strength in nonresidential construction may continue to offset a downturn in housing for now, but recent turmoil in credit markets suggests job losses may accelerate in the sectorin the next few months.
Talk about a recession from a very small group of people need to be balanced against the fact that no major strategist is predicting a recession. Many are trimming their forecasts slightly, but that is a long way from a recession. Even Ben Bernanke maintains a forecast of "moderate" growth of 2.5% in the GDP this year, and a slight expansion in 2008.
Stocks futures are meandering on both sides of the unchanged mark after stronger-than-expected durable goods orders and investors now await new home sales data due at 10 am New York time.
France on Friday kept up the pressure on the European Central Bank to take account of global financial market turmoil and economic growth when setting interest rates, and said a September rate rise was not a done deal.
The hot topic on the Street is the probability of a recession. Robert Albertson, chief strategist at Sandler O'Neill, and this morning Angelo Mozillo, CEO of Countrywide both voiced fears that a recession was coming. Opinions are sharply divided on this. David Bianco, UBS' Equity Strategist, said earlier this month that the S&P seems to be signaling a "financial sector recession" (i.e. that a recession is expected to mostly affect financial sector profits).
Until a few months ago, it seemed that anyone who could fog up a mirror could get a mortgage. Now, with a credit crisis roiling the industry, some consumers might think they have a better chance winning the lottery than finding a home loan.
Euro zone private sector growth cooled in August as factory order growth hit its weakest since late 2005 and a credit squeeze in financial markets bruised service sector confidence, key data showed on Friday.
Global financial turmoil prompted the Bank of Japan to hold rates on Thursday and warn that the tremors would take time to settle, and the European Central Bank was inundated with demand at a new money market tender.
Stoked by positive developments on the credit and mortgage front, stocks are building on yesterday's gains and look ready to spring higher on the open.
The markets have their own lexicon and volatile markets generate their own chapter of colorful metaphors. This last week we have been treated to exhortations not to catch falling knives, falling pianos or any other objects which would cause severe pain if diverted from their gravity-bound course.