In an election year, there is a lot of talk about flip flops. If you want to see some real reversals, take a look at the markets. Energy, which is the leading sector over the past six months, is now the worst performing sector while Financials have moved from the cellar to the penthouse in the same period.
Bank of America made it four in a row with big banks beating expectations, and beating big: $0.72 is 40 percent higher than the $0.53 expected. Revenues were a knockout as well: $20.32 billion, 10 percent above the estimate of $18.37 billion.
The two factors moving the market today were 1) the drop in oil, now down almost 10 percent in two days, and 2) the rally in financials.
Bears are arguing that the bear market will not be over until the leadership groups get taken out--energy and materials. Bulls say this is a pipe dream, at least for energy; fundamentals for this group only get better in the second half of 2008 and into 2009
The stock market ends the week negative by more than 3%, for the worst weekly performance since 2/9/2008 for the Dow and NASDAQ, and the worst weekly performance for the S&P since 6/21/2008. Intraday the Dow falls 20% from its market high of 14,164.53 set on October 9th, pushing the market into bear market territory, with the S&P 500 and NASDAQ also close to a 20% loss from their peak levels.
Almost everywhere they looked during the week, investors saw red ink flowing. But CNBC guests worked hard to find bright spots in the murk.
The seemingly endless surge in energy prices is lightening wallets at gas stations, but it's also a potential bonanza for investors.
CNBC asked the market experts for their best stock picks now. Here's a sampling of their suggestions.
Five-star fund manager Gerald Jordan finds power for his portfolio across the spectrum of energy stocks: two "traditional" plays and two China solar energy stocks.
To give investors an edge, CNBC asked the market pros for their best investment advice now.
Most business news this week took a back seat to oil's relentless climb, but there were still some notable moments. And CNBC guests had plenty of stocks to recommend for worried investors.
Crude oil hit yet another record high today, crossing $130 / bbl for the first time ever. Yesterday on CNBC, Boone Pickens predicted $150 oil and on Friday, analysts at Goldman Sachs raised their outlook for crude oil prices during the second quarter of 2008 to average ~$140 per barrel.
To give investors an edge, CNBC asked the market experts where investors should be placing their bets now.
Oil companies are making historic fortunes these days -- but they can't sell a drop without the oil services companies. Which oil services stocks will pump the biggest returns?
The S&P Energy sector is up almost 8% for the week led by BJ Services up over 16% this week.
Halliburton said on Monday that first-quarter profit rose 6 percent as customers in markets including the Middle East and Asia spent more on oil and gas exploration and production.
Consumer inflation rose by 4 percent over the last 12 months -- reflecting a 17 percent surge in energy costs and a 4.4 percent rise in food prices. Where are the safe investments in this environment? Jon Fisher, portfolio manager at Fifth Third Asset Management, named the sectors -- and the stocks -- that will thrive as inflation constinues to climb.
The days of $80 oil are over, according to Gerald Jordan, portfolio manager of the Jordan Opportunity Fund, and that is why he’s placing his bets on the oil services sector.
Despite word to the contrary from the Fed, the charts suggest inflation is flaring up. With oil and gold breaking out how should you trade?
There are ways to play the stock market when interest rates are rising, analysts say, but investors should proceed with caution. "The market doesn't normally do well with rising interest rates, so a more defensive posture is in order," Bruce Bittles, chief investment strategist at Robert W. Baird, told CNBC.com."