Starbucks stock retreated in heavy volume after a report suggested the coffee chain's growth may be losing some steam.» Read More
On the distant investment horizon, Oakmark Fund portfolio manager Bill Nygren sees some bright lights.
"As a long-term investor, if you think about normalized P/Es being mid-teens multiples, if you think about growth having been deferred a couple of years, rather than eliminated, if we see stocks getting back up to 15 times earnings, and seeing earnings recover in a couple of years, there are lots of companies that that would create a double in price from today's levels," Nygren told CNBC.
Asked to name names, Nygren begins with American Express.
UBS senior restaurant analyst David Palmer says it's time to buy Kraft Foods.
The company's third-quarter profit more than doubled, largely because of a one-time gain from the sale of its Post cereal unit.
Palmer says selling Post was a good move.
"It makes sense they got rid of something that's a third-tier brand in its category," he told CNBC. "Kraft should be No. 1."
He's not worried about budget-conscious shoppers switching to store brands from Kraft's pricier foods.
"The commodity prices on those items are coming down dramatically," he said. "We believe they're set to go down even further through the first quarter."
Robert Zagunis is not looking for an overnight recovery, but he suggests it just might be a perfect time to buy stocks Some familiar names top his list.
"I think it's going to be a while before the iceberg of the liquidity crisis starts thawing and starts having some impact," the co-portfolio manager at Jensen Investment Management told CNBC — but he quickly added, "When the market moves, it's going to move fast."
Zagunis has a couple of ideas about where an investor's money should be when the market makes a fast move.
Neil Hennessy of Hennessy Funds is known for his use of the price-to-sales ratio to pinpoint the best places for a stock market investor's dollar. Based on that ratio — he's ready to buy.
"Today, you can buy a dollar of revenue in the Dow Jones (Industrials) for 74 cents on the dollar," he told CNBC. "Historically, it's traded over the last five years at $1.20 for a dollar in sales."
Hennessy says investors have been getting rid of shares in some very good companies, and now is the time to pick them up cheap.
Barry James of James Advantage Funds likens the current market to a ball bouncing downstairs. Sharp drops are followed by rebounds that can make money for shrewd stock market investors.
David Lundgren, portfolio manager at Burkenroad Mutual Fund, told CNBC that some stocks are looking “very attractive” — and said investors should focus on long-term investment, rather than day-to-day market movements.
Large-cap tech stocks are priced below value, said Rafael Resendes, portfolio manager of the Toreador Large Cap Fund. (See his tech recommendations, below.)
“There’ve been four periods over the last 20 years where, if you’d been buying stocks below their value or below their intrinsic value, where that didn’t tend to work, the most noticeable was the tech bubble,” he said. “Back then we had a kind of irrational exuberance that we’re kind of seeing today.”
If an investor bought Cisco Systems in 2000, for instance, they could expect it to grow at sales of 65 percent a year, Resendes said.
Of course, much has changed since that year: “As of yesterday’s close, you’re basically buying Cisco forecasting negative sales growth,” he said.
However, if investors think longer-term, he said, they can expect to profit.
“Much like a casino willing to take a bet in blackjack, we’d be willing to bet Cisco is not going to have negative sales growth in three, four years,” said Resendes.
Investors ought to consider IBM , Google and Oracle , he said.
(BONUS: Watch the interview here to see his non-tech stock picks.)
Disclosure information was not available for Resendes or for his company.
Nearly 200 companies have reported earnings overnight and Thursday. Within that pack, it seems there's a disproportionate number of non-U.S. companies. In fact, by my calculations, there are 19 stocks from 11 different countries in my personal daily news mix...
...but even more interesting and telling is that only two of them are trading higher. And it's a diverse group too, with eight of the 10 sectors represented, excluding only utilities and telecoms.
Before you write them off -- together they have a combined market value of $240 billion. That's bigger than every U.S. company except Exxon. Six are from Canada, four from Switzerland with one company each from China, India, Taiwan, Germany, Ireland, Netherlands, Mexico, Bermuda and the Cayman Islands.
WORLD OF HURT, BY THE NUMBERS:
(Within Thursday's earnings reports)
19 Stocks, 11 Countries
- $242 Billion of Combined Market Cap
- Only 2 Are Trading Up: Bermuda's PartnerRE and Switzerland's Syngenta
Teck Cominco (Canada)
Coca-Cola FEMSA S.A.B de CV (Mexico)
In this installment of CNBC 101 — the investors' mini-seminar — learn the potential advantages of investing via municipal bond ETFs.
Muni exchange-traded funds (ETF):
-Hold basket of state and city bonds
-Often have tax-free yields, many now at record highs
Some have yields higher than taxable yields of similar-termed Treasurys.
CNBC's Bertha Coombs notes that the State of California sought to raise $4 billion through bond sales; instead, it amassed $5 billion.
Caveat: Muni yields can be volatile. Some have been moving between 25-50 basis points over the last 10 days.
More Municipal Bond ETFs:
-PowerShares Insured National Municipal Bond Portfolio
-Market Vectors-Lehman Brothers AMT-Free Short Municipal Index
-PowerShares Insured California Muni Bond ETF
Compare with Treasury Bond ETFs:
-iShares Lehman 10-20 Year Treasury Bond
-iShares Lehman TIPS Bond
Consumer discretionary stocks are not only the worst performers today — and this week and this month — but 60 percent of the 18 discretionary stocks that reported earnings are down.
So what is working in one of the worst groups right now?
My choices for the consummate consumer stocks include Tractor Supply , ITT Education Services , Chipotle Mexican and Snap-On .
Watch out for the consumer doomers, though: Pulte Homes , Skechers U.S.A. , Amazon.com and Regal Entertainment .
Bottom line? Use discretion when purchasing consumer discretionaries.
CNBC Investor Intelligence: