Expanding into China would represent a "gigantic game-changer" for one social media site, CNBC's Jim Cramer says.» Read More
China opened the door to short selling and margin trading.
Beijing and Shanghai regulators are betting that the new trading flows will buttress Chinese markets.
Morgan Stanley's Jerry Lou told CNBC what the new trade means for China's financial health -- and the fear of a global meltdown.
Chinese Stocks -- U.S. Exchanges:
CNOOC (China National Offshore Oil Corp.)
Three market predictions: Robin Griffiths at Cazenove Capital told CNBC he sees the euro/dollar falling to $1.30 — and possibly lower; the S&P 500 will continue to plummet; and gold may slip to $750 — before rallying toward $1,400.
- PowerShares DB US Dollar Index Bullish
- PowerShares DB US Dollar Index Bearish Fund
- CurrencyShares Euro Trust ETF
- Market Vectors Gold Miners ETF
- SPDR Gold Shares
Disclosure information was not available for Griffiths or his company.
Art Hogan, managing director at Jefferies, advises investors to look at stocks that are "ridiculously cheap."
“Look at the fact that Warren Buffett’s been able to put $30 billion to work in the last two weeks, because he sees things as being valuable here," says Hogan. "You have to be very patient, you have to pick those names that have gotten thrown out like the baby with the bath water.”
Hogan says examples of this are Google , Apple and Research in Motion .
Can you trust bond ETFs?
Investors are flocking to bonds and exchange-traded funds for stability and safety.
But in this installment of CNBC 101, Trader Talk blogger Bob Pisani tells why bond ETFs may be hiding more than meets the eye.
Top Bond ETFs:
- iShares Lehman TIPS Bond
- iShares S&P National Municipal Bond Fund
- iShares Lehman 1-3 Year Treasury Bond
- PowerShares Insured National Municipal Bond Portfolio
- Market Vectors-Lehman Brothers AMT-Free Short Municipal Index
Maria Bartiromo discusses Thursday's top business and financial stories, and looks ahead to tomorrow's events.
(Watch her on-air: CNBC TV's Closing Bell .)
Topics discussed in video above:
- Jobless claims at 7-year high
- Shares of General Electric (parent company of CNBC) dropped almost 10 percent Thursday, following the sale of shares to investors including Warren Buffett. The drop raised doubts about the commercial paper market.
- Oil prices dropped
- Gold prices also slid as the dollar gained against a basket of currencies.
The Wall Street Journal reported that Eli Lilly was the "mystery bidder" for ImClone . Bristol-Myers Squibb had raised its own bid for the biotech, with which it partners on cancer treatment Erbitux.
- Friday's earnings reports:
-- Family Dollar
Energy stocks have gotten hammered recently, but Scott Richter, who manages the Fifth Third All Cap Value Fund, sees opportunities in the sector.
“Hedge fund redemptions, a slow economy, credit crisis are near-term stressers, but the long-term supply-demand balance is still in the favor of the bulls," said Richter. "So if you can accumulate these over the next several quarters, I think you can make some money over the haul," he added.
Richter’s first pick is Exxon Mobil .
“It’s cheap, number one, (has a) great balance sheet, which you have to have in a credit crunch, and they’re going to get a lift from ENP projects in Brazil…and gas shale projects in Eastern Europe.”
He also likes XTO Energy , which he calls a “defensive play.”
“Real high-growth production profile, a low-cost producer, which you have to have in this difficult commodity environment, and they have a large inventory of very low-risk U.S. projects that they can do that aren’t tied to leases and aren’t tied to the capital markets.”
New from CNBC.com:
Wilbur Ross is concerned about "wacky" bailout plan provisions. And if the House of Representatives votes down the emergency economic bill, the billionaire investor has an alternative plan — that he'd stake with his own funds.
Ross told CNBC that passing the Paulson Plan is a painful necessity.
Technology stocks took a beating in September, but CNBC guests see bright spots in the sector’s future.
“We’re telling our investors to stay to more reoccurring revenue stories on the software landscape with very good cash flows and very strong cash positions,” said Joel Fishbein, managing director at Lazard Capital Markets.
Fishbein recommended CommVault Systems , Salesforce.com and Citrix Systems .
Which way is the market headed -- and for which sectors? Craig Columbus of Advanced Equities Asset Management and Michael Farr of Farr, Miller & Washington offered CNBC their investment insights.
Columbus said he is carefully optimistic, seeing progress in the Paulson Plan bailout package, and market and economic stabilization ahead.
He recommends health care, consumer staples, technology, aerospace defense and small-cap value stocks .
He likes the iShares S&P U.S. Preferred Stock Index Fund.
Columbus recommends boosting stock allocations in the fourth quarter -- though he's overweight cash.
Farr was less optimistic, citing ominous unemployment stats and foreboding predictions for the global economy. However, he pointed to certain sectors as good defensive plays. See Farr's recommendations: Click here for video.
Disclosure information was not available for Columbus, Farr or for their respective companies.
CNBC's Companies in the News:
Dan Genter of RNC Genter Capital Mangement believes Congress will pass a bailout package by the end of the week — but he expects the next day or two to be wildly volatile and painful. Despite this, he sees opportunities in stocks that have been unjustly beat up.
“You can look at some things in the consumer area, in the energy area, especially in the drilling area -- things like Diamond Offshore , Chesapeake ."