Starbucks stock retreated in heavy volume after a report suggested the coffee chain's growth may be losing some steam.» Read More
"Panic" is breeding stock-buying opportunity, says Bill Quinn, chairman of American Beacon Advisors. He offered CNBC his investment advice amidst market turbulence.
The U.S. dollar dropped Wednesday against the euro and against the yen, after news that the Federal Reserve would bail out AIG.
But CNBC's Matt Nesto reports that some say the Fed continuing to hold interest rates steady might make the greenback a great buy.
More Financials in the News:
- Morgan Stanley , Goldman Sachs
- Story: Morgan, Goldman Shares Plunge as Fears Rise
- Lehman Bros.
- Story: Bid for Lehman's Investment Arm Is Imminent
Don Wordell says the consumer is just fine-- and he offered CNBC fans a stock pick to back thatup.
Wordell manages the RidgeWorth Mid-Cap ValueEquity fund, rated five stars by Morningstar.
"There are a lot of things that can scarethe consumer right now," concedes Wordell. "But when youlook at the total landscape, inflation is in check, haspeaked... Interest rates are low, gas commodities priceshave dropped."
Wordell likes Darden Restaurants.
He praises Darden, the owner of the OliveGarden and Red Lobster restaurant chains, for its "great3 percent dividend yield," noting that themiddle-of-the-road Americanized Italian eatery chain hasgone "10 years since its last negative salescomp."
Darden's Competition: Compare for Yourself
(Click tickers for stock info)
- Brinker Intl.
- Yum! Brands
- Denny's ______________________________________
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Disclosure information was notavailable for Wordell or his company.
"Any port in a storm," sailors are known to say. Collyn Gilbert of Stifel Nicolaus has found a port for stock market investors in the regional banks of the Northeast.
"As long as the market's focused on liquidity, capital, and funding, these small and medium-sized banks are going to do well," she told CNBC. "The transparency of the balance sheet and the absence of the derivative securities and credit default swaps is going to play very favorably into the pricing of these stocks."
She particularly likes New Jersey's Valley National, Connecticut's People's United Financial, and Pennsylvania's S&T Bancorp.
"The interesting thing about S&T is it's kind of in more rural markets," she said. "It's not levered to the consumer; you haven't had the real estate boom; you've got the economic backdrop in that part of the country with coal and natural gas; this is a company that's been able to take market share away from its competitors."
People's United Financial and S&T Bancorp are investment banking clients of Gilbert's firm. The firm or an affiliate has received compensation from Valley National for investment banking services within the last 12 months.
Maria Bartiromo discusses Tuesday's top business and financial stories -- and looks ahead to tomorrow's events.
- Interview with Hank Greenberg
- AIG Bailout?
- Earnings: Goldman Sachs, Morgan Stanley
- Dell Warning
- GM's Volt
New from CNBC.com:
There are now opportunities to buy oversold stocks in every sector, says Christian Gattiker-Ericsson, strategist at Julius Baer.
"The market is discerning between the winners and losers -- and not just in financials," said Gattiker-Ericsson.
For instance, "JP Morgan and Bank of America have different risks than the weaker banks," he said.
"We see some companies being sold off without the [justification of] higher risk. Our tactical indicators are showing many oversold companies."
The strategist advised investors to consider defensive sectors like health care -- and choose carefully.
Top Health Care Stocks:
- Johnson & Johnson
- Procter & Gamble
New from CNBC.com:
The options market is signaling that the stock market is in for more volatility ahead, according to an options expert.
"In general, I think that the financial sector is a fiery furnace of implied volatility today. Yesterday, as of the close, we saw gains in implied volatility of at least 50 percent in most major financial names," Rebecca Darst of Interactive Brokers said on CNBC early Tuesday. "And here, there was no distinction between broker-dealers and depository banks, gains in implied volatility of at least 50 percent, and in most of these cases, this means that the implied volatility reading is now at record highs, well above the highs reached previously in mid-July."
As we eulogize two legendary Wall Street firms today and have several others on-watch to receive last rights, I can only think that more could have -- and should have -- been done to prevent this financial homicide. What I'll call "firmslaughter."
If Lehman Brothers were an individual instead of a corporation, its "bankruptcy" would undoubtedly have been avoided.
Even the acquiring knight from Charlotte said Merrill Lynch had the abilty to ''see their way through'' the current crisis.
You know why? Because this is a crisis of our own making. Or more specifically, a crisis in which the accountants have become executioners and FASB 157 is the murder weapon.
What You Must Know:
Believe me, I am not absolving Wall Street and/or Main Street of their excesses but I am trying to strongly say that the era of mandated mark-to-markets, billion dollar writedowns and subsequent ''losses'' is largely the fruit of our own well-intentioned but misguided efforts.
To force asset writedowns in the middle of a financial hurricane is like telling Galveston homeowners that they had sell before sunset.
Or your real estate agent informing you that since no one bid on your house today...you have to lower the price to zero.
We can debate the pros and cons of accounting changes all day but I think we would agree that they are an evolving work in progress and also more art than science.
And it is for that reason that the Fed, the Treasury, the SEC, the White House or somebody should have stepped up and said, wait a second -- we are allowing (read as "forcing") viable, productive businesses/employers to go under.
We all know that the securities in question are not truly worthless. In fact, we often joke that somebody is going to swoop in, buy 'em up and make a lot of money at some point. The truth is, they are only temporarily unpriceable because people are afraid and unwilling to buy them right now.
But to euthanize by lethal accounting? That's just not right.
Mohamed El-Erian of Pimco joined CNBC to analyze the fall of Lehman Bros. and the liquidity crisis for financials in general.
El-Erian, co-CEO of the world's biggest bond fund, said that some financials may actually emerge stronger from the credit crunch. Specifically, he named Bank of America -- which is buying beleagured brokerage Merrill Lynch.
"The winners are the stronger financial institutions, that are consolidating, that are going to be gaining market share," said El-Erian.
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More Stocks in the News Monday:
- Berkshire Hathaway