Stock Market Advice

Stocks: What the Earnings of Microsoft and Texas Instruments Tell Us About the Year Ahead

By Wednesday, January 28, 2015

Two Big Tech Stocks Showing Two TrendsThere is a collective nervousness to stocks and the market’s still in its consolidation that began last September. But what’s interesting is that both the NASDAQ Composite and the Dow Jones Transportation Average are still outperforming the other major indices. This is an optimistic technical trait for the stock market, as leadership from technology and transportation stocks reinforces the primary trend, which still has positive potential in a super-low-interest-rate environment…. Read More

Three Statistics That Say No Economic Growth Yet

By Friday, January 23, 2015

ECB Money PrintingLook at any newspaper or watch any financial news channel and you will hear someone saying the U.S. economy is growing. To prove their point, they will refer to gross domestic product (GDP) figures and unemployment data.
Yes, the GDP numbers and the unemployment picture do look better, but our economy is still in very big trouble. (more…)… Read More

Despite Increasing Competition, Netflix to Remain Tops in Streaming

By Friday, January 23, 2015

Netflix to Remain TopsNetflix, Inc. (NASDAQ/NFLX) got my attention on Tuesday after announcing a massive fourth quarter, reminding me why I have been bullish on the stock for so long. Threatened by emerging rivals such as Amazon.com, Inc. (NASDAQ/AMZN), Hulu, and Yahoo! Inc. (NASDAQ/YHOO)… Read More, Netflix proved why it is the “Best of Breed” in video steaming and everyone else is a “wannabe” for now.
Content Is King in the Streaming Business

Collapse in Trading Volume Makes Stock Price Rise Suspicious

By Wednesday, January 21, 2015

Crashing Stock MarketOne of the fundamentals of economics is that rising demand for an item pushes prices higher, while declining demand results in lower prices. It’s common sense: the more people want something, the higher the price; the less people want something, the lower the price.
That is what has me very suspicious about the stock market. Since 2009, stock trading volume has all but dried up, yet stock prices have gone… Read More

4Q14 Earnings Suggest Consolidation to Continue Throughout 2015

By Wednesday, January 21, 2015

Current Stock Market ConsolidationWhile the stock market’s trading action has been pretty subdued, even in the face of fourth-quarter earnings, the market’s actually been in consolidation since last September. It’s a near-term trend that I think will continue into 2015.
4Q14 Earnings Action
While we’re still in the early days of the fourth-quarter 2014 reporting season, so far, earnings reporting is similar to previous quarters. As I mentioned on Monday, if companies do… Read More

How Pinterest Is Making Money and Why Facebook Should Be Scared

By Tuesday, January 20, 2015

How Pinterest Makes MoneyPinterest: How This Hot Potential IPO Is Making Money
Frankly, I don’t know any men who have a Pinterest account, but I know a lot of women who do. And that’s one reason Pinterest makes money. It has the perfect demographic for advertisers, and now that it’s making money, Pinterest could be one of the more interesting initial public offerings (IPOs) of 2015.
While other social media platforms deal with… Read More

Revenue Growth at S&P 500 Companies Collapses 68%

By Monday, January 19, 2015

Revenue Growth at S&P 500While public companies can manipulate their per-share earnings with stock buyback programs and other tricks (like reducing their capital expenditure budgets), there is little companies can do to mask revenue growth.
For the fourth quarter of 2014, S&P 500 companies are expected to report a pathetic revenue growth of 1.1%—that’s 68% below the average revenue growth over the past three years of 3.5%. (Source: FactSet, January 9, 2015.) Weak revenue… Read More

CSX, Railroad Stocks Report Decent 4Q14 Growth; More to Come

By Friday, January 16, 2015

Railroad Stocks ReportRailroad stocks are always good barometers on overall business conditions and the economy. Keeping up with railroads is equally as useful as following the Dow Jones Transportation Average for stock market direction. And for the most part, the major railroad companies have been excellent investments over the last few years, with oil, intermodal, and agriculture shipments handily making up for modest weakness in coal freight.
This earnings season, railroads are… Read More

Why Positive Large-Cap Earnings Don’t Suggest a Strong Stock Market in 2015

By Wednesday, January 14, 2015

Large-Cap Earnings NumbersAfter a slow start to the reporting season, large-cap companies are peppering the Street with good numbers. The stock market may be in consolidation, but a number of companies have announced solid earnings reports so far. But even these positive results don’t suggest a strong market for all of 2015.
Large-Caps Reporting Good Earnings Numbers
Alcoa Inc. (AA)… Read More produced a darn good quarter, with 2014 fourth-quarter sales up 14% over

My Stock Market Forecast for 2015: Expect Volatility

By Friday, January 9, 2015

Why I Expect Bulls to Hold This Year2014 Action to Affect Stock Market Forecast in 2015
Despite the hurdles and uncertainties along the way, 2014 turned out pretty good for the stock market. By the year’s end, the S&P 500 had broken 2,000, while the Dow took out 18,000. Technology was tops with the NASDAQ advancing more than 14% with big buying in the brand-name social media and Internet services stocks. The small-cap sector fared the worst,… Read More

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