The NASDAQ opened higher on Friday July 17th after strong earnings results from Google Inc. (NASDAQ/GOOG, GOOGL) and positive economic data. This could eventually give clues on the timing of an interest rate increase. The U.S. dollar is heading for its biggest gain since May after economic data…
The stock market has shifted its focus to the first-quarter earnings season. Based on early expectations, it will be an ugly quarter for U.S. companies, specifically the multinationals. Expect Continued Disappointment for Rest of First-Quarter Earnings Season A few weeks ago, we received some hints that the first-quarter…
When Germany recently announced some underachieving economic numbers, it was a red flag for the eurozone and Europe. When the stronger of the two pillars in the eurozone (France being the other pillar) begins to show some fragility, you have to take a step back to evaluate the…
There are no secrets to dealing with the current stock market malaise. The key is to simply understand, manage, and deal with the inherent risk. I’m not talking just about the domestic risk, but also the economic risk from Europe and China, along with the geopolitical risk in…
This morning came the news that Italy, a country very close to my heart (just look at my last name) and the third-biggest economy in the eurozone, is back in recession. And Germany, the biggest economy in Europe, saw factory orders in June drop by the most since…
A few years ago, investors couldn’t get enough of Chinese stocks. This led to numerous frauds committed by crooks in China that has since tarnished the reputation and reliability of all Chinese companies, whether they’re legitimate or not, despite their operating in one of the top growth areas…
It’s no surprise that the railroad business is doing well. We’ve been looking at Union Pacific Corporation (UNP) and other railroad stocks consistently in these pages for a number of years. But not only are pure-play railroads doing well, offshoots within the industry are also booming. It’s a…
If you cannot get through the day without that cup of coffee, you may need to prepare to spend a little more to get it. Coffee prices have been surging, up more than 30% year-over-year. The cost to have that morning cup of java has edged higher, but…
The global airline sector is probably at its brightest point in history, having seen a significant improvement following the effects of 9/11 that nearly killed the industry. The factor that’s pushing up the airline sector has been the renewal in the global economy, particularly the massive buildup of…
A lot of earnings results from multinational corporations revealed improving growth in the international markets, including Asia and, surprisingly, Europe. But one company just reported the reverse and its first-quarter numbers were excellent based on strong domestic demand for its products. Cummins Inc. (CMI) hit it out of…
The eurozone and Europe are showing progress in finally getting out of their dismal multiyear double-dip recession; however, the uncertainties and hostilities unfolding in the Crimea region of Ukraine, which are threatening to escalate, could put a damper on the economic renewal in Europe. With the recent vote…
I must admit that I’ve been somewhat caught off guard by the strong rally in gold so far in 2014. The yellow ore has been on a nice upward push towards the $1,400-an-ounce level; it could even take out this level and head towards some tough resistance around…
In today’s U.S. economy, we have a very small portion of the population earning most of the total income generated by the economy, while the majority of people suffer, as their incomes have failed to rise at the pace of the rich. According to a study by the…
Oil prices have rallied back to the $100.00-per-barrel level on some near-term supply and inventory concerns. While the upside move is rewarding the buyers of oil stocks, I don’t think oil prices are set for an extended rally. The chart of the West Texas Intermediate (WTI) crude oil…
The stock market is in turmoil and looking for help from buyers. While some are calling for investors to run to the exits, I look at weakness and market chaos as a buying opportunity. It’s simply unrealistic to think that all stocks deserve to fall during a market…
If you watched the boring Super Bowl game on the weekend, you’d have realized that a strong and superior defense can go a long way against a sound offense. But the battle in the trenches was easily won by the defense, and it’s an analogy I use in…
Copper prices are collapsing, a sign that manufacturing activity in the global economy is slowing. The chart below shows copper prices are down more than five percent so far this year. Notice the steep decline in copper prices starting this January. Copper is a major commodity used as…
It’s amazing how investors here are nervous the Federal Reserve will eventually need to ratchet up interest rates from their current near-zero level. Turkey's central bank jacked up its interest rates to a whopping 12% from 7.75% in an effort to fight inflation and avoid a currency meltdown…
Apple sold a whopping record 51 million “iPhones” and 26 million “iPads” in its fiscal first quarter, which is great stuff at first glance. So why did investors scramble for the exits? The problem is that the market expectations placed on Apple are enormous. But that’s what happens…
From what I’m seeing, Europe and the eurozone appear to be in play once again, following years of torment and two recessions. While there’s still a ways to go, you should put Europe on your radar, since a buying opportunity appears to be here. Now don’t go full-tilt…
