HP Beats 4Q Forecasts; Carrefour Milks New CEO From Nestle; InBev Officially Closes Anheuser Buy; Home Depot Beats 3Q Estimate; Gulf Bank Loses $1.4 Billion; Mexican Tycoon Interested in Circuit City; Wholesale Prices Plummet
This week is shaping up to be another active one on the bailout-and-financing front. First and foremost, Congress returns to work this week to consider a once-unthinkable proposal: Put up billions in taxpayer-backed loans so that Detroit’s “Big Three” can be saved. Expect a fight, however, as the bailout debate finally moves past banks to focus on General Motors Corp. (GM), Ford Motor Co. (F), and Chrysler Corp.
David Fessler says WW Grainger (NYSE:GWW) is a great way to protect your portfolio by investing in infrastructure. The company literally provides the nuts and bolts for businesses and public institutions throughout America.
As the housing market slumps it should take anything related to building or furnishing with it.
However, the stock of home appliance maker Whirlpool (NYSE:WHR) has risen 6.4% in the year to date despite razor thin margins and a wider downturn.
Wave Strength Options Weekly editor Adam Lass says this is a great opportunity to make at least 30% with a simple short play.
Buying strategic put options could increase these gains up to 118%.
Money Morning’s investment director Keith Fitz-Gerald is on a personal mission to reduce his household energy consumption by 25% or more through conservation - without altering or compromising his family’s lifestyle. He says cold air stacks are a great cheap way to cool houses…
Tuesday morning I received an email from one of financial publishing’s legends. It said, “Market crashing! Last chance for today’s flash alert!” The email came at 10:00 AM, and I didn’t open it until 10:20, minutes before I go into lock down… my four-hour communications blackout during which I write – nothing else. Of course, “Market Crashing!” is an inflammatory subject line.
Money Morning’s William Patalon III says comments by Ben Bernanke at the end of the week show he continues to prioritise economic growth over inflation. This means no rate hikes in the near future. But despite falling commodity prices, William says the threat of stagflation is growing…
The credit markets are still in deep trouble, says Bill Bonner in The Daily Reckoning.
CDO values are in “free fall,” says the Financial Times.
U.S. stocks aren’t faring much better. The Dow fell 180 points on Monday. On Tuesday, it dropped 130 more. Yesterday, U.S. stocks seesawed all day. The Dow finally closed with modest gains of 68 points.
The only way to end the influence of serial credit bubbles on the U.S. markets is to turn Japanese, says Bill.
Although consumers and businesses have gotten a bit of a reprieve at the gas pump as of late, says William Patalon in Money Morning, the escalation in oil prices we’ve seen over the past year has led to some major changes in overall consumer behavior. Many car-owners have dumped their gas-guzzling pickup trucks and SUVs at the nearest used-car lot and used the proceeds to buy some gas-sipping rides.
Right now, stocks look uglier than the Wicked Witch of the West having a Bad Hat Day. So what do you do if you’re convinced we’re in a bear market…and stocks may be at today’s levels two to three years from now?