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Closing Bell: A Rally Fizzles (BP, CSCO, GSK, INTC, KBH, NOC, TM)

You do not get too many instances where stocks rally for six straight days. This unofficial verdict was up on the day for a seventh day, but this was a sloppy rally today that literally came down to the closing bell. Earnings season got off to a good start, but weak retail data and a lowered 2010 economic recovery target out of the FOMC Minutes took away the gains that were in place earlier today. The good news is that the fears of a double dip recession seem to have been overdone.

Here were today's unofficial closing bell levels:

Dow 10,366.72 +3.70 (0.04%)
S&P 500 1,095.17 -0.17 (-0.02%)
Nasdaq 2,249.84 +7.81 (0.35%)

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Continue reading Closing Bell: A Rally Fizzles (BP, CSCO, GSK, INTC, KBH, NOC, TM)

Ford Shutting Down Mercury Is No Big Deal

As anticipated, there has been little to no reaction from investors regarding the retirement of the Mercury name plate by Ford Motor Company (F). Given the resounding lack of identity which has surrounded the Mercury brand, eliminating the line seems like a prudent and timely move. Market share for Mercury has dwindled to less than 1%, and estimates put Mercury's portion of Ford's share price at something less than 2%.

Analysts estimate Mercury's value to Ford is approximately $1 billion, while the company on the whole is estimated to be worth approximately $38 billion. When given the fact that Ford expects to transition it's Mercury dealers into the Lincoln brand line, the fundamental value impact on Ford shall be essentially nonexistent. The company has declared that this inter-company transition shall not result in any job loss.

Continue reading Ford Shutting Down Mercury Is No Big Deal

Chrysler Recalls 600,000 Vehicles

ChryslerChrysler Group announced that it has issued a recall for 600,000 vehicles today for a range of safety concerns.

The company announced that the recall was in light of concerns including faulty brakes, sticky accelerators, and electrical fires. Today's reports come as drivers are already dealing with safety concerns stemming from the massive recalls Toyota has been forced to issue over the past year.

Continue reading Chrysler Recalls 600,000 Vehicles

A Dark Side to Obama's Higher Fuel Effciency?

President Obama is expected to issue an executive order to raise fuels standards for light trucks. Rather than wait for Congress to hash out the issue, Obama is using his executive power to raise the fuel efficiency standards and cut CO2 emissions by cars and light trucks beyond current requirements.

Issuing an executive order to raise fuel efficiency is easy; implementation is going to be the tough part. As General Motors, Ford (F) and Chrysler strive to implement new fuel efficiency standards, there are many tough decisions they will have to make.

Continue reading A Dark Side to Obama's Higher Fuel Effciency?

Before the Bell: Futures Drop on Lingering Concerns Over Europe

U.S. stock futures fell sharply Tuesday, a day after a massive relief rally washed over Wall Street and global stocks. But despite the nearly $1 trillion rescue package the European Union announced Monday, doubts remain on how Greece will cut its budget deficit. Meanwhile, as investors awaited inventories data, they also digested news of rising prices in China.

World stocks and the euro fell Tuesday. In Europe, major indices were down some 1.5% and the euro also gave up most of its recent days' gains. Concerns that the European Central Bank might lose some of its independence because of its new role in sweeping up government bonds. Also, it's moving in reverse direction -- expansionary monetary policy -- than other central banks that start to normalize it.

Continue reading Before the Bell: Futures Drop on Lingering Concerns Over Europe

Comfort Zone Investing: If You Believe ...

Comfort Zone Investing - do you believe the economy is getting better?If you believe the economic recovery is just beginning, then the sell-off this week was a welcome opportunity. If you bought any stocks two weeks ago, you were hurting, but if you were looking to buy, opportunity was at the front door. Will the rally that started last July when the DJIA traded at 8058 continue? Or is this the apex, having touched 11,309 (up 40% in less than a year), and the only direction is down? I don't think so. Here's why.

The U.S. economy is recovering. All the data from manufacturing to housing sales, even employment (224,000 non-farm workers were added in April, 290,000 total workers found new jobs), show improvement.

Car sales were up 25% for most automakers in the month of April compared to last year's April. Factory orders rose 1.3% in March, helped by higher demand for machinery, appliances, and primary metals. Analysts thought the number would be negative .1%. Pending home sales rose a seasonally-adjusted 5.3% in March. Again, analysts thought the number would be 4%. Pending home sales for the year to date are now up 21.1% from a year ago.

Continue reading Comfort Zone Investing: If You Believe ...

Auto Sales Jump 20% in April

Auto sales jumped 20% in April from a year ago. The numbers were quite strong, but still down 8% from March. Sales have been uneven as we continue to emerge from the greatest recession since the 1930s.

Auto sales are closely tied to buyer incentives. In April, manufacturers reduced incentives by 5%. Given a stable economy, nothing affects sales more than incentives. If you pull the incentives, sales usually slack off.

Continue reading Auto Sales Jump 20% in April

The Lexus GX 460 Is Back on the Market

lexus gsx 400Earlier this month Toyota Motor Company (TM) was forced to halt sales of its Lexus GX 460 after it received a "Don't Buy" rating from Consumer Reports, but the company announced today that the problem has been fixed, and it had resumed U.S. sales.

The problem with the SUVs involved the vehicles electronic stabilizer, which was unable to adequately correct the SUV when sliding out in corners.

Continue reading The Lexus GX 460 Is Back on the Market

More Recalls Involving Toyota SUVs

Toyota Sequoia Safety RecallToyota Motor (TM) was back in the news Wednesday with additional recalls. This time the recall involves its Sequoia sports utility vehicle due to concerns regarding the stability control on the 2003 model year. This is the second time this month that the company has recalled some of its SUVs.

The back's stability control system is supposed to correct a loss of traction in the front or rear tires when the SUV enters a corner. There have been reports that the system activated when the vehicle was moving at slow speed and resulted in drivers not being able to accelerate, and in some cases the brakes coming on and slowing the SUV down unexpectedly.

Continue reading More Recalls Involving Toyota SUVs

Toyota Output Grows Sharply

TM logoToyota Motors (TM - option chain) shares are rising today after the company reported this morning that its global auto production totaled 860,534 units in March, up 82.2% from March 2009. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on TM.

TM opened this morning at $78.96. So far today the stock has hit a low of $78.67 and a high of $79.30. As of 12:30, TM is trading at $78.99 up $1.34 (1.7%). The chart for TM looks neutral and S&P gives TM a neutral 3 STARS (out of 5) hold ranking.

Continue reading Toyota Output Grows Sharply

Toyota Stalling Before Earnings

Toyota TM logoToyota (TM) has come under fire recently on continued coverage of its brake recall, big incentives to boost TM sales, and rumors of a Toyota dividend cut. Some investors are fleeing this stock like a rat from a sinking ship, while others want to buy Toyota while TM stock is cheap.

So what should you be doing? A look at the fundamentals behind Toyota shows that the smart thing to do is park this stock and walk away. Let's look at some of the facts behind TM stock and what it means for investors:

Continue reading Toyota Stalling Before Earnings

Three Reasons to Sell a Dividend Stock

cash from selling dividend stocksDividend stocks have lots of appealing factors, and it's easy to find reasons to buy them. Some stocks have a great dividend yield. Others have a decades-long history of raising dividends once a year and are easy to put on your list of dividend stocks that are a lock to boost payouts. Then there are dividend stocks with great upside potential for the shares.

But sometimes investors don't put enough thought into when to sell dividend stocks. Here are some tips to help you pull the trigger:

Continue reading Three Reasons to Sell a Dividend Stock

Comfort Zone Investing: Bigger Is Better -- Usually

comfort zone investing: big is betterBig is big lately, as in Too Big To Fail headlines, referring to the biggest banks, ones like Citibank, (C) Chase (JPM), and Bank of America (BAC). They can't be allowed to fail, the reasoning goes, or faith will be lost in the banking system. If that faith goes away, so do all the banks. And there goes capitalism as we know it. Without banks lending money for homes and businesses, there is no growth, only shrinkage.

Big in banks has been helpful to the biggest names. Lehman wasn't quite big enough. It didn't get federal money to help bridge the gap between almost out of business and out of business. But Citi did. So did BofA. As did Chase. They all got bailed out. Crisis averted. Profits are coming back to these banks. They're repaying the TARP money, with interest. The government will sell its warrants that will add to the profitability of that decision. All's well that ends well.

Continue reading Comfort Zone Investing: Bigger Is Better -- Usually

Sienna Minivans Join the Toyota Recall List

Toyota TM logoMore bad news for Japanese auto maker Toyota Motor Corp. (TM), with the company announcing that it was recalling around 600,000 Sienna minivans sold in the United States.

The latest in a string of safety concerns involves potentially rusted spare tire cables that could break, allowing the minivan's spare tire to bust loose and tumble into the road.

Continue reading Sienna Minivans Join the Toyota Recall List

Toyota to Test Safety on All SUVs

Earlier this week Toyota Motor Corporation (TM) took another hit to its public relations when Consumer Reports hit one of its new SUV models, the Lexus GX 460, with a 'Don't Buy' rating. Toyota announced today that in light of the concerns over the Lexus SUV it would be running safety tests on all of its SUVs to reassure Toyota drivers that their vehicles are indeed safe.

The concern comes from tests that Consumer Reports ran on the Lexus GX 460 that showed the SUV was a rollover risk. The electronic stabilizer that was supposed to correct the SUV from spinning out was not kicking in as quickly as it should be.

Continue reading Toyota to Test Safety on All SUVs

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Symbol Lookup
IndexesChangePrice
DJIA-73.1112,369.38
NASDAQ-34.902,778.79
S&P 500-9.641,295.22

Last updated: May 21, 2012: 01:59 AM

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