Diamonds and Dogs
The Bear that RoaredThe Bear that Roared
In what is very typical fashion, stocks have staged a historic comeback over the past four weeks. In fact, by all accounts, it may have been the best four weeks for stocks since 1933. We closed the session over 8,000 for the first time in two months and the move was on news that could easily be viewed as negative. The week began with king Obama ousting GM CEO Waggoner and the week ended with historic unemployment. Unemployment now stands at 1983 levels at 8.7% and since the recession began, 5,000,000 workers have lost their jobs. Ouch. Yet stocks drove higher. In a bear market, there will invariably be stock rallies that take your breath away as shorts run for the hills. Are we out of the woods? Economically, most likely not yet, but for stocks, significant low levels have been successfully tested for the second time.
Diamonds and Dogs
Friday, April 3rd, 2009
For you "crack-berry" addicts today witnessed a huge move in Research in Motion (RIMM) as the black berry device maker gained over $10 per share. A 26% increase in sales, an increase in this environment, will do the trick.
Defense contractor Lockheed Martin tanked almost $2 today as LMT is in the sights of the Fed budget generals. Defensive stocks were canines today.
Thursday, April 2nd, 2009
Financial stocks have certainly found some footing and Buffett favorite Wells Fargo (WFC) fared well today. WFC banked a 85 cent gain as they finished the session at $15.33, about 100% off its early March low. Fair-value accounting changes are a fair deal to the bankers.
The smartest guys in the room, Manhattan Associates (MANH) looked dumb today as the stock fell over 11% to $15.40. The supply chain software company slashed their earnings outlook and the stock sent an error report.
Wednesday, April 1st, 2009
The stock made famous by Madonna, Sealy's (ZZ) rose 81%, that's right, 81%, on the news that earnings for the mattress maker would not be as bad as first thought. The stock closed at $2.70 as it shows sign of life.
Celgene (CELG) is one of the few Bio-tech stocks that have stumbled recently as the shares fell 13% to $38.47. The economic downturn is affecting them as is the lower anticipated sales of Revlimid, their blood-cancer drug.
Tuesday, March 31st, 2009
Microsoft (MSFT) has had a very strong run as tech stocks are positive for the year. MSFT logged in a 5% gain on the session as they see computer demand, particularly in China, picking up.
GM fell again today as the Oval office is, deciding which model of cars they will sell in Russia, I mean the USA. Bankruptcy is now a very real concern for GM shareholders