Diamonds and Dogs
October 31st 2008Friday, October 31st, 2008
The market celebrated Halloween in what turned out to be a very scary month in deed. This was the 12th worst monthly decline in stocks since the year 1900. Guess what, we have survived and now maybe we can get on with some better times. Stocks finished the session higher and our diamond goes to the market for this week.
The Japanese Nikkei is a decade's long dog. The Nikkei index hit 1982 levels today and was down 5% for the session. Now that is a Akita dog, or is it a Shiba inu?
Thursday, October 30th, 2008
The Dow rallied again today as it and the other two major indices gained about 2 ½%. Colgate-Palmolive (CL) brightened the smiles of investors as they gained $4.23 on a 19% rise in earnings. CL finished the session at $64.23.
For the second day in a row, insurance stocks tanked. Hartford (HIG) barked like a dog, falling to an incredible $9.62, down 52% for the day and you don't want to know how much for the year. HIG traded as high as $98 this year alone. When you think of derivatives, you have to think about insurance stocks. Will the Fed come to the rescue?
Wednesday, October 29th, 2008
Stocks rallied for most of the day only to fade hard into the close on some stock rumors, most notable being the plight of GE. MGM Mirage (MGM) hit the jackpot after earnings, which were down 60%, were secondary to a note offering that strengthened their balance sheet. MGM was up $3.42 to $13.75 and get ready for the rest of the casino stocks to rock and roll.
Insurance companies are beginning to rollover, and today Aetna (AET) led the way lower as it dropped over 8%. AET closed at $25.55, down $2.25 after they announced earnings that were 45$ lower. The health insurer also predicted lower numbers for the whole year.
Tuesday, October 28th, 2008
The Dow staged a huge rally today, gaining over 900 points to finish the session at 9065. Diamonds were plentiful as the broad based rally gathered most of the stocks. Under Armour (UA) ripped $5 higher after reporting earnings that did not disappoint. UA finished the session at $23. The stock is way down this year, so the apparel maker won this battle but is still losing the war, as are most retailers.
Whirlpool (WHR) was put on the rinse cycle today as investors fled the company known for brands like Maytag and Magic Chef. WHR closed down 8% or$4.16 per share on poor earnings news and the fact they will be firing 5000 workers. If you thought the Maytag man looked down before, wait until the pink slip arrives.
Monday, October 27th, 2008
Focused on slot machine entertainment, Penn National Gaming Inc. (PENN) has reported a 3rd quarter profit that tripled year-earlier figures. The diversified owner and operator of casino properties rose at $13.35, up 4.62%. Earnings jump $0.59.
Loews Corp. (L), one of the largest diversified corporations in the United States, plunged to $25.65, down 18.08%. Run by the Tisch Family, who also owns 50% of the NY Giants shares drilled after the New York holding company reported a 3rd quarter loss. Run Forrest run&
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.