Again, what is left to say? Nothing you haven't heard before. Jobless claims were the highest in over 15 years, earnings are at risk, the recession is here, and redemptions are still coming in droves. Sorry for the gloomy attitude.
Here are today's unofficial closing bell levels: DJIA: 7,552.29 (-5.56%) NASDAQ: 1,316.12 (-5.07%) S&P 500: 752.48 (-6.71%) Top Upgrades & Downgrades
Amgen Inc. (NASDAQ: AMGN) was down after it and Takeda's Millennium Pharma said that enrollment in a lung cancer trial was being suspended because of higher deaths in part of the control group over the placebo group. Shares were down over 6% at $50.13.
General Electric Co. (NYSE: GE) was slapped today on reports that the company is in talks with several private or sovereign wealth funds over capital. This stock put in a decade low, even though GE said it was not raising capital. Shares were down 11% at $12.80 right before the close.
Microsoft Corporation (NASDAQ: MSFT) filed a shelf registration statement that will allow it to sell debt instruments from time to time if it chooses, although no terms were given, no size is indicated, and no underwriters are mentioned. Shares were down 4% at $17.54 right before the close.
PepsiCo, Inc. (NYSE: PEP) reaffirmed its previously announced full-year 2008 core EPS guidance at an investor conference. Shares were down almost 4% at $50.17 right before the close.
Suntech Power Holdings (NYSE: STP) was hit after it posted $0.35 EPS vs. $0.42 estimates, and it guided next quarter and 2008 lower. The term "global warming" back to "climate change" right now even for the green investors. Shares were down 37% at $5.55 right before the close.
Berkshire Hathaway Inc. (NYSE: BRK.A) stock fell 12% on Wednesday -- dropping by $11,550 in one day. The stock has not fallen this much on a percentage basis since the 1987 crash. (It fell 18.51% on October 19, 1987 -- down $720 that day to $3170.) Last month, Warren Buffett was advising Americans to back up the truck and buy stock. Since then, Berkshire has lost 30% of its value and the S&P 500 has tumbled 14%. This does not inspire confidence.
Last December -- when Berkshire peaked at $151,650 -- I questioned whether the stock was overvalued. But I did not think it would fall to its $84,000 Wednesday close (BRK.A is falling again today -- over 8% to $77,000).
Buffett has since made deals to buy stakes in General Electric Company (NYSE: GE) and The Goldman Sachs Group (NYSE: GS), which don't look so great now. He did get a nice 10% yield, but the conversion prices of the warrants he took on were much higher than their current prices -- $22.55 and $14.45 for GE and $115 and $55.18 for Goldman, respectively.
Dell Inc. (NASDAQ: DELL), the personal computer maker, is due to report its financial results after the market close. The company is expected to post a 9% drop in earnings to 31 cents per share, according to Briefing.com. DELL shares were 1.5% higher in premarket trade (8:00 am). Dell shares were 2.7% lower about half an hour after the open.
General Electric Co. (NYSE: GE) is seeking funds from China Investment Corp., Government of Singapore Investment Corp. and at least two other sovereign-wealth funds. GE shares have plunged some 60% this year as the company has lowered 2008 profit target twice. But GE also raised $3 billion last month as Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK) invested in the company. GE shares declined 8.3% around 9:55 am. The company said that while it is in talks with Asian investors about joint ventures, it has no intention of raising additional capital from sovereign-wealth funds.
General Motors Corp (NYSE: GM), Ford Motor Co. (NYSE: F) and Chrysler Llc returned empty-handed from Washington as the bailout plan for the automotive sector seems hanging by a thread. The sought after compromise couldn't be reached and the Senate canceled plans for a vote Wednesday. The Bush administration and congressional Republicans have rejected Democrats' plan to dip into the $700 billion Wall Street rescue fund for a $25 billion automotive sector bailout. Interestingly, some think no bailout will not send the stock market off a cliff. Meanwhile, Chrsyler still wants to merge with GM -- little wonder there.
However, GMAC Financial Services has applied to the Federal Reserve to become a bank holding company. If approved, it would allow GM's financing arm to be eligible for aid under the Treasury's $700 billion bank rescue plan, automotive bailout or not. Still, GM shares were down about 10% in premarket trade (8:05 am), just as Ford's were up 3.2% (8:05 am). GM shares were beaten down another 11.5% around 9:55 am, Ford's were down some 4.8%.
Citigroup Inc. (NYSE: C) Chief Executive Vikram Pandit talks a good game about boosting the fortunes of the embattled Wall Street bank. The problem is that it's just that ... talk.
Pandit on Friday announced he had bought $7 million worth of stock in the New York-based bank. Today, he is expected to show his appreciation to those whose hard work made his undeserved bonus possible by firing 53,000 Citigroup employees.
Notice, I used the "f" word and not "layoffs." A "layoff" leaves open the possibility that these workers may get called back. Given the state of the economy, odds are pretty poor that many of these workers will find employment in the financial services industry anytime soon. Many of these "downsized" sell-siders would like to work for buy-side firms such as mutual funds because they are not as subject to the whims of the stock market. Trouble is, they are not doing much hiring these days either. Many former Citigroup workers will have to find work in other industries.
What a difference a few hours makes. Earlier today, we were in the process of seeing the stock market take out the lows of October. At that point the buyers ignored the 516,000 jobless claims from this morning and they started hitting their "buy" buttons on their keyboards. The gains came on strong in the afternoon, and most of them late in the afternoon. Here are the unofficial closing bell levels: DJIA: 8,835.25 (+6.67%) NASDAQ: 1,596.70 (+6.50%) S&P 500: 911.28 (+6.92%)
General Electric Co. (NYSE: GE) had been down all day on rumors and fears about the dividend status, but shares came back and ended up 4.3% at $16.87.
Intel Corp. (NASDAQ: INTC) closed up 6.7% at $14.43 despite the company's warning last night. While warnings are somewhat expected, this was a severe drop of about 15% to revenues.
Sprint Nextel Corp. (NYSE: S) rose over 14% to $2.24 after the company announced that it was going to pursue employee buyouts for certain back office peronnel. Cutting costs seems to be popular in hard times, and buyouts do not create the unpleasantries inside an office like layoffs do.
Wal-Mart Stores Inc. (NYSE: WMT) managed to beat earnings, but the company said that currency issues were making it take guidance slightly under the mid-point for next quarter. Shares closed up over 4% at $54.39.
Urban Outfitters Inc. (NASDAQ: URBN) was up 9.5% at $16.66 right at the close today. Shares were down earlier after the company met earnings expectations, but strange options trades may have helped lift the stock.
TheStreet.com's Jim Cramer says analysts will assume the worst is over. They are quite simply wrong.
If the Nasdaq rallies today, please ignore it. If you recall our now totally ridiculous run up in the Nasdaq two weeks ago, a run spurred by numerous upgrades of semiconductor and semiconductor equipment companies by analysts who are always bullish no matter what the fundamentals are, you know that it was dead wrong.
Dead wrong. I said it at the time, but in this market the bulls don't give a darn because all of their work is based on "cheapness" and that you buy stocks at this stage of a recession because you know we are almost out of it.
These are lies.
Today Intel's (NASDAQ: INTC) (Cramer's Take) really cheap. Using a Warren Buffett analogy -- although he doesn't like tech, just GE (NYSE: GE) (Cramer's Take) and Goldman (NYSE: GS) (Cramer's Take), two "much easier to figure out companies" -- Intel's now genuinely cheap. But then again, I forgot that Buffett's always right -- see Doug Kass' column -- and those who say he is wrong are simply short-term trader types.
Whenever someone asks me if a stock can go lower, I reply "of course." As investors have learned the hard way over the past few months, a company's shares can go all the way to zero. Just ask holders of Circuit City Stores Inc. (NYSE: CC) (bankruptcy), General Motors Corp. (NYSE: GM) (near-insolvency) and Sirius XM Radio Inc. (NASDAQ: SIRI) (crushing debt load) whose shares are heading off a cliff.
The number of companies trading at or near their 52-week lows is staggering. Investors are faced with some of the biggest bargains they have seen in decades or the potential to get burned even further as corporate earnings deteriorate further. I am not sure whether to dip my toe further in the market or to invest in more Mason jars that I can fill with the remnants of nest egg and bury in my backyard.
One thing is for certain, stocks are getting cheap. The challenge for investors to figure out is where the market has thrown out the baby with the bathwater. Here are some examples:
Google Inc. (NASDAQ: GOOG). The largest search engine company is trading at near a three-year low. Chief Executive Eric Schmidt has said the economy is far worse than he expected. The company traded at $307.93, near its 52-week low of $300.52. CNBC's Jim Goldman is baffled by the market's reaction to Google, as am I.
Citigroup Inc (NYSE: C) has had more ups and downs than Cher. Shares of the big bank last traded at $10.80, near its low of $10.34. It is down more than 63% this year. Remember, sometimes stocks are cheap for a good reason -- like business is bad.
Kellogg Co. (NYSE: K) reported better-than-expected third quarter earnings and gave bullish guidance. The market, though, could have cared less. Shares of the cereal maker are trading at about $48, near their 52-week low of $45.25. They are down more than 8% this year.
General Electric Co. (NYSE: GE) has been in Wall Street's dog house so long it should consider a long-term lease. The conglomerate trades for about $17.73. Its 52-week low is $17.27.
Saks Inc. (NYSE: SKS) already has gotten its lump of coal from investors worried about a horrid holiday season. Shares of the retailer are down more than 77% this year. The stock is trading at $4.66, near its 52-week low of $4.23.
"We are seeing quality names at fire-sale prices, and I think you must take advantage of that," says income expert Nilus Mattive in Dividend Superstars. Here's a trio of favorites.
"Pfizer (NYSE: PFE) recently reported great third-quarter results. The company tripled its profits from the same period a year ago. While last year's results were hurt by a one-time charge, Pfizer is obviously seeing continued demand for most of its drugs.
"I consider the stock dirt cheap, and while there is a slim chance of a dividend reduction, the shares absolutely belong in your long-term income portfolio at this level.
"I feel the same way about General Electric (NYSE: GE). While profits were down 22% this quarter, the company still boasts a AAA credit rating and a very attractive yield. It is a solid long-term income holding.
"Huaneng Power (NYSE: HNP) has been punished along with the rest of China's stocks. But things are going well on the fundamental front. The company increased its power generation 12.7% in the first three quarters of 2008, and revenues gained 36.8% over the same period a year earlier.
"It may post a loss because coal prices remain elevated, but I remain bullish on the company's long-term prospects, and consider it the best dividend-paying Chinese stock to own."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
The good news was that the company narrowed its loss compared to last year's results. Lions Gate booked a net loss of $0.41 per share this year versus a net loss of $0.49 per share in the year-ago period. The bad news, however, is that the results did not meet expectations. I mean, they really didn't meet expectations, as the call was for a loss of $0.15 per share. That's just how the movie business goes sometimes.
However, let's look at the cash flow, because we can find some comfort there. Operational cash flow for the quarter was positive this year instead of being negative, and free cash flow, which is the ultimate goal of any business, increased over three times to nearly $74 million.
And I'll steer you to another positive statistic -- filmed entertainment backlog increased to what management is calling a record $456.5 million. I know, I also tend to dismiss terms like "record" when I see them in a press release, but at least in this case it refers to revenues that will ultimately be recognized down the line.
KKR Financial (NYSE: KFN), the publicly traded arm of the famous private equity firm, is doing extremely well. The company's net rose to $49 million from $38 million in the same quarter a year ago. It dropped its provisions for loan loss reserves, a sign that its portfolio should be doing well.
It also cut its dividend to zero. The FT says that it is "a sign that the company is husbanding cash amid continuing market turmoil." Put another way, firms that are doing well may cut dividends just in case the economy and their businesses get worse next year.
That is remarkably troubling news, because it puts payouts at risk even at some large companies, especially those with financial divisions or balance sheets with some portion of their assets in risky securities. It also could hurt the chances dividends will be paid at firms with falling cash flows and substantial debt due next year. On the financial unit count GE (NYSE: GE) comes to mind. On the falling cash flow metric, The New York Times (NYSE: NYT) presents a risk.
Being among America's great companies may not count much any more, especially when it comes to sending cash to shareholders every quarter.
8 Safe Stocks to Buy Now These household names will hold up no matter how bad things get. They include General Dynamics, Google, J&J, American Tower, Oracle, Accenture, Thermo Fischer Scientific and Automatic Date Processing. http://www.kiplinger.com/columns/picks/archive/2008/pick1110.htm
The End of Dividends The big dividend was a hallmark of the big bull market. Now, the dividend is going the way of extinction. Among companies you can expect to see sharply lower dividends or no dividend at all in the future are Bank of America, Wells Fargo, New York Times, Gannett, CBS and General Electric. http://www.247wallst.com/2008/11/the-end-of-divi.html
TheStreet.com's Jim Cramer says that bid has kept a floor under equities, but things are dire without it.
Without the futures ramping, don't things seem so expensive? Those consumer nondurables -- uh-oh, they have dollar pressure. The stimulus package of China? Is that why we bought Fluor (NYSE: FLR) (Cramer's Take)? Where are the orders? All those oil stocks looked so inexpensive with oil at $66 going to $70. But we just paid $2.25 at the pump with no line and the futures are at $60. Citigroup (NYSE: C) (Cramer's Take) hit a 52-week low despite talking about an acquisition, and Bank of America (NYSE: BAC) (Cramer's Take) is a smidge above the 52-week low. What happens if it takes it out? What happens if Google (NASDAQ: GOOG) (Cramer's Take) takes out $300? Where is the Nasdaq bid, for heaven's sake? Where did all of those morning buyers go who kept coming back right until the end?
And that's the problem, isn't it? The collective cheapness of equities vs. the overvaluation of stocks. We simply don't get an opportunity to do anything but lose less than the other guy, and we are supposed to like it because stocks only get this inexpensive once or twice in a lifetime.
Without a doubt, DreamWorks Animation (NYSE: DWA) really nailed it with its latest computer-cartoon sequel, Madagascar: Escape 2 Africa. According to estimates at Boxofficemojo, the film, which is distributed by Viacom (NYSE: VIA), was number one at the box office over the weekend at domestic theaters.
That was expected. But I have to give kudos to the studio's marketing department for improving the previous film's opening weekend. Madagascar, which was released in May 2005, took in $47 million during its opening weekend. As of this writing, Escape 2 Africa has been credited with about $63 million. Considering that this isn't the summertime, I thought the sequel's debut performance was pretty cool.
And here's another equally cool fact: if the estimates hold, then Escape 2 Africa's first-weekend take will be slightly higher than Kung Fu Panda's opening weekend of $60.2 million. You've got to call that a success. Disney's (NYSE: DIS) Pixar brand definitely better take notice, especially if DreamWorks Animation can consistently put out blockbusters during both the summer and fall.
TheStreet.com's Jim Cramer says tons of stocks look like good buys, and they go down all the time.
All weekend I heard it. Stocks have gotten too cheap. Put 'em away cheap. Don't worry about 'em cheap. To which I say, stocks are only cheap if the companies make it. Stocks are only cheap if the bondholders don't claim them.
To say that the past week has been an eventful one would be a great understatement. On November 4th, the American people elected a new president, Barack Obama. Leading up to this historic event, markets rallied, but then lost some 10% in the following two days as the economic drama was relentless. On Friday, despite Ford and GM posting massive losses, and despite the jobs report showing numbers not seen in 14 years, markets are rallying (by noon).
To stay ahead of the market is impossible these days, and all one can do is hope we're nearing a bottom and current picks could only benefit. Following the different events this week and the still ongoing earnings season, here are some stock picks and pans from BloggingStocks contributors:
General Electric Co. (NYSE: GE) was Amey Stone's Obama pick due to near-term catalysts as well as long term solid fundamentals -- not to mention the 6% yield.
Ford Motor Co. (NYSE: F) was Michael Rainey's Obama pick. Since Ford is the strongest of the Big Three, Obama will likely choose to save it ... and perhaps GM. Ford had just reported earnings Friday, posting a loss.
Again, what is left to say? Nothing you haven't heard before. Jobless claims were the highest in over 15 years, earnings are at risk, the recession is here, and redemptions are still coming in droves. Sorry for the gloomy attitude. 
Citigroup Inc
What a difference a few hours makes. Earlier today, we were in the process of seeing the stock market take out the lows of October. At that point the buyers ignored the 516,000 jobless claims from this morning and they started hitting their "buy" buttons on their keyboards. The gains came on strong in the afternoon, and most of them late in the afternoon. Here are the unofficial closing bell levels:
Whenever someone asks me if a stock can go lower, I reply "of course." As investors have learned the hard way over the past few months, a company's shares can go all the way to zero. Just ask holders of 
To say that the past week has been an eventful one would be a great understatement. On November 4th, the American people elected a new president, Barack Obama. Leading up to this historic event, markets rallied, but then lost some 10% in the following two days as the economic drama was relentless. On Friday, despite Ford and GM posting massive losses, and despite the jobs report showing numbers not seen in 14 years, markets are rallying (by noon).
The RIM BlackBerry Storm launches on Verizon Wireless to mediocre fanfare
Cramer on BloggingStocks: The remaining black holes need fixing 
Wal-Mart replaces H. Lee Scott as chief executive -- why now?
