Markets

Each day on my way to work, I walk by a poster advertising unlimited data, text and calling with carrier MetroPCS (PCS) for $50. Ouch. I pay close to $100 per month for my Apple (AAPL) iPhone on rival AT&T (T) for essentially the same plan. That's roughly a $600 per year difference in costs.

So, one would logically ask, why have I stuck with AT&T? First, I much prefer my iPhone to BlackBerry (RIMM) models available on MetroPCS (PCS) or competitor Leap Wireless. You can get far more applications on your iPhone. The iPhone is, to my mind, a much easier device to use and integrate with my laptop. But if those companies offered a phone based on Google's (GOOG) Android operating system, then I might truly consider a switch.

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Easy money: Deducting your tax losses could save you up to $1,000 this year

By Zack O'Malley Greenburg | Dec 15th 2009, 1:30PM EST Filed Under: Retirement, Investing

The autumn's juicy apples and fresh squash will soon give way to the stale processed foods of winter. And just as people like to pick what produce remains as the agricultural season ends, investors may want to "harvest" their stock market losses as the calendar year closes.

Here's the deal: Any taxpayer in any tax bracket may deduct stock market losses of up to $3,000 against his or her ordinary income. In other words, if you've sold stocks at a loss of $3,000 this year, that same amount of your total earnings becomes exempt from taxation. The higher your tax bracket, the more money you save by harvesting losses. Someone taxed at 33% would save $1,000 while someone taxed at 25% would save $750.

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Fed is likely to maintain status quo in December meeting

By Lita Epstein | Dec 15th 2009, 12:00PM EST Filed Under: Economy, Investing

The Federal Reserve is expected to maintain the current target interest rate of 0% to 0.25% when it meets Tuesday and Wednesday. We'll know for sure when the Federal Open Market Committee releases its policy statement around 2:15 p.m. on Wednesday.

But with the unemployment rate at 10% and analysts predicting it will barely drop to 9.9% by the third quarter of 2010, Federal Reserve Chairman Ben Bernanke would be committing political suicide if he raised rates now, just as Congress decides whether or not to support his second term as chairman. Nor do analysts expect the Fed to speed up withdrawal of its special lending and purchase programs, which have kept the financial markets out of even worse trouble during the crisis.

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Capital One charge-offs leap to 9.6% in November

By Lita Epstein | Dec 15th 2009, 10:30AM EST Filed Under: Company News, Economy, Investing

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Capital One's charge off rate jumped from 9.04% in October to 9.60% in November, indicating the increased number of accounts that Capital One (COF) does not believe it will collect. This comes as little surprise. Moody's has previously predicted that charge-offs for credit card companies will peak between 11% and 13% by mid-2010. When Capital One next reports earnings, expect to see a higher charge-off rate and a decrease in profits.

Moody's noted that the early-stage delinquency rate, which measures account balances for which a payment is 30 days late as a percentage of the total outstanding principal balance, is running 14% higher than for the same period last year. Moody's expects this increase to translate into even higher charge-off levels in the first half of 2010.

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Stocks in the news: Best Buy, Wells Fargo, GE, Goldman Sachs

By Melly Alazraki | Dec 15th 2009, 9:05AM EST Filed Under: Company News, Investing

Well Fargo (WFC) said Monday it has reached an agreement with the government to return the $25 billion in bailout money it received during last year's financial crisis. Repayment of the funds is contingent on a $10.4 billion common stock offering. Shares jumped over 2% in pre-market trading.

Best Buy (BBY) reported third-quarter earnings of 53 cents a share, topping analysts' estimates by 10 cents a share. Sales in the quarter climbed 4.6% from a year ago to $12.02 billion, also exceeding estimates. Looking ahead, Best Buy raised earnings and revenue guidance for 2010 ahead of consensus estimates. But shares fell more than 4.5% before the bell as investors were concerned about the lower margin.

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Stocks set to decline with manufacturing, inflation data on tap

By Melly Alazraki | Dec 15th 2009, 8:00AM EST Filed Under: Economy, Investing

U.S. stocks are set to open lower Tuesday morning, at least that's the indication ahead of some key economic data, including inflation and manufacturing, to be reported before the opening bell. The Federal Open Market Committee also begins its two-day policy meeting. While no decision will be made today, investors, who in general expect the Fed to keep rates at low levels, may be wary ahead of Wednesday's statement. Meanwhile, Wells Fargo joined Citigroup and repaid its bailout fund.

More here: Before the bell: Futures lower ahead of data; Fed meeting in focus

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New taxes take the shine off Chinese real estate -- shares plummet in HK and Shanghai

By Lauren Cooper | Dec 15th 2009, 7:00AM EST Filed Under: Economy, Investing, Real Estate

In Asia Tuesday, shares closed lower. The Shanghai Composite Index lost 0.9%, closing at 3,274 and in Hong Kong, the Hang Seng Index was down 1.3% at 21,814. Japan's Nikkei 225 Index shed 0.2%, ending the day at 10,083.

In China, declines were led by property developers as investors reacted to the government's reinstatement of property taxes for homes sold within 5 years of purchase. Prices for residential homes in China's 70 largest cities spiked 5.7% in November alone, and fears of a bubble are seeming more and more likely to be realized. "We have modest real estate bubbles that are emerging, but they are really at a very early stage," Prasenjit K. Basu, Chief Economist at Daiwa, said on CNBC this morning. But some say the tax of 5.5% will not dampen consumer enthusiasm.

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ETFs: Is today's Wall Street trend destined to disappoint?

By Sheryl Nance-Nash | Dec 14th 2009, 6:00PM EST Filed Under: Investing, ETFs

Exchange-traded funds have never been more popular. And no wonder: They're passively managed, which makes them as cheap as indexed mutual funds, but they trade all day long, like stocks. And they tend to be more tax advantaged than mutual funds, given that ETFs very rarely kick off capital gains distributions.

But Wall Street greed might make ETFs the next good investment vehicle to go bad. And several high-powered advisors and analysts see the table being set for investor disappointment.

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John Hussman: Stocks are priced to disappoint for a decade

By Dan Burrows | Dec 14th 2009, 5:30PM EST Filed Under: Investing

It's not hard to find folks who think stocks are way too expensive relative to their earnings prospects, perhaps even matching tech-bubble levels. But when John Hussman says shares are priced to disappoint, intelligent investors would do well to pay attention.

Hussman's hardly a household name, but the highly successful money manger's funds -- Hussman Strategic Growth (HSGFX) and Hussman Strategic Total Return (HSTRX) -- have delivered annualized returns of 8.6% and 7.9%, respectively, since their 2000 and 2002 debuts. (They're cheap, too: The growth fund's net expense ratio comes to 1.09%, while total return charges just 0.79%.)

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Global LCD TV growth makes Corning shares look sharp

By Dan Burrows | Dec 14th 2009, 5:00PM EST Filed Under: Investing, Stock Picks

Not everyone has a flat-panel LCD TV. It just seems that way, and that makes shares in Corning (GLW), the leading manufacturer of the glass that goes into those TVs, look like a bargain.

Jefferies & Co. analyst George Notter initiated coverage of Corning late last week with a buy rating, saying he believes the Street is underestimating the potential size and trajectory of LCD panel shipments over the longer term. The analyst estimates that manufacturers have shipped roughly 490 million flat-panel TVs globally since the market for such goodies emerged, but that's just a fraction of the 1.5 billion TVs out there, most of which are still the old CRT kind.

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