Markets

Thursday is one of those days when I wish I could be reincarnated as Jon Stewart. I am certainly hoping that when he returns to live broadcasts, he can find the funny in the media's obsessive coverage of the State Dinner crashers. And if he does this, he should note that while the media salivated over the Salahis, it ignored a far more important story -- Middle Eastern petro-state, Dubai, was defaulting on its debt.

Problems with Dubai's finances are not a big surprise. As I posted in February, I first got wind of the potential for a huge collapse there back in 2005 when I read an article in the New Yorker which discussed Dubai's world record breaking pace of commercial real estate development as its government sought to diversify...

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Chinese banking stocks continue to slip and Japanese carmakers slide

By Lauren Cooper | Nov 26th 2009, 7:05AM EST Filed Under: Economy, Investing

Shares in Asia tumbled Thursday. In China the Shanghai Composite index plunged 3.6%, ending the day at 3,171, and in Hong Kong, the Hang Seng Index dropped 1.8% to 22,210. In Japan the Nikkei Index lost 0.6% to close at 9,383.

Chinese banks sank lower again Thursday as investors and the Chinese authorities await plans as to how banks will raise capital to support the massive loans they have made this year. In addition, Yin Zhongqing, deputy head of the finance and economic committee announced that the amount banks are predicted to lend in 2010 will fall to $730 billion to $1.2 trillion. That's far lower than the estimated $1.4 trillion loaned in 2009. "A level higher...

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Is Dollar Tree's stock as cheap as its prices?

By Dan Burrows | Nov 25th 2009, 5:00PM EST Filed Under: Investing, Earnings, Stock Picks

It's no secret that cash-strapped consumers have been flocking to discounters and dollar stores for more than a year. A bit more surprising is that even after a 50% rally off their 52-week low, shares in Dollar Tree Stores (DLTR) still look as cheap as the retailer's wares.

The company posted yet another impressive quarter of profit, sales and operating margin growth Tuesday. Dollar Tree's third-quarter earnings rose 58%, beating Street estimates by an almost embarrassing (for the analysts) 10 cents a share. Sales rose 12%, exceeding expectations by more than $4 million and same-store sales -- a key retailer metric -- grew 6.5%. The company has a nice habit of exceeding analysts' average...

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Stocks rise after weekly jobless claims fall to lowest level in a year

By AP | Nov 25th 2009, 4:30PM EST Filed Under: Investing

Stocks climbed Wednesday following a drop in weekly unemployment claims to the lowest level of the year and a rise in new home sales. The market's gain was modest on light trading volume ahead of the Thanksgiving holiday.

The government said new claims for unemployment insurance fell by 35,000 last week to 466,000. That's the fewest claims since September last year, and better than the 500,000 that economists had expected. The drop in claims suggests the job market is healing, but concern remains that the improvement will be temporary as the weak economy continues to push unemployment higher. The jobless rate hit 10.2% in October and many analysts believe it will keep rising before starting to improve next summer.

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Stocks in the news: AIG, Deere & Co., Tiffany, J. Crew, Microsoft

By Melly Alazraki | Nov 25th 2009, 9:00AM EST Filed Under: Company News, Investing, Microsoft, Boeing, American International Group, INC., Starbucks, Tiffany & Co., Toyota, J. Crew, Novartis

American International Group Inc. (AIG) has been authorized by its board to pay CEO Robert Benmosche's $7 million in compensation, after it laid to rest concerns that he might quit his post. This breaks down to an annual salary of $3 million in cash and $4 million in fully-vested AIG stock, which he can't sell for five years. With a performance bonus, the value of his pay package could reach $10.5 million.

Deere & Co. (DE) reported a quarterly net loss of $222.8 million, or 53 cents a share, on Wednesday on weak equipment sales, which fell 28% to $5.33 billion, and a series of one-time...

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Stocks set for a higher open ahead of economic data

By Melly Alazraki | Nov 25th 2009, 7:55AM EST Filed Under: Economy, Investing

U.S. stocks are poised for a higher open Wednesday morning as investors' optimism about the economy was fueled by the Federal Reserve minutes released late Wednesday. The Fed revised its growth projections for 2010 higher. A barrage of economic releases is due out today, ahead of the Thanksgiving holiday Thursday, when markets will be closed. Markets will reopen Friday for a short day. Trading could be choppy today as a result.

More here: Before the bell: Futures higher ahead of housing, jobless data

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Chinese banking shares stabilize while car and mining stocks soar

By Lauren Cooper | Nov 25th 2009, 7:00AM EST Filed Under: Economy, Investing

Shares in Asia recouped some of yesterday's losses as benchmark indexes rose. In China the Shanghai Composite Index climbed 2.1% to end the day at 3,290, and Hong Kong's Hang Seng Index rose 0.8% to 22,612. In Japan the Nikkei Index closed at 9,442 -- up 0.4%.

Chinese mining companies soared today after gold hit a new high of $1,177 per ounce. Shandong Gold Mining surged to its maximum 10% daily limit, Zijin Mining (ZIJMF) climbed 6.5% and Zhongjin Gold gained 5.4%. Other metals companies also moved forward with Baoshan Iron & Steel surging 8.5% and Jiangxi Copper (JIXAY) gaining 3.8%.

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As AOL stock begins limited trading, analyst takes a look at potential value

By Dan Burrows | Nov 24th 2009, 5:00PM EST Filed Under: Company News, Technology, Investing, Earnings, Time Warner

AOL, or "Aol.," as DailyFinance's corporate parent shall soon be known, won't be spun off from Time Warner (TWX) until Dec. 9, but Wall Street is already forecasting its (or should we say, "our") business prospects.

Barclays Capital analyst Douglas Anmuth laid out his earnings estimates for soon-to-be-independent AOL on Tuesday, coinciding with the stock trading on a "when-issued" basis on the New York Stock Exchange. (A when-issued listing is standard practice ahead of a spin-off in order to ensure a smooth transition for market participants.)

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Stocks sag after crummy reports on economic growth, consumer confidence

By AP | Nov 24th 2009, 4:35PM EST Filed Under: Company News, Investing

Stocks drifted below 13-month highs after a lackluster reading on consumer confidence and a report showing slower economic growth sapped some of the market's optimism. Major indexes posted modest losses Tuesday, as drops in financial and industrial stocks were tempered by gains in health care companies. The Dow Jones industrial average fell 17 points a day after jumping by 133.

Stocks pulled off their lows of the day after the Federal Reserve released minutes from its latest rate-setting meeting, during which it pledged to keep rates low for the foreseeable future and said inflation remained at bay. The Fed raised its expectations for economic growth during the second half of this year, but said unemployment will remain high.

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Galleon's Rajaratnam strikes back, calls SEC tactics unconstitutional

By Vishesh Kumar | Nov 24th 2009, 2:00PM EST Filed Under: People, Investing

Billionaire hedge fund manager Raj Rajaratnam had vowed to fight the insider trading charges against him with the same vigor he used to amass his fortune. And now his army of seasoned lawyers is swinging back hard against allegations that the founder of the Galleon Group engaged in insider trading in stocks ranging from Google (GOOG) to Hilton (HLNQ).

On Tuesday, Rajaratnam's legal team responded...

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