Markets

mutual-fund-fees-fight-may-be-much-ado-about-nothing D. Bruce Johnsen, a professor of law at George Mason University in Arlington, Va., likes to keep things simple. Explaining the conclusions of his recent study, Myths About Mutual Fund Fees: Economic Insights on Jones v. Harris, he says bluntly: "Lower advisory fees don't necessarily benefit investors."

"Don't believe the bad press about high advisory fees," he adds. "It's a misconception that fund fees necessarily reduce investor returns dollar for dollar, and that lower fees therefore benefit investors."

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FHA audit delay could mean agency will need bailout

By Lita Epstein | Nov 5th 2009, 9:45AM EST Filed Under: Company News, Economy, Investing

On Wednesday, the Federal Housing Administration was supposed to release its independent audit determining the soundness of the agency. Many have questioned that soundness because, as of Oct. 1, its reserve fund dipped below the required 2 percent of the agency's outstanding loans for the first time in its history. On Tuesday night, the agency abruptly canceled the release of that audit report, citing problems with the risk scenarios, according to The Washington Post.

Obviously, those problems stem...

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Stocks in the news: Cisco, CVS Caremark, Whole Foods, Sara Lee, Wendy's

By Melly Alazraki | Nov 5th 2009, 9:00AM EST Filed Under: Company News, Investing, Google , Microsoft, Qualcomm, Research In Motion, Cisco Corp, Costco Wholesale Corp., News Corp., Dow Chemical, Toyota

Cisco Systems Inc. (CSCO) posted a stronger-than-expected profit for its fiscal first quarter and said business was recovering as customers are buying more network equipment again. Its revenue outlook for the current quarter also exceeded Wall Street expectations. Shares rose over 3.5 percent in premarket trade.

Toyota Motor Corp. (TM) posted a surprise profit last quarter -- its first after three losing quarters -- and trimmed its projected red ink for the year. Toyota said results were due to government measures around the world designed to boost sales of environmentally friendly cars...

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S&P says costs and risk cause key disparities in index fund performance

By Matthew Scott | Nov 5th 2009, 8:30AM EST Filed Under: Investing

You would think that an S&P 500 Index fund would be one of the easiest investments to own. But it turns out that choosing from among the many mutual funds that track the performance of stocks in the broader market is fraught with risks.

In theory, of course, picking an index fund should be pretty straightforward. After all, the name "index fund" implies that all it's supposed to do is mimic the results of an index. But Standard and Poor's Equity Research, whose parent company manages the S&P 500 Index, is warning investors that all index mutual funds are not the same.

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Daily Blogwatch: Where the heck is this market going already?

By James Altucher | Nov 5th 2009, 8:00AM EST Filed Under: Company News, Technology, Columns, Economy, Investing, Earnings

I really enjoy Mark Cuban's investigative blog, sharesleuth.com, although I do think he should go broader than just investigating micro-cap stocks like the one in the link.

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Where does super-investor Ken Fisher think the market is going? Up, I hope!

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I used to trade futures for volatile investor Victor Niederhoffer. Mebane Faber over at AlphaClone shares his thoughts on Victor.

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Stocks set for a higher open after retail sales data, earnings

By Melly Alazraki | Nov 5th 2009, 7:45AM EST Filed Under: Economy, Investing, Cisco Corp

U.S. stocks are poised for a weak opening Thursday morning after finishing barely changed Wednesday following the Federal Reserve's statement that it was keeping rates at record low levels. Wall Street wanted a stronger show of confidence in the economy.

Also in focus this morning are retail chain-stores October sales. And earnings from tech giant Cisco (CSCO), which also gave an upbeat outlook could give a boost to tech.

[Update: Futures now point to a higher open following retail sales data, earnings and lower claims numbers.]

More here: Before the bell: Futures drift lower after Fed's statement, Cisco,...

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Sanyo plunges after takeover bid in Japan, Chinese developer surges

By Lauren Cooper | Nov 5th 2009, 7:00AM EST Filed Under: Economy, Investing

Shares in Asia closed mostly lower today with Japan's Nikkei Index falling 1.3 percent to 9,717. In Hong Kong, the Hang Seng Index fell 0.6 percent to close at 21,479, and in China, the Shanghai Composite Index rose 0.9 percent, ending the day at 3,155.

In Japan, Sanyo Electric Co. (SANYY) plunged 20 percent to 174 yen ($1.93) per share as Panasonic Corp. (PC) made an offer to buy the company at 131 yen ($1.45) a share. Panasonic hopes to acquire Sanyo, which makes rechargeable batteries and other appliances, including vending machines, and has several contracts to provide batteries for hybrid...

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Will Berkshire Hathaway's retail stock price bring retail investors?

By Douglas McIntyre | Nov 4th 2009, 5:50PM EST Filed Under: Company News, Investing, Johnson & Johnson, Coca-Cola Company, Berkshire Hathaway, Wal-Mart Stores, Wells Fargo & Co.

For years, the price of Berkshire Hathaway (BRK.A)'s Class A and Class B common stock has been priced out of the range of what most retail investors can afford. A share of the less expensive of the two classes, the B, trades at about $3,300.

Berkshire, run by Warren Buffett, announced on Tuesday that its Board of Directors approved a 50-for-1 split of its Class B Common Stock. The transaction still has to be approved by shareholders, but that's nearly a sure thing.

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Novartis is making a multipronged push into China

By Melly Alazraki | Nov 4th 2009, 5:00PM EST Filed Under: Company News, Investing, Healthcare, GlaxoSmithKline, Novartis

Ever since China loosened its trade restrictions with the West, companies have jumped head-first into the Communist-run state, hoping to capitalize on selling products to the planet's most populous nation. Pharmaceutical companies have been no different, but at a somewhat more subdued rate because China's health-care system has been less developed.

Now, though, just when reform is looming for the U.S. health-care system, which could potentially slow pharmaceutical sales (at least in the short term), China is starting to push health care into growth mode. And Swiss-based Novartis (NVS) is one drugmaker that intends to capitalize on it.

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Polo Ralph Lauren's bespoke results portend more upside ahead

By Dan Burrows | Nov 4th 2009, 3:30PM EST Filed Under: Company News, Investing, Earnings, Polo Ralph Lauren Corp., Stock Picks

You know it's an especially painful downturn when even the better-off among us stop shelling out for luxury brands. The last time we went through a recession upscale retailers like Polo Ralph Lauren (RL) actually held up pretty well. This time? Not so much.

That's why the company's second-quarter earnings report was somewhat reassuring. True, Polo blew past Street estimates, but then it's done that for at least nine quarters in a row. More encouraging was an expansion in gross margin (an indication that the company is getting some pricing power back), as well as its better outlook for sales in 2010.

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