Independent, Fee-Only Financial Advisor

Independent, Fee-Only Financial Advisor

Tuesday, July 31, 2007

Topsy Turvy Day

The day started off bright, with the Dow quickly gaining more than 100 points. Clouds came in, as American Home Mortgage's situation grew more bleak. They are another victim of the subprime situation. Personally, I think these guys made their own beds on this one! Also, oil was a player in the market today, as it tipped over $78 per barrel. Ah, same old, same old. On another note, News Corp. is set to seal the deal with Dow Jones. I'm not sure how I feel about Mr. Murdoch at the reins of WSJ. GM is looking rosy. Despite continuing good news on most fronts, markets dropped significantly at the end of the day. DJIA -146.32 NASDAQ -37.01 S&P 500 -18.64

Monday, July 30, 2007

Monday brought about some stabilization in the markets. After a morning of ups and downs, the 3 major indexes made a strong afternoon push to finish the day with a solid gain. All of the problems that bothered the markey last week are still lingering but people are beginning to realize that the numbers, especially earnings, aren't so bad. So far, with 63% of the companies in the S&P 500 having handed in their latest quarterly numbers, profits are running 7.4% higher than at the same time a year ago, according to Thomson Financial. I believe today calmed some people's nerves. DJIA +92.84 Nasdaq +21.04 S&P 500 +14.96

Friday, July 27, 2007

A penny short

Crude-oil futures rose $2.07 to $77.02, a penny off its record closing high of $77.03 set in July 2006. The markets rallied around mid-morning but could not hold on in the afternoon. "Credit spreads continue to widen, so the fear is still out there," said Stephen Sachs, director of trading at Rydex Investments. Monday and Tuesday are going to be interesting to see, to see if this trend continues or there is stabilization and growth on the horizon. Have a great weekend. DJIA -208.10 Nasdaq -37.10 S&P 500 -23.71

Thursday, July 26, 2007

Credit worries

Widening credit-market worries forced the major indexes down about 2% each on Thursday. Many banks have been hurt by having to take loans onto their balance sheets instead of passing them on to outside investors. Apple shares rose 6.4% after the company reported a 73% profit rise on sales of Macintosh computers. Though it was a down day, it maybe should be viewed as a buying opportunity in the long run because earnings have been coming in better than expected. DJIA -311.50 Nasdaq -48.83 S&P 500 -35.43

Wednesday, July 25, 2007

Up, then down, then up again

The market was all over the place today but all three major indexes finished in the positive. Stocks started the morning higher on the back of a couple strong reports from and Boeing. They saw a dip in the mid-morning when adverse housing news came in. "The home situation, with the implications in the subprime market," is so big in investors' minds now that they are sensitive to any adverse news about the sector, said Michael Cuggino, president and portfolio manager at the Permanent Portfolio Family of Funds. Are investors focusing too much or not enough on the subprime sector? DJIA +68.12 Nasdaq +8.31 S&P 500 +7.05

Tuesday, July 24, 2007

The internet has been down here, hence the reason there has not been posts the past two days, and it has been terrible. It is hard to grasp just how much we depend on it until you have to go without it. The major indexes were down nearly 2% each, mainly due to the pesky subprime-mortgage sector. Decliners outnumbered advancers by about nine to one on the NYSE today. On a positive note, crude-oil futures slid $1.33 to $73.56 a barrel. Days like today are going to come when the market has been growing as much as it has been. DJIA -226.47 Nasdaq -50.72 S&P 500 -30.53

Thursday, July 19, 2007


The Dow closed a hair above 14000 today but the largest percentage growth goes to the Nasdaq, 0.76%. Earnings, particularly in the technology sector, looked good Thursday. Shares of IBM and SAP rose 4.3% and 6,9% respectively. Google Inc.'s sales soared in the recent quarter as the Web search giant continued to ride the online advertising boom. Crude-oil futures went up 87 cents, making a barrel almost $76. Unfortunately, that is creeping up on a record high also. DJIA +82.19 Nasdaq +20.55 S&P 500 +6.91

Wednesday, July 18, 2007

No record today

The Dow put an end to 4 straight record closes as all 3 indexes lost ground today. Worries over the subprime mortgage market, disappointing earnings results from tech companies, and remarks from Federal Reserve Chairman Ben Bernanke looked to be the main reasons for the slight drop. It was nice to see a break in the rain today and I'm hoping to find some time to enjoy the sun. DJIA -53.33 Nasdaq -12.80 S&P 500 -3.98

Tuesday, July 17, 2007

"Rain, rain, go away"

The Dow industrials crossed the 14000 level for the first time Tuesday and were above it much of the day, but couldn't hold through to the end. The S&p 500 was the only index to finish in the negative but I wouldn't call it much of a loss. It continued to rain today all throughout the Metro Jackson area. A couple weeks ago I was hoping for some rain but now that it's here I just want it to "come again some other day." Do you think it will balance out? DJIA +20.57 Nasdaq +14.96 S&P 500 -0.15

Monday, July 16, 2007

Odd day

The Dow was the only index that finished up today as it flirted with 14000 early this afternoon. "It's an odd day -- most everything is down, and it's just the Dow, a few of the big Dow names, are up," said Jim Paulsen, chief investment strategist at Wells Capital Management. IHOP, the company behind the well-known pancake houses, gained 9.1% after it agreed to buy Applebee's International, the largest casual-dining restaurant chain, for $2.1 billion. I wonder if Applebee's will begin to serve breakfast? DJIA +43.73 Nasdaq -9.67 S&P 500 -2.98

Friday, July 13, 2007

Steady does it

The major indexes struggled Friday morning, taking a break after yesterday's jump, but added onto Thursday's gains in the afternoon. GE reported a 9.6% increase in second-quarter net income, despite a loss in its subprime-mortgage business, which it has said it will exit. Crude oil prices rose another $1.43, moving up to $73.93 a barrel. I think I need to get a bike. DJIA +45.52 Nasdaq +5.27 S&P 500 +4.80

Thursday, July 12, 2007

A surprising day

A surprising day indeed. The Dow rose almost 284 points, which is its largest point gain since October 2002. The Nasdaq and the S&P 500 grew 1.88% and 1.91% respectively. We can mainly thank the aluminum sector for today's shock as two metal giants started a bidding war. Rio Tinto, an Anglo-Australian metals company, agreed to purchase Canadian aluminum giant Alcan for $101 a share, or about $38 billion, in an effort to out bid their U.S. rival's, Alcoa, bid of $27.94 billion. Tomorrow might not be as fun to see because 2nd quarter earnings are not enough to justify today's startling jump. We will see. . . DJIA +283.86 Nasdaq +49.94 S&P 500 +28.94

Wednesday, July 11, 2007


Markets bounced back after a dismal day on Tuesday. While Tuesday was full of grim earnings news and inflation talk from Mr. Bernanke, today was more upbeat. Genentech (the biotech drug company) reported an increase of 41% on the quarter. Wow! This cutting edge company (symbol DNA) is staging a comeback from an earlier dip. Housing news may be staging a comeback, as well, but expect this to be slow, as experts think 2008 will be the real turnaround. All indexes responded positively, gaining about 1/2%. DJIA +76.17 NASDAQ +12.63 S&P 500 +8.64

Tuesday, July 10, 2007

Possible downgrade

The three major indexes each dropped over 1% today, led by the S&P 500 falling 1.42%. The markets were hurt buy S&P's announcement that it had placed about $12.1 billion in mortgage securities backed by subprime loans at risk of a rating downgrade, saying the sector had performed more poorly than the rating agency expected. Home Depot announced that its earnings will decline this year more than previously expected because of weak conditions in the housing market and the sale of it wholesale distribution business. DJIA -148.27 Nasdaq -30.86 S&P 500 -21.73

Monday, July 09, 2007

Oh, Baby!

It was all about baby news today. No, I'm not going to be a grandmother. The French company, Danone, is buying out a Dutch baby food manufacturer. Danone will end up being one of the largest suppliers of baby formula and baby food. Deals like this make Wall Street grin.
Markets gained slightly. It's earnings season again, and investors will be watching to see who will post good numbers for the second quarter of 2007. Positive surprises should fuel further gains. Let's hope the babies are all healthy and bouncing!
DJIA +38.29 NASDAQ +3.51 S&P 500 +1.41

Tuesday, July 03, 2007

Short but sweet

The market closed early today, due to the holiday, but that did not stop each index from making a positive gain. The Dow closed at 13577.30, about 100 points from its record set a month ago. General Motors Corp. announced its June sales decreased 21%, which the auto maker attributed to its planned reduction of rental-car sales. Have a great day tomorrow and be safe as you celebrate the 4th of July! DJIA +41.87 Nasdaq +12.65 S&P 500 +5.44.

Monday, July 02, 2007

Too Rich For My Blood

A Park Avenue commercial building in New York sold today for $1589 per square foot! I wonder if I can get that kind of appraisal for my Mississippi real estate. It's true what they say... location, location, location. There were other deals in the Big Apple today, causing Wall Street to respond positively, despite the news from Britain. Stocks added about 1%, leaving investors to ask, "What summer slump?" DJIA +126.81 NASDAQ +29.07 S&P 500 +16.08