Author: Michael D

The great ones always come back for one more fight.  Microsoft (MSFT) an also ran for the past seven years, at least from a stock market perspective, demonstrated that it could still float like a butterfly and sting like a bee.  After the close on Thursday, it reported that its net income rose to $4.3 billion, or 45 cents a share.  Revenue rose to $13.76 billion. Wall Street was expecting earnings of 39 cents on 12.9 billion in revenue.

Microsoft hadn’t strutted its stuff like that in years and Wall Street rewarded it with a 9.5% pop.  Long ago Bill Gates and crew lost its appeal to growth investors and can now be found in many value fund manager’s portfolios.  I am certain that many of them almost had a coronary when their portfolio values increased so substantially.

Continue reading “Time & Money Review 10/26/07 – Microsoft is BACK”

If you watched CNBC at all last week you heard at least one mention of October 19, 1987.  If you are like me and watch it too much – you knew that Friday was destined to be a down day.  After the non-stop reminders of the 22% one day drop from 20 years ago, how could any trader not have one finger on the sell button? Thankfully 367 DOW points is not what it was in 1987.   However, a 2.6% loss is nothing to sneeze at.

For the week, the DOW, S&P 500 and NASDAQ were down 4.1%, 3.9% and 2.9% respectively. Technology held up the best.  Google managed to close up on Friday in the midst of the anniversary backlash. 

Continue reading “Time & Money Review 10/19/07 – 20th Anniversary of Black Monday”

Although the DOW and S&P 500 hit all-time highs this week, the quiet leader was the technology sector. The primary benefactor as well as goat from the internet bubble days, the NASDAQ, is leading the broad market in 2007.  Year to date, the NASDAQ is up 16.2% – followed by the DOW (+13.1%) and S&P 500 (+10.1%).

Technology has become a safe haven as it has zero exposure to the subprime slime that has dogged the financials and homebuilders and it is also a global growth play.  Building world-class telecommunication and computer networks is as important as erecting new highways and bridges to the emerging markets.

Continue reading “Time & Money Review 10/12/07 – Technology: The Forgotten Sector”

The crowd crazing for more rates cuts may have taken a hit on Friday, as jobs appear to be back on track.  Jobs reported by the Labor Department increased by 110,000 for September.  However, the good news was that August negative print of -4000 jobs was revised up to 89,000.

Calls for a US recession grew louder after the August report and many believed it was the impetus for the 50 basis point rate cut.  The market rallied on cue as not fighting the Fed was back in vogue. 

Continue reading “Time & Money Review 10/05/07 – Market Focus Changes on a Dime”

September may have closed on a down tick, but this has been a great month for investors.  For the month, the DOW, S&P 500 and NASDAQ were up 4.0%, 3.6% and 4.0%.  Coming off a very volatile August this was just what the doctor ordered.  Should investors break out the champagne considering that September is usually the worst month of the year for the market?  Not so fast!  The wall of worry is getting steeper and steeper.  

On Friday, the mere suggestion from St. Louis Federal Reserve Bank President William Poole that the more rate cuts may not be in the cards rattled the markets.  “It would be a mistake to bake in the cake more rate cuts,” said Poole.  We are also transitioning into earnings season.  Will the weakening economy translate into weaker earnings?  Then there is the 20th anniversary of Black Monday to look forward to.  Let’s enjoy the weekend, but worry caps go back on – on Monday.  

Continue reading “Time & Money Review 9/28/07 – The Wall of Worry Steepens”