Monday, August 18, 2014

Week Ahead: Apple, Facebook, Microsoft Earns -- and IMF Outlook

The coming week sees more than one quarter of the companies in the S&P 500 reporting earnings including Apple, Facebook, Microsoft, Amazon, Starbucks, Boeing and Caterpillar.

The week also sees the latest global economic outlook from the International Monetary Fund (IMF) on Thursday.

The IMF last month cut its growth forecast for the United States economy this year to 2 per cent from 2.8 per cent, and urged the US to raise its minimum wage to help lift almost 50 million Americans out of poverty.

US stock markets fell on Thursday after Israel's ground invasion of Gaza and the shooting down of a Malaysian passenger jet over Ukraine, but bounced back on Friday.

The US markets also took in their stride a warning from Federal Reserve chair Janet Yellen, who added her voice to the argument that some biotech and social media stocks may be overvalued.

Indeed, despite warnings of an impending correction in stocks from a number of major players in the equity markets, the major stock indexes have just kept going higher.

For the week, the Dow Jones closed up 0.73 percent, the S&P 500 rose 1.03 percent and the Nasdaq climbed 1.57 percent.

Is there anything out there to bring the optimism to an end? The week ahead provides a mountain of company news for investors to consider.

Monday brings earnings from Netflix, Halliburton and Texas Instruments.

Tuesday brings an update on June's US consumer prices, and companies reporting earnings will include Apple, Microsoft, McDonald's, Coca-Cola, Verizon, Comcast, Lockheed Martin, State Street, Domino's Pizza, Harley Davidson and Publicis.

Wednesday brings another slew of quarterly results from firms including Facebook, Boeing, AT&T, PepsiCo, Qualcomm, GlaxoSmithKline, Dow Chemical, Whirlpool, Delta Airlines, TripAdvisor and Angie's List.

Thursday will see the IMF deliver its outlook for the global economy, with investors looking for any change to its April statement, when it predicted the global economy would expand 3.6 percent this year and 3.9 percent in 2015.

And Thursday also brings earnings from another huge batch of companies including Starbucks, Amazon, General Motors, Ford Motor, Caterpillar, Eli Lilly, Visa, Hershey, T. Rowe Price, Nasdaq, JetBlue, Pandora and Grubhub.

Sunday, August 17, 2014

How Can GM Justify an All-New Chevrolet Volt?

GM released this "teaser" photo of the all-new 2016 Chevrolet Volt. The all-new Volt will be unveiled in January, GM said this week. Source: General Motors Co.

Yes, there will be another one: General Motors (NYSE: GM  ) said this past week that an all-new version of the Chevrolet Volt will be revealed at the North American International Auto Show in January.

Sales of the current Volt have fallen far short of the expectations set by GM executives when the car was first launched. They've never once come close to the 45,000 Volts a year that former GM CEO Dan Akerson famously predicted.

But GM apparently thinks that the Volt has done well enough to deserve an encore.

Loved by its owners -- but hated by bailout foes
Few cars have proven to be more polarizing than the Chevy Volt. On the one hand, the innovative plug-in hybrid delivered on GM's then-aggressive promises for it, and the Volt consistently posts some of the highest owner-satisfaction scores in the industry.

But to many people, the Volt has been a symbol of GM's wildly unpopular U.S. government bailout. Some have wondered if the Obama administration might have pressured GM to make the huge investments that brought the Volt to market.

It didn't help that the Volt fell short of sales expectations right from the start, partly because of the high price (almost $40,000) that GM felt it needed to charge to recoup the costs of the car's development. Or that a wrecked Volt spontaneously combusted three weeks after being crash-tested.

Volt owners are a devoted bunch: The current Chevrolet Volt has some of the highest owner-satisfaction ratings in the industry. Source: General Motors Co.

But GM has managed to trim the Volt's price several times since its 2011 launch. Reviewers have been kind: The car is comfortable, nicely finished, pleasant to drive, and delivers on fuel economy as advertised. And then there's those sky-high customer satisfaction scores: As a group, Volt owners really love their cars.

Of course, the technology that seemed so whiz-bang when GM talked about it back in 2009 seems almost old-hat now. Sure, the Volt uses a unique configuration of drivetrain components. 

But what the average buyer cares about is this: The Volt is a plug-in hybrid with an electric-only range of 38 miles. 

That's not bad -- it's better than the 21-mile electric-only range offered by the plug-in Ford (NYSE: F  ) C-Max Energi, and the 11 miles from the plug-in Toyota (NYSE: TM  ) Prius. 

And with prices now starting at just over $34,000 -- before a Federal tax credit that can add up to as much as $7,500 -- the 2014 Volt isn't much more expensive than those two key competitors. For what you get, it's arguably a pretty good deal.

But in 2014, with plug-ins becoming more common and Tesla Motors  (NASDAQ: TSLA  ) selling thousands of copies of its sexy all-electric Model S every quarter, it's not as special as it was when it was first proposed.

Volt sales still look pretty good -- in context
Through July, GM has sold 10,635 Volts in the U.S. this year, down 8.7% from a year ago. That's disappointing when viewed from the perspective of GM's original sales targets for the car, which called for 45,000 sales a year. 

But it's not bad when compared to the Volt's plug-in rivals.

Sources: General Motors, Toyota, Ford

The plug-in version of Toyota's Prius outsold the Volt by just 36 units through the first seven months of 2014. Even Ford's two plug-ins combined only outsold the Volt by 1,585 vehicles over the same period. 

So it's reasonable to argue that the Volt is competitive enough, even if it has fallen far short of its original targets. 

In GM's eyes, that makes it worth an overhaul.

What the all-new 2016 Chevrolet Volt will be like
We don't actually know very much about the all-new 2016 Volt at this point. Aside from the teaser photo shown above and a general statement that the new Volt will build on the original's "strong foundation of technology innovation and customer satisfaction," GM hasn't tipped its hand.

It's probably reasonable to expect that the new Volt will have updated styling inside and out, along with improved electric-only range and fuel economy when running in hybrid mode. 

But it's unlikely to be a radically new product like the original -- and it's unlikely to cost anywhere near as much to develop. Rather, the 2016 Volt is more likely to be improved and enhanced, but built along the same basic lines as the current car. 

Will that be enough? Given that the current Volt is still quite competitive with its small circle of rivals -- and given that there have been no major breakthroughs in electric-car-battery technology since the original Volt debuted -- it's probably all that's really needed.

Warren Buffett's worst automotive nightmare (Hint: It's not Tesla Motors!)
A major technological shift is happening in the automotive industry. Most people are skeptical about its impact. Warren Buffett isn't one of them. He recently called it a "real threat" to one of his favorite businesses. An executive at Ford called the technology "fantastic." The beauty for investors is that there is an easy way to ride this megatrend. Click here to access our exclusive report on this stock.

Friday, August 15, 2014

Stocks Hitting 52-Week Highs

Related MNST Morgan Stanley Ponders Coca-Cola Buying Stake In Monster Beverage Morning Market Movers Related ACHN Benzinga's Top #PreMarket Gainers Achillion Pharmaceuticals Up on Narrower-than-Expected Loss

Monster Beverage (NASDAQ: MNST) shares jumped 29.80% to reach a new 52-week high of $93.00. Coca-Cola Company (NYSE: KO) and Monster Beverage announced a long-term strategic partnership. As part of the deal, Coca-Cola will buy a 16.7% equity stake in Monster.

Achillion Pharmaceuticals (NASDAQ: ACHN) shares touched a new 52-week high of $9.36 on hepatitis C drug study.

Andatee China Marine Fuel Services (NASDAQ: AMCF) shares touched a new 52-week high of $3.08 on Q2 results.

CRA International (NASDAQ: CRAI) shares reached a new 52-week high of $26.845. CRA International shares have jumped 45.84% over the past 52 weeks, while the S&P 500 index has gained 18.08% in the same period.

Posted-In: 52-Week HighsNews Intraday Update Markets Movers

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Sunday, August 3, 2014

Oops! Russian soldier Instagrams himself in Ukraine

russian soldier NEW YORK (CNNMoney) A man who identifies himself as a Russian soldier may have inadvertently taken two damning selfies.

Alexander Sotkin posted two photos of himself to Instagram from within Ukraine -- one on June 30 and another on July 5. BuzzFeed first reported the story.

Although it's an open secret that Russian soldiers are assisting Ukrainian nationals who are rebelling against the Ukrainian government, the Russian army denies that its troops have crossed the border.

A spokesman for the Russian Embassy said the government does not "make any decisions" or "come to conclusions" based on the social media posts. But the spokesman pointed to a news article in Russia's Life News that claimed the photos were forgeries and the locations of the selfies were falsified.

russian soldier 2

Sotkin's Facebook (FB, Tech30) profile describes his role as an instructor at the department of radio communications. He has been active on social networks for months while on duty. His colorful Instagram feed features pictures of himself eating a watermelon. posing with other soldiers and wearing a gas mask.

Another recent selfie caption: "sitting around, working on a buk, listening to music, basically a good sunday"

Sotkin may have been unaware that an Instagram feature called "Photo Map" was turned on when he took the photos. The feature tracks and visualizes when and where users post Instagram shots. Photo Map uses GPS to determine its users' locations, a tool that is generally accurate with 50 feet or so.

The location of his Instagram photos suggests he has been stationed on the Russia/Ukraine border since June 23. He posted 34 photos during that span -- 32 on the Russian side of the border and two on the Ukrainian side. The photos of Sotkin on the Ukrainian side were taken several miles across the border.

Saturday, August 2, 2014

Monkeys' Behavior Reveals Hidden Threat to Our Wealth

Portrait of capuchin monkeyKeywordsanimal, ape, best friend, camera, capuchin monkey, companion, facing camera, friend, inte Jupiterimages Your money is threatened by a Trojan horse that comes in the form of a wide grin, a wink and maybe a hug. This threat is like a computer virus. It runs without your awareness, takes hold of your operating system and undermines your intentions. This threat affects nearly everyone -- myself included. I was recently in Las Vegas telling more than 50 NFL athletes how to turn sudden wealth into lasting wealth. In my keynote address, I identified some common threats –- such as divorce, lawsuits and injuries -- but I focused on this hidden threat. It's been said that we are the average of the five people we're closest to. If you're making $40,000 a year, and all of your friends are making $100,000, you tend to to spend more than you can afford to match their lifestyle. You may start to buy the same types of clothes or the same kind of car. You might take up the same expensive hobbies or move into the same neighborhood. Contrary to what most financial advisers suggest, the biggest threat to creating lasting wealth is not your poor friends. It's your rich friends. Such financial creep is hardwired within us. We are social creatures. We are constantly looking at others and learning and modeling from them. It's in our DNA through evolution and natural selection. Our ancestors who saw and learned from others about what worked and what didn't were the ones who survived. Animals do it, too. Going Bananas Over a Grape If you're unable to watch the video, imagine two monkeys in separate cages. A researcher gives the first monkey a slice of cucumber. The monkey grabs this and starts to eat it because monkeys like cucumbers. The researcher then gives a grape to the second monkey. The second monkey devours it because while monkeys enjoy cucumbers, they love grapes. The first monkey is looking but doesn't really think much of it. The researcher then gives another cucumber slice to the first monkey. The first monkey takes it a little more slowly and starts to eat it, but now he's watching the researcher and the other monkey more closely. The researcher then gives another grape to the second monkey. Again the second monkey gobbles it up. If you watch the first monkey, you can tell something is not right. He's trying to figure out why he's getting cucumber slices and his buddy is getting grapes. Finally the researcher gives another cucumber slice to the first monkey. The first monkey takes it, looks at it, looks back at the researcher and throws the cucumber slice through the cage -- and it hits the researcher right on the chest. This monkey is irate. He does not understand why he is stuck with cucumber while his friend gets grapes. Just two minutes before, he was thrilled with his cucumber. And now he is enraged. Why? It's called relative deprivation. We're constantly comparing ourselves to those in our immediate circle and looking for areas where we're not getting what we think we deserve. Unsatisfied by a Dream Car Let me give you a human example. Imagine someone who has worked hard for many years to buy a Porsche 911. He has finally saved enough to throw down $100,000 at the dealership and drive off in a new Porsche 911. The windows are down, the radio is up, and he's cruising. But when he drives into a parking lot, he pulls up next to ... what? A fancier car? A faster car? A more expensive car? He gets out of the Porsche, shuts the door and feels disappointed. It's an internal tug that whatever we have isn't quite good enough -- that maybe we're not good enough. This seriously threatens our finances. You know what's going to happen to the guy with the Porsche. In three months, he's going to sell it at a huge loss and borrow money or lease a car that's much more expensive then he can afford. This virus is almost impossible to delete. The best defense is awareness. The next time you buy something, ask yourself why you want what you are buying. Do you truly want it or are you just buying it so you look better or to assuage an internal battle to feel good enough? The takeaway is to be conscious of how your environment and those around you affect your motives. Use money to create a better, fuller and richer life. Don't use money to attempt to keep up with friends or to mitigate feelings of inequity. It might not be fair that your friends enjoy grapes while you get cucumber, but if you act like the monkey, you'll have neither grapes nor cucumbers to eat. Most of us spend a ton of time researching our options when we first sign up for a plan or policy, then forget all about it and make monthly payments like a robot. But this can cost you.