Archive

Posts Tagged ‘stock market’

Stocks jump after confidence, house prices surge

May 28th, 2013
NEW YORK (AP) -- A rally that brought the stock market to record highs this year came back to life after consumer confidence reached a five-year high and U.S. home prices rose the most in seven years. As stock prices rose investors sold bonds, sending interest rates higher....


Read the rest of the story from source

Careless Whispers Drove Down LinkedIn Shares

May 7th, 2013
The shellacking given to shares of LinkedIn last week, after the company's quarterly report, was yet another lesson in the perils that await retail investors who try to time the market for tech stocks.

Those who endeavor to make a quick buck during earnings season would be better served placing a bet on a roulette wheel.

That's because -- for those unfamiliar with the ways of Wall Street -- the chances of correctly guessing whether a stock will go up or down based on a company's report are about the same as predicting whether that little casino ball will land on a red or black number.

It's gambling, not investing.

On the face of it, it might be easy to argue that the short-term market reaction to LinkedIn shares was standard operating procedure for Wall Street. The stock market, after all, is a leading indicator that tries to predict the performance of a company, sector or economy some months down the road.

That's why Apple shares began falling in September, well before the company reported that the quarter ended in March was the first in many years to see a year-over-year profit drop.

All else being equal, forecasts for future periods are more important to Wall Street than the results for a quarter already ended -- and Linked-In did issue a disappointing second-quarter revenue forecast.

But there is more to the story of why the stock lost so much market value, even though LinkedIn's first-quarter report showed all the signs of a fast-growing and profitable company.

To fully understand why the stock moved as it did requires a bit of education about the so-called whisper number -- that elusive, unpublished measure of expectations that's become a game within a game among analysts who cover highflying tech stocks.

A whisper number is an estimate from analysts -- for revenue, profit,...



Read the rest of the story from source

Author: Categories: All News, Sci/Tech Tags: ,

Big Data from Google Trends Used To Predict Dow Swings

April 27th, 2013
Can aggregated data from Google predict the stock market? Research from three economists says yes to Big Data. The three researchers have published a paper indicating that data from Google Trends can predict up and down price moves on the Dow Jones Industrial Average.

The researchers had previously discovered that the number of searches on a company's name, and the number of times that company's stock was traded were related, but it couldn't determine pricing -- meaning it couldn't help investors.

Frequency of Search Terms

So the team took a broader view of the stock market. They tracked 98 finance-related search words or phrases, such as "debt" or "derivatives," using data from 2004 to 2011. The frequency of those searches was compared with the DJIA's closing price, which is based on 30 stocks.

The researchers employed an investing game, using imaginary money, to test the concept. If financial searches went down, thus apparently indicating less interest in the market and lower prices, they "bought" stocks to hold them for the long term. If searches rose, possibly indicating an increase in market interest, they shorted the market. In short sales, borrowed stocks are sold and bought back later at what is hoped will be a lower price because the market has gone down.

Shorting assumes the market will fall, and the researchers' speculated that Google searches increased because stock owners were getting nervous about the market, and getting ready to sell their stock. In fact, that seemed to be the case -- an increase in searching about financial terms preceded a fall in prices.

'Debt' Is the Key

The key term: "debt." When searches for that term dropped, they went long; when "debt" searches increased, they shorted. Using this strategy, they increased the value of their imaginary holdings by 326 percent, compared with a 16 percent...



Read the rest of the story from source

Author: Categories: All News, Sci/Tech Tags: , ,

Vacation home sales surged 10% last year

April 2nd, 2013
A strong stock market, growing demand and limited inventory helped propel vacation home sales for the second year in a row in 2012.


Read the rest of the story from source

Author: Categories: All News, Money Tags: ,

The Incredible Shrinking Supply of Stocks

March 20th, 2013
Investors have faced plenty of challenges trying to build healthy stock portfolios. Now, even as the market hits new highs, there is a new hurdle to throw into the mix: the dramatically shrinking list of companies willing to sell shares to the public.

Companies have been gobbled up in mergers or gone private. Some have thrown up their hands in disgust with Wall Street. Others have been involuntarily delisted because their businesses are suffering. Meanwhile, the engine of new stocks, the initial public offering market, remains moribund.

The stock market is shrinking. The number of companies in which individual investors can buy shares is in a breathtaking decline, continuing a fall that's been years in the making but that's accelerated this year with its record-breaking start to takeovers, mergers and buyouts.

"The stock market is going private," says Robert Maltbie of Singular Research. "It keeps self-consuming."

The ramifications of this are significant, and the simple reason is that it means the average investor has fewer choices, both broadly and within specific industries, when it comes to picking individual stocks.

While some investors feel Wall Street is a rigged game and stock volatility is upsetting, the ability for an individual investor to buy shares of American companies in the same way as a billionaire is one of the defining characteristics of the U.S.' capitalistic system.

Dell, US Airways, Heinz and OfficeMax are just a few of the iconic American brands that this year announced plans to no longer trade as independent companies.

The numbers tell an even more dramatic story of how many publicly traded companies are vanishing. The Wilshire 5000 index is a market measure of all the U.S.-based firms that have shares that can be traded. For decades, it's been a proxy for the size, breadth and value of the entire stock market.

But even the Wilshire...



Read the rest of the story from source

401(k) balances at record high

February 14th, 2013
401(k) balances reached record highs in 2012, as a strong stock market and increased contributions helped retirement savers continue to recover from recession losses.


Read the rest of the story from source

Dell goes private in $24B deal

February 5th, 2013

Slumping personal computer maker Dell is bowing out of the stock market in a $24.4 billion buyout that represents the largest deal of its kind since the Great Recession dried up the financing for such risky manoeuvers.



Read the rest of the story from source

Best Move of the Year So Far? Playing the Flu

January 29th, 2013
Amid all the hyper-bullishness about the stock market this year, the effectiveness of the swine flu play may be getting lost. Yes, one of the most effective strategies has been betting on shares of companies that benefit from the higher-than-expected level ...


Read the rest of the story from source

Best Move of the Year So Far? Playing the Flu

January 29th, 2013
Amid all the hyper-bullishness about the stock market this year, the effectiveness of the swine flu play may be getting lost. Yes, one of the most effective strategies has been betting on shares of companies that benefit from the higher-than-expected level ...


Read the rest of the story from source

Best Move of the Year So Far? Playing the Flu

January 29th, 2013
Amid all the hyper-bullishness about the stock market this year, the effectiveness of the swine flu play may be getting lost. Yes, one of the most effective strategies has been betting on shares of companies that benefit from the higher-than-expected level ...


Read the rest of the story from source