Dell

Market Week Wrap-up

– Leading global equity indices continued floating upwards this week while the inflation drumbeat just kept getting louder. In the US, the January y/y CPI figure hit +1.6%, its highest level since last spring, and some analysts were alarmed by higher food prices creeping into CPI data sooner than expected. China’s January CPI report was lower than expected at +4.9% y/y, but markets panned the figures as heavily massaged by basket revisions. In the UK, the BoE said CPI would likely continue growing at a 4-5% clip over the short term. The World Bank released a report indicating that food prices were up 15% since October 2010 and are now only 3% away from record highs hit in 2008. Commodities moves complicated the story somewhat. While silver has pushed out to 30-year highs, there were signs that inflated soft commodity prices were beginning to unwind, with cotton and grain prices both below recent highs. Crude and gold prices have been impacted by reports that Iran is sending warships through the Suez Canal and bloody protests in Bahrain (next door to Saudi Arabia), although WTI futures were well below recent highs seen in early February. The Obama Administration unveiled its $3.73T budget proposal for 2012, including an all-time high deficit of $1.65T, reflecting the tax-cut agreement reached with Republicans in December. For 2012, the administration sees the imbalance declining to $1.1T, giving the country a record four straight years of one trillion-plus deficits. Bond prices held steady after the details were released, and Congress sharpened its knives for a budget fight. The Feb Empire Manufacturing survey hit its highest level since last June, indicating that the US manufacturing expansion seen over the last several months is continuing. On Friday there was plenty of commentary out of the G20 conference, where leaders tried mightily to achieve some concrete steps in reforming the global monetary system. Fed Chairman Bernanke took a swipe at the Chinese in his policy address to the G20, warning that nations which keep currency values low create imbalances, while the PBoC’s Zhou continued to push for a higher profile for the IMF’s Special Drawing Rights (SDRs). For the week, the DJIA rose 1.0%, the Nasdaq gained 0.9% and the S&P500 was up 1.0%. – John Deere crushed earnings and revenue targets in its Q1 report and nearly doubled its guidance for FY11 equipment sales. The firm hiked its sales guidance for its key agriculture and construction units as well, and said its Q2 revenue would blow out consensus estimates. Later in the week Caterpillar released very favorable dealer metrics for the month of January, with North America machinery sales up a whopping 58% y/y in the month. – Iron ore miner Cliffs Natural Resources reported very strong Q4 profits on a big y/y gain in iron ore pricing. The company expects global steel production to continue to grow in 2011, although it warned that spot iron ore prices are unsustainably high. Reliance Steel also blew out earnings estimates, and said pricing would remain strong at least through the first quarter of 2011. – In tech, Dell’s profit was way ahead of the consensus in its Q4 report, thanks to a big improvement in margins. The company said it believes the corporate IT…

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Top Dividend Stocks

Top Dividend Stocks

Like a fleck of pepper in a bag of sugar, Kathleen Casey-Kirschling is entirely unique. Born on New Year’s day 65 years ago, she is the oldest baby boomer of them all. That puts her at the head of the line of new retirees that stretches 78 million people deep… According to the Pew Research Center, about 10,000 baby boomers will turn 65 every day for the next 19 years. Between rising consumer prices, falling home values, and a tough economy, today’s newest oldsters are finding that, when it comes to a comfortable retirement, many of them are increasingly coming up short. In fact, according to a recent Employee Benefit Research Institute survey, one-third of people age 55 and older have less than $10,000 saved for their golden years, while a full two-thirds have less than $100,000 socked away. The “lifestyle gap” Given that Social Security benefits will replace only 16% of the income for married couples earning between $50,000 to $100,000, and only 9.5% of the income of married couples earning $100,000, this leaves an impending “lifestyle gap” that very few of these folks will be able to finesse. Instead of lives of leisure, many of them will need second careers as Wal-Mart greeters. That’s not a low blow, but the reality of the new math — $100,000 is a drop in the bucket for these folks. And let’s face it; even the prospect of those bare-bones Social Security checks is as flimsy as ever. By 2030 — when most of the baby boomers will have retired — just two people will be working to support each person receiving benefits. At that point, it’s likely this Ponzi scheme will have already blown up. As I reported last March , Social Security is already cash flow negative, paying out more in benefits than it receives in contributions. That’s five years ahead of schedule, according to the Congressional Budget Office. As for me, this is one train wreck I’m not counting on — and neither should you. Personally, I have no intention of spending my golden years learning the intricacies of the drive-thru window. So what is a prospective retiree to do ? you ask… The answer is pretty simple: They need to begin creating an income stream from their investments to close the gaps they will inevitably face when they retire. And the time to get started was yesterday. This means building a portion of your portfolio around a solid base of dividend stocks. Because with the FED waging a virtual war on savers, the dividend payers are your next best option — versus things like CDs, or at this stage, even bonds… That’s why long-term investors are so eager to gobble up high dividend yields these days. ~~SIGNUP_WD~~ What is a dividend, anyway? In short, a dividend is a cash payout you receive for simply being a shareholder, sort of like receiving a “bonus” based on the company’s earnings. Better yet, these checks are deposited directly into your account quarterly or monthly, depending upon the company you choose. These “bonuses” also continue to offer lower tax rates, since the favorable tax treatment of dividends has been extended for another two years. The rate remains at 15 percent (instead of your regular tax rate) unless you are in the 10…

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H-P Identifies New Growth Areas – Analyst Blog

Filed in BP, Dell, Gold Prices, o by on January 14, 2011 0 Comments

The world’s largest computer manufacturer Hewlett-Packard Company (HPQ) has won a $30.0 million deal from Texas Health and Human Services Commission

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Market Wrap-Up for Jan.14 (JPM, PNC, STT, GS, NEM, MEE, GE, more)

As I progress through my early 40′s, I like to think back to how I approached money in my earlier years. Being an entrepreneur, there is always a constant need to invest in your business and in yourself. That said, I still regret not being more proactive when it came to thinking about long-term wealth and financial security. The beauty of compound interest (which dividend stocks are great at providing when you re-invest those dividends) is something to marvel at when you start tabulating the numbers. You can use our Compounding Interest Calculator to measure your hypothetical rate of return, based on the number of years and amount of money you invest. Of course, getting married, having kids, and buying a home can put quite a dent in your best-laid plans. What was Mike Tyson’s famous line? I believe it was “Everyone has a plan until they get punched in the face.” Now I’m not trying to liken a boxing match to your family life, but the fact remains that the expenses you incur in adulthood can take quite a toll on your financial goals. Some investors are now in a position of making up for lost time, scrambling to start or build their retirement nest egg at a later stage in their lives than they’d prefer. The way I see it, the solution to this problem is simple: put more money each month to work for you. Some things you learn with age, and when it comes to money, most of us don’t start to really appreciate the power it has in our lives until we look up at the scoreboard and realize we’ve lost some initial ground. The key word I used there is “initial”, because it is NEVER too late to come back and make a difference. My dad had a barber friend who bought his first house at 77 years old! That’s the way you have to look at life. Never stop trying to achieve your goals, no matter how late you are in the game. I don’t care if all you can afford is $25 a month to start investing. Pick an online broker and get an account open if you don’t have one already. If you’re employed, set up an IRA and fund it with the maximum contribution you can make every year. And if you have kids, get a Coverdell Education Savings Account started for each of them and fund those as well. If your employer matches your 401k contributions, then do that too! Do whatever you can to make it happen. In time, you’ll look back …

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PC Sales Grow in 4Q – Analyst Blog

Filed in BP, Dell, Gold Investing, Gold Prices, o by on January 14, 2011 0 Comments

Personal computer (PC) shipments for the fourth quarter were disappointing, missing IDC estimates, although growing 2.7% during the quarter.

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Stock Market News for Dec 14, 2010 – Market News

Filed in BP, Dell, Gold Investing, Gold Prices, o, silver by on December 14, 2010 0 Comments

Expectations of the Senate passing the tax-cuts deal helped markets edge slightly higher.

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Cisco (NASDAQ:CSCO), Dell (NASDAQ:DELL), Hewlett-Packard (NYSE:HPQ) Growth Estimates Slashed by JPMorgan (NYSE:JPM)

Citing competition from alternatives to PC’s like Apple Inc.’s (NASDAQ:AAPL) iPad, growth estimates for companies like Cisco (NASDAQ:CSCO), Dell (NASDAQ:DELL) and Hewlett-Packard (NYSE:HPQ) were cut by JPMorgan (NYSE:JPM). JPMorgan analyst Mark Moskowitz said, “Given the recent enterprise trend- line, we do not expect any ‘big boom’ quarter in the near to mid-term. While we believe Cisco Systems

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