Market Wrap-Up for Aug.12 (EL, KSS, MA, GS, SPG, NEM, more)

I have been following some interesting tidbits about a plan (Automatic IRA) that a New Mexico senator has sponsored that would require all firms with 10 or more employees that don’t already offer a retirement plan to automatically enroll workers in an IRA. Workers who don’t wish to participate would need to take action to opt out or change the default contribution amount and investments. This is a great idea, but one that needs to have numerous choices for workers to consider investing in. If the deal options are limited, then the plan could end up being a total disaster. I am sure Wall Street will be in the middle of the action to make sure the bill is a win-win. That’s fine, let’s just not make it a resolution to appease the firms with the biggest lobbyists! As for today’s action, we saw the markets bounce off this morning’s early weakness, but we couldn’t turn the corner all the way, closing down for the third day in a row. The market couldn’t shake loose from the earnings disappointments out of Estee Lauder ( EL ) , Kohl’s ( KSS ) and tech heavyweight Cisco Systems ( CSCO ). Several names bucked the selling, including Potash Corp ( POT ) , MasterCard ( MA ) , and gold-mining plays like Newmont Mining ( NEM ) , Buenaventura ( BVN ) , and Agnico-Eagle Mines ( AEM ) . There was an upgrade out this morning that seemed a bit strange as Goldman Sachs ( GS ) decided to move Simon Property Group ( SPG ) on its “conviction buy” list. Not sure what the catalyst could be there, since the stock has had a big run and sports a rather small (for a REIT) 2.65% dividend yield. We have also been concerned about the aggressive “momentum-style” trading that we have witnessed in that sector. We are currently underweight in the REIT space, hoping to see historically higher dividend yields, or significant boosts in payouts. Be sure to check out our Best Dividend Stocks List for the dividend-payers we currently recommended putting new money into. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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Market Wrap-Up for Aug.12 (EL, KSS, MA, GS, SPG, NEM, more)

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