Money & Investing - Banks.com

This morning, a report on US consumer confidence was released. The result? Consumer sentiment is at a 26 year low. After yesterday’s promising rebound on the stock market, the news hit the stock market and it is now faltering.

With Americans increasingly worried about the personal financial situation many are finding themselves in, and with oil prices continuing to climb, many are concerned about family budgets. New worries include how to deal with food prices inflation, in addition to concerns over gas prices. Focus is not longer on consumer spending, and the stock market knows it. Instead of buying products, more of the available household budget is going to go into food and gas.

US dollar rally in currency trading

The story with the US dollar is a little different, however. There is a US dollar rally in currency trading right now, as some analysts see an end to the credit market crisis approaching. Additionally, the Fed is expected to stop cutting interest rates after another cut on the 30th of this month. (This could also be affecting the stock market.)

However, some are wondering if the consumer sentiment numbers will affect the US dollar rally as it does the stock market. However, the euro is struggling with reports out of Germany showing decreased confidence, and the sterling is dealing with British economic problems. So maybe it will even out, keeping the US dollar in its first real show of strength in a year.

Consider economic information, such as consumer sentiment, when making investing decisions. It could help you see which way the wind is blowing.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.

Tags: investing blog, stock market, currency trading, US dollar rally,
oil prices, consumer sentiment, food prices inflation

Quarter 1 earnings continue to roll in from companies traded on the stock market. In addition to reporting earnings, though, companies are also reporting on their earnings estimates for later in the year. And that is affect stock market performance as well. One example is Apple (AAPL), which is down this morning, despite solid quarter 1 earnings.

Tech sector stocks

Apple is but one example of how tech sector stocks are taking a bit of a beating today. Amazon’s (AMZN) lackluster performance in terms of its operating margin are also offsetting its Quarter 1 earnings report. Other struggling tech sector stocks include IBM (IBM), Intel (INTC) and Dell (DELL). The Nasdaq is falling this morning due to tech sector stocks. Even Google (GOOG) is down this morning.

Of course, the news isn’t all bad for the tech sector stocks. Microsoft (MSFT) is making a bit of a turnaround this morning after falling initially.

Other quarter 1 earnings news

Starbucks (SBUX) is reporting that it is concerned about consumers. After all, one of the first things to be cut in difficult economic times are small luxuries. It is possible that quarter 1 earnings — and earnings for the rest of the year — will be impacted due to a decrease in consumer spending.

Ford (F) is making a comeback, with sales in South America and Europe helping to boost quarter 1 earnings and offset the losses the company is sustaining in North America.

Consider earnings news as you think about investments on the stock market today. They could affect movements in the future. And if you think that a company might recover, now could be the time to buy — while the stock price is down.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.

Tags: stock market, stock market blog, investing blog, hstock market news,
quarter 1 earnings, MSFT, earnings reports

The big stock market news remains all about earnings this morning. Earnings reports are flowing in, and the stock market anxiously awaits each company’s report. This morning some of the highlights include Yahoo! (YHOO) and Toyota (TM). Also, it is worth noting that bank stocks in Europe are taking a heavy beating.

Yahoo! (YHOO) earnings report

Yahoo! posted pretty good earnings, and is forecast increased growth this year. Microsoft is still holding its ground in terms of its offer to buy the company, despite the optimistic look forward. But this does put Yahoo! in a better position to argue for a higher price from Microsoft in the whole dramatic affair.

Toyota (TM) steals GM’s crown

For years, GM has had the sales leads in terms of global automotive sales. Now, however, Toyota has come along and is stealing the glory. For the most part, strong demand in Europe is driving global sales of Toyota. Additionally, Toyota’s line of hybrid vehicles and fuel efficient cars are appealing in the current atmosphere of record high oil prices.

European banks struggle on the stock market

European banks are still struggling with subprime writedowns. UBS (UBS) and  Royal Bank of Scotland (RBS-PL) are both encountering problems on the stock market. Indeed, in Europe, bank stocks are dragging a variety indexes lower.

The US economy and stock market is not the only one to be affects by the subprime lending crisis. Many banks and markets around the world are also being affected. Subprime lending problems are affecting the British housing market, and many banks invested in US subprime mortgage-backed securities. This double hit is affecting European banks more strongly than American banks.

Disclaimer: I am not an investment professional. Nothing in this piece or on this Web site should be construed as investment advice. Before making investment decisions, do your own research and/or consult with an investment professional. All investment comes with the risk of loss.