Market Insight

Markets rarely move at random. InvestorPlace’s leading analysts break down macro trends, sector dynamics, and recurring market patterns to help investors understand what is changing, what matters most, and where opportunities may emerge.

Death of the P/E Ratio is Greatly Exaggerated

The Wall Street Journal has a rather unusual column today claiming that the Price/Earnings Ratio is not only declining, but the metric’s importance is declining as well. For supporting evidence, they offer up the fact that corporate earnings were strong this past earnings season but the stock market has since fallen.

CVS Offers Free Flu Shot with $30 Puchase

Available at every CVS pharmacy and MinuteClinic stores, the flu shots will be provided at no charge to consumers who buy $30 worth of products from Procter & Gamble (NYSE: PG) such as Bounty paper towels, Pampers diapers and Tide laundry detergent.

Dollar General (DG) Improved Outlook Still Lower Than Expected

Dollar General Corp. (NYSE: DG) reported earnings today, proving again that low-price retail stores continue to have their day in the sun. Dollar General’s second fiscal quarter earnings were $0.41 on revenue of $3.21 billion. Excluding a one time charge of $6.4 million, the company posted EPS of $0.42. Analysts on average expected EPS of $0.38 on revenue of $3.22 billion.

J.Crew (JCG) Opens Online ‘Outlet’ to Boost Sales

J.Crew (NYSE: JCG) is capitalizing on the trend of online shopping with a new concept of an online outlet store that will launch in September. The bid from retail stock J.Crew is meant to attract bargain shoppers in an economy characterized by weak consumer spending.

Google (GOOG) Launches Gmail Priority Inbox

Google (NASDAQ: GOOG) will begin offering a new feature this week the company calls "Priority Inbox.” The inbox will automatically predict which incoming emails are more likely to be read and therefore important, over mail from senders that are likely to get ignored.

As Tablets and e-Readers Rise, Some Publishers Thrive As Others Fall Behind

While the rest of the world has been making funeral plans for print media since 2005, publishers of every stripe have been doing their best to act like nothing at all is the matter. And that may actually be true for the ones ahead of the curve, with digital publishing up and running for e-Readers and tablet computers.

Genzyme (GENZ) Holding Out for Bigger Buyout

As much as 20% of the patented drug portfolio of Sanofi-Aventis SA (NYSE: SNY) will fall off the so-called "patent cliff" by 2013, and the French company is trying to do something about it. The company has spent about $17 billion on acquisitions in the past few years, and has now publicly announced a $69/share cash offer for Genzyme Corp. (NASDAQ: GENZ). The total value of the offer is $18.5 billion.

Intel and Infineon Deal Part of Move to Smartphone Market

Intel has acquired the wireless chip unit of Infineon Technologies AG (OTC: IFNNY) for about $1.4 billion. Intel's own Atom microprocessor, the brains of most netbook devices currently on the market, has not lent itself well to downsizing for the smartphone market.

Blockbuster Bankruptcy Looms, to No One’s Surprise

Blockbuster (PINK: BLOKA) is well on its way to filing for chapter 11 bankruptcy protection. And industry insiders say a Blockbuster bankruptcy could signal more than just the last breath of a company that seemingly had ample opportunity to change its business model to save itself. Rather, the Blockbuster failure would be a footnote in the budding history of streaming video and digital content.

Is it Time to Short Big Oil?

We know that Warren Buffet thinks that oil prices will rise over the long-term. This is why he holds a major $1.8 billion stake in Conoco Phillips (NYSE: COP). Berkshire also owns some ExxonMobil (NYSE: XOM), but it is an almost negligible $28 million position.

Countdown to November – Market Rally Ahead?

As the federal government's fiscal-2010 budget year ends (on September 30), the federal budget deficit is clearly out of control. Last Thursday, Standard & Poor's said that the U.S. government needs to take steps to preserve its AAA credit rating in fiscal 2011, presumably under a more parsimonious Congress.

Apple Inc. (AAPL) Rumors – China to Offer In-Store iPad Jailbreaking?

Apple's anti-jailbreaking policies take a hit in the international market as the official Chinese carrier of the iPhone and iPad begin offering in-store jailbreaking for both devices. Also more details on the ultra-tiny iPod Nano and its big brother, the new iPod Touch, come out. Finally, a new app turns the Apple's mobile devices into versatile remote controllers.

Google (GOOG) Brings Major Hollywood Movies to YouTube

According to a report at the Financial Times, the ever-popular, Google-owned video hosting website YouTube will begin offering pay-per-view rentals of major Hollywood films in the near future. The unnamed on-demand service will be rolled out to American Internet users before an international launch. While pricing may change prior to launch, streaming movies will cost $5 per viewing.

Utility UIL Will Light Up Your Portfolio

This has been the summer of the utility stocks, so let me now shed some light on one of my model's favorites at this time: Connecticut-based utility UIL Holdings (NYSE: UIL). Its major subsidiary, the United Illuminating Co., which I would nominate as one of the best names ever for a utility, serves 325,000 customers in the Greater New Haven and Bridgeport areas. UIL also pays a fat 6.4% annual dividend.

Credit Growth May Not Be Sexy, But is the Key Data Point

So much economic data is released every week, it makes your head spin. You're sitting there thinking, "Man, they throw a lot of economic data at us every day. How do I decide what's important?''

2010 IPO Scene is Hot, Could Get Hotter With These Offerings

The 2010 IPO scene has sure been interesting. A stock market riddled with volatility, heavy selling action and fears of a double-dip recession doesn’t sound much like a favorable climate for initial public offerings. But don’t tell that to the 171 companies that have filed to go public with IPOs in 2010.

Does Cisco (CSCO) Really Want to Buy Skype?

Rumors abound that Cisco Systems Inc. (NASDAQ: CSCO) plans to make an offer to acquire Skype in an effort to short-circuit Skype's planned IPO. Ebay, Inc. (NASDAQ: EBAY) sold 70% of Skype to a group of private investors led by Silver Lake Partners in November 2009 after the auction site couldn't figure out a way to make money with the VoIP service.

Is Starbucks (SBUX) Placing Too Much Hope in Via Line?

Starbucks (NASDAQ: SBUX) made a huge splash with its line of Via Ready Brew java, which tallied $100 million in sales after only 10 months on the market. The Via packets have been a big hit due to portability, a relatively low price tag of $1 a drink -- and of course, a Starbucks quality flavor.

M&A Deals in Focus for Wall Street’s Week Ahead

There is a ton of dirt happening in the world of M&A right now. There are many deals to watch and many deals that "may be" items to watch. Some are confirmed, some are pending, and some are merely speculated.