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.

Tobacco Stock Earnings Go Smokeless – PM, MO, RAI

Tobacco companies may get more than their share of bad press for some things, but when it comes to earnings the companies do much better. Three of the world's largest tobacco companies -- Phillip Morris (PM), Altria (MO) and Reynolds American (RAI) -- have recently announced first quarter results, and while those results are mixed, there are still plenty of tobacco users to go around.

Levi’s Could Be Dressing Up for IPO With High-End Jeans – JOEZ, TRLG, ARO, RL, GPS

While the price tag of $100 or $200 may be jaw-dropping to those who grew up sporting jeans to mow the lawn or lounge on the couch, it's not uncommon in today's retail marketplace. Companies like Joe's Jeans (JOEZ) and True Religion (TRLG) are peddling trendy jeans for teenagers, and companies like Ralph Lauren (RL), Aeropostale (ARO) and The Gap (GPS) commonly market premium jeans for the older crowd with a price tag of $75 to $150.

Schlumberger SLB Earnings Outlook Boosts Oil Field Services Sector – HAL, WFT, SII

The oil field services sector got a bump of about 2.5% earlier this week when Halliburton (HAL) reported results and indicated that the outlook for the rest of 2010 was looking better. So far today, the sector is up nearly 7% on a similar earnings outlook from Schlumberger Ltd. (SLB), even though the company's revenues dropped in the quarter. Even Weatherford International Ltd. (WFT) is getting a nice boost on Schlumberger's coattails.

USG Corp-USG Options Active

USG Corp. (USG) is up on strong volume and very unusual options trading volume.

Johnson Controls JCI Earnings Up on Auto Sales Boost – F, WMT, XIDE

The recent jump in auto sales are attributable to manufacturers' incentives and a significant increase in Chinese buying. It's not totally unexpected then that parts suppliers should be seeing some black ink from the sales jump. Those companies include Johnson Controls, Inc. (JCI) which just reported earnings.

5 High Yield Dividend ETFs – BND, JNK, SDY, VIG, AMJ

2010 is becoming the year of the dividend as a common theme for investors. And the mover toward exchange-traded funds, ETFs and ETNs, has been a growing trend for years. So what about marrying the ETF world to the dividend world? The Vanguard Total Bond Market ETF (BND), SPDR Barclays Capital High Yield Bond ETF (JNK), SPDR S and P Dividend ETF (SDY), Vanguard Dividend Appreciation ETF (VIG) and JPMorgan Alerian MLP Index ETN (AMJ) do exactly that.

McDonald’s MCD Earnings Up Despite Weak U.S. Economy

All signs to the contrary, U.S. consumers are still feeling the pinch of high unemployment, stagnant wages, rising health care costs, and rising gasoline prices. What makes a difference to people still struggling with the effects of the near collapse of the financial system is cheap stuff, like the $2.99 meal at McDonald's (MCD) or lower prices on 10,000 items at Walmart (WMT).

7 Stocks Raising Dividends – PG, JNJ, SO, RLRN, SXT, STM, SON

It's been a busy week for dividend increases. Blue chip stocks like personal products giant Procter and Gamble (PG), health care stock Johnson and Johnson (JNJ) and utility Southern Company (SO) all raised dividends. Small cap stocks also got in on the action of raises to dividend yields, including computer assessment technology provider Renaissance Learning (RLRN), chemical company Sensient Technologies (SXT), semiconductor stock STMicroelectronics (STM) and packaging giant Sonoco (SON). Here are the details:

Nokia NOK Earnings Miss and OS Launch a Double Whammy

CenturyTel, Inc. (CTL), which is re-branding itself as CenturyLink, has offered $10.6 billion in CenturyTel stock to acquire Qwest Communications (Q). Under terms of the deal, CenturyTel will also assume $11.8 billion of Qwest's outstanding debt, valuing the acquisition at $22.4 billion, or about $6.02/share of Qwest stock. The merger is expected to close in the first half of 2011, and current CenturyTel shareholders will own approximately 50.5% the merged company.

CenturyTel and Qwest Build Telecom Bridge to Nowhere – CTL, Q, T, VZ, S

CenturyTel, Inc. (CTL), which is re-branding itself as CenturyLink, has offered $10.6 billion in CenturyTel stock to acquire Qwest Communications (Q). Under terms of the deal, CenturyTel will also assume $11.8 billion of Qwest's outstanding debt, valuing the acquisition at $22.4 billion, or about $6.02/share of Qwest stock. The merger is expected to close in the first half of 2011, and current CenturyTel shareholders will own approximately 50.5% the merged company.

Computing Stocks Look to the Clouds – GOOG, MSFT, EMC, STX, WDC, VMW

What's the best way to store computer data? More and more often the answer to that question includes the word "cloud." For most of us, the cloud refers to the large public off-site storage sites offered by Amazon (AMZN), Google (GOOG), and Microsoft (MSFT) but also Seagate Technology (STX), Western Digital (WDC) and VMware (VMW).

Burger King Banks on Brunch – MCD, BKC, JACK, WEN, YUM, DENN

Burger King (BKC) has is turning up the heat in its war with McDonalds (MCD) for early morning sales. In selected markets, BK is advertising the availability of a "Burger King brunch" in a quest to cash in on the lucrative breakfast market. This is only a few months after announcing Burger King will carry coffee made by Starbucks as early as September to provide a more flavorful alternative to its BK Joe coffee.

Buying the Right Leveraged ETF (FAZ, BGU, DOG, SDOW, RFL, UYG)

While these leveraged ETFs can deliver huge returns when Wall Street moves in the right direction, they can do serious damage to your nest egg when the tables are turned.

5 Must-See Earnings Next Week – BSX, CAT, GMCR, DD, NSC

Armchair quarterbacks are a dime a dozen each earnings season, breaking out their crystal balls and predicting which stocks will post strong earnings and sales and which ones will miss expectations. Take them with a grain of salt, but here are five earnings predictions for top stocks Boston Scientific (BSX), Caterpillar (CAT), Green Mountain Coffee Roasters (GMCR), Dupont (DD) and Norfolk Southern (NSC).

Can SBUX Coffee Perk Up Burger King breakfast?

Burger King (BKC) has been sleepwalking through breakfast sales for a long time, and a new partnership with Starbucks (SBUX) announced recently isn't likely to be the wake-up call the company needs to catch archrival McDonald's (MCD).

Lubrizol a Small Cap Earnings Gem (LZ, CMI, SIAL, ASH)

Chemical manufacturer Lubrizol Corp. (LZ) suffered a setback of 5% last week following word that it is in the bidding for a German chemical maker called Cognis, but remains in very powerful uptrend.

China Telecom Stocks CHL, CHU and CHA Fight for Mobile Phone Market

China's largest mobile phone operator, China Mobile Ltd. (CHL), saw its revenues rise 7.7% year-over-year, but it's profit was able to manage just a bump of 1.1%. Competition is coming from two other big players in the Chinese mobile market, China Unicom (CHU) and China Telecom (CHA). Together the three claim 766 million customers.

Commercial Lending Still a Problem – RF, USB, GS

Today, Wall Street titan Goldman Sachs (GS) reported net income of $3.3 billion and EPS of $5.59 on revenue of $12.78 billion for the first quarter. Over on Main Street, meanwhile, Regions Financial Corp. (RF) posted an EPS loss of -$0.21. Another regional bank, U.S. Bancorp (USB) also reported earnings this morning, and did much better. U.S. Bancorp reported diluted EPS of $0.34 on revenue of $4.3 billion.

Weatherford WFT Earnings Hurt Amid Oil Field Consolidation

Swiss-based oil field services company Weatherford International Ltd. (WFT) reported first quarter earnings this morning. The company reported diluted EPS of $0.06, excluding a loss of -$0.11 attributed to devaluation of the Venezuelan Bolivar, a charge to the company's suplemental executive retirement plan, and what it calls severance and investigation costs.