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.

Best and Worst Dow Stocks of the First Quarter (BA, GE, BAC, AA, T, PFE)

The calendar has turned over to April and that means the first quarter has come to a close. The first three months of the year have been profitable for all the major indexes, with the Dow up 4.1%. Many component stocks like Boeing (BA), General Electric (GE) and Bank of America (BAC) performed significantly better -- but some like Alcoa (AA), AT&T (T) and Pfizer (PFE) fared significantly worse.

Implied Volatility – RIMM Implied Volatility Gone Bad

Many traders tout the predictive value of implied volatility, but there's a good chance it will lead you astray, as it did with some unlucky Research In Motion (RIMM) traders.

Denny’s Serves up $2 to $8 Value Menu (DENN, MCD, BKC, WEN, YUM, DIN, DRI, RT)

Denny's (DENN) is serving up a new "$2 $4 $6 $8 Value Menu." That positions DENN in a sweet spot as the cheapest casual dining option and a higher quality restaurant for families with only a few bucks to spend that typcially go to McDonald's (MCD), Burger King (BKC), Wendy's/Arby's (WEN) or Yum! Restaurants (YUM) brands like Taco Bell and KFC. DineEquity (DIN) chain Applebees has also tried to play the low end of the price game with its Pick'N Pair lunch combos that start at $5.99.

Market Analysis – Can the Market Keep the ‘Spring’ in its Step?

We are smack in the middle of what is historically the market's strongest seasonal period. So what lies ahead for this market in the short term?

8 Inverse ETFs to Play the Coming Correction

This market is just like the Energizer Bunny -- it keeps going, and going, and going. But at some point, even this uber-energized equity bunny will need to stop and recharge its battery. When this happens, we're likely to see a correction of anywhere from 7% to 10% nearly across the board. Now, there are three ways you can respond to a correction. First, you can sell your positions and head into the safety of cash. Second, you can just ride the pullback out and hope that it doesn't turn into a bear market of the sorts we witnessed in 2008 and early 2009. Or, you can do what the smart money does and use inverse exchange-traded funds (ETFs) to collect big profits while stocks on are the retreat.

5 Option Trades on Hot Takeover Rumors

It seems we hear rumors every day about which company is next in line to be acquired. Find out how to play the hottest ones.

Dish Network CEO Pay Slashed 92.5% (DISH, DTV, CMCSA, TWX)

A Wall Street Journal report shows top companies are paying their top leaders almost 1% less in 2009 than the previous year. Leading the drop was Dish Network (DISH), where founder and CEO Charles Ergen suffered the harshest drop in pay across the entire WSJ survey -- a drop of 92.5% to $623,100 a year in total compensation.

Crude Oil Tops $85; On Its Way to $100?

The price of crude oil has been rising steadily for the past two months on indications that the global economy is recovering. The price is now above $85/barrel on the NYMEX, a jump of about 25% just since February.

Borders Backs Away from the Brink (BGP, BAC, WFC, JPM, GE, GAP)

After the markets closed yesterday, bookseller Borders Group, Inc. (BGP) announced its fourth quarter 2009 and full year earnings. The company reported EPS of $0.91 for the quarter on revenue of $946.5 million. Earnings were double the same period a year ago, while revenues were 13% lower. Same-store sales were off 14% at Borders stores and 8.5% at the group's Waldenbooks stores.

Weak BlackBerry Crop Could Make RIM the Next Palm (RIMM, AAPL, GOOG, PALM)

There was a time when Research In Motion (RIMM) owned the smart phone space. Its ubiquitous BlackBerry unit ruled the roost, and no other handset maker could even come close to it in terms of sales and customer loyalty. But that was then, and this is now -- with the Apple (AAPL) iPhone the gold standard and Google (GOOG) the new up-and-comer with its Android OS. That doesn't look too good for RIM, and headwinds it faces going forward could stymie the stock's progress, and that's bad news for shareholders.

Honeywell HON Dividend Boost Likely This Month

Aerospace and defense stock Honeywell (HON) raised its guidance late Tuesday, driving shares up today even while the broader market has rolled back. The dividend stock now expects first-quarter profit to range from 45 to 49 cents per share, up from prior guidance for 40 to 45 cents. For the full year, HON expects profits to reach the top end of its prior $2.20 to $2.40 forecast.

Greece Debt Tragedy Upstaged by Ireland’s Bank Crisis

While Greece is stealing the spotlight as sovereign debt woes threaten to cripple the nation's public sector, Ireland's balance sheet has quietly been getting worse – and now its debt problems are so bad it could have the dubious honor of beating Greece to bankruptcy.

Rite Aid RAD Suffers an Earnings Headache

Drug store chain Rite Aid Corp. (RAD) reported fourth quarter and full 2010 fiscal year earnings today, and the numbers were softer than expected. The company's EPS lost -$0.24, compared with consensus estimates of -$0.20. Revenue came in at $6.46 billion, barely lower than estimates of $6.47 billion.

Best Buy Earnings Good News for Retailers

Big news of the past week from a corporate perspective was the terrific earnings report produced by Best Buy (BBY). As owners of the great SPDR Retail (XRT) fund, this is important because Best Buy is a major component and a bellwether for the rest of the industry.

Maguire Properties (MPG) and Glimcher Realty (GRT): REITs That Indicate Change

Two REITs worth note right now are Maguire Properties (MPG) and Glimcher Realty (GRT). During my nightly analysis of the markets, I often focus closely on stocks making new highs and new lows. The reason: Stocks that are reaching extremes are often emblematic of changes that are taking place well below the surface of the broad market, and I highlight them to bring these issues to subscribers' attention.

March ADP Payroll Report Not So Rosy

The March report from Automatic Data Processing Inc. (ADP) shows that private employers in the U.S. cut 23,000 jobs in the month of March. In February, ADP reported 24,000 job losses. In December 2009, private employers eliminated 84,000 jobs. So things are getting worse more slowly, or improving somewhate, depending on your point of view.

Citigroup (C) Getting Its Balance Sheet in Order

Among the first steps that Sandy Weill took as he began building Citigroup, Inc. (C) was the purchase of insurance company Primerica. Tonight, the financial services giant will price an 18-million share spin-off of Primerica, expected to be in the range of $12-$14/share. The spin-off is expected to generate about $250 million for Citi, with another 2.7 million shares available if demand is strong.

Compass Minerals CMP – A Company Worth Its Salt

If you've spent your life as an investor looking for a company that's worth its salt, then you need to take a look at Compass Minerals (CMP), the nation's largest miner of sodium chloride and one of the best stocks to buy for the past five years.

More Reasons the Bulls are Back

News on the economy continues to support the bulls' case. Here are some data points assembled by analysts at ISI Group this week: