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.

Airlines Flying Higher (UAUA, DAL, CAL, LCC, AMR, ALK)

Last week's report from the US Census Bureau on retail sales for May showed a drop of about 1.2% from April sales. It was the first drop in retail sales since September 2009, a winning streak longer than any in the past 10 years. Suspected retail weakness may have gotten its first piece of empirical evidence this morning as Best Buy Inc. (NYSE: BBY) reported earnings for its first fiscal quarter of 2011 that were well below analysts' average estimates of $0.50 EPS on revenues of $10.9 billion. Best Buy reported EPS of $0.36 on sales of $10.8 billion.

Hollywood Studios Suffer Summer Slump (TWX, DIS, VIA-B, DWA, NWS, GE)

Time Warner (TWX) stockholders are probably missing the good old days of 2008 right about now. Before 2008 got ugly and the financial crisis began in earnest, Time Warner stock was a hot ticket thanks to film studio Warner Bros. and the summer blockbuster The Dark Knight. That single tent-pole film went on to earn a total worldwide gross of over $1 billion, an influx of cash that made movie studio stocks very attractive to investors hungry for the next hit. While summer officially starts next week, the summer movie season has been running since the first week of May, and 2010 has been a lot less sunny than previous years for the film industry.

CBOE IPO Debuts at High End of Price Range

The Chicago Board Options Exchange became the last U.S. member-owned exchange to issue stock to the public with its CBOE Holdings, Inc. (NASDAQ: CBOE) IPO.

Sam Adams Beer Could Lose ‘Artisan’ Label, See Costs Rise (SAM, BUD, TAP)

In the business world, there's rarely a thing as growing too big. But unfortunately for Sam Adams brewer Boston Beer (SAM), the price of success could be higher costs -- and the loss of its label as an "artisan" craft beer.

Merger Growing in the Fertilizer Business? (MOS, POT, SYT, MON, IPI, BHP, MOO)

Mosaic Co. (NYSE: MOS) is reported to be in talks with Mexico's Grupo Fertinal SA de CV about acquiring the Mexican fertilizer maker. The deal could be worth as much as $1 billion. Agriculture stocks including Potash Corp. (NYSE: POT), Syngenta AG (NYSE: SYT), Monsanto Corp. (NYSE: MON) and Intrepid Potash, Inc. (NYSE: IPI) are all down dramatically from the commodity boom of 2008, and the fertilizer sector appears to be searching for a new bottom. This means mergers or buyouts could be in the works for the ag stocks and fertilizer sector.

Afghanistan Mineral Deposits Said to be Worth $1 Trillion (FCX, RTP, NEM, VALE, BBL)

According to The New York Times, the US has "discovered nearly $1 trillion in untapped mineral deposits in Afghanistan." These mining resources include metals such as copper and gold, as well as lithium which is used in cell phones, laptops and hybrid vehicle batteries. The mining find in Afghanistan is huge, and is being closely watched by the biggest names in mining like Freeport McMoRan (FCX), Rio Tinto (RTP), Newmont (NEM), Vale (VALE) and BHP Billiton (BHP).

Strayer Education (STRA) – A Profitable For Profit Education Stock

Over the past four decades, the American economy has transformed from its prior focus on manufacturing to a new focus on services. In this new world, a degree from a four-year college has become almost mandatory even for entry-level sales and marketing jobs. But for people who had to work immediately after graduating from high school, obtaining such a degree has been tough. That's where specialized degrees from for-profit schools come in. And Strayer Education (STRA) has become a leader in the field, offering education to 55,000 students on a part-time basis and making a lot of money in the process.

Apple iPhone 4 to Debut at Walmart on June 24

iPhone maker Apple Inc. (AAPL) is a stock synonymous with exclusivity, from its closely controlled smartphone and iPad operating systems to Steve Jobs and his top secret electronics production plans. So it'ssurprising that when the Apple iPhone 4 hits stores on June 24, Walmart (WMT) will be stocking the smartphone on its shelves at the exact moment the company's namesake Apple Stores will be making them available to the public.

14 Stocks to Buy Near New 52-Week Highs

Some simple trading strategies involve buying oversold stocks with great numbers -- but another great investment strategy for your retirement money is to buy stocks with strength. There's no denying the market has been swept up in a wave of selling, and over the past eight weeks we've seen the S and P 500 descend about 11% off its April highs. As stocks now are officially in correction territory, investors may think it's the time to go bargain hunting.

Was the Stock Market Rally Too Much of a Good Thing?

While I'll be the first to jump for joy after yesterday's awesome 2.95% rise in the S and P 500 -- I feel obligated to point out the fact that big rallies of 3% or more are rare. And they normally happen in the midst of bear markets. One caveat: Since the SEC got rid of the short-selling uptick rule in 2007, overall volatility has increased. So we've seen a bunch of 3%+ since then -- 32 to be exact. Most of these came during the bear market rallies of the spring and fall of 2008. The rest were clustered around the initial rebound from the March 2009 low.

Obama Invites BP Chairman Svanberg to the Woodshed

In a brief three-paragraph letter to Carl-Henric Svanberg, chairman of BP plc (NYSE: BP), Coast Guard Admiral Todd Allen has requested that Svanberg and other "appropriate officials" of BP attend a meeting with top US officials, including President Obama, on June 16th. Allen's letter pointedly did not mention BP's CEO Tony Hayward, who is scheduled to appear in Washington on June 15th to testify in front of the House Energy and Commerce subcommittee.

Burger King Ribs Sales Success Lifts Margins – and Stock (BKC, MCD)

Burger King Holdings (BKC) launched a bit of an unexpected campaign this summer with offerings barbecue pork ribs. With a price tag north of $7 for eight pieces of the ribs, the product is an oddity in an era when most restaurants are racing to offer up bargains for cash-strapped consumers. Well it turns out Burger King's rib deal may wind down sooner than expected – but perhaps not for the reason you think. Demand was so strong for the tasty barbecue items that BK has just sold its 10 millionth rib and expects to exhaust its supply.

My Simple Trading Strategy – Don’t Give Up On Stocks

Stocks continue to churn without making any real progress. But simple trading strategies aren't doomed. Investing your money in the stock market instead of hiding out in cash may be your best bet right now. Retirement investors could miss out on a rally if they sell their stocks, and indicators show there is not that much downside risk left on Wall Street.

5 Reasons McDonald’s (MCD) is a Stock to Buy

McDonald's (MCD) stock is one of the few blue chips that has really outperformed the market in recent months, with +11% gains in MCD stock year-to-date compared with a -3% slide in the broader market. And over the longer term, McDonald's strength is equally impressive, with McDonald's stock up over +21% in the last 24 months while the major indexes have lost about -20%. This is clearly a stock to buy, with great earnings and sales that proves McDonald's has staying power.

Mobile Advertising Latest Battleground for Apple, Google (AAPL, GOOG, MSFT, RIMM, HPQ)

Apple's new rules for advertising on its iAd network appear to cut out other mobile advertising networks such as the AdMob network recently acquired by Google Inc.

Can Apple iPhone 4 Regain Smartphone Market Dominance? (AAPL, GOOG, T, DT, S, VZ, MOT, RIMM)

Apple Inc. (AAPL) stockholders have spent most of this week alternating between salivating and wringing their hands. Investors in the Calfornia tech stock and smartphone behemoth went into this past Monday's press conference hoping for Apple to reveal a new iPhone SKU that could combat gains made by smartphones running on the popular Google (GOOG) Android operating system. Apple stock fell following the iPhone 4 announcement though, and continued to fall through Tuesday, down a total of 3.4% so far this week.

Sprint Reels in Sales Hype on EVO Smartphones (S, AAPL, PALM, VZ, DT, GOOG)

Sprint Nextel Corp. (NYSE: S) got a little too excited over its Friday launch of the EVO 4G smartphone. Maybe it was an attempt to steal even more thunder from Apple Inc. (NASDAQ: AAPL), which announced its own 4G iPhone on Monday. Sprint originally reported that it had sold three times the number of EVOs on launch day as it had sold Samsung Instinct and Palm Inc. (NASDAQ: PALM) Pre phones in the first three days of sales of those two phones combined.

HP Sends Mixed Signals on Palm Smartphones (HPQ, PALM, AAPL, RIMM, MOT, GOOG)

When the chairman/CEO/president of Hewlett-Packard Co. (NYSE: HPQ) said that his company wasn't buying Palm Inc. (NASDAQ: PALM) in order "to be in the smart phone business," did this mean that HP was going to abandon the smartphone market as soon as it completes its acquisition of Palm? Doesn't the company want to fight it out with Apple Inc. (NASDAQ: AAPL) and Research in Motion Ltd. (NASDAQ: RIMM) and Motorola Inc. (NYSE: MOT) for handset supremacy or with Google Inc. (NYSE: GOOG) for operating system bragging rights?

2010 IPO Stock Picks – The Worst Public Offerings of the Last Year

Stock IPOs get a lot of hype on Wall Street, and initial public offerings are often surrounded with dreams of once-in-a-lifetime investments that make investors enough money for their retirement in a matter of weeks. Even though IPO participants are always insiders and those close to the company, individual investors often race to get into a new stock as soon as it goes public in the hopes of sharing in the success right out of the gate.