Market Wrap-Up for June 27 (SWK, PEP, BHP, PNC, MSFT, more)


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The markets got off to another solid start as was the case last Monday. The lack of economic news over the weekend out of Europe may be part of the reason for clearer skies.

There weren't a lot of story stocks to talk about today, but we did have a potential acquisition for Stanley Black & Decker ( SWK ) moving those shares higher. Wall Street analyst upgrades helped move stocks like BHP Billiton ( BHP ) and PepsiCo ( PEP ) higher. Regional banks like PNC Financial ( PNC ) and M&T Bank ( MTB ) traded nicely higher as well. Other big winners included Microsoft ( MSFT ), Comcast ( CMCSA ), and Wynn Resorts ( WYNN ).

As many of you know, I am a big sports fan and really like to analyze athletes and how they perform in big spots. We all hear about the legendary at-bats, great passes, or key shots from some of the most famous athletes that have ever played their respective sports. On the flipside, we also have heard the tales of great players that have not been able to deliver in the most pressure-packed situations. Whatever the reason is for what makes someone nail their chance or someone miss their opportunity, sometimes the real reason is all in how one gets lost in the moment. All the things they've practiced overs the years are temporarily forgotten. This phenomenon can affect investors as well. Think about the recent investing, spending, and financial planning decisions you've made recently. Odds are, at least one of those choices you made doesn't look like the smartest move in retrospect.

You'll often hear me reciting the importance of repetition when it comes to staying on track in your quest to build wealth. Not only is repetition a vital aspect of achieving wealth, but so is preparation. A spur-of-the-moment decision can sometimes lead to a setback in your plans to be financially responsible.

How many times have you heard a story from a friend or family member that went out for a routine shopping trip and came back with the keys for a new car or some other lavish expense? It goes back to what I call "getting lost in the moment." It's tough sometimes to pinpoint the source of our indiscretions, but I can assure you that most of the time mistakes result from a lack of mental preparation or a failure to learn from past mistakes. My daughters are approaching the age where they will be deciding how they spend their money (from allowances, birthdays, holidays, etc.). As a parent, I feel it's my duty, even at an early age, to teach them to hone their spending decision processes. Kids often develop bad money habits at early ages that follow them around for the rest of their lives.

As investors, it's actually pretty easy to avoid getting lost in the moment when it comes to our decisions. For most, it simply means avoiding the urge to find the next "hot" stock. Some of us can not help ourselves when it comes to having to learn painful lessons. In my days as a full-time trader, losing money at times was a giver. Good traders aren't afraid to take losses as long as the dollar amounts are not crushing, but for those out there that venture into the sexy high-stakes world (as the business media loves top portray it and the players involved - hedge fund trader millionaires, private equity titans, etc.) of fast stocks, the first inclination when a stock goes down is to do nothing, maybe buy more even. Many a trader has had that one stock that never came back, often causing a lethal blow to one's survival in the trading trenches. This is why trading is often associated with gambling. Gamblers can spend a lifetime trying to "win it all back." Remember, most estimates indicate that only around 10% of all full-time traders can consistently make money, so the odds are against you if you decide to try your hand at short-term trading.

Every day I see a different story on the best way to save and invest for retirement. Much of the advice is dumbed-down (buy index funds - as if that has made any money for investors the past 10 years) to the point where performance is lacking, forcing one to think if they can ever make any headway in truly building a nest egg. This pushes many into the hands of financial advisors who may or may not be well-versed when it comes to investing. Don't let the market intimidate you into thinking you can't take on part of the challenge of building income on your own!

I say it time and time again: you need to own assets that produce income. Owning your own home is technically not an asset when you think of it in that sense, but it is for many the source of their entire nest egg. Instead, you need to develop income streams to begin to see your net worth increase substantially.

The best ways to start that today in my opinion and based on the data we have seen results from the last 80 plus years is in quality dividend-paying stocks. I can't stress enough the power of compound interest. You take a

I hope everyone had a chance to check out our Premium members-only weekend articles, including the new features that highlight some of the biggest winners and losers from the week that was, including analyst upgrades/downgrades and earnings/story stocks. These articles are a great way to catch up on the week that was in the markets. We also have a rundown of how various Dividend ETFs performed on the week.

Our newly-expanded dividend data is all in place now, so anyone that focuses on "Dividend Capture" strategies should have plenty of good stuff to research each day. Just check our enhanced Ex-Dividend Calendar , which is the best in the business, to search for upcoming payouts.

Speaking of dividend capture, Premium members can now access a new 9 page report we just released on the essential elements to any successful dividend capture strategy. Be sure to check it out!

Thanks for reading everybody. I'll see you tomorrow!

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Stocks
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