Market Wrap-Up for Nov.10 (CSCO, AAP, KSS, EMN, MRK, more)

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The market opened with a rather nice spike this morning, but sellers took some of the shine off the early rally, but not enough to keep the indices from closing in the green. Investors are certainly awaiting the latest headlines out of Europe concerning the Italian financial situation. If the EU wants to take a page out of Federal Reserve chairman Ben Bernanke's book, then I'd expect some chatter about liquidity creation (printing euros to stave off the current market crisis).

Looking at today's biggest market movers, earnings results were a catalyst for higher prices in some names. Investors cheered results from the likes of Cisco Systems ( CSCO ), Advance Auto Parts ( AAP ), and Kohl's ( KSS ).

Elsewhere, a Wall Street analyst upgrade had shares of Eastman Chemical ( EMN ) gaining for the session. Shares of Merck ( MRK ) moved higher following news of the company's first dividend hike since 2004. While the yield becomes more attractive, one of our concerns are falling analyst estimates for the company. There are also concerns about the drug giant's pipeline, which is a big reason why the stock is down 19% over the last 5 years. Buying "value" is not as simple as it appears, and we continue to dig deeper into MRK and other pharmaceutical plays that sport an attractive yield, but again, have questionable drug pipeline growth.

Looking Through a Microscope

We continue to focus as deeply as possible for potential new candidates to add to our Best Dividend Stocks List . There are plenty of potential prospects currently on our radar, so be assured we will send out an e-mail alert if and when new names are slated to become recommendations - or current names need be put to the side. We'll keep all our Dividend.com Premium subscribers posted.

Mama, I'm Coming Home

According to data released from the Census Bureau last week, the number of adult children who live with their parents has soared since the economy started heading south. Among males aged 25 to 34, 19% live with their parents today, a 5 percentage point increase from 2005. As for women, 10% of that age group live at home, up from 8% six years ago.

Another recent study, this time from the Project on Student Debt, shows college seniors who graduated with student loans in 2010 owed an average of $25,250. This is the highest level ever recorded and a 5% increase from the previous year. When you factor the recent unemployment rate for new college graduates hovers at 9.1%, it's not a surprise to see kids flocking back home in droves. The news won't get any better next year, as starting in July, 2012, new federal graduate school loans will no longer be subsidized.

The long-term impact of this trend remains to be seen. We may see couples postpone marriage until later in life, or we may see the next generation reluctant to purchase a home for their new family. People struggling to find their career niche are less likely to have a desire to add a mortgage on their shoulders, considering some will already have sizable student loan debt to contend with.

Kids moving back home after college certainly adds a strain to parents who'd been hoping to build their retirement nest egg. It's also a let-down for many who wanted to see their children be able to establish themselves professionally and venture out successfully on their own.

Maintaining your financial sanity is essential in these types of situations. It's imperative to stick to your guns in terms of budgeting and the contributions you expect your children to make to the household (financial or otherwise) should they move back home. Deep in our hearts we'd love to see our kids around us as much as we can, but there comes a time when they need to fly on their own. Some of us have been there already, and some will get there sooner or later. Regardless, it's better to embrace and teach good money habits early and often.

New Watchlist Article Out Today

Be sure to check out our weekly Top 50 High-Yield Watchlist Names post that is out today, only for Dividend.com Premium members .

Thanks for reading, and I'll see you tomorrow!

P.S. Please pass this e-mail on to someone you think can use some financial motivation as well as being kept in the financial news loop that could affect them.

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 The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: AAP , CSCO , EMN , KSS , MRK

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