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Market Wrap-Up for Jan.7 (SCHN, NEM, GES, CME, UNP, INTC, more)
1/7/2011 4:08:00 PM
We're very happy to see that our subscribers are increasingly purchasing Dividend.com Premium subscriptions for their friends and loved ones in the form of gifts. A gift subscription to our service is a great idea, but I don't want it to just stop there.
As my kids get older, my goal is to set up time each week to teach them in easily digestible ways what they need to learn about money. I'm going to draw the lessons from the "Learn to be Rich" section of our site, as well as from our "Investing Videos" section.
Of course, I could tell them to just watch the videos, but there is something to be said when it comes to engaging in a dialogue directly with your children. I know I'll need some patience, as it can sometimes take a little time to absorb the rationale for how money works and what it is spent on and why. Whether you have children, younger relatives, or anyone that you want to help mentor about money, the idea is to consistently make time each week or month and go over one topic at a time.
Growing up as a kid, talking about money never really happened at my kitchen table. My dad would talk about his day at the barber shop and if it was busy or slow, but we never got into details on how much money he made, and how the bills got paid. I had no clue what our status was financially until my dad bought his first house at age 36 - that was when we felt like we'd "made it." I don't want my own kids to be in the dark for most of their early lives about money, as I was. Please think about doing the same, and you can start by going through a lot of the material on Dividend.com.
Also, when my book Be a Dividend Millionaire comes out (eBook this February, hardcover in May), I'm sure you'll find it a simple and easy-to-understand read. I purposely made it that way so almost anyone can get their arms around what it takes to find ways to save money, then take that money and put it to work for you. You can go to DividendMillionaire.com for further details on my book.
Looking at today's action, the markets are reacting quite calmly so far to this morning's monthly jobs number. There were some modest gains in job growth - certainly less than what some economists had been predicting. The job market has become increasingly difficult to navigate, and young people need to realize that sacrifices will need to be made in order to land a dream job. Those that excel in their academics will certainly have a leg up on their competition.
Early on the gold-mining plays had a bit of an uptick on the somewhat disappointing jobs numbers. Newmont Mining ( NEM ) and Agnico-Eagle Mines ( AEM ) attempted to regain some of the ground the stocks recently, but both finished off the morning's highs.
Clearly, the gold trade is a hot area of discussion these days. Tom (our Editor-in-Chief) and I were talking about the markets recently, and how for many years commodities were ever rarely talked about, as gold prices were essentially flat for the better part of two decades (from the mid-80s to mid-2000s). Back then, it was much more difficult to participate in the commodity market, unless you had a deep understanding of how the commodity markets worked. Traders would rely a tremendous amount on technical data and most people would rarely spend time in a coin shop to actually buy gold or silver coins. But with the advent of ETFs, which are funds that trade like regular stocks, the ability to get acquainted to commodities has gotten so much easier.
We are now seeing an entire generation of investors that are not intimidated by the commodity markets. Accessibility is a good thing and a bad thing, however, as I have been mentioning of late when it comes to the horde of retail investors that have continued to buy gold and silver on any pullbacks. Like trading any other security, investors need to be aware that there will be corrections along the way. Without any sort of sell discipline, recent buyers could stand to get a bit of rude welcoming if we get a decent-sized pullback. If and when it comes, there will be some that abandon the commodity space for good, but for the long-term that may not be the smartest strategy. The current investing generation has warmed to commodities and I can't see that breaking away and going back to the dormant stage that had been gold and silver for decades.
Getting back to the equities markets, retailers felt the most pain from the jobs number. Shares of Phillips Van-Heusen ( PVH ), Guess ( GES ), and J.C. Penney ( JCP ) all led the way lower. Schnitzer Steel ( SCHN ) took a hit following the company's earnings results. Wall Street calls are having an impact today as well. CME Group ( CME ) is getting hit hard on some negative comments. Meanwhile, some positive comments on the transports helped lift shares of Union Pacific ( UNP ) and CSX Corp ( CSX ).
Looking ahead to next week, earnings will still continue to be light, with notables such as JP Morgan ( JPM ), Intel ( INTC ) and Lennar ( LEN ) set to report. Be sure to catch up with our latest watchlist updates, including reports on earnings/story stocks, analyst upgrades/downgrades, dividend ETFs and how all those particular plays performed on the week. All that will be available this weekend on Dividend.com Premium, and as always, you can view our current recommendations on our industry-leading Best Dividend Stocks List .
Have a great weekend everybody and I'll see you on Monday!