Minyanville's Market Recap: Markets Surge; Tech Leads The Way
Stocks surge led by the Tech Sector. But Mr. Practical says be careful!
The financials got a bit of a boost as Deutsche Bank's (DB) CEO Josef Ackerman stated this morning that recent market turmoil was likely stabilizing and that he "is optimistic about the environment globally for financial institutions." The news allowed shares of Wall Street brokers to advance. Goldman Sachs (GS) gained 2.7%, Bear Stearns (BSC) gained 5%, Lehman (LEH) gained 1.6%, and Morgan Stanley (MS) gained 1.5%. The brokers performed well even as Sanford Bernstein analyst Brad Hintz cut estimates to adjust for the turbulent summer. If you haven't had the chance, please read Professor Katz' Minyan Mailbag: Three Reasons Credit Levels Will Stay High as he speaks with Minyan Peter on where the credit markets are heading.
The tech sector was another favorite today with Apple (AAPL) leading the way, adding 5.9%. Rumors were flying around Apple that a few new products such as a cheaper version of an iPhone would be unveiled later this week. In addition, Piper Jaffray analyst Gene Munster revised his model, saying the company probably exceeded his 1.9 mln unit estimate in the September quarter on the Mac computers. Mr. Munster raised his price target for the stock to $211. Please read Professor Macke's Heading Back To School and Professor Warner's Doin' It Bloggystyle as both give some insights on the stock.
Other notable tech performers were IBM (IBM) adding 1.2%, Intel (INTC) adding 1.9%, and Microsoft (MSFT) adding 0.5%. For more tech ideas, read Professor Udall's 21 Bullish Predictions Of The Tech Sector.
The markets even persisted through negative economic data. Construction spending released this morning came in at -0.4% vs. -0.1% cons and manufacturing activity by the Institute of Supply Management came in at 52.9 vs. a 53.8 cons. For more analysis, please read Professor Depew's Five Things You Need To Know.
Below is a recap of the idea flow on today's Buzz & Banter. Please note that stocks may appear on both bullish and bearish categories due to long and short term trades by our many Minyanville professors. In addition, click on our Buzz Bits for more of an in-depth summary of what happened real-time on the Buzz & Banter.
Some bullish trade or investment ideas: NVEC, UA, AAPL, ALVR, FDRY, EDO, EMC, INTC
Some bearish trade or investment ideas: GMXR, HK, PXP, FMD, NILE, GRMN, OIH, AAPL, BIDU, WMX
It was a good day for Hoofy, but don't be too quick to jump right in, as a number of professors warned. Make sure you read Mr. Practical's Minyan Mailbag: How Dollar Debt Could Play Out as he warns the credit bubble is not over. Have a good night, Minyans! See you tomorrow!
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