MV Weather Report: Google Sees Clear Skies Ahead
Rain or shine, we review the day's biggest stock stories.
It was a quiet day for the stock market as it seemed investors were still trying to digest yesterday's Aussie news.
The S&P 500 traded in a narrow range between 1050 and 1058 before it closed 0.27% higher at 1057, right near the high of the day at 1058.
On the Buzz and Banter, Professor Jeff Cooper explained why he thinks today's market mirrors the 1978-79 market.
"More and more, the market is beginning to look and feel like the pattern from 1978-79 -- with a break before the break on this rally back up to challenge.
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"It is worth considering that today/tomorrow is 90 degrees or square 1069/1070 and that today is 90 days up from low just as the June high was 90 days up from low.
"Has the market carved out an A B C seven-month snapback below 50% of the entire range of the bear market with more bullish sentiment than at the October 2007 record high?"
Moving away from the S&P 500, there were some individual companies making headlines today.
Google (GOOG) CEO Eric Schmidt said that Google was increasing its hiring and investment rate as the company anticipates a recovery. He also said the worst of the advertising recession is over. These bullish comments helped lift Google's stock trade up 3.77% to a 52-week high.
Amazon (AMZN) said it was cutting the price of the Kindle e-book reader to $259 from $299. On Today's Buzz and Banter, Minyanville Professor Jeff Macke gave his thoughts on the price cut and how it could affect Amazon's competitor Sony (SNE).
"While reading Mr. Woo's thoughts on Amazon (AMZN), my thoughts gravitated toward Sony. The company is perhaps the worst-run conglomerate extant. Whole divisions literally never speak to one another. If they did, they could prop up their PS3s by using their movie library to help sales as well as raise consumer awareness that the PS3 is, in fact, an outstanding DVD player.
"'Buy Spiderman the game and we'll help get you in the mood by throwing in a high-def DVD of all three movies.' As it turns out, making an incremental DVD has a cost of about $0.50. PS3s sell for $299 and falling. The math here is pretty simple. The CEO, who doesn't speak Japanese, needs to gather the division heads and do a little Al Capone pep talk punctuated by killing the most inept of them with a baseball bat."
I have to agree with Macke, Sony hasn't really done anything right and it will most likely be pushed out of the e-book market once the rumored Apple (AAPL) tablet is launched.
Have a great night!
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