3. 2 . Our road map begins with a 7,000 fine, every single day, thats what gm is paying because the Company Still has not provided enough answers about its ignition switch recall. Its not the only bad headline for gm this morning. More on that. Earnings season is officially under way after alcoa reported its results after the bell. What can the aluminum maker tell us about the rest of the quarter . We will have some answers. Instead of running from facebook, companies are willing to pay a lot more to advertise on the social network. But is that good news for the companys stock . First up, though, some tough news for the auto sector. Toyota recalling more than 6 million vehicles after uncovering five different faulting involving parts ranging from steering to seats and nhtsa fining gm 7,000 a day for missing last weeks deadline to provide information about its recall for defective ignition switches. Morgan stanley cutting gm to underweight today, 33 target, guys, and what is a tough not
Whats really happening behind the scenes on a day like today where the dow plummeted, 128 points and the nasdaq declined, nice rally there,. 28 which was quite a rebound from the lows versus the dow down 460 points in one point and still representing another assault in the markets psyche. You know what some todays action had less to do with the fundamentals and more to do with how Big Hedge Fund react to a selloff. You will learn something tonight. This bruising was about the flawed mechanics of the market. What its really like in the trenches of the session so to speak. Fortunately, ive lived if had those trenches. Let me tell you, on days like today it is nasty as all get out in there. In fact, you need to understand just how much pressure the actual sellers of merchandise can put on your stocks because at times like these, its these sellers who control the the action that hurts your pocketbook, not the actual performance of the companies themselves that you own shares in. First, why
7 30. Well roll out the reaction as soon as those companies report. We have dupont and United Health. Am i speaking too soon, joe . Im away from my computers . They are . Oh, great. Thats good. I like both of those companies. Ill come over and help. Both of them should be followed. Dupont saying adverse weather conditions reduce First Quarter earnings by an estimated 7 cents. Did you see how many times i think the beige book mentioned weather 131 times. Someone counted the number of times it mentioned weather. Weather is an issue. You know, that was not fair, becky. Im sorry to spring that on you. You were without blame because youre in that shes a vision in white this morning. Im interested im looking, im looking. Ibm, the lowest is that for real . The lowest revenue number . That was a bad number. The lowest revenue number. Didnt we just talk to people. Who was it, bill miller said he expected an uptick because it had been eight quarters in a row it had been lower. I think an activis
Nasdaq climbing after a week of playing teeter totter between the bulls and bears. We got to ask, are we done going up . Maybe not but i think the market likes leadership and right now, its gotten very hard to find new leaders. Lets get right to it. Start with tech. You search through the once huge group of the s p 500, you know with the white flag that went out this morning by blackberry and the endless decline in dell sales symbolizing pcs, you simply dont have that much to cheer about. Save one small section of tech, which is telecom spending. They badly need to upgrade, tmobile, sprint, at t, verizon, there simply arent enough telco techs to get the averages going, we need that group. Instead, there is intel, microsoft, oracle, ibm, hewlett packard. Tales of woe. Sell, sell, sell. All seem played out, dormant. Comatose. Apple iphone unfairly viewed as the same old, same old, without knowing about it. The peaking of samsung, there has been a huge propensity to say that smartphones a
Nasdaq up most of the day but slid. 14 . Yep, blame it on the movies. Let me explain. Back at my old hedge fund, we had a year, 1993, 20 short years ago, where we just shot the lights out of the market. We were on a major roll. We were up more than twice the s p. My stock picking, it couldnt have been hotter. Everything i touched went higher. It got to the point where i actually believed that if i bought it, it would go up. Buy, buy, buy. Its kind of like how i am with the phillip eagles. I wore a signed brett celek jersey the other day, a eagles tight end and the straw hat to the home game we finally won after a streak of losses. Same thing last weekend. Im convinced its why they beat the lions in the snow bowl. Its weird if they lose. Thats how i was with stocks in 1993. I wore a green gap shirt to work every day. I convinced myself as long as i was wearing the shirt, as we called it, i had the mojo to pick winning stocks. Karen cramer was running the trading desk back then and we sa