IBD

For the first time in history, the number of jobless workers age 25 and up who have attended some college now exceeds the ranks of those who settled for a high school diploma or less. Out of 9 million unemployed in April, 4.7 million had gone to college or graduated and 4.3 million had not, seasonally adjusted Labor Department data show. That's a swing of more than 2 million since the start of 1992, early in another jobless recovery,

For the past three decades, the major macro trends of credit growth -- to dangerous heights -- and widening income disparities have proceeded in tandem. To some on the left, the chief culprit behind both forces is obvious: Wall Street greed. But this distorted view ignores another fundamental trend that also began around 1980 and which goes a long way to explaining the growth of both debt and broad income inequality: a secular decline

Top-rated retailers TJX Cos. and Dick's Sporting Goods delivered strong first-quarter earnings growth Tuesday, though other chains' results were mixed and guidance cautious. TJX (TJX), which sells off-priced branded goods at its T.J. Maxx, Marshalls and Home Goods chains, said earnings climbed 41% to 55 cents per share, a penny over Wall Street forecasts. Revenue climbed 11% to $5.8 billion, slightly above views. "A large

Regardless of how the year-end "fiscal cliff" of tax hikes and spending cuts is resolved, uncertainty over what lawmakers will do could weaken the economy before the deadline if businesses delay investment and hiring. Add to that the Supreme Court's ObamaCare ruling and the possibility the debt ceiling will need another lift before the November elections, and the outlook gets even hazier. Warnings about the fiscal cliff have largely

With the market in correction, this is not a good time to be buying stocks. But it's always the right time to be on the lookout for quality companies. And it's wise to look behind the obvious names or the ones dominating the headlines, such as Apple (AAPL) or Facebook (FB). Many stocks on the elite IBD 50 have sold off in recent weeks. But here are the top five that, though battered, are still holding strong above their 50-day moving averages.

How will the latest batch of apparel retailers do after a wild week for competitors? Urban Outfitters (URBN), DSW (DSW), Express (EXPR), American Eagle Outfitters (AEO) and Rue 21 (RUE) are on tap to report earnings this week. Of those, DSW and Rue are highly rated stocks. Shoppers have returned to the mall, sending same-store sales up for many retailers including Zumiez (ZUMZ) and Chico's FAS (CHS), which are also highly rated stocks. And the

Home improvement retail chain Lowe's (LOW) will report first-quarter results before the market opens Monday, and the Street is looking for cues whether consumers are spending to spruce up homes or holding onto cash in a sluggish housing market. The Lowe's profit outlook has risen since the beginning of the quarter. Analysts expect a 24% jump in profit to 42 cents a share vs. the same quarter last year. That's up from a view of 38 cents at the

Nobody can say for sure how far America's manufacturing rebound can go. But for now, Lincoln Electric is enjoying the run. Cleveland-based Lincoln (LECO) is a leading vendor of welding equipment and materials, holding upward of 30% of North America market share. After decades of outsourcing, job cuts and general decline, many U.S. manufacturers have been snapping back in the last couple of years. Durable goods manufacturing rose by nearly 8% last

A watershed moment in the drug benefits management trade came April 2, when the Federal Trade Commission waved through Express Scripts' (ESRX) $29 billion acquisition of Medco Health Solutions. The merger -- hotly contested by many consumer and industry advocates -- quickly closed the same day, collapsing the industry's Big Three into the Big Two. CVS Caremark (CVS) moved up from No. 3 to No. 2. Many in the industry saw the FTC's

Runners, golfers and tennis aficionados got out to play earlier than usual this year, driving stronger first-quarter results at Foot Locker (FL), Hibbett Sports (HIBB) and other sporting goods retailers. Foot Locker said first-quarter earnings climbed 38% to 83 cents per share, beating analyst forecasts for 74 cents. Revenue climbed 8.7% to $1.6 billion, beating views. Sales at stores open at least a year climbed 9.7%. Shares leapt 10% midday to

Wall Street's trading and investment banking revenue is seen falling sharply in Q2 but will probably do better than JPMorgan Chase's (JPM) derivatives blunder, which could get far worse. For a group of eight U.S. and European investment banks, including Goldman Sachs (GS) and Morgan Stanley (MS), fixed income revenue is expected to drop 32% from Q1, a JPMorgan analyst estimates. Revenue is seen falling 14% in equities trading and 17% in

Ann Inc.'s (ANN) first-quarter profit beat Street expectations on Friday, boosted by sales at its lower-price LOFT stores and fewer discounts. But the women's clothing store operator issued weak sales guidance for the second-quarter. Ann said Q1 earnings rose 14% to 58 cents per share, topping expectations by 7 cents. Total sales rose 7% to $560.4 million, slightly under views of $560.83 million. Shares rose 3.4% to 26.74. "In the stores channel,

Just 16 states have seen job growth since President Obama took office, according to state employment data released Friday by the Bureau of Labor Statistics. The remaining states have lost a combined 1.4 million jobs since January 2009. Even 34 months after the recession officially ended in June 2009, there are still 11 states that have fewer people working now than at the start of the recovery. Meanwhile, 20 states have

Anyone who makes a living in residential real estate knows better than to crack open the champagne just because of some encouraging housing data. Still, it's hard not to get cautiously upbeat over recent trends that point to an improving U.S. housing market and indicate some further strengthening in months to come. National real estate analysts and local real estate agents sound encouraged by the state of housing as it enters the stretch drive of

Wal-Mart Stores (WMT) continued to build momentum at home, as the retail giant's ongoing restocking efforts fueled better-than-expected first-quarter profit. Meanwhile, off-price apparel retailer Ross Stores (ROST) said it will double its stores, while Dollar Tree (DLTR) shares retreated on weak profit guidance. Wal-Mart, the world's No. 1 retailer, said Thursday that Q1 earnings rose 12% to $1.09 a share, 3 cents over analyst

Facebook (FB) late Thursday priced its initial public offering at $38 a share, making way for what is the second-largest U.S. IPO ever and giving the company a value of $104 billion. With 424 million shares set to be sold -- 57% by existing shareholders and 43% by the company -- the IPO would raise $16 billion, just above the $15.8 billion raised by General Motors (GM) and below the $17.9 billion raised by Visa (V), both in 2008, according to IPO

Lumber Liquidators Chief Executive Rob Lynch scored high marks with Wall Street on his first report card since taking the helm Jan. 1. The hardwood flooring retailer saw first-quarter earnings pop 45% to 29 cents a share, topping views. Sales rose 18% to $188 million, also ahead of forecasts. It was the biggest sales gain since the second quarter of 2010. It was also the company's third straight quarter of double-digit sales and earnings growth.

Nearly every major casino company saw its shares extend sharp sell-offs Thursday as consumers cut discretionary spending amid a slowing global economy. Last Friday, Nevada gaming officials reported that, led by the Las Vegas strip, casino gambling for the state fell 10.9% in March from the same month last year, to $854.6 million. The decline came after five straight months of rising gambling revenue. In addition, the ongoing debt crisis in Europe

Dealers of Caterpillar's (CAT) earth-moving equipment and other machinery reported slowing sales in April, with the sharpest deceleration coming from the once-fastest-growing Asia-Pacific and Latin America regions. The world's largest heavy equipment maker said in a filing Thursday that sales were up globally 12% in the three-month period ending in April. That's down from the 18% increase in the three-month window that ended in March and the 21%

Airline stocks sold off as Delta Air Lines (DAL) announced plans to cut capacity on its trans-Atlantic routes 5% after Labor Day. The Transportation-Airlines group, which had been bucking the market sell-off as lower crude futures suggest fuel costs should decline, fell more than 3% on the larger-than-expected cutback. Speaking at an industry event, Delta President Ed Bastian said the latest reduction will bring the company's total capacity -- the

If Amazon.com's (AMZN) future is a "riddle," what does silence say about Herbalife (HLF)? During an investor conference Wednesday, famous short-seller David Einhorn hit on a slew of firms, from Martin Marietta Materials (MLM) to Apple (AAPL). The co-founder of Greenlight Capital called Martin Marietta's chief executive a "megalomaniac," and said the granite and gravel producer is benefiting from a one-time stimulus measure that's about to wind

Sears Holdings (SHLD) shares rallied as much as 14% on plans to spin off a large chunk of its Sears Canada operations as well as better-than-expected Q1 results on other real estate sales. Sears Holdings, which operates Sears and K-Mart stores, rose 7.7% to 54.80 in afternoon trading as the broader markets continued to retreat. The stock has been trending lower for several weeks, but is still up 72% in 2012. Sears Holdings owns 95% of its Canadian

JPMorgan Chase (JPM), which could see its losses on credit default swaps get even bigger, was leading financials lower Thursday. The sell-off comes amid more bad news on Europe's debt crisis, reports of tougher bank regulation and estimates that top global banks need to raise hundreds of billions of additional dollars to meet new capital rules. JPMorgan's $2 billion trading loss disclosed last week could grow by at least $1 billion, the New York

Advance Auto Parts (AAP) warned of a "meaningful slowdown" in April sales, sending shares into a skid and stalling out other auto parts retailers and repairers. The chain, with almost 3,700 parts stores, said Q1 earnings surged 33% to $1.79 per share, but analysts were looking for 2 cents more. Revenue climbed 3% to $1.96 billion, shy of analysts' consensus estimates of $2 billion. Sales at stores open at least a year climbed 2.1%. It's shares

When times get tough, don't forget the fundamentals. Take Tangoe (TNGO) for instance. The enterprise software developer earlier this month topped first-quarter analyst forecasts, and climbed to new highs. More than that though, it's posted a 307% growth rate in earnings per share since over the past three years. That puts it at the top of IBD's latest Screen of the Day, measuring firms with top fundamentals. Its EPS climbed 50% in that most recent

Unlike its peers, casino resort owner Boyd Gaming's (BYD) holdings aren't concentrated in Las Vegas and Chinese gaming mecca Macau. Instead, it focuses on the U.S., and its holdings will get more widespread if its $1.45 billion bid for Peninsula Gaming succeeds. Boyd announced the buyout after market close, saying it will expand its holdings by adding five properties in Kansas, Iowa and Louisiana. Its current casinos operate in locations with few

The words of David Einhorn can send shares skyrocketing or plummeting. At the Ira Sohn Investment Conference, the hedge fund manager had some positive words for Apple (AAPL), but his negative comments on Martian Marietta (MLM) sent shares down 8.2%. Einhorn, manager of hedge fund Greenlight Capital, said at the conference that Apple is still breaking into new markets and is keep customers coming back for new versions of its popular phone and

With the market in a correction, even quality stocks often struggle to stay strong. Stocks that can hold above their 50-day moving averages in the current climate are showing unusual strength. IBD's Screen of the Day is "Young Guns" -- highly rated companies that came public in the last 15 years. Here are the top 5 Young Guns that are above their 50-day support level. Sourcefire (FIRE) The company provides security software for data centers and

Sometimes, it pays to put all or most of your eggs in one basket. CF Industries (CF), a fertilizer producer with more than 80% of its sales coming from nitrogen-based fertilizers, has benefited from low input costs and a favorable corn planting season. The company also sells phosphate fertilizers, such as urea, ammonia and urea ammonium nitrate. It is the second largest nitrogen fertilizer producer globally and the third largest phosphate

Abercrombie & Fitch (ANF) first-quarter profit beat estimates on Wednesday but same-store sales fell. Chico's FAS (CHS) beat expectations with new style offerings. The teen clothing store operator said Q1 profit fell 89% to 3 cents per share, but it topped views by a penny. Sales rose 10% to $921.2 million, missing estimates of $951.97 million. Shares fell 14.6% to 38.78. "While we are disappointed that European sales trends remain challenging in

J.C. Penney (JCP) has been struggling to shed its dowdy image. But in Q1, it shed customers. And after reporting those dismal results Tuesday night, it's shedding investors. Shares of the midtier department store tumbled 16.6% on heavy volume to 27.79 near midday. Late Tuesday, the company reported a bigger than expected loss, with fewer shoppers in its stores and an 18.9% decline in sales at stores open a year. The company conceded that sales and

Australian mining giant BHP Billiton (BHP) warned that it expects sales of commodity items like coal, aluminum, copper and iron to continue declining. The company said as a result it's backing off from a plan announced last year by CEO Marius Koppers to spend up to $80 billion over the next five years to expand its iron, coal and energy mining operations. The company spent about $17 billion on shale oil acquisitions last year. The retrenchment was

Cheap and chic offerings and warmer weather were a winning combination for discount giant Target (TGT), which flew past first-quarter projections. The Minneapolis-based retailer on Wednesday posted Q1 earnings of $1.11 a share, excluding one-time items, up 11.5% and 10 cents above consensus estimates. Revenue climbed 5.9% to $16.87, slightly above analyst forecasts. Sales at stores open at least a year rose 5.3%, the strongest in more than six

Homebuilders like PulteGroup (PHM), Lennar (LEN) and D.R. Horton (DHI) are erecting higher share prices on a stronger foundation of housing data, while top lenders have largely missed out on the rally. The 2.6% increase in April housing starts vs. March is that latest piece of good news. March's annualized rate was revised up by 45,000 units, and April's rate grew by 18,000 to 717,000, the Commerce Department said Wednesday. In addition, the Q1

Deere & Co. (DE) reported second-quarter earnings above Wall Street estimates Wednesday as the agriculture sector continues to perform well despite volatile economic conditions worldwide . The No. 1 producer of farm equipment said Q2 earnings rose 23% to $2.61 per share, topping estimates by 8 cents. Sales grew 12.4% to $10 billion, above views of $9.7 billion. Shares fell 4% to 75.13. Caterpillar (CAT) shares fell 2.8% to 92.83. "Our results are

Discount variety store chain Dollar Tree (DLTR) continues to benefit from consumers buying lower-priced goods as unemployment remains high and economic growth tepid. But many analysts expect the company, which sells everything for $1 or less, will continue to grow even as economic growth picks up. Wall Street forecasts a first-quarter profit of 97 cents a share -- 18% higher than the same quarter last year -- when it reports results prior to the

Patriot Coal's (PCX) warning that it sees slower sales and prices ahead, as the industry gets battered from several directions, took its stock and other coal companies down hard. Patriot forecast that it will sell 0.2 million tons of lucrative high-grade metallurgical coal, used to make steel, at $122 per ton in 2013. That would be down significantly from its projected sales of 3.9 million tons for the remainder of 2012, at $142 a ton. Patriot

Many industrial, tech and consumer goods companies rely heavily on Chinese sales to drive the overall bottom line. But Deere & Co. (DE), maker of tractors and other farm equipment, also likely is getting a boost thanks to higher crop production in China. Wall Street is expecting Deere early Wednesday to report a 19% rise in second-quarter earnings to $2.53 per share. Sales are seen up 16.5% to $9.7 billion. Deere is expecting only a 15% increase

All glammed up with trendy new brands, Ulta Beauty is sitting pretty. The one-stop salon and beauty products retailer upped its first-quarter outlook last week as it lured customers into stores with new offerings and attractive promotions. Ulta (ULTA) expects first-quarter earnings of 52 to 53 cents a share vs. its prior forecast of 46 cents to 48 cents a share. It now sees sales of $474 million, up from its previous guidance of $452 million to

Home builder morale rose to a five-year high in May and is better than it was during the mild winter months, suggesting the recent rally isn't just a weather-related anomaly. The National Association of Home Builders sentiment index climbed to 29 from 24 in April. Readings for current conditions, the six-month outlook and traffic also rose, nearing or besting winter highs. In intraday trading, Lennar (LEN), D.R. Horton (DHI) and KB Home (KBH)

Valspar (VAL) beat profit forecasts early Tuesday, but weaker-than-expected sales had investors seeing red. Earnings per share in the fiscal second quarter jumped 31% to 84 cents, nudging above analyst views by 2 cents. The company has posted double-digit profit growth for 13 quarter in a row. Revenue edged up 4% to $1.03 billion, but that was below analyst estimates of $1.07 billion. The company raised its full-year profit EPS guidance to about

Arctic Cat's (ACAT) fourth quarter beat analyst expectations Tuesday morning, but it forecast weak North American sales and guided fiscal 2013 earnings below Street estimates. The ATV maker reported a Q4 loss of 49 cents per share vs. a loss of 52 cents last year. Analysts were expecting a loss of 56 cents. Sales rose 34% to $98.5 million, topping analysts' forecasts of $92.7 million. The fourth quarter is typically the company's weakest. "Sales

JPMorgan Chase (JPM) CEO Jamie Dimon got enough support from shareholders Tuesday to keep his chairmanship despite a $2 billion trading loss, but a new federal probe into it is now seen. The Justice Department has opened a preliminary investigation into the losses disclosed last week, the Wall Street Journal reported. It follows another probe the Securities and Exchange Commission is conducting. At the bank's shareholder meeting, the proposal to

With e-commerce now a major share of core retail sales and growing rapidly, is the writing on the brick-and-mortar wall? Circuit City and Borders have already folded as their costly investments in physical stores served as showrooms for shoppers before making purchases at Amazon.com (AMZN) and others. Barnes & Noble (BKS) and Best Buy (BBY) are struggling to hang on as online rivals erode their sales and profit margins. To survive,

Are casino companies going through a run of bad luck? Shares of global casino operators and gaming equipment makers have fallen sharply in recent weeks, despite strong growth in gambling mecca Macau. The Nevada Gaming Control Board said Thursday that gambling revenue in the state fell almost 11% in March, to $854.6 million, from the same month last year. The drop broke a five-month streak of rising gambling revenue for the state. Meanwhile,

In case you've been living in a deep-sea cave and missed it, Facebook has to be the most anticipated IPO at least since Google (GOOG) debuted in 2004. Everything about it seems outsized. Its expected $10.6 billion raise would be the fifth largest in U.S. history. Its list of 33 underwriters seems to include everyone who ever had coffee on Wall Street. And when it put its investor presentation up on retailroadshow.com, the site had to host it on a separate page so it wouldn't crash the server. The gigantism

Teen apparel chains have largely remained unaffected by a slowdown in discretionary spending in the volatile economic environment. Zumiez (ZUMZ), Buckle (BKE) and Hot Topic (HOTT) are expected to report earnings gains when they post first-quarter results this week. Zumiez's April sales rose nearly 20% to $38.4 million vs. $32 million in 2011. The teen action apparel retailer said same-store sales, or sales in stores open at least a year, grew

With the economic expansion still sluggish and tenuous, Americans continue to seek out bargains. This week, five major discount retailers report earnings results. The three smaller, perhaps more nimble, companies -- TJX (TJX), Ross Stores (ROST) and Dollar Tree (DLTR), have seen earnings and revenue sprint in recent quarters. Their Composite Ratings are 97, 98 and 95, respectively. A rank of 97 means the company has outperformed all but 3% of all

Cash-strapped consumers often look to big-box stores when getting supplies for painting the trim, or stocking up on summer sundries. An assortment of those midtier department stores and specialty retailers come out later this week, which could give another read on the health of household balance sheets. First up is Home Depot (HD) Tuesday morning. Analysts expect earnings to surge 30% to 65 cents per share. The consensus estimates call for revenue

Now that JPMorgan Chase's (JPM) chief investment officer is retiring, the next casualty from the $2 billion trading loss could be CEO Jamie Dimon's chairmanship title. The timing of the loss disclosure couldn't have been worse for the bank: Its shareholder meeting is set to begin Tuesday, and previously filed proposals to separate the CEO and chairman roles will have more momentum now that Dimon's reputation has been tarnished. In intraday

Limited Brands (LTD) reported strong same-store sales in March, but overall revenue is expected to be down when the retailer store operator releases first-quarter earnings after the market closes on Wednesday. Analysts are expecting the operator of Bath & Body Works and Victoria's Secret stores to post flat earnings per share at 40 cents. Sales are seen falling 3.3% to $2.14 billion. But same-store sales growth has been strong at its two main

Earnings season generally is winding down, but the IBD 50 list of elite stocks still has six companies reporting results this week, including a trio of discounters that cater to still-cautious consumers. The three -- Ross Stores (ROST), TJX (TJX) and Dollar Tree (DLTR) -- are also high-ranked stocks and members of this week's IBD 50. TJX, No. 37 on the IBD 50 list, sells off-price name-brand apparel and housewares at its T.J. Maxx, Marshalls and

Paint and coatings maker Valspar (VAL) should give another splash of color to the strength of the housing and other markets with earnings Tuesday morning. Analysts expect earnings to climb 28% to 82 cents per share for the Minneapolis-based firm, No. 23 on the IBD 50 list. Consensus estimates calls for revenue to climb 7.9% in that fiscal second quarter to $1.07 billion. Valspar shares hit a record high on Thursday. In addition to household

Dick's Sporting Goods (DKS) is expected to report higher earnings and sales when it posts first-quarter results before the market opens Tuesday. But a mild winter in Q4 resulted in a higher inventory of cold weather clothing and may have hurt margins in Q1. Wall Street analysts are expecting the sporting goods retailer's EPS to rise 27% to 38 cents, continuing eight straight quarters of double-digit EPS growth. Sales are seen increasing 10% to

Home Depot (HD), the chain of more than 2,200 building and home improvement stores, is sensitive to the general economy. With U.S. unemployment stubbornly high, and home sales stubbornly low, it's not clear how well the company did in the first quarter. But 30 analysts polled by Thomson Reuters expect Home Depot to post a 30% increase in earnings per share to 65 cents when it reports results before the market opens Tuesday. Revenue is forecast to

Stocks racked up a complete week of daily losses, the first time that has happened since the holiday-shortened Thanksgiving week. The Nasdaq and the IBD 50 each dropped 1.2% Friday, while the S&P 500 and the NYSE composite each shaved 0.7%.Volume rose sharply across the board, thanks partly to options expirations. The NYSE composite is now slightly down for 2012. The Nasdaq, which was up 20% in late March, is up just 7% for the year. The week

The Sector Leaders' list shrank again on Friday after many top stocks again suffered widespread losses, with many falling in high volume. The list shrank for a third day, to 15, after Apple (AAPL) and Intuitive Surgical (ISRG) dropped out, replaced by Chinese game site NetEase (NTES). The list has had as many as 19 members in recent weeks, but even the strongest stocks are having trouble holding up amid the market's correction. About half of the

Social Security benefits -- yours, your parents or an elderly relative's, let's say -- can be subject to income tax. But you can take steps to minimize or avoid the hit, which can save thousands of dollars. The key is to trim your non-Social Security income -- often by turning vulnerable categories of income into safe ones. Suppose a hypothetical Eve Hill is single, receiving Social Security. Taxation of her benefits depends on what the IRS calls her

Medical stocks have held up relatively well during the current correction, with many forming bases at a time when other leaders are breaking down. The medical sector contributed seven stocks to this week's IBD 50, including three in the top 15. It's not a good idea to buy stocks during a correction, but these are worth watching in preparation for a new market uptrend. SXC Health Solutions (SXCI), which provides benefit management services for

Wal-Mart (WMT) scored a place on the new highs list Friday, as the retail king touched a multiyear high of 62.63. That actually wasn't a completely brand-new peak, but rather the stock matched a prior high. Wal-Mart previously climbed to the 62.63 level on Feb. 1. Since Feb. 1, the world's biggest retailer has been consolidating in the vicinity of its 10-week moving average. You could view the chart pattern as a flat base with a buy point at

Companies can grow organically or through acquisitions. SXC Health Solutions (SXCI) is taking the latter approach. The provider of pharmacy benefit management and IT services has been on a buyout binge in recent years. It recently announced its fifth acquisition since December 2010. Last month SXC agreed to buy rival Catalyst Health Solutions (CHSI) in a cash and stock deal valued at $4.4 billion. Some proceeds from a recent secondary offering

Retail farm and ranch chain Tractor Supply (TSCO) grew earnings 49%, 38% and 34% in the past three years. Can it keep up the fast growth? The Street appears to think the short-term answer is "sort of." The consensus estimate sees 23% EPS growth this year, just shy of the 25% pace IBD investors seek. If the company can beat 2012 views by 1.5%, then it will hit the 25% mark. Even that growth, though, would represent the third straight year of slower

In a hostile market environment, breakouts often turn into a test of institutional demand. What exactly is such a test? Imagine a stock that breaks out past a proper buy point of 46.24. It has all of the characteristics of a CAN SLIM leader. Sure enough, it rises fast, hitting a high of 49 in less than two weeks and making an investor 6% richer in the stock. But in the next six sessions, the stock falls five times. Now, the investor is wondering

Mellanox Technologies makes sure that its customers' servers and data-storage systems all get along, even if those systems weren't made to work with each other. Mellanox's clients need to connect their servers and data-storage equipment to each other. Often, a corporate customer will be working with a hodgepodge of systems cobbled together over the years. Mellanox (MLNX) helps make that motley crew of systems work together -- as well as making

Some stocks will tend to hold up in tough market conditions. These defensive issues generally come from the food, utility, telecom or tobacco spaces. Even though they tend to take less heat when the market gets rough, they can still get hit hard on occasion. But income investors can lower risk through an exchanged traded fund (ETF) such as the Guggenheim Defensive Equity (DEF) ETF. The fund tracks the performance of the Sabrient Defensive Equity

In a week that squeezed losses from all but three industry groups, airlines lost less altitude than most. That resilience lifted the 18-stock group into the top 20 among 197 industries, up from No. 145 at the beginning of March. Airlines might have ended the week on a stronger note, if not for Delta Air Lines (DAL). Delta said Thursday it would trim its total capacity for the year by 3% to 4%, more than previously announced. Most of the paring

When stalking a trade, a lot of factors need to come into play before taking action. But being too rigid and waiting for everything to be perfect can cause you to miss out on some big winners. The CAN SLIM investing methodology is a top-down approach. Every aspect should be in play, without exceptions. You want the market to be in an uptrend before buying stocks. It's best to go with the flow, rather than try to swim upstream. A stock should be in

Treasury debt prices slipped Friday as investors took profits a day after benchmark yields flirted with their lowest level in at least 60 years in this week's rally, fueled by anxiety over the euro zone debt crisis. Despite Friday's modest pullback, benchmark 10-year yields fell for a ninth consecutive week, matching a streak last seen in 1998, according to Reuters data. "We are at levels where most people would like to go short but they can't

Wheat headed for its biggest weekly gain in 16 years on Friday, adding about 16% to prices as hot and dry weather kept fears simmering about production losses in the U.S. Plains and Russia. Soybeans slipped after three straight sessions of gains, while corn climbed on wheat's coattails. The promise of a bumper U.S. hard red winter wheat crop was eroding by the hour as scorching temperatures and high winds in important growing areas of the U.S.

Vertical spreads are handy, if not very adaptable spreads. Traders can look at potential income generation verticals such as an "at" or in-the-money bull call or their same strike put equivalents. The latter type allows traders wishing to accumulate shares on weakness do so with limited risk versus a naked short put "targeted purchase" strategy. There's also out-of-the bull call spreads to consider. While traders will need some type of bullish

Facebook's (FB) IPO failed to lift sentiment Friday, as stocks extended losses and logged their worst week of the year. The Nasdaq slumped 1.2% and the S&P 500 fell 0.7%. Both closed a few points above their respective 200-day moving averages. Meanwhile, the Dow Jones industrial average gave up 0.6%. Volume surged across the board due to options expiration. For the week, the Nasdaq tumbled 5.3%. That's the biggest loss since the week ended Sept.

After a small and short-lived upside attempt Friday morning, the major stock indexes turned tail and plumbed new lows for the market correction. The Nasdaq fell 1.2% the S&P 500 0.7% and the Dow Jones industrial average 0.6%. That's six straight losses for the S&P 500 and the Dow, five for the Nasdaq. The S&P 500 ended at its lowest since Jan. 13. Volume rose across the board. The long-awaited Facebook (FB) IPO finally arrived. Shares of the

Stocks were lower in late-afternoon action Friday after pulling back from their session highs about 11 a.m. ET, when Facebook (FB) had been slated to start trading but didn't. The Nasdaq lost 0.9%, the S&P 500 shed 0.6% and the Dow Jones industrial average fell 0.5%. Turnover was tracking up from Thursday's levels on both main exchanges, boosted by options expirations. The main indexes are all on track to post their worst week since the week

Stocks were moderately lower in early afternoon action Friday after pulling back from their session highs around 11 a.m. ET, when Facebook (FB) had been expected to begin trading. The Nasdaq shed 0.3%, the Dow Jones industrial average lost 0.1% and the S&P 500 dipped fractionally. Turnover was tracking higher across the board, boosted by options expirations. Facebook was up about 3% from its offering price at 38, but it had been up more than 13%

Stocks traded in negative territory around midday Friday after pulling back from their session highs around 11 a.m. ET, when Facebook (FB) had been expected to begin trading. The Nasdaq lost 0.4%, the Dow Jones industrial average shed 0.1% and the S&P 500 fell less than 0.1%. Turnover was tracking higher across the board, boosted by options expirations. Facebook was up about 3% from its offering price at 38, but it had been up as much as 13% out

The major indexes were flat in heavy, options-expiration trade early Friday as the market looked toward Facebook's debut. The S&P 500 was up 0.2% and the Nasdaq and Dow Jones industrial average up 0.1%. Nasdaq volume tracked about double its rate from the same time Thursday. NYSE volume soared. Alcoa (AA) climbed 2% to post the Dow's top advance. Yahoo (YHOO) led the Nasdaq 100 with a 5% gain, as Nasdaq 100 peer Autodesk (ADSK) stumbled 12%.

Stock futures pointed higher Friday, but slipped from early highs, shadowing a weakening of stocks overseas. Dow futures traded up 52 points. Nasdaq 100 futures were 10.25 points higher and S&P 500 futures were up 6.5 points. The major indexes head into Friday's session with their work cut out for them, riding a string of losses pointing them toward a possible test of support at their 200-day moving averages. The Nasdaq slipped 4.1% for the week

The bearish camp kept the pressure on stocks Thursday as the major indexes fell for the seventh time in the past eight sessions. The Nasdaq logged the day's biggest loss at 2.1%, while the Dow Jones industrial average notched the smallest at 1.2%. In between, the S&P 500 and the NYSE composite each fell 1.5%. Volume rose 8% on the NYSE and 6% on the Nasdaq. At this point, the bulls are beaten and cowering. A correction is like a schoolyard bully:

Most Sector Leaders fell Thursday, with many closing near their intraday lows as the overall market continued to sell off. Buffalo Wild Wings (BWLD) was among the biggest losers, diving back below its key support line. Twelve of the 15 stocks on the leaders' list ended lower, half of them in above-average volume. Meanwhile, the list of top stocks lost another member on Thursday as Bio Reference Labs (BRLI) dropped out after lingering below its

The new highs list retained its defensive flavor Thursday, as steady stocks such as Verizon Communications (VZ) and McCormick (MKC) touched fresh peaks. Verizon largely has been moving sideways this year, but it's now reached a new 52-week high. The telecom pays a nice dividend and is holding up well in the current market correction. On the other hand, it doesn't come close to looking like a CAN SLIM growth stock. Its three-year EPS growth is -4%,

Some leading stocks with big earnings estimates continue to fare relatively well in the face of a worsening market. Don't tune out of stocks altogether during a market correction. Use the time to build your watch lists so that you'll be ready once a market uptrend resumes. Equinix (EQIX) sits about 11% off its high or a touch worse than the Nasdaq. The stock is slightly below its 10-day moving average. But the stock pulled back to the line in

NetEase (NTES) pushed into new high ground Thursday after the Chinese online video-gaming star released its first-quarter report, which held a few pleasant surprises. In its Q1 report, released late Wednesday, NetEase netted $1.14 per share, a 33% rise from its year-earlier profit and 4 cents better than expected. Revenue climbed 36% to $312.1 million, also beating estimates. That 33% EPS rise was a tad better than the prior quarter, which saw a

Treasury debt prices rose on Thursday as disappointing data on regional U.S. business activity and worries about Greece's political turmoil and the health of Spanish banks stoked safe-haven bids. Yields on the benchmark 10-year Treasury note fell to their lowest levels in more than seven months and were within striking distance of 1.67%, the lowest yield in at least 60 years. "Treasuries continue to be the haven of choice for a spooked market,"

July Brent crude oil in the ICE exchange fell $2.19 to $107.56 a barrel Thursday, touching its lowest since Dec. 30, as investors avoided risky assets due to mounting fears that turmoil in Greece could spread. Meanwhile, West Texas intermediate July crude on the Nymex fell just 38 cents to $92.43. The owners of the U.S. Seaway pipeline said that its flow reversal was completed as expected. Now, rather than pipe oil to the Cushing, Okla., delivery

Copa Holdings (CPA) is hanging tough in the face of market turbulence. Despite a market correction, the stock sits just a few percentage points off its record peak from earlier this month. The stock's Relative Strength line is at a new high. Stocks that fare well during rough market conditions can go on to be some of the best performers once the weight of the selling is lifted. Copa cleared a 77.90 buy point in a flat base in late March. It has

Industry leadership took a bearish turn Thursday as two of the most resilient defensive groups unraveled in heavy trade. Auto parts retailers and dollar store chains dropped after earnings reports from Dollar Tree (DLTR) and Advance Auto Parts (AAP). Advance Auto swooned 17% after missing Q1 earnings forecasts. Management said a mild winter led to fewer major repairs for cars, and warned of "constrained" results in the current quarter. Shares of

Shares of big banks plunged following JPMorgan Chase's (JPM) huge trading loss, but Thursday's Spotlight shone on a pair of regional lenders that continue to hold up well despite the market's correction. Dallas-based Texas Capital Bancshares (TCBI) and Kansas City-based UMB Financial (UMBF) were in buy ranges as they hover above their 50-day moving averages. Both engage mainly in the old-fashioned business of taking deposits and making loans

Here we go again? Regular readers of this column may recall on Monday we warned of that session's fearful stretch of 15% in the CBOE Volatility Index  relative to its 10-day simple moving average as suspect. In fact, we expressed if rules were made to be broken, this appeared to be one of those times to override a mechanical rule with the mindful kind. Worrying us at the time, while the relative stretch on a short-term basis was sufficient;

Stocks suffered big losses Thursday, extending their recent slide. The market dealt with disappointing economic reports, and worries over Greece continued to weigh. Fitch downgraded Greece's debt rating Thursday. The Nasdaq tumbled 2.1% to a fresh three-month low. The S&P 500 stretched its losing streak to five sessions. It lost 1.5% and neared potential support at the 1300 level. Meanwhile, the Dow Jones industrial average dropped 1.2%, with 24

The market is wallowing in a correction, and many highflying stocks have fallen back to earth. But that doesn't mean investors ought to just curl up in a ball and weep. Instead, it's a good time to look for highly rated stocks that are consolidating in an orderly fashion. That way, when the market gets back into an uptrend, you'll be ready to take advantage of the new opportunities immediately. You'll have a watch list with some promising stocks,

A grim report on mid-Atlantic manufacturing and no relief from Europe's painful mess combined Thursday to deal stocks a heavy blow. The Nasdaq swooned 2.1%, the S&P 500 1.5% and the Dow Jones industrial average 1.2%. Volume was higher. The U.S. economic headlines were dominated by the Philadelphia Fed's business-activity index -- which is pretty much a factory gauge -- fall to -5.8 in May from April's reading of 8.5. May's result was the first

Gold prices rebounded from a five-month low Thursday amid an intensifying global sell-off in stocks and a weakening dollar. SPDR Gold Shares (GLD) jumped 2.4% to 153.05. In the futures market, gold climbed 2.3% to $1,576 an ounce. PowerShares DB U.S. Dollar Index Bullish (UUP), tracking the greenback against major currencies, eased 0.24% to 22.51. Oversold conditions, bargain hunting and short covering, in which traders have to buy back their

Stocks traded in the red and near session lows in late-afternoon action Thursday, as the Dow Jones industrial average and S&P 500 stayed on pace to post their fifth straight down day. The Dow lost 0.8%, while the S&P 500 shed nearly 1%. The Nasdaq fared worst with a 1.4% loss, setting up the tech-heavy index for its fourth down session in a row. Turnover is tracking up from Wednesday's levels on both main exchanges. Dick's Sporting Goods (DKS)

Stocks held firmly in the red but lifted off their session lows in early-afternoon action Thursday. The Dow Jones industrial average and S&P 500 stayed on pace to post their fifth straight down day. The Dow lost 0.4%, while the S&P 500 shed 0.5%. The Nasdaq fared worst with a 0.8% loss, setting up the tech-heavy index for its fourth down session in a row. Turnover is now tracking up from Wednesday's levels on both main exchanges. NetEase (NTES)

Stocks fell further into the red and touched fresh session lows around midday Thursday, putting the S&P 500 and Dow Jones industrial average on pace to post their fifth straight down day. The Dow lost 0.5%, while the S&P 500 shed 0.6%. The Nasdaq fared worst with a 1% loss, setting up the tech-heavy index for its fourth down session in a row. Turnover was tracking up from Wednesday's level for the NYSE, but down slighty for the Nasdaq. Liquidity

Markets opened with mild losses Thursday on soft weekly jobs data and mixed earnings reports. A startling drop in Philadelphia-region manufacturing was a drag on the market. The Dow Jones industrial average and S&P 500 each fell 0.3%. The Nasdaq slipped 0.4%. Volume was down 15% on the Nasdaq and 3% lower on the NYSE compared with the same time Wednesday. The Philadelphia Federal Reserve Index slumped to a -5.7 reading for May, an abrupt reversal

Stock futures slipped from mixed trade to mild losses ahead of Thursday's open, after disappointing unemployment data. Futures for Dow, Nasdaq 100 and S&P 500 stocks all traded narrowly below fair market value. Initial jobless claims were unchanged at 370,000 in the week ended May 12, the Labor Department reported. Analysts had called for a decline to 365,000 claims. Ongoing claims rose to 3.265 million in the week ended May 5, vs. the prior

The ongoing 21st-century Greek financial tragedy depressed investors again Wednesday as some banks in the cradle of democracy are reportedly no longer getting aid from Europe's central bank. Reuters, quoting sources, noted several Greek banks are no longer solvent, and hence must seek funding from that country's monetary authorities. The sources said as many as four lenders were operating with negative equity capital. National Bank of Greece

As the major stock indexes slouched further south Wednesday, the new-lows count also remained at high levels. The Nasdaq served up 81 new lows vs. 34 new highs. The NYSE rang up 122 new lows vs. 33 highs. This continued a recent trend. Also, gold prices officially re-entered bear country, at least as measured by the SPDR Gold Trust (GLD). The exchange traded fund reflects the action of gold. Intraday on Wednesday, the ETF fell to 20% below its

The Sector Leaders ended mixed for a second day Wednesday, holding tough despite the market's correction. But a couple of top medical stocks dipped below their 50-day moving averages. The leaders' list shrank by one, to 16, after SciClone Pharmaceuticals (SCLN) dropped out. The stock has been struggling below its 50-day line since early May. Fellow medical stocks Intuitive Surgical (ISRG) and Questcor Pharmaceuticals (QCOR) also ended below their

The combination of China's voracious energy needs and a global surplus of natural gas makes a compelling story for at least two Hong Kong-listed companies. Enn Energy Holdings and Towngas, two companies that distribute natural gas in mainland China, are potential leaders in Hong Kong, seen as a gateway for foreigners to do business in the world's biggest emerging market. At first glance, it's hard to get excited about companies that hook up homes

If you've heard the expression of having a friend with benefits, you'll know that shacking up an existing long stock position with a long put can offer similar rewards that can't be obtained through a standard marriage. Not that we'd recommend the double entendre, but for bulls who've already risked an unprotected affair with the likes of a breakout; legging into a long put can be extremely attractive. To illustrate where this type of legged

A slug of strong data Wednesday, diluted by a couple of caveats, earned a mixed reaction from construction and real estate stocks. April housing starts and weekly mortgage applications jumped while mortgage delinquencies decreased in the first quarter. But building permits, a measure of future activity, slipped in April. Housing starts, despite rising 2.6%, remained in a three-month downtrend. And the Mortgage Bankers Association noted

Treasury prices were steady to higher in another choppy session on Wednesday as news that the European Central Bank cut off funds to some cash-strapped Greek banks and bond-friendly minutes from the Federal Reserve's April meeting supported bids for low-risk government bonds. Investors, not only fearing possible financial contagion due to the political turmoil in Greece, are also favoring Treasuries and other perceived safe-haven assets on signs

Crude oil tumbled Wednesday, weighed by pressure from equities, as banking woes in Greece highlighted the euro zone debt crisis, sparking risk aversion across markets. Falling for the fourth straight session, June crude settled at $92.81, down $1.17, the lowest front-month settlement since Nov. 2. It fell to $91.81 early, the lowest intraday since Nov. 3. The European Central Bank confirmed a Reuters report that it has stopped lending to some

Stocks extended losses Wednesday in a seesaw session. Equities dealt with mixed earnings and economic news, as well as Greece's continuing debt saga. The Nasdaq dropped 0.7% after having been up as much as 0.7%. The S&P 500 fell 4% and stretched its losing streak to four sessions. Meanwhile, the Dow Jones industrial average lost 0.3%. Volume rose on both major exchanges. Even though the losses in the major averages weren't all that bad,

Bad investing usually comes down to one word: impatience. If a cash position during a market correction makes you so anxious you just have to jump back in to stocks, you might win here and there. But over time, you will lose because the trend has the odds on its side. If waiting for an IPO to form a base seems like time wasted, you will learn the cost of short cuts. If you rush into a stock when the company has yet to earn a dime because "it has a

When a salesman hands a buyer the keys to a new car, it's ready to drive off the lot. So how should an investor treat a stock that is roaring full-throttle right after its IPO? As the Investor's Corner has explained, it's wise to watch and wait. Watch for the stock to develop a trading range. Wait until a justifiable buy point emerges. That said, once in a while, a stock with superb fundamentals takes precious little time to form a base -- less

Good stocks form bases during corrections and that's just what B&G Foods (BGS) is doing now. The stock has actually been consolidating since reaching a high of 24.64 in late December. Currently, B&G Foods is in a long flat base with a 24.74 buy point for now. The stock recently found support at its 40-week moving average, a clear sign of institutional demand. Last week, B&G Foods spiked above its 10-week line on a jump in volume. The line has

The broad market sell-off can pose many temptations. A lot of stocks end up in the bargain bin. But that's precisely when it's most important to keep your discipline, says Paul Gordon, co-manager of $1 billion MFS Mid-Cap Growth Fund . His goal isn't just to find stocks whose prices have been slashed, Gordon says. It's to land names whose growth potential is as high as their price is low. And that's why Gordon and co-manager Eric Fischman have

Stocks ended lower Wednesday as investors coped with Europe's ongoing saga and minutes from the Federal reserve's April meeting. The Nasdaq fell 0.7%, the S&P 500 0.4% and the Dow Jones industrial average 0.3%. Volume rose across the board, early figures showed. "Several members indicated that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great

Stocks traded in negative territory and near their session lows in late-afternoon action Wednesday, losing ground after a Fed minutes release at 2 p.m. ET. The Nasdaq lost 0.7%, the S&P 500 shed 0.3% and the Dow Jones industrial average fell 0.1%. Volume continued to track up from Tuesday's levels on both main exchanges. The Fed minutes indicated little change in policymakers' assessments of the U.S. economic outlook, but also contained cautionary

Stocks remained in positive territory but off their session highs in early-afternoon action Wednesday, ahead of a Fed minutes release at 2 p.m. ET. The Dow Jones industrial average and S&P 500 both were up 0.2%, while the Nasdaq was roughly flat. Volume continued to track up from Tuesday's levels on both main exchanges. Google (GOOG) advanced 3% in fast trade, climbing back above its 50-day moving average. The tech giant has been consolidating

Stocks traded well off their session highs at midday Wednesday, appearing to sell off following reports the European Central Bank has cut off some Greek banks. The Dow Jones industrial average and S&P 500 both were up 0.2%, while the Nasdaq was roughly flat. Volume was tracking up from Tuesday's levels on both main exchanges. The ECB has stopped monetary policy operations with some Greek banks as they have not been successfully recapitalized, said

Stocks opened higher in mixed trade Wednesday, helped by April industrial production and construction data. The S&P 500 led with a 0.6% gain. The Nasdaq climbed 0.4% and the Dow Jones industrial average 0.5%. Volume was up 5% on the Nasdaq and 5% lower on the NYSE compared with the same time Tuesday. Mortgage application activity surged 9.2% last week, according to the Mortgage Bankers Association. Refinance applications led, rising 13% to nearly

Stock futures added to early gains before Wednesday's open, despite mixed earnings reports and April housing data. Dow futures traded 63 points higher. Nasdaq 100 futures were up 14.3 points and S&P 500 futures climbed 7.8 points. In the construction trade, housing starts jumped while building permits slowed sharply in April. Starts rose 2.5% to 717,000, above analyst views for a slowdown to 680,000. The number of building permits issued declined

After trading in positive territory for most of Tuesday's session, stocks sold off late in the afternoon to end firmly in the red and near their lows for the day. The NYSE composite dropped 0.9%, the S&P 500 0.6% and the Nasdaq 0.3%. Volume increased from Monday's levels on both main exchanges, adding vehemence to the move lower. All three indexes touched their lowest levels in the past three to four months. Also discouraging: The Nasdaq and S&P

In the first half of 2007, Baidu (BIDU) created an unusual cup-type base. Then again, Baidu was an unusual stock. How so? Baidu's growth rate was off the charts. When the stock eventually broke out, profit quadrupled in 2006 and was on pace to more than double by the end of 2007. Revenue soared 190% in 2004 (to $14 million), 176% in 2005 ($39 million) and 171% in 2006 ($106 million). Remember, it's not the size of the top line or the bottom line

Investors often hear the word "volatility" or one of its derivatives; pardon the pun, used to help describe price action in the market. But for option traders there are a couple types of volatility which are important to learn as they relate to the pricing of calls and puts. The broader usage of volatility is most often associated with underlying price movement or statistical volatility of a certain individual security or an index such as the

At midday Tuesday, the Nasdaq was up as much as 1%. Yet, new lows and highs were telling a different story. New lows had a solid lead over new highs throughout the morning and locked the advantage in as the markets slid in the afternoon. The new lows have topped new highs on the Nasdaq in seven of the past eight sessions. Does that undermine the market's attempts to shake off the correction? Not really. When the indexes delivered a follow-through

Internet coupon innovator Groupon (GRPN) spiked as much as 27% on positive Q1 results early Tuesday, but settled with a 4% gain. The poor reversal belied recent gains by Internet retail stocks, which reached a ranking of No. 68 out of 197 industries in Tuesday's IBD, up from No. 191 on March 1. Liquidity Services (LQDT) powered the bulk of those gains, but others have also played a part. Amazon.com (AMZN) advanced 29% in March and April. EBay

The 17 Sector Leaders ended mixed on Tuesday as a number of top stocks continue to work on bases amid the market correction. Volume was low. In all, nine of the leaders rose, led by medical sector stocks such as Align Technology (ALGN), which was the only issue to climb in above-average volume. Align, which has developed a proprietary system to treat misaligned teeth, added 0.66 to 31.25 and is out of buying range after bouncing off its 50-day

Exchange traded funds tracking retail chains rallied Tuesday after TJX Cos. (TJX) and Dick's Sporting Goods (DKS) beat analysts' earnings forecasts. That's while U.S. retail sales nationwide barely rose in April, suggesting a slowdown in consumer spending in the second quarter following a strong start to the year. SPDR S&P Retail (XRT) rose as much as 1.6% intraday before paring gains to 0.24% to end at 59.34. Market Vectors Retail ETF (RTH)

Treasury debt prices ended little changed Tuesday as worries about Greece's political turmoil offset earlier profit-taking and data suggesting the U.S. economy has not succumbed to Europe's debt troubles. Nagging concerns over the banking system in the aftermath of a $2 billion trading loss at JPMorgan Chase also stoked bids for Treasuries, analysts and traders said. "There are more concerns about Greece. The risk markets are selling off and

Wheat rose nearly 2% Tuesday -- its biggest gain in more than two weeks -- as selling pressure eased due to concerns about dryness for the maturing winter wheat crop. July wheat rose 10-1/4 cents to $6.08-1/2 per bushel, touching the highest price in nearly a week before paring gains. Wheat lost 2% of its value last week, the second straight big weekly drop. Hot, dry weather expected this week could hurt the developing hard red winter wheat crop in

Published every Tuesday, IBD's Big Cap 20 can be a place to look for large-cap stocks that pay dividends. Ecolab (ECL), No. 13 on Tuesday's list, has a long track record of delivering growth. It's also paid dividends for 75 years to shareholders. The nearly 90-year-old firm provides cleaning, sanitation, housekeeping, water treatment and other services around the world. The company serves the foodservice, lodging, health care, education and

Hong Kong's and Shanghai's benchmark exchange traded funds have been lagging returns of many other markets -- including the U.S. -- for several years. But some scrutiny reveals an improvement of sorts for Hong Kong in the past six months. The Hong Kong and Shanghai stock indexes and exchange traded funds well reflect the underlying fundamentals: behaving poorly and trying to correct themselves. But Hong Kong offers access to foreigners wishing to do

After a promising morning of substantial gains, stocks reversed lower Tuesday and ended with losses. The S&P 500 fell 0.6%, the Dow Jones industrial average 0.5% and the Nasdaq 0.3%. Volume rose, according to preliminary figures. The S&P 500 and the Dow had each climbed as high as 0.5%, while the Nasdaq tacked on 1% before the selling began in earnest. After failing to cobble together a coalition government, Greece now faces a new election next

Stocks have given up gains and turned mixed in afternoon action Tuesday. Investors continue to digest a round of encouraging economic reports, but also the latest Greek drama. The Nasdaq was up 0.4%, while the Dow Jones industrial average was roughly flat. The S&P 500 dipped less than 0.1%. Turnover was tracking slightly up from Monday's level on both main exchanges. On the earnings front, Home Depot (HD) dropped 2% after a 6% gain in Q1 sales

How should an investor react when a stock gaps down in brisk volume? The savvy investor finds out as many details that help explain the negative action. Then he or she studies the action in relation to the overall trend of the stock before making a trading decision. Web.com Group (WWWW) provides a useful case study. The stock went public in November 2005. It has been popping up in the Stock Spotlight screen lately after recovering from a 60% slide

Stocks held respectable gains in early-afternoon action Tuesday, as a round of encouraging economic reports continued to overshadow the latest Greek drama. The Nasdaq was up 0.8%, while the Dow Jones industrial average and S&P 500 each added 0.3%. Turnover was tracking slightly up from Monday's level on both main exchanges. The Dow and S&P 500 turned slightly negative in late-morning trade, but then recovered. On the earnings front, Valspar (VAL)

Even though the market finished off its lows of the week, a round of leaders still showed bad action. Ubiquiti Networks (UBNT) had another volatile week. It plunged 16% in huge trade. The dive brings its two-week loss to 33%. Ubiquiti has nearly given back all gains from its January breakout from a double-bottom base. Fossil (FOSL) also had a rough time as it wiped out about four months of gains in a single week. Weaker-than-expected Q1 sales

Stocks hit fresh highs around midday Tuesday, as a round of encouraging economic reports appeared to overshadow the latest Greek drama. The Nasdaq was up 0.9%, while the Dow Jones industrial average and S&P 500 each added 0.5%. Turnover was tracking slightly up from Monday's level for the Nasdaq, but down slightly for the NYSE. The Dow and S&P 500 turned slightly negative in late-morning action, but then recovered. Greek lawmakers have broken off

Stocks held their initial gains Tuesday after healthy factory and inflation data, despite the euro's sharp drop vs. the dollar. The Nasdaq climbed 0.4% while the Dow Jones industrial average and the S&P 500 each gained 0.2%. European markets gave up modest gains and reversed lower after Greek lawmakers reportedly broke off talks to form a coalition government. Greek President Karolos Papoulias lost in his bid to form a technocrat-led government to

Stock futures, up strongly less than an hour before the opening bell, erased nearly all of their gains as Greece's political parties failed to reach a coalition government, setting the stage for new elections that could ultimately lead to the country being forced out of the euro.

Here's the good news: The Nasdaq closed above 2900 again. The bad news: Stocks faded for the third straight session Monday. In the end, stocks extended their two-week slide Monday, with all major averages racking up losses in excess of 1%. The NYSE composite tumbled 1.4% to a near four-month low as energy stocks weighed. Crude oil prices dropped 2% to their lowest level of the year. Financials were also hit hard again. The Nasdaq and S&P 500 lost

Bad news from Europe overshadowed good news from China, sending foreign stock indexes and exchange traded funds spiraling lower Monday. A stalemate in Athens between pro- and anti-austerity factions is preventing President Karolos Papoulias from forming a new government. Syriza, a leftist party and the biggest of Greece's anti-austerity and anti-bailout factions, on Monday refused further coalition talks with President Papoulias. Papoulias'

The Sector Leaders fell across-the-board in low volume Monday, led by software developer Sourcefire (FIRE) and drugmaker Questcor Pharmaceuticals (QCOR). The leaders' list expanded by one, to 17, with the addition of Sciclone Pharmaceuticals (SCLN),which develops treatments for infectious diseases and cancer. The company earned 97% of its revenue from China in 2011. The stock marked its entry to the list by falling 0.09 to 5.81 in average

Several food stocks touched fresh 52-week peaks Monday, continuing a recent trend that's given the new-highs list a defensive flavor. Heinz (HNZ) edged up fractionally in average turnover as it reached a new high again. The packaged foods giant is working to clear a long consolidation with resistance around 55. Hershey (HSY) added nearly 1% in average volume as it hit a high. The candy producer is well extended past its last buy zone after a

Investors are warned to avoid buying stocks during market downturns, such as the one that began when the Market Pulse indicated on May 4 that a correction had begun. Yet, temptation lurks in this week's Big Cap 20. Four top-ranked companies with market values of $15 billion or more are in a buying area while two others are just below their entry points. These stocks could pop up when the market turns around. Biotech stock Amgen (AMGN) is just

Gold fell to a 4-1/2-month low Monday, hit by concerns about a worsening debt crisis in the euro zone following political deadlock in Greece which fueled risk-aversion and put pressure on the euro. Spot gold hit a session low at $1,556.61 an ounce, its lowest since Dec. 30, 2011, before recovering slightly to trade at $1,561.10 an ounce, down 1.1% from $1,578.30 hit late in New York on Friday. Gold has moved in tandem with riskier assets this year

There comes a point where every skydiver has to jump out of the aircraft. The equivalent moment of total commitment for investors is when a stock hits the buy point. In both cases, the key to survival is preparation. For paratroopers this means proper flight training, a perfectly packed chute and a thorough gear inspection. Investors need to have carefully vetted their stock. Fundamentals must be up to snuff. Chart patterns must meet all necessary

Here we go again? In some ways Monday's bid in the CBOE Volatility Index might look like last Wednesday's panic wherein the sentiment gauge narrowly eclipsed its early April highs. That action you may recall was partly responsible for a fairly strong, reversal set up in the broader market which we discussed on Thursday. That said, with today's finishing tally of 9.40% to 21.76%, should we see this as a sort of second opportunity and another

Despite increased market volatility, Polaris Industries (PII) continues to trade in tight fashion near its record high. The tight action in the past few weeks is a sign of support from professional investors, such as mutual funds and hedge funds. Polaris' action bears watching as stocks that hang tough during tough market conditions can be some of the best performers once the weight of the market gets lifted. Polaris broke out from a 63.16 buy

A sharp divergence in behavior between high-end consumers and the rest of the economy is affecting the reliability of traditional economic gauges. But high-end consumers are "alive and well," and "they are spending money," AT&T (T) CEO Randall Stephenson told Bloomberg last week. That spending helped move the leisure sector into the top slot among 33 sectors tracked by IBD over the past couple of weeks, from a No. 31 ranking in January. Three

When a market leader is retreating after making a big gap-up in price on its breakout, what should the investor do? The rules stay the same, whether or not the stock gaps up or not. Losses should be limited to no more than 8%, and the strength of the stock, its industry group and the market should be monitored. Watson Pharmaceuticals (WPI) has been appearing in the Stock Spotlight screen frequently in recent weeks. The stock gapped up 7% on April

Treasury prices rose Monday, pushing yields to the lowest since early October as political turmoil in Greece, an anti-austerity vote in Germany and concern of slower growth in China drove a bid for safety. Uncertainty over the impact of a potential Greek exit from the euro spurred the rush to safety, hurting riskier assets and helping U.S. government debt. Germany's political landscape appeared to be shifting as Chancellor Angela Merkel's

As if shareholders need a reminder, growth investing is not for the faint of heart, the managers of $9.4 billion American Century Growth note in their first-quarter commentary. But it's the competition that's been getting most of the scares recently. Growth Fund topped its large-cap growth peer group in eight of the past 12 quarters. Managers Gregory Woodhams and E.A. Prescott LeGard did that by aiming for stocks making sustainable, long-term

Like small companies, small countries often can grow at a faster clip than large ones. That has been true this year for four developing countries that have outpaced world markets -- Colombia, the Philippines, Thailand and Vietnam. Unfortunately, their names don't form a clever acronym, just CPTV. But their ETFs have vaulted at least 16% and as much as 35% in 2012 vs. an average of 4% for all emerging markets. Their economies are expected to grow 4%

An attempted rebound failed Monday as the stock indexes sprang off the day's lows and then sagged in the final 90 minutes. The Nasdaq and the S&P 500 dropped 1.1% each while the Dow Jones industrial average fell 1%. The NYSE composite lopped off 1.4%. Volume was lower on both major exchanges, according to unconfirmed numbers. JPMorgan Chase (JPM) gapped down 3% in volume that was 150% above average. The stock also gapped down Friday, though the

Rock-bottom interest rates have investors scrambling for sources of dividend income. Robert Levine, founder of Nomura Corporate Research and Asset Management, explains one way of doing this in his soon-to-be published book, "How to Make Money With Junk Bonds. Also known as below-investment-grade corporate bonds or high-yield bonds, these debts offer greater returns with higher risks. Levine served as CEO and chief investment officer for nearly 20

Stocks pushed lower Monday as Greece's ongoing mess sparked talk that that country may have to exit the euro zone. The S&P 500 fell and the Nasdaq each fell 1.1%, while the Dow Jones industrial average lost 1%. Volume fell 5% on the Nasdaq and 1% on the NYSE, according to preliminary data. Losses were broad, with all but about 16 of 197 industries losing ground. A political deadlock in Athens likely will mean new elections in debt-crunched Greece.

Stocks held near their session highs but still firmly in the red in late-afternoon action, weighed down by the latest euro zone concerns. The S&P 500 lost 0.7%, while the Dow Jones industrial average and Nasdaq both shed 0.6%. The main indexes today all have touched their lowest levels since early February, but then bounced back. Volume continues to track lower across the board. On the upside, Groupon (GRPN) surged 19% in big trade, trading near

Stocks held off their session lows but stayed down in early-afternoon action Monday, weighed down by the latest euro zone concerns. The S&P 500 and Dow Jones industrial average both lost 0.6% while the Nasdaq shed 0.5%. The main indexes today all have touched their lowest levels since early February, but then bounced back. Volume continues to track lower across the board. Genesco (GCO) is down 1% in heavy turnover. The shoe and hat seller tried to

Stocks lifted off their session lows but stayed firmly in the red at midday Monday, weighed down by the latest euro-zone concerns. The S&P 500 and Dow Jones industrial average both lost 0.7%, while the Nasdaq shed 0.6%. The main indexes today all have touched their lowest levels since early February, but have bounced back. Volume continues to track lower across the board. The market is getting hit by Greece's continued political gridlock, which

Mining and oil-related stocks led early declines Monday as stocks reacted to rising uncertainty in Europe and more weakness in oil prices. The S&P 500 fell 1.2%, the Dow Jones industrial average 1.1% and the Nasdaq 1%. Volume was 14% lower on the Nasdaq and 7% higher on the NYSE compared with the same time Friday. Europe's leading indexes deepened losses in afternoon trading. Uncertainty about Greece's status as a euro zone country, a vote

Stock futures maintained their early losses ahead of Monday's open, as the dollar climbed vs. the euro and oil-related stocks came under pressure. Dow futures traded 90 points lower. Nasdaq 100 futures were down 20 points and S&P 500 futures slipped 11.2 points. BMC Software (BMC) climbed 4% in premarket trade. The company announced that two hedge funds under Elliott Management Corp. had acquired a more than 5% stake and intended to press for the