TheStreet.com (All the latest stories from TheStreet.com's reporters and commentators covering stocks, personal finance, mutual funds, markets, and lifestyle & leisure.)
NEW YORK (MainStreet) -- Call it Mardi Gras, call it Carnival. If you're spending it in New Orleans or Rio, you're just calling it in.
Oh, we're sorry, did that sour your incredibly original choices of fruity drinks, beads and samba? Well no offense to New Orleans' Mardi Gras, but its party stretches back to the 18th century, brings in scores of visitors and more than $320 million in revenue and accounts for 1.6% of the city's GDP. Carnival in Rio de Janerio, meanwhile, has been packing the streets since the early 1700s and squeezes tourists for more than $500 million each year.
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The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (BBH FX Strategy) -- The U.S. dollar is broadly mixed against the majors and EMs after the market appears to have shrugged off Moody's downgrades of European sovereigns. The euro is currently flat after giving back some early session gains following the better than expected results from euro zone debt auctions in Italy, Greece, Spain and Belgium. The euro should remain confined to recent ranges ahead of Wednesday's eurogroup finance ministers meeting. The surprise in the Asian session was the move by the Bank of Japan to ease policy by boosting asset purchases and defining a 1% inflation target.
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Bank of America continues skyward. In a quick review from a few weeks back, L.A. updates the charts and the targets based on what has transpired since his last video.
NEW YORK (TheStreet) -- Bank of Americawas downgraded to "neutral" from "buy" by Citigroup on Tuesday, following the recent run-up in the stock.
"At current levels the risk/reward tradeoff for Bank of America is relatively balanced in the near term. Longer term, we believe BAC still offers attractive value as the company addresses its legacy issues, which should drive down the perceived risk in the stock," reads the note from analyst Keith Horowitz
Horowitz argues the 48.38% rally in Bank of America's stock year to date "reflects the market's increased comfort with its capital position." However, he now believes "investor focus will shift to earnings, which have been weak."
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Click to view a price quote on BAC.
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NEW YORK (TheStreet) -- Rackspace Hosting, the cloud computing software maker and data center services provider topped fourth-quarter earnings and revenue expectations.
The company reported earnings of $25 million, or 18 cents a share, in the quarter on revenue of $283.3 million. The performance beat the average estimate of analysts polled by Thomson Reuters for a profit of 15 cents a share in the quarter on revenue of $281 million.
Rackspace said its total server count rose to 79,805 at the end of the quarter, up from 78,717 at the fiscal third quarter ended in September.
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Click to view a price quote on MET.
Click to research the Insurance industry.
After seven months, three public hearings giving voice to pious "consumer advocates" who say that allowing Capital One to become the seventh largest U.S. banking company through its agreement to purchase ING Direct (USA) from ING Groep would be such a terrible thing, the Federal Reserve again failed to rule on the deal, even following Monday's special and delayed meeting on the subject.
How much further information could the Federal Reserve's Board of Governors possibly need?
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Click to view a price quote on BAC.
Click to research the Banking industry.
NEW YORK (TheStreet) -- President Obama's plan to assess a $61 billion "Financial Crisis Responsibility Fee," unveiled Monday in his proposed budget to Congress, has no chance of passing, according to a research note published Tuesday by Brian Gardner, Washington analyst at Keefe, Bruyette & Woods.
"The bank tax failed to progress through Congress when Democrats control both the House and the Senate. Given the split in Congress, we think a bank tax proposal is dead on arrival," Gardner writes.
The proposed fee, which would be assessed to financial firms with assets above $50 billion, is twice the size of the one Obama proposed last year.
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Click to view a price quote on BAC.
Click to research the Banking industry.
The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (Insider Monkey) -- Douglas W. Case, along with his partners, founded Advanced Investment Partners in 1996. Since then, Case has served as the hedge fund's president, CIO and manager. He uses an elaborate system of quantitative analyses and benchmarks to guide the success of Advanced Investment Partners. Case also supports socially responsible investing, meaning that he selects stocks based to a degree on their environmental, social and governance policies (a practice commonly referred to as ESG).
Here we compiled a list of top 25 stocks in Advanced Investment Partners' portfolio, based on its fourth quarter 13F filing which was released Feb. 8. Besides new positions in Prologis and Lyondellbasell Industries , most of Advanced Investment Partners' large positions realized strong returns since the end of September.
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NEW YORK (TheStreet) -- U.S. stock futures were rising, following gains in Europe, as investors expected a batch of U.S. economic data.
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Futures for the Dow Jones Industrial Average were up 16 points, or 15 points above fair value, at 12,851. Futures for the S&P 500 were up 2 points, or 3 points above fair value, at 1348. Futures for the Nasdaq were up 6 points, or 7 points above fair value, at 2574.
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Debt downgrades of six European countries by Moody's Investors Service cast a shadow on market sentiment ahead of the open and reminded investors that economic weakness is a long-term threat in the region. The list of countries being downgraded includes Italy and Spain, which have now lost their triple-A ratings, Portugal, Slovakia, Slovenia and Malta.
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NEW YORK (MainStreet) -- With all due respect to the 3-D industry, the notion of fooling the eye into seeing depth when there is none is a nonstarter. Sure, movies such as Spider Man, Star Wars and The Adventures of Tintin keep experimenting, and equipment makers such as Sony, Toshiba, LG and dozens of others huff and puff the 3-D thing. But for the average consumer? Nobody cares.
It's not that 3-D TV isn't cool. It's just that our silly, shortsighted American economy has treated consumer earnings power like a disease. And with that kind of assault, nobody has the coin these days for a new 3-D set. So, to paraphrase Yoda, "Languish this technology will."
Toshiba's unveiling a 3-D TV that might just find a home in your business.
But that does not mean 3-D is dead. Such displays can fill an important niche: as a point-of-sale tool for a business, say, on a sales floor or in an office or lobby.
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BOSTON (MainStreet) -- The birth of a baby can lead parents to think about many things. That bundle of joy's old age is probably not among them.
Given the powerful nature of compounding interest -- which ideally can double retirement savings every seven years -- should parents be taking a greater role in securing their children's financial future, not just by building a college savings fund, but by funding an IRA that can multiply assets for a lifetime to come?
With people living longer and longer, the uncertainty of Social Security decades from now and the likely extinction of traditional pensions, future generations will need all the help they can get. A retirement plan that grows steadily as they age into adulthood could be exactly what they need to be secure and happy. Just $50 a month tucked aside in an IRA when a baby is born could grow to as much as $180,000 by the time they are 65 (assuming a 4% average rate of return).
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HUNT VALLEY, Md. (TheStreet) -- Two common beliefs for those approaching retirement are: the closer you get to retirement, the more bonds you should own; and that when you are retired, bonds should be a mainstay of your portfolio to generate income. These beliefs were created by the misperception of income and safety.
Income is typically defined as "interest and dividends," but income can come in any form of distribution used to live on without affecting the original principal balance. With this interpretation we can include capital appreciation. In other words -- total return. Some would say interest and dividends are safe income, but capital appreciation is not. In some regards this is true, but we must realize, especially now, that interest and dividends are not absolutely safe either. Dividends have been slashed in the past five years, especially in financial securities. Interest rates are so low that only the wealthiest could survive on the cash flow. Total return is now, and has always been, the only proper way to focus on income for a retirement portfolio.
U.S. Treasury Bonds are considered by some to be the biggest asset bubble since the subprime mortgage fallout of 2008.
Safety is another story. Most people define safety as "low volatility." Bonds have been less volatile than stocks over the past 100 years and are, therefore, proclaimed "safer." Volatility is the measure of the rise and fall of principal value over a set group of time horizons with the most common being yearly. If the annualized return of a stock went from +30% on the high and -35% on the low and a bond went from +15% to -12%, bonds would be safer than stocks. This is a logical assessment of how one would view an account on an annual basis, but it has nothing to do with risk. Risk is about the price I pay for the asset I get. As the price of an asset drops, the value of the asset becomes less risky; when the price rises, the asset gets riskier.
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By Eric Henderson
COLUMBUS, Ohio (MainStreet) -- The risk of outliving one's retirement savings is growing. Increased life expectancies coupled with declines in the financial markets and home equity over the past few years have made it much more challenging for Americans to create adequate, lifelong income. In fact, the Employee Benefit Research Institute has found that nearly half (47%) of workers near retirement are predicted to run out of money and won't be able to cover their basic expenses and uninsured health care costs.
To overcome these challenges, many are turning to annuities. In June, the Government Accountability Office issued a report advocating the use of immediate annuities to protect one's retirement portfolio against underperforming investments, inflation and longevity risk. But how many Americans really understand annuities? What does one need to know?
Fear of outliving retirement savings has many turning to annuities, but these tools have pluses and minuses.
Annuities offer unique benefits and can be an important component of a sustainable income-producing, diversified retirement portfolio. And, according to Insured Retirement Institute research, 92% of investors who own annuities have a higher confidence in the financial stability of their retirement compared with those who do not.
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MIAMI (TheStreet) -- We see far too many employees holding their employer's stock in their 401(k) plans. These employees have signed up for a great deal more risk than they need to.
The general rule that diversification is good doesn't stop at the company fence. A diversified portfolio helps protect investors against all the things that will go wrong that we can't even imagine today. Any first-year finance student knows diversification carries no penalty in return reduction and is as close to a free lunch as investors can hope for. Likewise, concentration of investments is bad, leading to higher risk without any higher expected return.
Microsoft employees have reasons to feel otherwise, but the general rule is that stock diversification doesn't stop at the company fence.
But, the problem of employer stock is particularly acute. Economists make a distinction between investment capital and "human capital." Human capital is the value the individual brings to society, and may be (very roughly) measured in lifetime wages. Human capital is a "wasting" asset. It's also a risky asset. Once it's gone, it's gone. The flying fickle finger of fate can intervene at any time. So at least some of it must be converted to investment capital over time. That's why we set up retirement plans, buy life and disability insurance and save.
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NEW YORK (TheStreet ) -- Gold prices were choppy Tuesday as investors rotated into stocks and left gold on the sidelines while a weaker U.S. dollar helped support prices.
Gold for April delivery was down $6.20 at $1,718.70 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,724.70 and as low as $1,714.50 an ounce while the spot price was shedding $3, according to Kitco's gold index.
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Click to view a price quote on ABX.
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NEW YORK (TheStreet) -- Stay here all day for live coverage from the second and final day of the BIO CEO & Investor Conference.
The two-day conference, put on by BIO, the biotech industry's main lobbying group, typically spotlights small-cap biotech companies that are often shut out of investor conferences run by large investment banks.
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Click to view a price quote on PFE.
Click to research the Drugs industry.
NEW YORK(TheStreet) --- Moody's Investor Service downgraded six European nations on Monday, citing concerns with the way the debt crisis was being handled and the impact on the region's economies.
The ratings firm downgraded Italy by a notch to A3, with Malta, Portugal, Slovenia and Slovakia also losing a notch. Spain was downgraded by two notches. The move closely follows similar downgrade by Standard and Poor's and Fitch Ratings last month.
Moody's also warned U.K. of a possible debt downgrade if it does not implement measures to cut debt, departing from the other two agencies who have maintained a stable outlook for the U.K.
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Click to view a price quote on BAC.
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BEVERLY HILLS, Calif. (MainStreet) -- The weeks leading up to the 2012 Academy Awards on Feb. 26 is known as Award Season in Los Angeles, a time of A-list celebrity spotting and openings across the city intended to lure the cream of Hollywood society.
From Beverly Hills to Hollywood, several of the city's top hotels will be besieged by paparazzi seeking their celebrity guests, including the Beverly Hills Hotel and Four Seasons Beverly Hills. Those with even more clout check in to Chateau Marmont, owned by Andre Balazs, which maintains a guest list of stars such as Jon Hamm to Kirsten Dunst who prefer its retro-chic interiors, spectacular penthouse suite and uber-exclusive, guests-only outdoor dining room.
Stay at the Chateau Marmont and you're rubbing shoulders with stars such as Jon Hamm to Kirsten Dunst amid retro-chic interiors, a spectacular penthouse suite and an uber-exclusive, guests-only outdoor dining room.
Across town, on the edge of Hollywood, is a hotel address that will likely be one of the "it" destinations of the season. Called Palihotel Melrose, the property is the creation of Avi Brosh, the creator of West Hollywood's perennially cool Palihouse Hotel -- a favorite haunt of such celebs as Robert Pattinson and Kristen Stewart. Having weathered a local real estate slump, Brosh is enjoying what many consider the coolest hotel debut since the Standard Hollywood.
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NEW YORK (TheStreet) - The following stocks go ex-dividend Wednesday, meaning an investor must purchase the shares Tuesday to qualify for the next dividend payment: BP, Broadcom, Chevron, Duke Energy, Moody's, Royal Dutch Shell, United Technologies, Visa and Walgreen.
Each of the stocks received a buy rating from TheStreet Ratings.
See the complete Dividend Calendar.
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Click to view a price quote on BP.
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NEW YORK (TheStreet) -- U.S. stock futures were higher Tuesday on positive eurozone data while European shares gained despite downgrades from Moody's of the debt ratings of Spain, Italy and Portugal and warnings that the agency could cut the ratings of the U.K., France and Austria as well.
Stocks in Japan rose 0.6% to 9,052.07, their highest close since Sept. 1. The Bank of Japan announced Tuesday it would buy more government bonds while keeping short-term interest rates near zero to boost the economy.
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Click to view a price quote on BA.
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Daniel Wallick, principal in Vanguard's Investment Strategy Group, says investors should stick with low cost funds instead of chasing illiquid endowment investing strategies.
NEW YORK (TheStreet) -- One of the most well-known directors on Research In Motion's board for the last five years (at least within Canada) is Roger Martin, the dean of the University of Toronto Business School.
His semi-celebrity status within Canada is due to the fact that Martin is often portrayed as some kind of "management guru" who makes grand speeches or writes long essays in business magazines (like this cover story in Toronto Life ) describing how companies should run themselves. Prior to becoming the dean, Martin was a consultant for Monitor Group in Boston. He was co-head of that firm for two years.
In addition to his directorship with RIM, Martin also serves on the boards of Thomson Reuters and the Skoll Foundation (headed by eBay co-founder and Canadian, Jeff Skoll). Martin also still actively consults with Proctor & Gamble.
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Jon Sundt, portfolio manager for the Altegris Managed Futures Strategy Fund, says investors should take advantage of market trends by adding a managed futures strategy to their portfolio
BOSTON (TheStreet) -- The dividend trade is crowded, with almost every investor on the hunt for high yields. Wells Fargo analysts, however, say companies may only now be catching on to how investors are selecting stocks based on dividends.
Dividend-paying U.S. shares have been a favorite for investors following a 20% decline in stock market indices late last year. With economic growth expected to plod along and interest rates likely to remain incredibly low, investors have been forced to look for yield and steady income in other places.
In 2012, though, the market has booked the best gains in a quarter century to start the year, led not by dividend stocks but small-cap and speculative companies. Investors, it seems, are comfortable taking on more risk as Europe continues to figure its way out of a massive debt crisis.
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Click to view a price quote on MRK.
Click to research the Drugs industry.
NEW YORK (OptionMonster) -- Valeant Pharmaceuticals has been an absolute monster stock for several months, and option traders are betting that the run will continue.
Bulls were going out in time Monday, as more than 9,000 January 52.50 calls traded in a heavy buying pattern for $6 to $6.50, according to OptionMonster's real-time systems. The open interest at the beginning of the session was just 13 contracts, so these were clearly new position.
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Click to view a price quote on VRX.
Click to research the Drugs industry.
