Market Fears:It Could Be a Long Way Down

Major global markets largely continued their decline on China and oil collapse fears Monday,although US stock exchanges were closed for the Martin Luther King,Jr. Day holiday.The one exception was the Shanghai Composite Index,which rose 0.47%.The Japanese Nikkei slumped 1.45%,approaching bear territory along with the Australian ASX.The Hong Kong HSI tumbled 1.45%.In Europe,the German DAX fell 0.25%,,while the London FTSE dropped 0.42% and the Paris CAC 40 lost 0.49%.In the commodities space,light sweet crude was down 1.63% and Brent lost 0.55% in anticipation of Iranian production re-entering the market.Natural gas was cheered,however,by the arctic outbreak sweeping into the US East Coast,rising to 2.124,up 1.14%.Gold was virtually flat at 1088.90 an ounce,just a hair down at -0.17%;but silver climbed to 13.94,or 0.32%.
I think there's much more to go,said Bill Fleckenstein,president of Fleckenstein Capital.My real fear is,there's going to be a dislocation,when the market breaks hard and fast.So far this year,it's been sort of a rolling dislocation.I think it's entirely possible to take out the lows of last summer,accelerate and go lower until such time as the Fed panics.*
Intel has been held up by slowing data centre growth.They've got tons of capacity in the place.If people start to waffle over growth,they'll really be in trouble.The world economy is weak.It's a very potent mix and the Fed can't help unless the market goes much lower-so guess what?The market's going much lower.This is much worse than a market correction.I think all these things are in a feedback loop and it's going to get much worse,Mr.Fleckenstein warned.*
iShares Silver Trust(ETF) (SLV)

Prospects in Energy and Tech

The Permian Basin is an energy-rich sedimentary formation primarily in West Texas and Southeast New Mexico.Permian Basin shale oil is said to be second only to Saudi Arabia.Pioneer Energy is the Permian,said CNBC host Jim Cramer.EOG Resources is there,too,and so is Cemerex Energy.
Energy is the hottest IPO sector,up 27% in 2014.*
Google made 20 acquisitions in robotics in 2013-also in artificial intelligence.It's no longer just search.It's a way to be diversified without buying a bunch of names.This is truly a robotics company.They have their eye on the future.Ten to fifteen years out,it seems Google has gobbled up all the talent.
IBM and CISCO also buy into artificial intelligence,while Intel is now into wearable tech and robotics.3-D imagery and artificial intelligence are disruptive.
Intel has raised its guidance and was upgraded by Morgan Stanley.Intel's going right to 40.Business is much stronger,the yield's still three and change.We have a leader in old tech.You have to dust off the old playbook of what to do when Intel gets it right.The engineers are in charge-a 100% change in leadership.They are in gaming;they are in mobile.Look out,Samsung.*
Sony is bringing PlayStation TV out this fall.*
I think that Yahoo is a buy off of Alibaba going public soon,Cramer noted.*
Goldman Sachs has upgraded Hewlett-Packard from sell to neutral.HP's management has executed far better than we anticipated,Goldman said.The stock has appreciated 50% since it was downgraded.*
Twitter's COO Ali Rowghani has resigned-perhaps on a lack of user growth.Twitter does not intend to hire a replacement.On day to day usage and monetising,Twitter isn't in the same league as Facebook,CNBC's John Forte pointed out.*
The merged Sprint/T-Mobile company is to be branded T-Mobile.A definitive agreement is still weeks away.They agreed on a two billion breakup fee.They have to develop a playbook for DOJ opposition.Without the merger,neither firm is capitalised enough to compete with the other two telecoms,CNBC colleague David Faber said.
Sprint(S),T-Mobile US Inc(TMUS),Intel(INTC),Hewlett-Packard(HPQ),Pioneer Energy(PXD),Google(GOOG),Facebook(FB),Cemerex Energy(XEC),EOG Resources(EOG)

Market Briefs:Morgan Stanley,IBM,Intel

On Morgan Stanley,I think the Citigroup number has emboldened the analysts to get a little more bullish on this sector,noted CNBC's popular host Jim Cramer.It's a real strong story that has just sold off.People want Morgan Stanley and that nice,smooth Gorman uptrend,and these guys at Goldman Sachs didn't give it to you.*
IBM was downgraded at Citi.Enough is Enough.This company is gonna have a better 2015 than 2014.They are motivated because they screwed up.It's been a great value play since December.*
Yahoo-there's tax issues.I don't think Yahoo's worth nothing.I think there have been some changes,but that's not why people want to own it.They want to own it because of Yahoo's stake in Alibaba.*
Mastercard and Visa-I like these companies because the transition from paper to plastic isn't done,belive it or not.There are countries still doing that.*
These guys in my class are retiring left and right.Ballmer got tired,but I'm still with it.*
Whirlpool is a nice turnaround story.I like the management-they're very good,the Maytag acquisition.*
Intel's profit exceeded estimates.I like the quarter.The company's finally spending less money;expenses are coming down;"We're not afraid of the 200.00 PC." I think you buy Intel here.You could get a dividend increase."We don't fear the low end of the market." I like that,said Jim Cramer,who has a law degree and indeed shows no signs of tiring out.*
Intel(INTC),Mastercard(MC),Visa(V),Morgan Stanley(MS),Whirlpool(WHR)

Market Views:GM,Tesla and the Fate of Coal

Burberry's numbers were great,but the store numbers were bad,said CNBC analyst Jim Cramer.They were all digital.*
At Bank of America,your expenses are going down.Deposits are going up.I think the stock is more of a buy than Citigroup.*
I think GM stock going down is just a screaming buy.Whether there is a price war,what's far more important is the pension headwind going tailwind.
There's an element of rigour that Ford and GM have that Tesla has to stick to.This is a cult stock,so their recall of the word "recall" was tweeted.This is a press release company.When they go up from two to four cars in China,I'm talking about a big revenue increase.I'm not gonna get in the way and short this stock.Their cars are loved.These are sea change stocks.If you believe in electronics and solar,then you believe CEO Elon Musk is giving you two great stocks in Tesla and SolarCity.*
BMO has upgraded Intel from hold to buy on PC sales stabilising.There is a point at which I buy Intel.If the Hewlett-Packard comeback is for real,then Intel and Microsoft are possibilities.*
A lot of people think coal is coming back.Oh,will you give me a break?Coal is going away.The shrinkage of coal because of the EPA is just taking people's breath away.They're not even buying equipment to mine coal.*
BlackRock had an amazing quarter.CEO Larry Fink is doing a great job there.
American Express is doing very well.They're doing a remarkable job at expense control,but my charitable trust has sold it.That stock is not where I want it to be.I think Capital One is the leader in that category,master investor Jim Cramer observed.*
Captial One Financial(COF),General Motors(GM),BlackRock(BLK),Intel(INTC),Tesla(TSLA),SolarCity(SCTY),Burberry Group PLC(BRBY),Bank of America(BAC)

Investing Today:Trends and Prospects

There are certain types of home buyers that want a new home.I don't see that dissipating quickly,said Carl Tannenbaum,chief economist at Northern Trust.Prices almost across the country are rising nicely.
I don't think the risk of disinflation in the US is terribly high.The Great Recession created a lot of capacity in factories and labour markets,and we're just now bringing that down.As long as we don't have backsliding,I think the Federal Reserve will start tapering back their asset purchasing.
Chinese home prices rose as those in Guangzhou soared by the most in over two years.
The late forties and early fifties are the only really comparable period to today,according to Barry Knapp,head of equity strategy at Barclays Capital.Not until the Fed exited did defensive stocks underperform.
Looking deep within the equity market,any exposure to China massively underperformed in the past month.Japan's gain is the rest of Asia's loss.
Ford says it can capture 6% of the Chinese auto market by 2015,while Intel forecasts Q2 earnings that may beat estimates on server chip demand.PepsiCo's Q1 profit beat estimates as snack food sales rose.
iShares Dow Jones US Home Construction ETF(ITB),Intel(INTC),PepsiCo(PEP),Ford Motor Company(F),iShares FTSE China 25 Index Fund(FXI)

Should You Be Holding Intel Shares

Many analysts have downgraded Intel,but First Eagle Funds is long the stock.Our crystal ball is foggy at best at First Eagle,admits Matthew McLennan,CFA,portfolio manager of Global,Overseas and US Value Funds at First Eagle.With regards to Intel,this is a business that's priced for a fade,not growth.We have some buffer in the capital structure strength and the receding of AMD.
This is a business that's always been cyclical.One thing's for sure:Intel has unparalleled manufacturing facilities.We're very conservative investors.Whilst there are pressures in the PC market,some of these companies have a position in services as well.The yields on these securities are returning twice what Treasuries are.
Intel,Microsoft and Cisco have an entire services infrastructure built around them.
Matthew McClennan was born in Papua New Guinea and grew up in Queensland,Australia.He holds a Bachelor of Commerce degree with first class honours from the University of Queensland.He had formerly been employed with Goldman Sachs.
Intel(INTC),Microsoft(MSFT),Cisco Systems(CSCO),Advanced Micro Devices(AMD)

Intel Expands Leading Edge

Stacy Smith is Intel's Chief Financial Officer.He describes himself as an enthusiastic generalist,not an engineer.Mr.Smith has seen Intel's operating profit rise more than 60%.Intel is working on efficiency and reducing costs.The weak dollar has helped its sales around the world,Mr.Smith revealed.Despite the economic uncertainty,we've seen relatively strong business,he added.Companies are investing for productivity even in economic uncertainty.The shift toward mobile pcs benefits us.We did five billion dollars U.S. of buybacks in the first half of the year.We get a lot of free cash flow in our business.We've seen a pretty normal climate across our business through the second quarter.Every year,we're putting in more capacity at that leading edge,so we can continue to innovate,the CFO noted.The company employs 81,800 people worldwide.It is the world's largest semiconductor manufacturer.Besides The Widget Channel,it has begun research on electricity generation and transmission.As well,Intel has partnered with Dreamworks on a 3D animation project.

Inside Intel:The Widget Channel

The long-sought integration of the Web with TV may soon become reality.Yahoo(YHOO) and Intel(INTC) have partnered to promote an offering called The Widget Channel.It consists of icons of widgets that scroll across the bottom of a TV screen.If you click on an icon,you will see Web content such as eBay auctions or weather reports on the left side of the screen.This service is enabled by a new Intel chip and Yahoo software.It is expected to be avilable by early next year.Even if your TV provider hasn't endorsed the service,you will be able to purchase a device that connects to a cable box and use it anyway,Intel says.

Ken Fisher:Going Forward

Ken Fisher of Fisher Investments,which manages 49 billion dollars U.S.,says we had a correction.It was archetypal,almost identical to the 1998 correction.Recently the transports made a new high,which they don't make in a recession.Stick with large cap stocks going forward,Mr.Fisher advised.Stocks remain under-owned.Large companies with good credit have easy access to money.Green investing will be a huge theme going forward.He continues to be bullish on energy prices,as the economy is stronger than people think it is.Train and truck capacity utilization is very high,and planes are full of vacationers.Mr.Fisher likes Veolia(VE),Intel(INTC),General Electric(GE) and Nokia(NOK).They were never able to borrow cheaply,but now there is a reallocation of credit in favor of these companies.