Despite Europe, We’re Holding On

After the market’s late-day sell-off from yesterday, we’re holding on to some early gains. Today’s rally is being led by energy and materials stocks. I see that Boeing ($BA) is up by more than 3%. I think we’re going to see more investors shift to high-yielding stocks. Altria ($MO), for example, is at a 52-week high this morning.

On our Buy List, Bed Bath & Beyond ($BBBY) is back over $71 per share after a brief dip below $70. Oracle ($ORCL) is right at $27 even. I think we’ll see in a rally in ORCL after the earnings report comes out next week.

The bond market continues to give Spain its worst beat-down since the Spanish Armada. Yields on Spanish bonds jumped over 6.8% today. That’s the highest since the advent of the euro and it’s 537 bips over German bonds. This is a strong signal from the market that what the authorities just did wasn’t big enough. Now folks are worried about Italy. The spread between Italian and German bond yields is 482 points.

Two quick points: One of our former Buy List stocks, FactSet Data Research ($FDS) came out with decent earnings today. As much as I like this company, the shares are WAY too expensive. I wish it were cheaper but until it is, I’m staying far away.

One compelling stock is Seagate Technologies ($STX). David Einhorn disclosed that he’s got a big stake in this stock. Einhorn is always someone worth paying attention to. The numbers and dividend yield at Seagate look very good.

Posted by on June 12th, 2012 at 11:52 am


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