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Dear Subscribers
We didn't spend much time under Dow 10,000 thanks to three "decent" showings on the economic front. Unfortunately I don't think we are going to spend much time above 10,000 either. Why's that? Because each of the economic releases has a big "BUT" attached to it. For example, GDP was revised down to +1.6%. That's better than expected, BUT shows slowing growth. Consumer Sentiment was solid...BUT below expectations. Ben Bernanke says exactly the same thing as last time...BUT for one day at least, the market responded well to it. As you probably recall I am in the Muddle Through Economy camp and believe we will have low to modest growth for at least a few years to come. The news today would seem to support that notion. However, there are a lot of folks out there who believe in double dip or worse. I doubt that any of them truly changed their mind after today's news. They can still say "Hey, GDP is slowing down considerably. Watch out for negative #s in the 2nd half". So until 3rd quarter earnings season and GDP comes around to give a fresh read on where we stand, then I think the bears will be in control of the market. And right now I don't think they will be happy until the lows of early July are tested around Dow 9600. At that point my fellow Muddle Through'ers should say "enough is enough already" and buy up stocks at attractive prices.
LAST CHANCE
The "Double Your Money" stock and ETF portfolio that I personally manage for Zacks customers to fight back against this crazy market will close to new members Monday August 30th at midnight.
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Best,
Steve Reitmeister
Executive VP, Zacks Investment Research
Today's Top Stories: Monday- August 30, 2010
ZACKS RANK BUY STOCKS
- Aggressive Growth - Quaker Chemical (KWR) second-quarter earnings per share came in at 80 cents, which was 26 cents better than the Zacks Consensus Estimate. This was the company's sixth consecutive earnings surprise. Read More...
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Growth & Income - Gardner Denver, Inc. (GDI) reported second quarter results which saw organic order growth jump 38% compared to the year ago period while revenue rose 3%. The order improvement was across all segments. Read More...
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Momentum - Green Mountain Coffee Roasters (GMCR) third-quarter revenue was up 64% from last year to $190.5 million. Earnings also came in strong at 19 cents per share, 5.5% ahead of the Zacks Consensus Estimate. Read More...
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Value - NBTY Inc. (NTY) reported fiscal third quarter results and surprised on the Zacks Consensus by 22 cents. Sales rose 7% to $696 million from $652 million in the year ago quarter. Read More...
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BEST OF ZACKS EQUITY RESEARCH
INVESTMENT IDEAS: Scared? Buy These 4 Unloved Stocks
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BEST OF ZACKS.COM PARTNER COMMENTARY
EDUCATION: Aggressive Growth
Dividing Stock Shares Into "Splits" Read More...
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VIP "InvestmentMAGE" minimizes his loss navigating the market with BUY calls in (APA), (DDIC) and (TMO). Read More...
NEW ZACKS VIDEOS:
EARNINGS PREVIEW Lots of Economic Data Coming Up
While the main focus will be on Friday's jobs report, there is a long list of other important economic reports next week. Read More...
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Best,
Steve Reitmeister
Executive VP, Zacks Investment Research
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