Bill Rutherford Quoted By Reuters
US STOCKS-Techs rise, helped by falling oil price
by Walker Simon
* Oil price tumble helps techs, airlines, retailers
* Citigroup shares fall on CFO warning on write-downs
* Financials weigh on the broader market (Updates to midafternoon)
NEW YORK, June 19 (Reuters) – The Nasdaq rose on Thursday as top technology companies and other exporters benefited from tumbling oil prices, seen as easing strains on global economic growth.
But the Dow and the S&P 500 indexes were little changed, restrained by an extended slide in financial companies that was triggered by Citgroup’s warning of write-downs in subprime mortgages.
U.S. oil prices Clc1 fell $4.13 a barrel to $132.53 a barrel on the belief that demand will take a hit after China raised gasoline and diesel prices by 18 percent, its first domestic fuel hike in eight months.
Shares of big manufacturers, including Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz) and DuPont Co (DD.N: Quote, Profile, Research, Stock Buzz), rose on the back of the lower oil prices. Retailers’ shares also benefited, with Costco Wholesale Corp (COST.O: Quote, Profile, Research, Stock Buzz) up 0.7 percent. Both sectors were helped by the view that lower […]
Bill Rutherford Quoted By Associated Press
Wall Street’s credit crisis heads into second year
by Joe Bel Bruno, AP Business Writer
NEW YORK (AP) – There are new signs that the worst of the global credit crisis is yet to come, and that banks and brokerages caught up in the market turmoil may lose $1 trillion by the time it has passed.
Major U.S. investment banks this week announced yet another painful quarter amid the implosion of mortgage-backed securities and risky credit investments. Regional banks have scrambled to secure fresh capital to stay in business, and by Wednesday there was new talk that embattled investment bank Lehman Brothers might be forced into a sale. […]
2nd Quarter 2008
Rutherford Investment Management, LLC
Newsletter: 2nd Quarter 2008
Bear Claws
With the markets down 10% in June, the overall markets have entered bear market territory. The June numbers were the worst for the month of June since the Great Depression. Since the markets are a leading indicator of the economy, usually when the markets enter bear market territory that signals further erosion in the economy… Download Newsletter
Bill Rutherford Quoted In CNNMoney.com
Wall Street starts laying election bets
The Republican-friendly securities industry has been backing Obama’s campaign but mostly because of his party, not his policies.
by Alexandra Twin, CNNMoney.com senior writer
NEW YORK (CNNMoney.com) — The fact that Barack Obama is now the presumptive Democratic nominee for president seems to sit well with Wall Street. After all, the securities industry has been funding his campaign for months.
However, the upbeat sentiment is more for the party he represents and its chances of taking the White House than his proposed policies.
It’s true that the Republican-friendly securities industry has been sending the most contributions to Obama’s campaign above all other contenders for months. But Wall Street is largely reacting to a mood change and antagonism toward Bush. Whatever happens come January, investors want to make nice with the party in power. […]
Bill Rutherford Quoted In BusinessWeek.com
Investing: Keeping Inflation at Bay
The uptick in prices has business execs, Fed officials, and investment pros in a sweat. What steps should investors take now?
by Ben Steverman, BusinessWeek.com
After decades in remission, inflation is making a comeback. Rising prices already are making consumers miserable and squeezing corporate profits, but inflation also might cripple investors’ returns if they’re not careful.
It’s not yet clear that higher inflation is here to stay, but there’s no doubt the price of many basic materials-notably fuel and food-are skyrocketing. Once firmly established, inflation will be hard to dispel, and that worries economists, investors, and the central bankers who set interest rates around the world.
There are investing strategies that can protect portfolios from inflation-some of which we describe below-but few investors can fully escape inflation’s destructive influence on the economy and financial markets. […]
Bill Rutherford Quoted In The Wall Street Journal
Health-Stock Refuge No Refuge at All
by Vanessa Fuhrmans
In past economic downturns, investors looking for cover from falling share prices could always run to health-care stocks. This year, though, that classic safe haven appears worse than the storm.
Recession or not, people get sick and use prescription drugs, medical devices and plenty of other medical services. That’s the driving logic behind the health-care industry’s usual resistance to the economy’s twists and turns.
But so far in 2008, health-care stocks have taken an even bigger beating than most. The Dow Jones Wilshire U.S. Healthcare Index is down 11% since year end. By contrast, the Dow Jones Industrial Average is down 5.9%, after losing 3.9% last week, and the Nasdaq Composite Index is down 7.8%, after tumbling 3.3% last week.
Some of the biggest managed-care and pharmaceutical companies have led the plunge. Humana, one of last year’s top performing health insurers, is down 35% this year, while WellPoint and Health Net have dropped 39% and 36%, respectively. Among drug makers, Merck has fallen 33%, while generics maker Barr Pharmaceuticals is down 19%. […]