Mixed News Keeps Investors Nervous on Wall St.
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The week after Black Friday has been jittery, but looks to finish positive. Stocks struggled Wednesday, one day after the Dow industrials closed at a 14-month high. GM's management shakeup, gold prices above $1,210 an ounce, and mixed readings on the job market were all in play. The trend continued Thursday after a better than expected jobs report seemed to encourage investors, but mixed news kept a real surge from building, ending the day flat. The number of unemployment filers fell to a 15 month low according to a government report released Wednesday.
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Black Friday is supposed to be a day that signifies the kind of year a retail business is going to have. It signifies more than that and this week’s Bear pick is a company that is not considered a winner of the busiest shopping day of the year. The fact that a bad company report is coming and the company has been on a better than average rally even as the DOW has seen 40% gains since March, makes this a prime candidate for a fall. Our Bullish pick this week has 3 great things going for it. It's a principle holding of some of the best known funds, it has not passed its 52 week high (in fact it looks kind of cheap) and lastly it gives a nice 5.2% dividend. |
 Eli Lilly & Co. (LLY) - This drug maker’s stock price is cheap for an excellent company. The company continuously attracts the best talent, especially in their R&D division. Unlike most companies with an over 5% dividend, Eli Lilly is not at a 52 week high. When looking at this company within the universe of pharmaceutical companies, its balance sheet is strong and it is consistently a main stock held by funds looking for some exposure to the industry.
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 J Crew Group, Inc. (JCG) - If you paid attention this thanksgiving weekend you would have noticed that some retailers cleaned up and some didn't. Electronics and discount stores did very well and so did chain stores that significantly drop prices. There were some individual stores that failed to attract the discount driven consumers. One of those was J Crew. Not only is this a retailer that seemed to disappoint, but the stock price has skyrocketed over the last year and we see a pullback coming.
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