Get Rich

Stock futures pointed to a higher open Thursday.

Nasdaq futures rose 14 points vs. fair value. S&P 500 futures climbed 8 points and Dow futures rallied 78 points.

Foreign stock markets were mixed again. Most Asian indexes traded higher, with the Shanghai composite jumping 1.9% and the Hang Seng rising 0.9%.

The euro hit another record high against the greenback. The dollar has been hurt recently ahead of a highly expected interest-rate cut next week.

Crude oil eased a bit after topping the $80-a- barrel-mark on Wednesday.

In economic news, first-time jobless claims rose by 4,000 to 319,000. Economists expected 325,000 new claims.

Alcatel-Lucent () tumbled 10% in pre-open trade. The world’s biggest telecom equipment maker cut its full-year sales growth target. The company now expect revenue growth flat to slightly up at a constant exchange rate.

Countrywide Financial’s () August mortgage fundings dropped 17% to $34 billion, following a continuing slump in the housing market and tightening in the credit market. Shares rose 2% in premarket.

Late Wednesday, McDonald’s () boosted its annual cash dividend by 50 cents to $1.50 a share. The Dow component climbed 3% in pre-market trading.

Merck (), also in the Dow, gained 2% in the premarket after Banc of America upgraded the drug maker to buy from neutral.

Another Dow stock, General Motors () charged up 5% premarket after a published report said the United Auto Workers would be willing to set up a health-care trust fund, thus saving the automakers billions of dollars. Citigroup upgraded shares to buy.

Government debt prices rose on Monday, as continued fears over the fallout from a global credit crisis once again had investors selling higher-risk equities to buy into safer-haven debt.

The day’s gains were limited to some degree by a report showing sales of existing homes were brisker than expected in November, although inventories of unsold homes fell to multidecade lows and analysts expected further downward adjustment in home prices. Month-end and year-end buying also helped support bonds.

The benchmark 10-year note traded 12/32 higher in price for a yield of 4.03%, from 4.08% late on Friday, while the two-year note traded 3/32 higher for a yield of 3.06% from 3.11%.

Trading ended early, at 2 p.m. EST, before the New Year holiday on Tuesday, at the recommendation of the Securities Industry and Financial Markets Association.

Many financial markets overseas were closed for New Year’s, or planning to shut down early.

While bonds rose for a third straight session, prices overall fell in December, with the 10-year note yield posting its biggest monthly rise since June and the two-year note posting its biggest monthly rise in yield since May. Bond yields move inversely to prices.

The monthly rise in yields was not seen as a reflection of any easing of concerns about the possible economic fallout from the credit crisis, but was taken as more of a technical correction to a bond rally that began in June and has knocked benchmark yields down more than 125 basis points.

For the year, however, 10-year note yields fell their most since 2002, while two-year yields fell the most since 2001.

On Monday, the strength in bonds was a reflection of weaker equities more than anything else, according to some analysts.

U.S. stocks were hit by losses in large technology companies and major energy companies.

On the last day of 2007, some analysts said it looked as if bonds would outperform stocks for the year.

In contrast, the Dow was up nearly 7% for the year and the S&P 500 was up about 4%, while the Nasdaq was up 10% for the year as of Monday afternoon.

Ridley, who quit the Rock in October after the bank’s dramatic meltdown, is back in the market to raise money.

This time it is a modest 16m share offer by Northern 2, a venture capital trust he chairs..

Richard Ridley quit the Rock on October 19 after three years as chairman, latterly at 315,000 a year.

At the Northern 2 trust, which has a 43m investment portfolio, he collects a modest 15,000, though he also holds 217,000 shares which offer him attractive tax savings.

Venture Capital Trust (VCT) investors get income tax relief at 30%, a valuable perk for top rate taxpayers. It used to be 40%.

A brilliant scientist whose doctoral thesis was on the mating habits of pheasants, Ridley is the author of several books.

One, ‘The Red Queen: Sex and the Evolution of Human Nature’, suggests sex developed as a way of keeping ahead of ‘constantly mutating predators’.

Sadly it may not work against hedge funds or short-sellers.

Northern 2 VCT, one of five funds run by NVM, a Newcastle venture capital firm with a good track record, invests in young companies making anything from Cornish pasties to hot air curtains.

Its shares have been little changed over two years and are now 80p, valuing it at 38m.

Chairing a low profile fund must be a welcome respite for Ridley, 49, after his annus horribilis at Northern Rock. His 2007 chairman’s statement for Northern 2 proclaims ‘we have a sound balance sheet’. A welcome reassurance.

>

Other stories:
Northern Rock chairman wins support
Rock boss shuns board rescue
City interview: Rock chairman Bryan Sanderson
Bradford & Bingley ‘mulling Rock bid’
More public cash put behind Northern Rock
Warning over Rock rescue toll on taxpayer
Olivant told Rock bid is 300m short
Arnold gets Rock nod in blow to Virgin
Rock fears deepen as the options dwindle
Confidence in the FSA hits Rock bottom

Watch today’s Markets Desk video.

Stocks screamed higher Tuesday, bouncing from several sessions of harsh selling.

The day’s action marked Day 1 of a possible rally attempt.

According to preliminary data, the Nasdaq ramped up 3.5%, ending a four-session slide. The NYSE composite surged 3%, regaining its 200-day line. The Dow and S&P 500 climbed 2.9% and 2.5%, respectively.

Volume rose on the NYSE but was lighter on the Nasdaq.

Many leaders made strong gains.

Deckers Outdoor () stepped up 15.72, or 14%, to 130.43 on more than double its average trade. That improved its Accumulation/Distribution Rating to B from D on Monday.

Apple () regained its 50-day moving average, rising 16.20, or 11%, to 169.96 in heavy trading.

Priceline.com () vaulted 8.60, or 9%, to 108.70 on nearly double its normal trade.

Baidu.com () found support at its 50-day line, bolting 39.95, or 13%, to 341.45 on heavy turnover. The Chinese Internet search firm got a boost from Citigroup, which reiterated a buy rating and said the recent slide was overdone.

On the downside, SunPower () reversed early gains, losing 1.46 to 108.42 on nearly twice its normal turnover. That marked the solar products maker’s fifth straight decline. Shares were up nearly 8% soon after the opening bell.

McDonald’s () gapped down, losing 1.44 to 57.10 on almost twice its average trade. The fast-food restaurant operator was one of only two decliners in the Dow. McDonald’s announced a new chief financial officer and plans to launch new premium products.

3 p.m. ET update: Stocks Make For Higher Ground On Shaky Volume

By Alan R. Elliott

Stocks poured on the pepper, as afternoon trading received a continuing boost from sloughing oil prices and decent earnings reports.

The NYSE composite held a 2.5% gain, the Nasdaq up 2.8% at 3:03 p.m. ET. Nasdaq’s telecommunications index had posted a 3.9% gain. The S&P 500 was up 2.2%, the Dow added 2% even. Volume remained lower, down 8% on the NYSE, 5% on the Nasdaq.

Oil spiraled further downward, dropping 3.58 to $91.04 a barrel. That put prices down more than $8 a barrel so far for the week. The International Energy Agency cut its demand forecasts for 2007 and early 2008, saying consumers were finding ways to bypass oil use. Platt’s also released a production survey showing OPEC output was 350,000 barrels a day higher in October than in September, driven primarily by Saudi Arabian increases.

PT Indosat (), an Indonesia-based multimedia communications and broadcasting services provider, jumped 5.67 to 51.50. News reports said Yahoo () had agreed to provide mobile Internet search services to nine Asian mobile operators, PT Indosat included. The stock made a new high as it found support from a pullback to its 10-week moving average.

Mettler Toldeo () gained 3.61 to 116.31, leaving the stock just below its intraday high from Nov. 2. The scale and research equipment maker’s shares cleared a 4-month base in September, before retreating to their 10-week moving average line earlier this month.

China-based real estate chain E-House Holdings () spiked up 6.28 to 27.82. The company showed a 350% EPS gain on a 147% rise in sales in Q2. Analysts forecast an 800% EPS jump when the company is scheduled to report Q3 earnings Thursday after the close.

On the downside, Strayer Education (), which tumbled for a third day, losing 3.32 to 180.69. The private college operator logged new highs on strong volume Nov. 6, and is now just below those highs.

1 p.m. ET update: Techs Lead In Midday Trading

By Vincent Mao

The major stock indexes hovered near session highs midday Tuesday, as the technology sector led a rebound.

At 12:50 p.m., the Nasdaq had a 1.8% gain. The NYSE composite climbed 1.6%, regaining its 200-day moving average. Meanwhile, the Dow and S&P 500 picked up 1.3% each.

Internet, foreign bank and airline groups were among the day’s top groups.

Research In Motion () regained its 50-day moving average. Shares ramped up 7.45, or 7%, to 110.05 in heavy trading. The BlackBerry device maker was on pace to snap a three-session losing streak. Its Accumulation/Distribution Rating has slipped to C from A last week.

GigaMedia () also regained its 50-day line, jumping 2.75, or 17%, to 19.18. The gaming software maker reports results on Wednesday. Analysts expect 15 cents a share on sales of $42.3 million.

VMware () rallied 10.06, or 13%, to 90.42. The maker of virtualization software was on track to end an eight-session slide.

On the downside, 3SBio () shed 2.07, or 13%, to 13.61, ahead of its earnings after the bell. Analysts expect the biopharmaceutical company to earn 12 cents a share, up 100% from a year ago.

FMC Technologies () dropped 1.24 to 53.46 in brisk trading.

Crude oil continued to slide. The December contract tumbled $3.60, or 3.8%, to $91.02 a barrel.

11 a.m. ET update: Stocks Hold Ground On Soft Volume

By Alan R. Elliott

Stocks held onto early gains as oil prices continued lower and earnings reports fell to the favorable side.

The NYSE composite remained up 1.4%, the Nasdaq up 1.7% at 10:59 a.m. ET. Big caps trading pulled even with small caps the S&P 500 up 1% and the S&P 600 up 1.1%. The Dow climbed to a 1% gain. Volume was lower on the exchanges.

Oil prices slid further, dropping more than $2 to below $93 a barrel, after a production survey by Platt’s showed OPEC’s output for October was 350,000 barrels a day higher than in September, largely on increases from Saudi Arabia. The International Energy Agency had earlier in the day cut its demand forecasts for Q4 and for 2008.

Vodafone Group () gapped up big, adding 3.39 to 40.19. The 9% jump put the stock nearly even with its high logged on Oct. 26. The U.K.-based wireless provider raised its forecasts after nailing Q3 results. Its shares trading on the London Stock Exchange played a leading role in lifting the FTSE 100 index, which was up 0.4% in late trading.

Bidz.com () jumped 12% on very heavy volume, adding 2.08 to 16.68. The online jewelry auctioneer’s Q3 earnings neatly topped analyst estimates. Sales grew faster than in the previous five quarters. The move broke the stock above a pullback that followed a breakout from a 13-week, cup-shaped base in September.

Goldman Sachs () popped up 12.23 to 226.94. The investment banker’s stock posted two days of solid gains through Monday, and had rebounded to above its 50-day moving average. It remained well below its Oct. 31 high.

Dry bulk shipper Diana Shipping () gained 3.80 to 30.84. That lifted the stock to near its 50-day moving average and reversed six sessions of declines.

Russian steel producer Mechel () pasted on 2.51 to 77.85. The 3% gain took back part of the loss from Monday’s big volume, 11% dive. The stock remained just below highs notched on Oct. 29.

On the downside, WuXi Pharmatech () lost 1.79 to 29.12. The slip handed back much of the gains from Monday’s 8% gain. That left the three-month-old stock just below its 50-day moving average and well below its high posted Oct. 11.

Refinery and industrial facilities builder Foster Wheeler () lost 3.03 to 135.82. The stock’s third down session moved it to below support at its 50-day moving average.

10:15 a.m. ET Update: Stocks Open on The Upswing

By Alan R. Elliott

Stocks logged an upbeat opening, as investors swooped in to buy up tech leaders like Apple, Research In Motion and Baidu.com after their recent sell-offs.

The NYSE was up 1.7%, the Nasdaq was up 1.5% at 10:09 a.m. ET. The S&P 500 was up 1.2%. The Dow added 1%, primarily on gains by Wal-Mart () and Intel (). The small-cap S&P 600 rose 1.4%.

Prices for crude oil contracts continued sliding, down more than $1 to below $94, compounding Monday’s $1.70 tumble.

The National Association of Realtors pending home sales numbers, forecasts to hit a record low, are due out at 3 p.m. ET.

Solar energy issues started with a bang. Trina Solar reversed two days of sharp losses, adding 3.90 to 50.79. The company announced it had signed a six year supply agreement with Sichuan Yongxiang Polysilicon Co., securing its polysilicon supply in a tight market.

First Solar () hurtled ahead 13.49 to 191.19 after the stock was started at a buy by Broadpoint Capital. Suntech Power () jumped 1.66 to 58.02.

Research In Motion () popped 4.42 to 107.02. That reversed three sessions of sharp losses for the maker of Blackberry handheld devices, and hoisted the stock back above its 50-dy moving average.

On the downside, Adobe Systems () fell 1.07 to 41.12 in brisk trading. The software maker announced that its CEO would step down as of Dec. 1. Adobe also pegged Q4 sales at the high end of its forecast of $860 million to $890 million. Consensus estimates are for $885.6 million.

Koppers Holdings () lost its 50-day moving average. Shares dropped 2.21, or 5%, to 39.75 in fast trade. KeyBanc Capital Markets cut the chemicals firm to buy from aggressive buy.

9:15 a.m. ET Update: Stocks On Track For Healthy Start

By Vincent Mao

Stock futures pointed to a strong open Tuesday boosted by lower oil, better-than-expected earnings from the world’s largest retailer and a general sense that the market is oversold after several days of sharp losses.

Nasdaq futures climbed 25 points vs. fair value, S&P 500 futures rose 11 points and Dow futures gained 81 points.

Crude oil continued to slip from record levels after the International Energy Agency cut their global demand forecast for the remainder of the year and 2008. The December contract fell 65 cents to $93.67 a barrel. Also, Dec. options expire today, and many traders who bet on $100 oil look like they’re out of luck.

The yen lost ground against most currencies after the Bank of Japan held interest rates steady. The dollar fell against the euro.

Many fallen leaders, like Apple (), Research In Motion (), Baidu () and Intuitive Surgical () are poised for a rebound after tumbling from highs in recent days.

Wal-Mart () jumped 4% in pre-market trading. The retail titan delivered Q3 earnings and sales ahead of estimates. For Q4, it expects profit of 99 cents to $1.03 a share vs. estimates of $1.01.

China Mobile Ltd. () rose 2% in the preopen. China’s biggest cell-phone carrier is in talks with Apple to bring the iPhone to China. But no agreement has been reached yet. Apple shares were indicated higher.

Fossil () surged 12% in the premarket. The watchmaker reported Q3 profit and revenue above analysts’ expectations. It also guided full-year earnings above views. And its board OK’d a 2 million share repurchase.

Yahoo () edged higher after CIBC World Markets upgraded shares to sector outperform from sector perform. CIBC also raised its price target to 31 from 28. The Internet search firm has been hard hit recently. It lost 26% in the past three weeks.

At the same time, , and most other commodities were boosted by political fears and continuing heavy demand from developing countries.

China was again the star performer with the main Shanghai index virtually doubling in value over the year.

But the ride was not always smooth for investors. The index plunged 9% in February, holding the rest of the world’s markets in limbo for a time.

Demand was fuelled by a record number of new share offerings on the Chinese markets. But analysts fear a correction in 2008 with Chinese inflation soaring and demand for its exports set to fall as the US economy slows.

The country’s stock markets remain relatively illiquid, with limits placed on foreign investors and the bulk of new issues still state-controlled companies.

Hong Kong remains the favoured market for exposure to the Chinese boom, and the Hang Seng index ended the year 39% higher, making it Asia’s fifth best-performing market.

It hit its peak in October but has slid since on the effects of the subprime crisis and delays for plans to let mainland Chinese investors buy Hong Kong shares directly.

Indian shares have pretty much ignored events in neighbouring Pakistan-and the Bombay Sensex 30 ended the year 47% higher while its larger rival National Stock Exchange Nifty index gained 55%.

The increasing affluence of India’s growing middle class is pushing demand for consumer goods and for home-grown financial products.

Oil prices threatened to break through $100 a barrel in November. Even now, with signals that US demand remains high and stocks low plus fears of interrupted supplies from the Middle East, crude is trading near record levels.

US light sweet crude rose 11 cents overnight to $96.11 while Brentwas 27 cents higher at $94.15. Its record level was $95.76 in October.

Precious metals ended the year at or near record highs, spurred on by fears about the situation in Pakistan.

Gold has risen by 30% this year - its biggest gain since 1979. It was today trading at $842.40 an ounce on the spot market, with analysts forecasting that it could break through $850. The last time it was at that level was 1980. To put that in context, the equivalent value adjusted for 27 years of inflation would be $2079 an ounce.

Easy ways to invest

The developed markets fared less well, given their more direct exposure to the US subprime crisis. The Dow Jones Average ended the year a modest 7.2% ahead while the more broadly based S&P 500 was up just 4.2%.

In the UK, the FTSE 100 index was headed for an annual gain of 4.1% although it was today down in early trading at 15.2 at 6461.7.

The year’s advance is below virtually everyone’s predictions at the start of the year. Morgan Stanley and Brewin Dolphin had both forecast 6550 for the year-end while Barclays Wealth had been looking for 6800 and Hargreaves Lansdown for a heady 7000.

Other stories:
The best and worst funds of 2007
The best investments of 2007
Property fund assets in new free-fall
What next for commercial property funds?
Advisers and managers upbeat for 2008
Did you choose the best funds in 2007?
Where will top shares end 2008?
FTSE 100 ‘could fall 1,200 points in 2008′
The worst funds of 2007, so far
ICI bows out of FTSE 100 index