This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

The Best of Kass

Stocks in this article: MSFT HD LOW

This week I listened to J.P. Morgan Funds' Chief Global Strategist and Head of the Global Market Insights Strategy Team David Kelly with Tom Keene on Bloomberg. Kelly described further easing as toxic. He recommended raising interest rates to more normalized levels.

And I agree.

From my perch, Ben Bernanke has lost his way home, and a U.S. stock market buoyed by the promise or notion of a monetary put is misguided.

At the time of publication, Kass had no positions in stocks mentioned.

Shorting Mister Softee for a Trade
Originally published on Wednesday, Aug. 29 at 9:59 a.m. EDT.

  • I shorted some shares at $30.60.
  • I am taking a short rental in Microsoft (MSFT) now at $30.60.

    This morning, Wells Fargo makes a possibly actionable move in cutting its personal computer industry forecast from +3.7% to flat for this year and from +6% to +5.8% in 2013. Wells is lowering Microsoft's first-quarter earnings estimate from 65 cents a share to 59 cents a share and sales estimate from $17.3 billion to $16.9 billion.

    For these reasons and others, I expect that Intel's (INTC) numbers will be lowered as well.

    At the time of publication, Kass was short Microsoft.

    Home Prices Keep Climbing
    Originally published on Tuesday, Aug. 28 at 2:09 p.m. EDT.

  • I expect national home prices to rise by 2.5% to 3.0% this year and 3.0% to 5.0% next year.
  • For some time I have written that the U.S. housing market would be the primary bright spot in the domestic economy.

    Previously, the CoreLogic and National Association of Realtors indices exhibited home price rises.

    This morning, the June 2012 S&P/Case-Shiller Home Price Index rose by 0.5% (20-city composite) year over year vs. the expectation for a decline of 0.3% and 2.3% vs. May 2012 (0.9% seasonally adjusted).

    This is the sixth straight month of increases, and the year-over-year rise is the first since 2010.

    Importantly, the price increase was broad-based, with 20 of 20 cities posting monthly gains and 18 of 20 cities showing annual improvement (13 showing positive gains).

    I expect national home prices to rise by 2.5% to 3.0% this year and 3.0% to 5.0% next year.

    With mortgage rates low, home prices cheap relative to income and rents and an eventual easing up in lending standards, the residential real estate market has commenced a durable and long-lived recovery that could continue through most of this decade and provide an important catalyst to better economic growth in 2014-2017.

    2 of 3

    Select the service that is right for you!

    Action Alerts PLUS
    Try it NOW

    Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

    Product Features:
    • $2.5+ million portfolio
    • Large-cap and dividend focus
    • Intraday trade alerts from Cramer
    • Weekly roundups
    TheStreet Quant Ratings
    Try it NOW
    Only $49.95/yr

    Access the tool that DOMINATES the Russell 2000 and the S&P 500.

    Product Features:
    • Buy, hold, or sell recommendations for over 4,300 stocks
    • Unlimited research reports on your favorite stocks
    • A custom stock screener
    • Upgrade/downgrade alerts
    Stocks Under $10
    Try it NOW

    David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

    Product Features:
    • Model portfolio
    • Stocks trading below $10
    • Intraday trade alerts
    • Weekly roundups
    Dividend Stock Advisor
    Try it NOW

    Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

    Product Features:
    • Diversified model portfolio of dividend stocks
    • Alerts when market news affect the portfolio
    • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
    Real Money Pro
    Try it NOW

    All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

    Product Features:
    • Real Money + Doug Kass Plus 15 more Wall Street Pros
    • Intraday commentary & news
    • Ultra-actionable trading ideas
    Options Profits
    Try it NOW

    Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

    Product Features:
    • 100+ monthly options trading ideas
    • Actionable options commentary & news
    • Real-time trading community
    • Options TV
    To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
    Submit an article to us!


    DOW 17,804.80 +26.65 0.15%
    S&P 500 2,070.65 +9.42 0.46%
    NASDAQ 4,765.38 +16.9840 0.36%

    Brokerage Partners

    Rates from

    • Mortgage
    • Credit Cards
    • Auto

    Free Newsletters from TheStreet

    My Subscriptions:

    After the Bell

    Before the Bell

    Booyah! Newsletter

    Midday Bell

    TheStreet Top 10 Stories

    Winners & Losers

    Register for Newsletters
    Top Rated Stocks Top Rated Funds Top Rated ETFs