Consumers Went on a Shopping Spree in August

AP WASHINGTON -- American consumers spent more in August, a positive sign for the U.S. economy which appears to have shifted into a higher gear. The Commerce Department said Monday consumer spending rose 0.5 percent last month after being unchanged in July. The growth in August was just above the median forecast in a Reuters poll of a 0.4 percent gain. "[The data are] a further signal that the positive momentum in domestic activity is being sustained," said Millan Mulraine, an economist at TD Securities in New York. Even after adjusting for inflation, spending was 0.5 percent higher, the biggest gain since March. Growth in personal income ticked higher to a 0.3 percent gain, in line with forecasts. Some of the strength in spending came from a decrease in the saving rate, which eased back from a 1½ year high in July. The data reinforce the view that the U.S. economy will finish this year firing on nearly all cylinders, and the dollar pared an earlier decline following the report's publication. Most investors are betting the U.S. Federal Reserve could raise interest rates next year to keep inflation in check, though Monday's data gave little sign of growing price pressures. The Fed's preferred gauge of inflation was up 1.5 percent in August from a year earlier, down slightly from the reading in July, the Commerce Department data showed. A measure of underlying price pressures which strips out food and energy held at 1.5 percent. That reading had dipped to 1.2 percent earlier this year. Some policymakers at the U.S. central bank remain concerned that inflation remains stuck well below their 2 percent target. Chicago Fed President Charles Evans said on CNBC television Monday that the Fed should patiently seek to push inflation up to its target so it doesn't have to "backtrack" after raising rates. Data released Friday showed the U.S. economy grew at its fastest pace in 2½ years in the second quarter with all sectors contributing to the jump in output. Relatively strong consumer spending during the period was taken as a sign the economy's recovery from the 2007-09 recession is becoming more durable.

Affected: 56 million cards. Duration of compromise: Five months. Tactic: Malware was installed to skim payment card data; unclear how hackers found an entry into the company's network.

4 Stocks Triggering Breakout Trades With Unusual Volume

DELAFIELD, Wis. (Stockpickr) -- Professional traders running mutual funds and hedge funds don't just look at a stock's price moves; they also track big changes in volume activity. Often when above-average volume moves into an equity, it precedes a large spike in volatility.

 

Must Read: 5 Stocks Insiders Love Right Now




 

Major moves in volume can signal unusual activity, such as insider buying or selling -- or buying or selling by "superinvestors."



 

Unusual volume can also be a major signal that hedge funds and momentum traders are piling into a stock ahead of a catalyst. These types of traders like to get in well before a large spike, so it's always a smart move to monitor unusual volume. That said, remember to combine trend and price action with unusual volume. Put them all together to help you decipher the next big trend for any stock.



 

With that in mind, let's take a look at several stocks rising on unusual volume recently.

 

Must Read: 4 M&A Stocks That Could Cut You a Paycheck This Fall

 

C&J Energy Services

 

C&J Energy Services (CJES), through its subsidiaries, provides hydraulic fracturing, coiled tubing, wireline and other complementary services to oil and gas exploration and production companies in the U.S. This stock closed up 2.9% at $29.55 in Wednesday's trading session.

 

Wednesday's Volume: 1.95 million

Three-Month Average Volume: 879,264

Volume % Change: 161%

 

From a technical perspective, CJES spiked notably higher here right above its 200-day moving average of $28.06 and back above its 50-day moving average of $29.55 with above-average volume. This move to the upside on Wednesday also pushed shares of CJES into breakout territory, since the stock took out some near-term overhead resistance at $29.27. Shares of CJES are now starting to trend within range of triggering another breakout trade. That trade will hit if CJES manages to clear Wednesday's intraday high of $29.69 to some more near-term overhead resistance at $30.16 with high volume.

 

Traders should now look for long-biased trades in CJES as long as it's trending above its 200-day at $28.06 and then once it sustains a move or close above those breakout levels with volume that hits near or above 879,264 shares. If that breakout develops soon, then CJES will set up to re-test or possibly take out its next major overhead resistance levels at $31.50 to $33

 

Must Read: Must-See Charts: 5 Big Stocks to Sidestep the Selloff

 

Valero Energy Partners

 

Valero Energy Partners (VLP) owns, operates, develops and acquires crude oil and refined petroleum products pipelines, terminals and other transportation and logistics assets in the U.S. This stock closed up 3.9% to $47.52 in Wednesday's trading session.

 

Wednesday's Volume: 287,000

Three-Month Average Volume: 81,900

Volume % Change: 260%

 

From a technical perspective, VLP jumped notably higher here right above some near-term support at $45.03 with above-average volume. This stock has been downtrending for the last month, with shares moving lower from its high of $55.22 to its recent low of $45.03. During that downtrend, shares of VLP have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of VLP have now started to spike off that $45.03 low and it's beginning to move within range of triggering a near-term breakout trade. That trade will hit if VLP manages to take out its 50-day moving average of $48.09 to some more near-term overhead resistance at $49.19 with high volume.

 

Traders should now look for long-biased trades in VLP as long as it's trending above some near-term support at $45.03 and then once it sustains a move or close above those breakout levels with volume that hits near or above 81,900 shares. If that breakout begins soon, then VLP will set up to re-test or possibly take out its next major overhead resistance levels at $53.30 to $55.22.

 

Must Read: 4 Breakout Stocks Under $10 for Your Trading Radar

 

Expedia

 

Expedia (EXPE), together with its subsidiaries, operates as an online travel company in the U.S. and internationally. This stock closed up 2.3% to $85.94 in Wednesday's trading session.

 

Wednesday's Volume: 3 million

Three-Month Average Volume: 1.67 million

Volume % Change: 66%

 

From a technical perspective, EXPE jumped higher here right above some near-term support at $82.85 and back above its 50-day moving average of $84.29 with above-average volume. This trend higher on Wednesday is starting to push shares of EXPE within range of triggering a big breakout trade. That trade will hit if EXPE manages to take out some key near-term overhead resistance levels at $88 to its 52-week high at $89.26 with high volume.

 

Traders should now look for long-biased trades in EXPE as long as it's trending above some near-term support at $82.85 and then once it sustains a move or close above those breakout levels with volume that hits near or above 1.67 million shares. If that breakout triggers soon, then EXPE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $100 to $110.

 

Must Read: 10 Stocks Billionaire John Paulson Loves in 2014

 

Blackhawk Network

 

Blackhawk Network (HAWKB) provides various prepaid products and payment services. This stock closed up 1.6% at $25.02 in Wednesday's trading session.

 

Wednesday's Volume: 442,000

Three-Month Average Volume: 260,141

Volume % Change: 93%

 

From a technical perspective, HAWKB trended modestly higher here right above some near-term support at $27.07 and back above its 50-day moving average of $27.73 with above-average volume. This stock has been uptrending strong for the last five months, with shares moving higher from its low of $22.49 to its recent high of $28.71. During that uptrend, shares of HAWKB have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HAWKB within range of triggering a big breakout trade. That trade will hit if HAWKB manages to take out some key near-term overhead resistance levels at $28.60 to $28.68 and then above its all-time high at $28.71 with high volume.

 

Traders should now look for long-biased trades in HAWKB as long as it's trending above some key near-term support levels at $27.07 or above $26.47 and then once it sustains a move or close above those breakout levels with volume that this near or above 260,141 shares. If that breakout develops soon, then HAWKB will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that move are $35 to $40.

 

Must Read: 5 Short-Squeeze Stocks Set to Soar on Bullish Earnings

 

To see more stocks rising on unusual volume, check out the Stocks Rising on Unusual Volume portfolio on Stockpickr.

 

-- Written by Roberto Pedone in Delafield, Wis.

 

RELATED LINKS:

 

>>How to Trade the Market's Most-Active Stocks

 

>>5 Stocks Under $10 Making Big Moves Higher

 

>>5 Rocket Stocks Ready for Blastoff This Week

 

Follow Stockpickr on Twitter and become a fan on Facebook.

 

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

 

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Amgen: Stronger Drug Portfolio with Acquisition

Various biotech industries have witnessed a rally in their stock prices, and many investors did reap the benefit. This positive thinking around pharma and biotech industries will continue to grow as the need of innovative medicine are expanding for unmet demands. Industries in this domain are more focused on the R&D, to create new drugs and meet the demands in the future. Various pharmaceutical industries are constantly upgrading their drug portfolio with acquisition, for a larger share of the market.

Amgen(AMGN) is one such company that is focused on providing medicinal solution to patient suffering from chronic diseases. To strengthen its portfolio the company recently acquired Onyx (ONXX). Onys, is one of the leading biotech pharmaceutical industry, focused on its drug portfolio that can be called as future drugs. These drugs can be used for un-curable disease like cancer which sounds like an enigma to various scientists. This is one main reason why companies like Onyx have a promising future with it prime focus on life saving drugs for treatment of cancer, this now provides steroids to Amgen's growth. With this acquisition, Amgen now has a stronger drug portfolio to provide medicine for patients suffering from cancer diseases. The market for this future drug is phenomenal, considering the growth of patients suffering from these diseases.

"Amgen's acquisition of Onyx fits perfectly with our commitment to advancing medicines for cancer patients around the world," said Robert A. Bradway, chairman and chief executive officer of Amgen. "We look forward to working together with the talented staff at Onyx to make the most of our exciting oncology portfolio and pipeline."

Quarter overview

Amgen recently released its second quarter results for the fiscal 2014, and recorded growth in all corners. Consolidated revenue increased by 11% year over year, to record $5,180 million as compared to $4,679 in the same quarter last year. The company's operating expense was decreased to $2,861 million as compared to $2,895 in the same term last year, down by 1%, this again is good sign and will have a positive impact on the bottom line. Operating Income and net income also recorded a growth of 30% and 26% year over year. EPS also increased by 25% year over year, to $2.37 as against $1.89 in the second quarter of 2013.

The growth driver for the solid second quarter were the result of strong global demand. The company witnessed a strong growth in the international market, increased by 15% year over year. In the same quarter last year the company benefited from Medicaid rebate adjustment of approximately $185 million and in the second quarter of 2014 it was deprived of this rebate, despite this it still recorded a growth. The acquisition in the recent past, had a strong impact on the growth of the company.

Acquisitions bolstering growth and drug portfolio

Earlier Amgen had acquired rights of Roche's filgrastim and pegfilgrastim covering around 100 markets. With this rights acquisition, Amgen further strengthen its drug portfolio for cancer treatments. These drugs are one of the most common drugs prescribed to the cancer patient undergoing chemotherapy. These drugs are marketed in U.S & Europe under the brand name of NeupogenGEN® and Neulasta®, respectively.

"This agreement will enable Amgen to reach more patients around the world with two of our innovative medicines," said Robert A. Bradway, chairman and chief executive officer of Amgen.

As the company is in the third quarter, it recorded one of the biggest acquisitions of the pharmaceutical history, when it completed the acquisition of ONYX. Onyx is one of the leading companies with a future drugs portfolio used in treatment of blood cancer. Onyx 's Kyprolis, is most popular drug used for treatment of blood-cancer. As per the analyst estimates of Bloomberg, the anticipated growth for the sales of this medicine is projected to be $2.4 billion by 2019.

In the recent past, Onyx also got approval for STIVARGA in Japan; this medicine helps in curing metastatic colorectal cancer (mCRC), one of the most common diseases in Japan. Statistics reveal that around 40,000 people in Japan die from mCRC every year. This goes on to illustrate, that this drug will be a block buster in Japan and anticipated share of Onyx can be around 20%, boosting revenue growth. The overall growth of this drug is anticipated to reach $3.0 billion by 2020.

Outlook

Amgen has raised its guidance for the fiscal 2014, the revised guidance of the company for the 2014 is anticipated to be in the range of $19.5 billion to $19.7 billion as against the previous guidance

Social Security Is a Lousy Investment

Social Security provides an important foundation for most Americans' retirement. Still, you pay dearly for that foundation. The retirement benefits Social Security offers cost you 10.6% of your salary (half paid by you, half paid by your employer), up to the first $117,000 earned each year.

Source: Social Security Administration.

While Social Security's assets haven't exactly been robbed, they have been invested in very low-risk, low-return investments: special-issue U.S. Treasury bonds. That arrangement helped finance the national debt, but it does little to help ensure you a comfortable retirement.

Three things that make Social Security a lousy investment
First, despite that substantial tax rate, Social Security is running out of money. According to its most recent trustees report, the Social Security trust fund will be empty by around 2033, forcing it to cut benefits by about 23%. Absent a change in the law to shore it up, the foundation that Social Security provides is crumbling, and the money you're paying toward it simply isn't enough to stop that cut.

Second, the money in Social Security isn't really yours. When you pass away, your Social Security check generally stops. While some survivor benefits go to surviving spouses or minor children, the money put into the program on your behalf remains with the program. Contrast that with an ordinary investment -- in which the principal would pass to your heirs and get a step up in tax basis upon your death -- and the unsung benefits of an ordinary investment become clear.

Third, even if Social Security were healthy, long-term Treasury bonds currently yield roughly 3.1%. That just about covers what has been long-run inflation, but it does nothing to provide a real return. The stock market, on the other hand, has returned something in the neighborhood of 9%-10% per year on average, albeit with its share of ups and downs. That's enough not only to cover inflation but also to provide real growth over time.

How bad is it?
In January 2013, the average Social Security check awarded to a first-time retiree was $1,380.96. That retiree likely worked and paid Social Security taxes for his or her whole career to earn that benefit. But what if that retiree had the opportunity to invest that money instead?

While it's hard to compare results across recipients, consider a retiree who began working in January 1973 and had a 40-year career before retiring in December 2012. Let's say that person started out earning half the median household income but was earning twice the median household income by retirement. This treatment gets the person near the average over his or her career (acknowledging that people senior in their careers tend to earn more than entry-level workers).

If that person had been able to invest the money that instead was taxed just to cover the retirement benefit portion of Social Security, he or she could have wound up with a nest egg of $621,497, assuming 8% annual returns.

There's a rule of thumb popular among financial planners called the "4% rule" that estimates how much you can take from your nest egg each year and still have a decent retirement. In essence, it suggests that if you take 4% from a diversified portfolio the year you retire and increase your withdrawals by inflation every year, there's a good chance you won't run out of money in a retirement that lasts three decades.

Using the 4% rule as a guide, that $621,497 nest egg could produce $24,859.88 per year -- or $2,071.66 per month -- in income. That's substantially better than the average Social Security check for a January 2013 retiree, even though it invested about the same amount of money and assumed a rate of return below what the market actually delivered over the long haul. And if that person were to die an unfortunate early death, every penny left in that nest egg could still go his or her survivors.

For younger people, the news is worse
When this hypothetical worker started contributing to Social Security, the tax rate for the retirement part of the program was only 8.6%, fully 2 percentage points below today's rates. The January 2013 retiree is also likely to get his or her full expected Social Security benefits for about two decades before the program's trust fund runs out and benefits are cut.

People just entering the workforce now -- or virtually anyone in their mid-40s or younger -- will likely put more than 10% of their salary into Social Security retirement for most, if not all, of their careers. Despite all that, by the time they're eligible to collect, the program is on track to see its trust fund emptied and its benefits slashed by nearly one-quarter.

Still, even though Social Security is lousy as an investment, it serves a purpose as a safety net against extreme poverty during retirement. As a prospective retiree, you should treat it as such and not count on it to provide you with anything more than it's on track to do.

How to get even more income during retirement
Social Security plays a key role in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

Tesla Motors: Valuation, Profitability and Cost Concerns ‘Do Not Matter’

In upgrading Tesla Motors (TSLA) to Buy from Hold, Stifel’s James Albertine hasn’t put aside his concerns–they just don’t matter for the stock. He explains why:

Reuters

Having defended our more cautious stance for over a year, we find ourselves torn in upgrading as it is clear substantial risks remain. This is, in part, given (1) the lack of available data question to management’s claims with respect to battery pack durability (among other long-term warranty/residual/service/charging infrastructure related issues), and/or (2) despite lofty expectations, Tesla has never generated even one-sixth of the profitability per share based on the Street’s 2016 EPS outlook (even less based on our updated 2017 estimate), while tax incentives are waning and Gigafactory construction is looming. We have no clarity on battery input costs and take management at face value relative to the estimated $200-300/kWh starting point while targeting $100/kWh ICE (internal combustion engine) cost parity inside of a decade. We are also relegated to performing various mathematical gymnastics to ascertain the cadence of Model S demand in its most mature market, the U.S., each quarter. While there are no fewer than a half-a-dozen other key concerns we share with industry purists, the reality is, these issues simply do not matter with respect to Tesla’s stock. Tesla sentiment is like a freight train, in our view, benefiting from a well manicured growth story that has caught the eye of a much broader investor base relative to most auto stocks. Tesla has positioned itself as the smart vehicle of the future, with a glimpse into smart purchasing and smart infrastructure. Tesla has captivated a global audience, some of whom have lost interest in distinguishing horsepower ratings among the dozens of $100k-plus luxury vehicles, others that would have never considered spending six-figures on anything but a house. Like Tesla’s right place/right time purchase of the NUMMI facility, or the astounding political energy around renewables (again), our call ultimately comes down to timing. We believe our risks remain legitimate, just much further out than we anticipated. Tesla will eventual! ly face stiffer competition from traditional OEMs, we think, and will reach a ceiling of consumer support. But it is clear from our recent factory visit and conversations with investors, customers, and management that these concerns are at the earliest, late decade issues at best. To that end, we note our call does not hinge on Gigafactory timing, nor Model III pricing/volume expectations for 2020 and beyond. We are focused on the Model S and X alone. We are simply more optimistic of Tesla’s success as a “slightly bigger than niche” global luxury auto manufacturer, and like the head start management has carved out for the brand.

Shares of Tesla Motors have gained 3.1% to $278 at 10:22 a.m., which would be a new all-time closing high.

Hewlett-Packard Recalls 6 Million Power Cords Over Fire Risk

Eye-Stock/Alamy More than 6 million power cords that came with two popular notebook computers are being recalled because they could start fires or burn consumers, the Consumer Product Safety Commission said on Tuesday. Hewlett-Packard (HPQ) is recalling 5.6 million cords sold in the U.S. and another 447,000 in Canada after getting 29 reports of the power cords overheating and either melting or charring. Two consumers reported suffering burns, and the company told the CPSC that it received 13 reports of property damage. The Chinese-made cords came with HP and Compaq notebook computers and mini notebook computers, as well as with accessories that use an AC adapter, including docking stations. The cords came with devices sold between September 2010 and June 2012. "HP believes that certain power cords shipped with notebook PC products and AC adapter accessories may pose a risk of a fire and burn hazard to customers," the company said in a statement. "We are taking this action as part of our commitment to provide the highest quality of service to our notebook customers." Not every cord sold with every device is affected by the recall. The recalled HP power cords are black and have the code LS-15 molded onto the AC adapter end.

If you have one of the cords, you are urged to stop using it and get a free replacement from Hewlett-Packard . You can call HP at (877) 219-6676 between 10 a.m. and 7 p.m. Eastern Time weekdays, or visit the HP recall site.

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3 Big Reasons Baidu's Success Won't Last

Baidu (NASDAQ: BIDU  ) is considered by many to be the Google of China, and given the country's large population, it is a company with high expectations. However, while Baidu's stock continues to trade around all-time highs, and analysts praise its growth, there are real concerns lingering around the search giant. Specifically, three big problems.

Baidu continues to lose PC market share
In China, Baidu is the leader of Internet search with a 54.5% share of the market in PCs, according to Chinese statistics site CNZZ. While good, Baidu's share has shrunk from a high of nearly 80% in late 2012 and 67.7% last year. The beneficiaries of Baidu's loss are Qihoo 360 (NYSE: QIHU  ) and Sohu (NASDAQ: SOHU  ) .

Sohu is the majority owner of a search engine called Sogou, whose share has risen from under 10% last year to nearly 13% today according to CNZZ. While impressive, it is nowhere near the success of Qihoo 360, which is predominantly a provider of PC and mobile security services and applications.

Qihoo has nearly 500 million users of its PC products and its most popular mobile application, Mobile Safe, has 641 million users, a number that has doubled year over year. Therefore, with a large network of users connected to its product, Qihoo has leveraged that presence to create its own search engine.

As a result, Qihoo's PC search market share is pegged at 30%, up from its 25% share earlier this year and 16.3% in early 2013. However, like Google, Baidu's advertising and monetization products have grown more sophisticated in recent years. Therefore, it continues to produce revenue growth despite losing market share, as Internet search as a market continues to grow.

Nonetheless, Qihoo 360 is quickly closing the gap, suggesting that Baidu is not invincible in the search market.

Qihoo is entering mobile with a vengeance
Earlier this year analysts estimated that Baidu controlled nearly three-quarters of the combined PC and mobile search business in China. Given its decline in PCs, investors can assume that it has a strong grasp over the mobile market.

In particular, Baidu said after its most recent quarter that monthly active search users had surpassed 500 million in mobile search . As a result, Baidu's mobile revenue as a percentage of its total has followed the same trend of other big Internet-based companies, like Facebook, and during the second quarter became 30% of total revenue.

The problem is that Qihoo 360 released a mobile search service back in June of this year. However, Qihoo 360 has not yet providied any user details on the application, nor has it reported any revenue from mobile search. Although, given the rate at which it grew in the PC space combined with its most used application being on mobile, Baidu investors should be fearful that its mobile search dominance could experience the same fate as its PC market share.

There's more for Baidu to fear than Qihoo 360 in mobile
If Qihoo 360's ability to steal PC Internet search market share from Baidu, along with Qihoo's entrance into mobile isn't enough to scare Baidu investors, then perhaps Alibaba will do the trick. Back in June, Alibaba bought out the mobile browser and mobile search giant UCWeb.

Reportedly, UCWeb has a 50% share of China's mobile browser market and 20% of its search market. UCweb's mobile search engine is called Shenma, and while its reported 100 million active monthly users lag Baidu's 500 million, it should be noted that Shenma did not launch until earlier this year.

Therefore, it has penetrated the mobile search market quickly, and with Alibaba by its side, Baidu investors shouldn't be so confident that its leading mobile presence is sustainable.

Foolish thoughts
Baidu's mobile search success may seem like a long-term blessing right now, but when considering the rate at which it lost share to Qihoo 360 combined with the rise of Shenma and other mobile search engines, the company's core business is most certainly at risk. So, with nearly $6.5 billion in 12-month revenue, the majority of which comes from search, and expected revenue growth of 54% and 40% over the next two years, respectively, expectations are high, and Baidu is yet to prove to investors that it can maintain market share. Therefore, Baidu's future doesn't look nearly as promising as its past, and investors might be best suited by avoiding the temptation of investing in the so-called Chinese Google.

Warren Buffett: This new technology is a "real threat"
At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted this emerging technology is threatening his biggest cash-cow. While Buffett shakes in his billionaire-boots, only a few investors are embracing this new market which experts say will be worth over $2 trillion. Find out how you can cash in on this technology before the crowd catches on, by jumping onto one company that could get you the biggest piece of the action. Click here to access a FREE investor alert on the company we're calling the "brains behind" the technology.

 

A Search for Yield

US Treasury issues maturing in 10 years carry a yield of just 2.5%. Shorter-term issues pay much less. So do the government bonds of other developed nations. High-yield corporate bonds and those from emerging markets pay somewhat more, but their income also is depressed by historical standards.

This situation adds to the luster of vehicles that pay a relatively good yield now, such as 2.5% or more, and that offer good potential for future payout increases. Here are some names to consider and research: three lists of common stocks and one of energy master limited partnerships (MLPs).

#1: Dividend Aristocrats. These are the stocks in the Standard & Poor’s 500 whose annual dividends have risen for 25 or more consecutive years, and that currently pay 2.5% or more. The stocks are ranked by yield.

AT&T (NYSE: T), 5.3%

HCP Inc. (NYSE: HCP), 5.1%

Consolidated Edison (NYSE: ED), 4.4%

Cincinnati Financial (NYSE: CINF), 3.7%

Chevron (NYSE: CVX), 3.5%

Leggett & Platt (NYSE: LEG), 3.5%

McDonald’s (NYSE: MCD), 3.5%

Target (NYSE: TGT), 3.3%

Clorox (NYSE: CLX), 3.3%

Kimberly-Clark (NYSE: KMB), 3.1%

Procter & Gamble (NYSE: PG), 3.1%

Sysco (NYSE: SYY), 3.0%

ExxonMobil (NYSE: XOM), 2.9%

AbbVie (NYSE: ABBV), 2.9%

Coca-Cola (NYSE: NYSE: KO), 2.9%

PepsiCo (NYSE: PEP), 2.9%

Johnson & Johnson (NYSE: JNJ), 2.7%

Emerson Electric (NYSE: EMR), 2.7%

Nucor (NYSE: NUE), 2.7%

Bemis (NYSE: BMS), 2.7%

Genuine Parts (NYSE: GPC), 2.6%

Wal-Mart Stores (NYSE: WMT), 2.5%

Aflac (NYSE: AFL), 2.5%

#2: Dogs of the Dow. Here are the 10 highest-yield stocks in the Dow Jones Industrial Average, in order of yield.

AT&T (NYSE: T), 5.3%

Verizon Communications (NYSE: VZ), 4.4%

Pfizer (NYSE: PFE), 3.5%

McDonald’s (NYSE: MCD), 3.5%

Chevron (NYSE:! CVX), 3.4%

General Electric (NYSE: GE), 3.4%

Procter & Gamble (NYSE: PG), 3.1%

Cisco Systems (NSDQ: CSCO), 3.0%

Merck & Co. (NYSE: MRK), 2.9%

Coca-Cola (NYSE: KO), 2.9%

#3: Nasdaq 100 yield leaders. This list, which features many technology companies, is of stocks that pay 2.5% or more, ranked by yield.

Vodafone Group (NSDQ: VOD), 7.0%

Mattel (NSDQ: MAT), 4.4%

Staples (NSDQ: SPLS), 3.9%

Maxim Integrated Products (NSDQ: MXIM), 3.7%

Kraft Foods Group (NSDQ: KRFT), 3.6%

Paychex (NSDQ: PAYX), 3.6%

Garmin Ltd. (NSDQ: GRMN), 3.6%

CA Inc. (NSDQ: CA), 3.5%

Cisco Systems (NSDQ: CSCO), 3.0%

Analog Devices (NSDQ: ADI), 3.0%

Seagate Technology (NSDQ: STX), 2.8%

Wynn Resorts (NSDQ: WYNN), 2.7%

Xilinx (NSDQ: XLNX), 2.7%

Texas Instruments (NSDQ: TXN), 2.5%

KLA Tencor (NSDQ: KLAC). 2.6%

Intel (NSDQ: INTC), 2.6%

#4: Master limited partnerships. Here are the 10 biggest MLPs in midstream energy (transport and storage) that carry yields of 5% or more. Again, they’re listed in order of yield.

Enterprise Products Partners (NYSE: EPD), 7.1%

Energy Transfer Partners (NYSE: ETP), 6.7%

Williams Partners (NYSE: WPZ), 6.7%

El Paso Pipeline Partners (NYSE: EPB), 6.5%

Kinder Morgan Energy Partners (NYSE: KMP), 6.0%

Regency Energy Partners (NYSE: RGP), 6.0%

Enbridge Energy Partners (NYSE: EEP), 6.0%

DCP Midstream Partners (NYSE: DCP), 5.5%

ONEOK Partners (NYSE: OKS), 5.3%

Cheniere Energy Partners (NYSE: CQP), 5.2%

You Won't Believe How Bad a Deal Store Credit Cards Really Are

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It's not coincidence that most retail outlets promote store-branded credit cards. Why? It's profitable. Why? Because the consumer pays more -- way more -- for the privilege of using them when they carry a balance. "Retailers dangle incentives like 15 percent off a purchase to encourage consumers to sign up for their credit cards," said Matt Schulz, senior industry analyst at CreditCards.com. "But this often ends up being a bad deal. The much higher interest rates far outweigh the one-time discount for anyone who carries a balance." The average retail credit card annual percentage rate is 23.23 percent. That's more than 8 points above the average credit card interest rate and more than double what consumers with good credit can get, according to a CreditCards.com survey released Thursday.

No, the Biotech Rally Isn’t Over

After big rallies by biotech stocks, the folks at Weeden wondered if the rally getting overdone. UBS analyst Matthew Roden and team think biotech stocks like Gilead Sciences (GILD), Celgene (CELG), Vertex Pharmaceuticals (VRTX), Puma Biotechnology (PBYI) and Achillion Pharmaceuticals (ACHN) can keep running. They explain why:

 

Despite recent sector performance, we believe the drivers of biotech outperformance are still relevant into YE2014.

[1] We continue to think numbers are beatable in large cap this year. None of our models look stretched, and in our view there appears to be plenty of room to beat (particularly for Gilead Sciences), which we think can continue to drive numbers higher. [2] We also think multiple expansion can be driven by pipeline catalysts this fall, including Celgene's GED-301, initial data for Gilead Sciences’ simtuzumab in cancer (where expectations are non-existent, in our view), and 7-day data for Achillion Pharmaceuticals’ nuc in HCV. [3] We are more bullish on M&A given the inflection of cash flows in large cap, coupled with the need for large cap to address toughening growth comps by 2016-17, and because mid-cap shave done a good job in value creation through de-risking of valuable assets. We expect Puma Biotechnology to be top of the list for bolt-on growth…

Favorites into YE14: Celgene, Gilead Sciences in large cap; Vertex Pharmaceuticals, Puma Biotechnology, Achillion Pharmaceuticals in [small- and mid-cap biotech stocks:] Amid low expectations, we think both Celgene and Gilead Sciences could see $5-10 upside if pipeline readouts described above are convincing. We see compelling risk-reward in Vertex Pharmaceuticals shares considering upside/downside scenarios, and we surmise it is under-owned in large cap growth portfolios. We think Puma Biotechnology is still undervalued, has several catalysts, and is a top takeout candidate. We see asymmetric upside potential in Achillion Pharmaceuticals if its nuc is safe and potent in 7-day treatment data, which would drive Achillion Pharmaceuticals’ strategic value higher.

Shares of Gilead Sciences have gained 44% this year after rising 0.8% to $108.41 at 11:04 a.m. today, while Celgene has advanced 13% after gaining 0.6% to $95.54. Vertex Pharmaceuticals has fallen 0.3% to $93.35 today, while Puma Biotechnology has ticked up 0.2% to $261 and Achillion Pharmaceuticals has jumped 4.2% to $12.06.