Barron’s Says Apple is America’s Most Respected Company – I Beg to Differ

Barron’s, one of my favorite weekly reads, published the results of a survey this weekend that showed Apple (Nasdaq: AAPL) as America’s most respected company. With all due respect to the publishers of this great investors’ tool, I beg to differ. Barron’s says that what matters most is that the company display strong management; that it practice ethical business; it should have a sound business strategy; display a competitive edge and show product innovation. I think we can make a critical argument against each of these factors in Apple’s case. Finally, I think that what investors report to Barron’s is not being backed up by real investment dollars in many cases, based on my interpretation of the one true measure of investor respect, valuation. With all that being said, Apple still tops my list among stocks to own today. That is because I believe it dropped the ball in years past and is a value today because of it ahead of what I hope will be one of the big new value-added developments I have long been waiting for. For more, see Barron’s Rated Apple as America’s Most Respected Company – I Beg to Differ. The top five companies included Berkshire Hathaway (NYSE: BRK.B), Boeing (NYSE: BA), Google (Nasdaq: GOOG) (Nasdaq: GOOGL) and Johnson & Johnson (NYSE: JNJ).

If Apple Soars is Google Out the Door?

1-Year Chart Comparison of GOOGL & AAPL at Yahoo

It’s a legitimate question to ask. Might Google (Nasdaq: GOOG) shares fall if Apple (Nasdaq: AAPL) shares rise in coming months? Some will say that even if it occurred, it would be coincidental, because the paths of the two stocks are mutually exclusive. But are they?

The one-year chart comparison of the performances of Google (Nasdaq: GOOGL) and Apple (AAPL) shows rising shares and positive returns across the board. However, you will note that the most recent history seems to portray at least a divergence if not negative correlation between the two. There are other than operational reasons why that might be, and we get into those in our report Why Google Could Fall if Apple Rises.

The Bloody World Cup Runneth Over

Just as it seemed the way was cleared for stocks and blocked for gold with the overcoming of several obstacles that obstructed the first half of the year’s performance, the World Cup hath begun. Unfortunately, I’m not speaking about the futbol event that is currently dominating the attention of the world over. Rather, I’m speaking of the world cup that runneth over with blood. Geopolitical chaos has resurfaced where most thought it had settled, and it has sprung up anew in places long thought won by civilization. And so, while I believe stocks may still have an upward path short-term depending on what unfolds, my view on gold diverges. The SPDR Gold Trust (NYSE: GLD) has strong support now to hold current ground, and is poised to take more, because of the uncertainties and developments with Russia and in Iraq. For all the gory details see The World Cup Runneth Over with Blood – So Make Your Cup Golden.

Apple’s Playbook (AAPL)

In my reporting on Apple (Nasdaq: AAPL) over the years, I believe I’ve been an early voice exposing catalysts or the absence of catalysts behind the stock’s movement, or rather lack of upside movement. It has sometimes taken awhile for the company to find the route I have laid out for it in my articles. Eventually, though it seems the message gets through, judging by the actions that eventually follow through. Or, more likely, at the insistence of activist investors, Apple is finally actively seeking to correct its valuation issue. The stock has been deeply discounted to the value of peers like Google (Nasdaq: GOOGL, Nasdaq: GOOG), Microsoft (Nasdaq: MSFT) and others for too long now. Whatever the case, Apple is clearly and finally seeking to add value by means other than operational. However, what comes next is likely going to be an operational catalyst. If it’s not, then another of my articles may prove prescient, and it’s one that would definitely drive change at Apple. The good news is that I don’t see that happening, and I do see Apple finally rising to new heights. For all the sexy details on how this will be, see Apple’s Playbook Revealed. to new heights. For all the sexy details on how this will be, see Apple’s Playbook Revealed.

Russia’s War on the Dollar Serves Gold

Russia’s incursion into Ukraine caused a rift between Russia and the U.S. & Europe. It led the West to issue sanctions against Russia and to threaten to apply deeper cutting actions. Russia recognizes the damage the West can do to its economy today, and so our former cold war foe has begun to take action to protect itself. Its actions include the acquisition of gold reserves replacing U.S. Treasuries, and also the use of other than dollar currencies in its and its businesses’ trade settlements. Russian actions may work against the euro and the U.S. dollar, but they should serve gold; because the shiny metal will always be the one currency that has credibility globally, even when the world is not at peace. Thus, despite concerns I’ve expressed recently regarding a capital flow weight against gold and relative securities, this Russian reality offers a solidifying new support against that for gold and the SPDR Gold Trust (NYSE: GLD). See the full version of this report published at Seeking Alpha and titled Russia’s War Against the Dollar will Support Gold Long-Term.

Precious Metal Relative Securities	YTD	TTM
SPDR Gold Trust (NYSE: GLD)	+4.5%	-9.4%
iShares Silver Trust (NYSE: SLV)	-1.3%	-12.8%
Market Vectors Gold Miners (NYSE: GDX)	+9.0%	-20.8%
Direxion Daily Gold Miners Bull 3X Shares (NYSE: NUGT)	+13.5%	-70.6%
Sprott Physical Gold Trust (NYSE: PHYS)	+4.8%	-9.5%

2014 Summer Stock Market Forecast

Wall Street Greek is forecasting a June swing higher for stocks. The four main obstacles holding the market back for most 2014 have now been cleared, and so the way has been made clear for stocks to run higher starting in June. At the start of 2014, we presciently forecast that the delay of capital gains taking on the high flying stocks of 2013 until after January 1st would drive capital flows out of stocks and into the laggard investment sectors of last year, including gold. The 32% gain marked by the SPDR S&P 500 (NYSE: SPY), 30% by the SPDR Dow Jones (NYSE: DIA) and the 37% increase seen in the PowerShares QQQ (Nasdaq: QQQ) were effectively stymied in January, and the SPDR Gold Shares (NYSE: GLD), iShares Silver Trust (NYSE: SLV) and other laggards begin to rise. As the year progressed, other factors took the baton and effectively weighed against stocks. Harsh winter weather began to impact first quarter economic data, but investors hadn’t yet accepted weather as the temporary cause, and so stocks were burdened by concern. The Russian incursion into Ukraine added an unexpected geopolitical weight against equities. Finally, the Fed’s publishing of its Fed Funds Rate forecast which implied a 2015 start to rate increases worked against equities. We invite you to see how each one of these obstacles have since been cleared. See our full report: S&P 500 Summer Forecast – Part I: Obstacles Cleared.

TUESDAY’S MARKET: Pundit Push Toward Shelter Island?

We are looking ahead to a light economic data day. The reports on the schedule hardly have impact, so investors will instead look to the pundits, who I expect will mostly push stocks, since asset management fees pay for their summer vacations on Shelter Island. Keep your eye on Putin, as yesterday’s news was concerning regarding a Russian push of the renminbi over the dollar and its annexation of the International Space Station.

U.S. Markets

Market ETF	6/9	YTD	TTM
SPDR S&P 500 (NYSE: SPY)	+0.1%	+5.9%	+18.7%
SPDR Dow Jones (NYSE: DIA)	+0.1%	+2.3%	+11.1%
PowerShares (Nasdaq: QQQ)	-0.1%	+5.4%	+26.4%
SPDR Gold Shares (NYSE: GLD)	+0.0%	+3.9%	-9.5%
iShares US Real Estate (NYSE: IYR)	-1.1%	+14.1%	+5.9%
United States Oil (NYSE: USO)	+1.5%	+8.1%	+12.3%
PowerShares DB US$  Bullish (NYSE: UUP)	+0.4%	+0.1%	-2.8%
PIMCO Total Return ETF (NYSE: BOND)	-0.0%	+3.6%	+1.3%

Stocks slowed up their pace of gains yesterday and Europe turned red, so the ECB catalyst has faded short-term; it is show me time now. Don’t think the market didn’t notice Russia’s annexation of the International Space Station. Investors are still watching (maybe from the corner of their eyes) Russian actions and praying the West does not issue any more penalties against our Eastern foe. It appears Putin’s pride was bruised when he was left out of the group of nations meeting. Don’t make him mad; we won’t like him when he’s mad. It’s time to make nice with Russia before they follow through with threats of lifting the renminbi over the dollar.

International Markets

EUROPE	%	ASIA/PACIFIC	%
Vanguard FTSE Europe (NYSE: VGK)	-0.2%	Precidian MAXIS Nikkei (NYSE: NKY)	-0.2%
iShares MSCI UK (NYSE: EWU)	-0.1%	SPDR S&P China (NYSE: GXC)	+0.8%
iShares MSCI France (NYSE: EWQ)	-0.5%	iShares Asia 50 (NYSE: AIA)	+0.0%
iShares MSCI Germany (NYSE: EWG)	-0.4%	iShares MSCI S. Korea (NYSE: EWY)	-0.2%
Global X FTSE Greece (NYSE: GREK)	+0.1%	iPath MSCI India (NYSE: INP)	+0.3%

Economic Data

TUESDAY’S ECONOMIC REPORT SCHEDULE
Economic Data Point	Prior	Expected	Actual
TUESDAY
NFIB Small Biz Optimism	95.2	95.5	96.6
JOLTS – Job Openings	4.014 M	4.025 M
Wholesale Trade – Inventories	+1.1%
-Sales
ICSC Sales Weekly	+2.9%		-2.8%
-Yearly	+3.1%		+3.0%
Redbook Yearly Sales	+3.5%		+3.3%

Do not fear the weekly demise of the ICSC same-store sales data, as it was holiday influenced and is not a bother. Look instead to the year-over-year change, which was steady. Small business optimism was reported improved today, and no matter how much small businessmen complain about the situation, investors will look to the direction of change today and play on that. Job openings are expected to have increased when the JOLTS Report is published today. Jobless claims show the labor situation is improving, while stubborn long-term and structural issues remain in the labor market. All in all, this data looks like, at minimum, no obstacle for stocks today, at best, further driver for higher moves.

Commodity Markets (6/9)

United States Oil (NYSE: USO)	+1.5%
iPath SP Crude Oil (NYSE: OIL)	+1.7%
U.S. Natural Gas (NYSE: UNG)	-1.6%
U.S. Gasoline (NYSE: UGA)	+1.2%
SPDR Gold Trust (NYSE: GLD)	+0.0%
Market Vectors Gold Miners (NYSE: GDX)	-0.4%
iShares Silver Trust (NYSE: SLV)	+0.2%
iPath DJ UBS Industrial Metals (NYSE: JJM)	+0.0%
Teucrium Corn ETF (NYSE: CORN)	-1.3%
Teucrium Wheat Fund (NYSE: WEAT)	-0.8%
Teucrium Soybean Fund (NYSE: SOYB)	+0.7%
iPath DJ-UBS Cocoa (NYSE: NIB)	+0.8%
iPath DJ-UBS Sugar (NYSE: SGG)	-0.1%
ICE Orange Juice Conc.	+0.6%
CME Lumber	+0.5%
CME Live Cattle	-0.1%

Oil prices rose in dollar terms yesterday, perhaps on Russia’s move to lift the renminbi over the dollar. Investors are perhaps worried about what might come if the West issues any more sanctions against Russia.

Stock Activity

It’s a short earnings list today that includes a few retailers and retail like names.

EPS REPORTS
Company	Ticker
TUESDAY
Burlington Stores	Nasdaq: BURL
Christopher & Banks	NYSE: CBK
Francesca’s	Nasdaq: FRAN
HD Supply Holdings	NYSE: HDS
NCI Building Systems	NYSE: NCS
Oxford Industries	NYSE: OXM
RadioShack	NYSE: RSH
Science Applications	Nasdaq: SAIC
Ulta Salon	Nasdaq: ULTA
United Natural Foods	Nasdaq: UNFI

YESTERDAY’S MOST ACTIVE STOCKS
BIGGEST GAINERS	% Gain
Idenix Pharmaceuticals (Nasdaq: IDIX)	+229%
Achillion Pharmaceuticals (Nasdaq: ACHN)	+48%
Synergy Pharmaceuticals (Nasdaq: SGYPW)	+35%
Hittite Microwave (Nasdaq: HITT)	+29%
IFM Investments (NYSE: CTC)	+23%
Profire Energy (Nasdaq: PFIE)	+23%
InterCloud Systems (Nasdaq: ICLDW)	+19%
Synthetic Biologics (NYSE: SYN)	+19%
Doral Financial (NYSE: DRL)	+17%
New Concept Energy (NYSE: GBR)	+16%
BIGGEST LOSERS	% Drop
Torchlight Energy (Nasdaq: TRCH)	-26%
Northwest Biotherapeutics (Nasdaq: NWBOW)	-18%
Endeavour Int’l (NYSE: END)	-16%
RiceBran Technologies (Nasdaq: RIBTW)	-12%
Ambient Corp. (Nasdaq: AMBT)	-10%
USA Technologies (Nasdaq: USATP)	-9%
Oil-Dri Corp. (NYSE: ODC)	-9%
Digital Ally (Nasdaq: DGLY)	-9%
Integrated Electrical (Nasdaq: IESC)	-9%
Comverse (Nasdaq: CNSI)	-9%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.