To Subscribe to Daily Advantage, enter your e-mail address

Wells Fargo Daily Advantage
 

Good Evening, Investor:

Friday, November 20, 2009

Weakness in technology stocks led the major indexes lower for the third session: The Dow fell 14 points, the Nasdaq lost 10 points, and the S&P 500 declined by 3 points. The semiconductor group was the big loser of the day with a drop of 3%. Twenty one of the Dow's 30 components lost ground. Volume was very light and declining issues outnumbered advancers by almost three to two. The prices of Treasuries weakened and gold futures gained 0.5% to $1,148.50 an ounce. The price of oil on the New York Mercantile Exchange fell almost 1% to $76.72 a barrel. For the week, the major indexes closed pretty close to where they began, with the Dow up by 0.4%, the Nasdaq lower by 0.1% and the S&P 500 lower by 1%.

In Earnings News

- J.M. Smucker reported earnings rose from 94 cents a share a year ago to $1.18 a share in the latest quarter, thanks in part to the company's acquisition last year of Folgers Coffee and to increased sales of jams and peanut butter. The company also increased its earnings guidance for the year, as the latest results beat Wall Street's expectations by about 18 cents a share. The price of the stock (SJM) gained 5% in today's session.

- D.R. Horton reported earnings improved from a loss of $2.53 a share one year ago to a loss of 73 cents a share in the latest quarter. Revenue at the big homebuilder fell 42%, but that was partly offset by fewer write-downs. Still, the company's results fell far short of Wall Street's expectations and the company's shares (DHI) lost 15%.

- Gap announced earnings improved from 35 cents a share a year ago to 44 cents a share in the latest quarter, thanks in part to strong sales at its low-cost Old Navy stores. After falling for two years, sales at Old Navy stores open for at least one year grew 10%. The price of Gap shares (GPS) gained 0.4%.

- Ann Taylor Stores reported earnings improved from a loss of 24 cents a share a year ago to positive earnings of 3 cents a share in the latest quarter. But the retailer cautioned that the holiday season could be weak and the company's shares (ANN) fell 1%.

In Other Business News

- Procter & Gamble's Chief Financial Officer said acquisitions are not an important part of the consumer product giant's growth plan, noting that there has been a lot of speculation recently about its acquisition and divestiture program. He also said the company plans to continue buying back its shares at a "meaningful" rate. The stock (PG) lost 0.5%.

*****

I like my brain. Without it I wouldn't be able to work or enjoy life, not to mention take care of my investments and smoke an occasional cigar. So it was with great concern that I learned recently that the human brain is shrinking. Yes, scientists who study human evolution have reached that conclusion. According to John Hawks, who is a paleoanthropologist at the University of Wisconsin: "We do know from archeological data that pretty much everywhere we can measure – Europe, China, South Africa, Australia – that brains have shrunk about 150 cubic centimeters…. roughly 10%."

Yikes, 10%? Unless it comes from the part of the brain I use to mow the lawn, I'd like to get that 10% back. Of course, I can't get back what I never had it in the first place: After all, the loss occurred over thousands and thousands of years. But the news has me thinking how I can hold on to what I've got. Is there anything we can do to boost, or at least to sustain, our brainpower? Here are some ideas from recent news reports:

1. Surf the Web. Researchers at the Semel Institute of Neuroscience of the University of California, Los Angeles report that browsing the Web improves brain function within days. "When you're searching online," says one scientist, "you're making a lot of decisions." That certainly separates the Web from my generation's guilty pleasure – television. (And it may explain why my kids seem so much smarter than me).

2. Go to the dentist. Taking good care of teeth, including frequent brushing and going to the dentist, may help to preserve mental acuity, according to doctors at the Columbia College of Physicians and Surgeons. Apparently, a pathogen called "Porphyromonas gingivalis," which is related to gum disease, is also suspected of causing inflammation in the body, which in turn is related to diminished mental capacity. So let me get this straight: Brush my teeth, clear my mind? (Okay, okay, I'll try. Besides, brains in my teeth would go a long way to explain some of my bad habits.)

3. Get into a good funk. According to Australian researchers at the University of South Wales, bad moods can boost memory. Cool. Nothing puts me in a bad mood faster than a trip to the dentist, so my semiannual trips for teeth-cleaning get me two for the price of one brain wise.

Have a great weekend. On Saturday I'm going to shop the Web for Christmas presents, make an appointment with my dentist, and mope. And if you're wondering what to expect in the muni-bond space going forward, watch Lyle Fitterer, who is my guest on a special video edition of "On the Trading Desk."


Peter Nulty
Editor


This e-mail is accompanied by current prospectuses for Wells Fargo Advantage Funds® at www.wellsfargo.com/advantagefunds.

Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for Wells Fargo Advantage Funds®. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA/SIPC, an affiliate of Wells Fargo & Company. 119042

Not FDIC Insured  •  No Bank Guarantee  •  May Lose Value

You have opted to receive Wells Fargo Daily Advantage each day. To change the format (graphics or text-only), e-mail address, or unsubscribe, visit your e-mail profile.

To ensure delivery of your subscription, add service@wellsfargo.rsys1.com to your e-mail address book, safe list, or contact your company's IT group to allow this e-mail address to pass through e-mail filtering software. We value the security and integrity of your personal information. View our security and privacy policy.

Wells Fargo Funds Distributor, LLC | 525 Market Street | San Francisco, California 94105

 

DJIASM
10,318.16, -14.28 or -0.14%

Nasdaq
2,146.04, -10.78 or -0.50%

S&P 500
1,091.38, -3.52 or -0.32%

S&P MidCap 400
687.54, -3.85 or -0.56%

Russell 2000
584.68, -1.00 or -0.17%

10-Yr Treasury Notes
3.356%, +0.007

Crude Oil
76.72, -0.74 or -0.96%

Gold
1,148.50, +6.60 or +0.58%

ON THE TRADING DESK
23

The National Association of Realtors will report existing home sales for October at 10:00 a.m., ET.

Earnings reports: Analog Devices (ADI); Campbell Soup (CPB); Hewlett-Packard (HPQ); Tyson Foods (TSN).

Humberto Cruz: Don't Be Tripped Up by Gift Card Rules – It's not exactly a gift they'll remember you by: A general-purpose gift card that can be used in many stores but can cost $6.95 above face value and start charging fees as high as $4.95 a month after six months. Full article

Hartford Courant: Sharp Buying Eases Way into Wet Razor Use – Many American men, and women, are rediscovering wet-shaving with a safety razor. Full article

The Baltimore Sun: Credit Cards Canceled Without Warning, Customer Complaints Rise – On his way home from work recently, Rick Niles of Laurel stopped at a gas station to fill up and as usual pulled out his Shell credit card to pay. But this time, the card didn't work. Full article

Investment Tools

Calculate how much you'll need to retire with our Retirement Worksheet.

Is your portfolio on track? Use our Asset Allocation Calculator.

More Planning Tools