Daily FX
Euro Hovers Near Its All-Time Highs
Tuesday July 17, 5:45 pm ET
By Kathy Lien, Chief Strategist strategist@dailyfx.com

Even though the Euro ended the day near its all-time highs, the currency pair?s inability to extend its rise suggests that it could be setting up for a much needed correction. Consumer price growth slowed last month from 0.2 percent to 0.1 percent in the Eurozone. This is the tenth straight month that CPI has remained below the central bank?s 2 percent target.

Although this is hardly a market moving number, if we do see stronger producer prices from the US tomorrow and hawkish comments from the Fed later this week, it could help to trigger a nice correction in the EUR/USD. Germany will be releasing the ZEW survey tomorrow. The market is looking for a firmer number, but given recent interest rate hikes, analyst sentiment could easily deteriorate. Switzerland will also be releasing retail sales. In general, growth has been strong and we expect domestic consumption to confirm that as well.

Daily FX
Canadian Dollar Hits New 30 Year High, New Zealand Dollar Advances to New 22 Year High
Tuesday July 17, 5:52 pm ET
By Kathy Lien, Chief Strategist strategist@dailyfx.com

After yesterday?s blockbuster gains, the Canadian and New Zealand dollar consolidated amidst the lack of any meaningful economic data. Canada has consumer prices and leading indicators due for release tomorrow morning.

The strong CAD is expected to drive inflation down, but the overall strength of the economy could limit any major slide. The Australian dollar pushed higher despite the smaller growth in exports in the month of June. The country is also releasing leading indicators tonight, but the data is never market moving because it dates back to May. Overall, the commodity currencies are continuing on their trends, but the moves are becoming exhausted. The sustainability of the rallies will be dependent upon how dollar bullish Bernanke will be tomorrow.

Daily FX
British Pound Comes Within a Whisker of 2.05
Tuesday July 17, 5:58 pm ET
By Kathy Lien, Chief Strategist strategist@dailyfx.com

The British pound climbed to another 26 year high after consumer and retail prices rose more than expected in the month of June. The annual pace of retail price growth increased from 4.3 to 4.4 percent, indicating that inflationary pressures are still a big problem in the UK.

This means not only could we be looking at 6 percent interest rates over the next few months, but more immediately, the price action in the British pound suggests that traders are looking for the minutes from the Bank of England meeting earlier this month to reveal a unanimous if not close to unanimous decision to raise interest rates. Anything short of 7 out of 9 votes in favor of a rate hike would be construed as dovish. The bigger risk is certainly to the downside given the extent of the recent rally. In addition to the minutes, we are also expecting the UK?s labor market report for the month of June. If wage growth slows as expected, 2.05 could be the peak in the GBP/USD.

SAN JOSE, Calif. (AP) -- Intel Corp. said Tuesday its second-quarter profit jumped 44 percent on strong sales of microprocessors even as the company faced fierce competition that pushed prices lower.

After hitting a new 52-week high during regular session trading, Intel's stock fell more than 4 percent in after-hours trading.

The Santa Clara-based chip maker's net income for the three months ended June 30 was $1.28 billion, or 22 cents per share, compared with $885 million, or 15 cents per share during the same period last year.

Were it not for certain one-time tax gains, Intel's profit for the latest quarter would have been lower by 3 cents per share. Analysts surveyed

Here are 7 stocks for traders for Wednesday from TradingMarkets.com:

Altria (NYSE:MO - News) reports earnings on Wednesday before the market opens; watch for $1.13 EPS. MO's PowerRating is 6.

CIT Group (NYSE:CIT - News) is expected to report $1.35 EPS before the bell on Wednesday. CIT's PowerRating is 6.

JP Morgan Chase (NYSE:JPM - News) should report $1.08 EPS on Wednesday before the bell. JPM's PowerRating is 5.

Lufkin Industries (NasdaqGS:LUFK - News) is looking to announce $1.19

I recently returned from a trip to Russia, where I met with managers from several of the telecom firms I cover as a stock analyst at Morningstar. Many of these firms' stocks have surged in the past decade, coinciding with the country's positive transformation. While we don't currently see any compelling values in Russian telecom, we thought we'd take the opportunity to share some of our thoughts on Russia's transformation and discuss why a combination of strong growth prospects and an historically volatile market could create investing opportunities in this sector in the future.

Russia's Troubled Past
Historically, because of abundance of land, buildings in Russia have not been built tall. It's a different story today, and tall skyscrapers are actively

With the calendar quarter just ending, mutual fund companies are by now printing and mailing account statements to investors, and many of them contain tables of fund and account total returns. It also means that for the next month or so many Morningstar fund analysts, including myself, will be peppered with questions and comments from friends and family such as "Why did my fund lose money last quarter?!" or "I'm happy--my fund went up 3%." Others will turn to Morningstar.com to see how their funds' returns compared with their category peers (also called "relative returns.")

Both absolute and relative returns are important, but it would be unwise to run blindly into the arms of either measure. Both have their good and bad sides, but investors who view both through a critical lens will have the best chances of success. To make the most of both, take the following factors

I recently shelled out $200 to fix a broken window in my apartment. The building owner left a bill outlining the charges explicitly in dollars and cents, and I just tacked on the total to my rent check. But I couldn't help but wonder how things might have been different if she operated more like a mutual fund company. Instead of clearly outlining what I owed, she would have told me that the broken window amounted to 1.28% of my annual rent. And it would've been deducted straight from my account, so I would never have to cut her a check at all. In the end, I wouldn't have had a clear idea on how much that broken window really cost me.

While you probably know what you're paying your handyman, lawyer, and
accountant, most mutual fund shareholders have, at best, a foggy idea of what their investments cost them. In fact, your investment-related expenses might be among your largest annual expenses after food and

When it comes to getting started investing, I've heard all the excuses. You're not good with numbers. You don't have a lot of money. You don't have enough time.

Whatever.

You just don't know what to do or where to go. The task may seem daunting, but you don't have to be a math whiz sleeping on a pile of cash to be an effective investor. You don't even have to dedicate an entire weekend to the project. In the time it takes you to watch a Simpsons episode, wash a load of laundry or order a pizza, you could set yourself on the path to riches.

Consider this: If a 22-year-old invested just $50 a month and made an

Coming soon to an investment shop near you: a mutual fund or exchange-traded fund based on a collection of stocks favored by America's investment clubs. Each year, BetterInvesting, a nonprofit umbrella group for the nation's 13,000 investment clubs, lists the 100 stocks held by the largest number of clubs. Last April, the list became the BetterInvesting 100 index, quoted daily on Nasdaq. Expect derivative trading products by year-end, says Peter Breen, a consultant to BetterInvesting.

The index is equal-weighted, meaning that all companies count the same. Two returns are calculated daily: One reflects price changes only (symbol
BIXX) and the other represents the total return BIXR), including cash dividends. The index will be updated annually to reflect club members' current favorites. That's often enough, considering that clubs typically hold

If you'd rather spend more time at the beach or on the links and less time fretting over your investments, relax. Retirees have plenty of one-stop fund options to choose from. Target-date retirement funds, which allow you to pick the fund whose asset allocation is geared to your expected retirement date, typically include a choice for investors who have already reached their target dates. In choosing the right retirement-income fund, avoid those that heap an additional layer of fees on top of the expenses of the underlying funds. Total annual expenses for one-stop life-cycle funds should be less than 1%.

After fees, asset mix is the most important factor in determining which retirement-income fund is best for you. Funds from Fidelity, T. Rowe Price and Vanguard all have low fees, but each has a slightly different investing strategy.

Vanguard Target Retirement Income (symbol VTINX) has just 30% of its

Dear Terry,
What are the drawbacks of utilizing a low life of the balance APR offered by credit cards to buy a car? I have received multiple advertisements for credit cards with low introductory rates on purchases and low (3.99 percent to 4.99 percent) APRs for the life of the loan on balance transfers. Can these low APRs be used for car loans? Why use a 7 percent or 8 percent APR car loan when this type of option is available?
-- Larry

Dear Larry,
It sounds like a good deal but in practice using credit cards to buy cars is
raught with pitfalls. Most of these "low APR" credit card offers have a lot of loopholes. The introductory rate can rise after a few months and can hit 21

With the promise of cash back from Uncle Sam, homeowners last year flocked to home-improvement stores for products to make their residences more energy efficient. By adding insulation, installing new windows or converting to a solar water heater, the homeowners recouped part of the energy-saving upgrade costs via a tax credit.

But window film, a relatively easy fix that typically costs only a fraction of replacing a home's drafty old windows, was overlooked for most of 2006. The reason: Window tinting wasn't specifically mentioned as an eligible tax credit option under the Energy Tax Incentives Act of 2005.

That changed late last year when the window film industry got word from

There are significant differences between common and preferred stock. Generally, you will want to issue common stock to founders and employees through the employee stock option program and offer preferred stock to investors.

Common stock should be thought of as a vehicle for issuance in exchange for effort, or "sweat equity." Preferred stock has preferential rights in matters such as liquidation and board representation. These are rights generally reserved for those who have invested cash in the business.

So why take on this complexity when you're just a startup? Having common and preferred stock is the simplest way to give preferred

EW YORK (Reuters) - Homebuilder sentiment slid in July to its lowest since January 1991 as fallout from the housing slump and sub prime mortgage crisis caused a glut of new homes, the National Association of Home Builders said on Tuesday.

The NAHB/Wells Fargo Housing Market index fell to 24 from 28 in June, the group said in a statement. Economists polled by Reuters had thought it would slip to 27. Readings below 50 mean more builders view market conditions as poor than favorable.

"The bottom line is that the single-family housing market is still in a