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Activision, United rally on S&P 500 inclusion
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Autodesk beats earnings expectations
GameStop tops expectations; shares rise
Bank of New York Mellon tech woes hit prices
Wall Street’s missing a closed-end bargain

The happiest — and most miserable — countries on earth
This is the happiest country on earth


What should China do to fix its economy?
What should China do to fix its economy?
Analysts dismiss fears of a China hard landing
‘Loch Ness monster’ and a mysterious rally
China fears trigger emerging market outflows

Apple closes in on Fitbit as world's biggest wearables company
Apple closes in on Fitbit in wearables

Apple to host Sept. 9 product event

How momentum investing could go out of style
Momentum investing could be going out of style

These are the best jobs for millennials
These are the best jobs for millennials


Wal-Mart explains decision to stop selling some guns

One billion people logged onto Facebook Monday in new company milestone
1 billion people used Facebook in one day


Poll shows Biden running stronger than Clinton
Republican wants more than the sequester

Donald Trump says he’s OK with raising taxes on himself
Trump: I’m OK with raising taxes on myself

Bezos is clear about what Amazon’s culture is

10 fall beers with absolutely no pumpkin in them
10 fall beers with absolutely no pumpkin in them

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Star-studded content up Netflix’s sleeve
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Jim Rogers: Don’t rule out a commodity bull run
Commodities are ripe for a rebound

How the media just can’t spot economic crisis

6 ‘services’ that help hackers get rich

4 things you didn’t know could be hacked
How vulnerable are U.S. markets to hackers?


How to throw a  birthday party for under $100
Only half of Americans with kids have wills

Millennials are clueless about cellphone etiquette
Millennials realize growing up is hard to do

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Markets »

171.98MDow Volume:
Avg Vol: 111.57M
Unchanged
150
Decliners
1105
Advancers
5358
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
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Dow
/quotes/zigman/627449/realtime 16,655 +369 2.27%
Nasdaq
/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,372 +11 0.47%
Gold
/quotes/zigman/662444/delayed 1,126 +4 0.34%
Oil
/quotes/zigman/2331095/delayed 42.59 +0.03 0.07%
FTSE 100
/quotes/zigman/3173262/delayed 6,192 +213 3.56%
DAX
/quotes/zigman/2380246/delayed 10,316 +318 3.18%
CAC 40
/quotes/zigman/3173214/delayed 4,658 +157 3.49%
FTSE MIB
/quotes/zigman/1482176/delayed 22,201 +727 3.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,290 +306 3.06%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +12 3.46%
Asia Dow
/quotes/zigman/6959860/realtime 2,802 +49 1.79%
Nikkei 225
/quotes/zigman/5986735/delayed 19,045 +471 2.53%
Hang Seng
/quotes/zigman/2622475/delayed 21,839 +758 3.60%
Shanghai
/quotes/zigman/1859015/delayed 3,084 +156 5.34%
Sensex
/quotes/zigman/1652085/delayed 26,231 +517 2.01%
Singapore
/quotes/zigman/1709939/delayed 2,985 +40 1.36%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.03%
Yen
/quotes/zigman/16008150/realtime/sampled 121.21 +0.17 0.14%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.10%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 +0.00 0.49%
DXY Index
/quotes/zigman/1652083/delayed 95.78 +0.02 0.02%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.25 -0.02 0.02%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.00 0.05%
German 10y
/quotes/zigman/15866409/realtime 0.75 +0.04 5.49%
Italy 10yr
/quotes/zigman/15866497/realtime 1.93 -0.05 2.73%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 -0.03 1.54%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.87 +0.02 1.11%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 0.00 0.84%
Crude Oil
/quotes/zigman/2331095/delayed 43 +0 0.07%
Gold
/quotes/zigman/662444/delayed 1,126 +4 0.34%
Corn
/quotes/zigman/7599553/delayed 378 +3 0.73%
DJIA F
/quotes/zigman/38649152/delayed 16,662 +12 0.07%
S&P F
/quotes/zigman/30356461/delayed 1,990 +0 0.02%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.64%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
GE /quotes/zigman/227468/composite 25.01 1.00 4.16%
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Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

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Why iPhone Fans Should Buy Seagate Shares

Investors who are contemplating the iPhone sales surge that will kick off this month as the new model goes on sale might feel compelled to buy Apple (AAPL) stock.

They could do worse; it sells for 16 times projected earnings for Apple’s fiscal year ending this month, versus 14 times for the broad market. But with some slight math contortions — using next year’s higher, projected earnings and subtracting the company’s cash and investments from its stock price — the valuation drops to 11 times earnings.

Then again, Apple is already the largest company in America by stock market value, so don’t expect its shares to double soon.

As an alternative, there’s always a one-off iPhone stock, like Qualcomm, maker of the chips that power the high-speed data connections smartphones rely upon. But it sells for 18 times earnings.

Here’s a two-off idea: Seagate Technology (STX). It makes hard drives that store data in personal computers and data centers.

Smartphones and tablet computers dented sales of personal computers, and investors view that as a troubling sign for hard-drive companies like Seagate. Tablet devices use speedy “flash” memory, and they don’t need much of it, because users increasingly store their videos, photos and other large files online using “cloud” services.

But those files must be stored somewhere, and that somewhere is the vast data centers like the kind being built by Apple, Amazon (AMZN) and Hewlett-Packard (HPQ). Data centers have endless demand for hard drives, which hold a sizable lead over flash drives (which Seagate also sells) when it comes to storage capacity and reliability.

In 2010, 62% of data storage was shipped for individual use, but by 2020, Seagate reckons 61% will be used for cloud computing.

Seagate shares sell for just 4.5 times trailing earnings, and its earnings per share are expected by Wall Street to increase 10% over the next four quarters. The ultralow valuation reflects a belief among investors that Seagate is a PC-era stock in a post-PC world. But management last quarter pointed to “exceptional growth” from cloud-computing customers.

The stock gained 90% this year, topping Apple’s 69% rise. Part of that climb is owed to an industry recovery from flooding in Thailand last year that closed hard-drive factories and left supplies short. Part may also be owed to Seagate gradually proving that it can profit from the rise of iPhones and similar devices rather than fall victim.

At its current stock price, Seagate doesn’t need to provide world-beating growth to offer handsome returns for investors. Last quarter, the company spent a whopping $1.2 billion to repurchase its shares — that’s 10% of its current stock market value. And Seagate exited the quarter with $2.2 billion in cash and equivalents, up from $2 billion the prior quarter.

Share repurchases reduce a company’s share count and can increase the value of its remaining shares, but they work best in cases where shares are cheap. Seagate looks to be getting an excellent deal on its repurchases, and the pace of its program is as aggressive as they come.

The stock also carries a dividend yield of 4.3%, more than double the S&P 500 index’s yield.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (4 of 4)

View all Comments »
    • True, Bob, SSDs are the future, but not for data centers. They’re much too costly and their speed advantage drops when used in large RAIDs. And, on top of that, their shelf life is typically much shorter. STX is a good bet.

    • From the article:

      Data centers have endless demand for hard drives, which hold a sizable lead over flash drives (which Seagate also sells) when it comes to storage capacity and reliability.

    • I disagree, the life of hard drives is over, SSD is the future.
      Seagate days are numbered.

    • I bought STX last October at $10. After the stock price doubled I sold off half, basically getting my current shares for free. The price has continued to climb, and I also get a 10% dividend yield based on my cost basis.

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

Tokyo Markets Close in:

need to know
Activision, United rally on S&P 500 inclusion
Amgen gets FDA OK for cholesterol treatment
Icahn discloses stake in Freeport McMoRan
Autodesk beats earnings expectations
GameStop tops expectations; shares rise
Bank of New York Mellon tech woes hit prices
Wall Street’s missing a closed-end bargain

The happiest — and most miserable — countries on earth
This is the happiest country on earth


What should China do to fix its economy?
What should China do to fix its economy?
Analysts dismiss fears of a China hard landing
‘Loch Ness monster’ and a mysterious rally
China fears trigger emerging market outflows

Apple closes in on Fitbit as world's biggest wearables company
Apple closes in on Fitbit in wearables

Apple to host Sept. 9 product event

How momentum investing could go out of style
Momentum investing could be going out of style

These are the best jobs for millennials
These are the best jobs for millennials


Wal-Mart explains decision to stop selling some guns

One billion people logged onto Facebook Monday in new company milestone
1 billion people used Facebook in one day


Poll shows Biden running stronger than Clinton
Republican wants more than the sequester

Donald Trump says he’s OK with raising taxes on himself
Trump: I’m OK with raising taxes on myself

Bezos is clear about what Amazon’s culture is

10 fall beers with absolutely no pumpkin in them
10 fall beers with absolutely no pumpkin in them

Sorry, Uber, but this is the end of the IPO party

Star-studded content up Netflix’s sleeve
'Mr. Robot' season finale postponed

Jim Rogers: Don’t rule out a commodity bull run
Commodities are ripe for a rebound

How the media just can’t spot economic crisis

6 ‘services’ that help hackers get rich

4 things you didn’t know could be hacked
How vulnerable are U.S. markets to hackers?


How to throw a  birthday party for under $100
Only half of Americans with kids have wills

Millennials are clueless about cellphone etiquette
Millennials realize growing up is hard to do

/conga/frontpage.html 353513

Markets »

171.98MDow Volume:
Avg Vol: 111.57M
Unchanged
150
Decliners
1105
Advancers
5358
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 16,655 +369 2.27%
Nasdaq
/quotes/zigman/12633936/realtime 4,813 +115 2.45%
S&P 500
/quotes/zigman/3870025/realtime 1,988 +47 2.43%
GlobalDow
/quotes/zigman/629063/realtime 2,372 +11 0.47%
Gold
/quotes/zigman/662444/delayed 1,127 +4 0.36%
Oil
/quotes/zigman/2331095/delayed 42.59 +0.03 0.07%
FTSE 100
/quotes/zigman/3173262/delayed 6,192 +213 3.56%
DAX
/quotes/zigman/2380246/delayed 10,316 +318 3.18%
CAC 40
/quotes/zigman/3173214/delayed 4,658 +157 3.49%
FTSE MIB
/quotes/zigman/1482176/delayed 22,201 +727 3.39%
IBEX 35
/quotes/zigman/2759620/delayed 10,290 +306 3.06%
Stoxx 600
/quotes/zigman/2380150/delayed 362 +12 3.46%
Asia Dow
/quotes/zigman/6959860/realtime 2,802 +49 1.79%
Nikkei 225
/quotes/zigman/5986735/delayed 19,045 +471 2.53%
Hang Seng
/quotes/zigman/2622475/delayed 21,839 +758 3.60%
Shanghai
/quotes/zigman/1859015/delayed 3,084 +156 5.34%
Sensex
/quotes/zigman/1652085/delayed 26,231 +517 2.01%
Singapore
/quotes/zigman/1709939/delayed 2,985 +40 1.35%
Euro
/quotes/zigman/16008136/realtime/sampled 1.12 0.00 0.03%
Yen
/quotes/zigman/16008150/realtime/sampled 121.20 +0.17 0.14%
Pound
/quotes/zigman/16008140/realtime/sampled 1.54 +0.00 0.11%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.72 +0.00 0.49%
DXY Index
/quotes/zigman/1652083/delayed 95.79 +0.02 0.02%
WSJ $ Idx
/quotes/zigman/41508961/realtime 88.25 -0.02 0.02%
U.S. 10yr
/quotes/zigman/15866666/realtime 2.19 +0.00 0.05%
German 10y
/quotes/zigman/15866409/realtime 0.75 +0.04 5.49%
Italy 10yr
/quotes/zigman/15866497/realtime 1.93 -0.05 2.73%
Spain 10yr
/quotes/zigman/15866444/realtime 2.06 -0.03 1.54%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.87 +0.02 1.11%
Japan 10yr
/quotes/zigman/15866525/realtime 0.39 0.00 0.84%
Crude Oil
/quotes/zigman/2331095/delayed 43 +0 0.07%
Gold
/quotes/zigman/662444/delayed 1,127 +4 0.36%
Corn
/quotes/zigman/7599553/delayed 378 +3 0.73%
DJIA F
/quotes/zigman/38649152/delayed 16,662 +12 0.07%
S&P F
/quotes/zigman/30356461/delayed 1,990 +0 0.02%
Silver
/quotes/zigman/3134148/delayed 15 +0 0.51%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 89.73 2.54 2.91%
AAPL /quotes/zigman/68270/composite 112.92 3.23 2.94%
GOOG /quotes/zigman/30194416/composite 637.61 8.99 1.43%
BAC /quotes/zigman/190927/composite 16.44 0.38 2.37%
C /quotes/zigman/5065548/composite 53.44 1.16 2.22%
F /quotes/zigman/264304/composite 13.56 0.35 2.65%
T /quotes/zigman/398198/composite 33.44 0.75 2.29%
BP /quotes/zigman/247026/composite 33.03 1.93 6.21%
GE /quotes/zigman/227468/composite 25.01 1.00 4.16%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
Please log in to view your watchlist
MarketWatch Portfolio

World News from MarketWatch

Rates »

5 yr CD
1.5%
2 yr CD
0.8%
1 yr CD
0.6%
MMA $10K+
0.3%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.62% 11.62% 11.53%
Business 12.85% 12.85% 12.85%
Student 13.14% 13.14% 13.14%
Balance Transfer 14.12% 14.12% 14.00%
Airline 15.10% 15.10% 15.15%
Reward 15.14% 15.14% 14.99%
Cash Back 15.27% 15.27% 15.26%
Instant Approval 18.00% 18.00% 17.93%
Bad Credit 22.73% 22.73% 22.48%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/19622165/composite BBRY+5.89%
  • /quotes/zigman/19815/composite AMGN+1.13%
  • /quotes/zigman/8669138/composite DWTI-28.79%
  • /quotes/zigman/107036/composite ULTA+1.39%
  • /quotes/zigman/68719/composite ADSK+1.77%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

MarketWatch will continue to provide the same important news and information you rely on every day. And, as a MarketWatch user, you will be able to enjoy:

  • Personalized news and quote email alerts
  • Editorial e-newsletters about personal finance, mutual funds and market-specific coverage
  • Premium newsletters by our market experts
  • Games, such as Virtual Stock Exchange and Beat the Darts
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