You Are Still Underestimating Cloud

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NEW YORK (TheStreet) -- There are two primary drivers for our current economic recovery.

One is oil, specifically fracked oil and gas. I think we have overestimated its importance, because fracked wells don't last. Their costs and depletion rates are high. They're a bridge and not the highway.

Second is cloud, the computing revolution that began in the last decade. I think cloud is the highway, and here's why.

Back when I started as a tech reporter in the 1980s, one theory held that computers could do just one thing at a time and could run just one operating system. When the Web was first spun, sites could go down if there was a rush of traffic to them. Cloud changes the paradigm. Distributed computing allows for infinite scale and parallel processing of jobs. Virtualization lets a computer run multiple operating systems, which allows for infinite scaling using the cheapest chips. [Read: 10 Black Friday Shopping Apps for the Unprepared] Google  (GOOG) and Amazon  (AMZN), to their credit, have pushed this idea to its extreme. Google has used cloud technology to become the low-cost provider of everything a computer can do. Amazon has used it to make cloud computing a commodity anyone can buy and use. Cloud is behind the social boom. Cloud is behind the mobile boom. Cloud elected Barack Obama, and then re-elected him. Cloud is behind the National Security Agency scandal. Cloud makes Healthcare.gov possible. Cloud is why Hewlett-Packard  (HPQ) fell from grace and why IBM  (IBM) and Microsoft  (MSFT) are following it. Cloud has created a barbel in computing. The computing middle class, what used to be called enterprise or client-server computing, with PCs connected to servers, is being replaced by centralized, scaled systems on one side and by smartphones and tablets on the other. [Read: Time to Think of Apple as a Global Luxury Brand] Investors first thought that cloud would primarily benefit the tool makers, companies such as Rackspace  (RAX), RedHat  (RHT), and VMware  (VMW), whose software is used in clouds. But even RedHat CEO Jim Whitehurst sought to disabuse people of that notion, saying last year that standard screws and bolts may have made the industrial revolution possible, but that planes, trains and automobiles made the profits. Most of the planes, trains and automobiles of cloud haven't been built yet, but already such companies as Facebook  (FB), Twitter  (TWTR) and Salesforce.com  (CRM) are showing the wisdom in what Whitehurst said. They, and device companies such as Apple  (AAPL), are reaping the biggest profits from the cloud era. Cloud has transformed computing from something you use to something you do. Computing is now literally "in the air," through cellular links and WiFi. New clouds are scaling, and so all kinds of things can be monitored through them, from cars and jet engines to the sprinklers on your lawn and the keys in your pocket. [Read: 'Must See' Chart: Worst Big Bank Stocks of 2013] A decade ago, on my personal blog, I called this The World of Always-On, because these applications run constantly in the background, just like the autonomic nervous system keeps your heart pumping without your thinking about it. Today it's called the Internet of Things. One reason I know we're in the early stages of cloud is because Oracle  (ORCL) has masterfully moved so many customers to what I call "faux cloud," systems that seem like cloud but are actually based on expensive, proprietary hardware and software. It has done this through Software as a Service, or SaaS. SaaS, built in a scaled way, delivers some but not all the savings of cloud. It lets big companies close data centers, rather than building their own private clouds. Companies such as Salesforce.com and NetSuite  (N) use this to tie customers to Oracle hardware and software while giving them the illusion that they've bought cloud. Does the distinction matter? Not to customers, but it's proof that there are more cloud savings to be had down the road. [Read: Travelers Are Putting Personal Data at Risk] Some of these savings are SaaS savings. When a system like Salesforce updates, all its customers get that update. Salesforce tools can be used to build new tools, speeding software development and application design. Some of these savings are cloud savings. Oracle has agreed to let Microsoft's Azure cloud handle some workloads. Oracle is evolving its product line in a cloud-like direction to improve its price performance. But for now, old-line vendors are being squeezed by the combination of cloud for new applications and SaaS for existing ones. The result is to make computing more productive and cost-effective, and to accelerate the pace of change. That's the key point for investors. Cloud computing, with its infinite scale, centrally managed applications, and wireless broadband connections, is transforming the world around us. Computing is no longer a limiting factor in economic growth. Imagination is a limiting factor, and programming is a limiting factor, but computing no longer is. [Read: Holiday Music Has a Cash Register Ring to It] Solar power, smartphones and wireless connections are quickly bringing all these capabilities within reach of billions of people who were priced out of earlier computing revolutions. Cloud's centralized structures are tempting leaders toward a new level of surveillance, and control over citizens, in the name of safety, security and national interest. Cloud has launched mankind into a new technological era, just as the Internet did in the 1990s, just as the PC did in the 1970s. All these eras build upon one another, and accelerate all kinds of change, both positive and negative, not just in business and media but in all areas of life. Cloud is this era's bequest to my children, and to yours. They will define cloud, and the Internet, as we defined the TV revolution our fathers built. That change has just begun.   At the time of publication, the author was long Apple, Google and IBM. Follow @DanaBlankenhorn This article was written by an independent contributor, separate from TheStreet's regular news coverage.

Cramer's 'Mad Money' Recap: Building Long-Term Wealth

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Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

This program last aired on Aug. 23.

NEW YORK (TheStreet) -- "Tonight is all about the big picture," Jim Cramer said on "Mad Money" as he dedicated the entire show to building wealth and learning how to augment your income, not just for a year or two but for the rest of your life.

Cramer said it's fruitless to think you can invest in stocks without a solid foundation for building long-term wealth beforehand. Having a good foundation is essential in a culture that doesn't teach financial literacy, he said. Before investing in stocks, Cramer said there are three things all investors must do. First, they must pay off all their credit card debt. Even the best of stock market gains will have a hard time competing with the 15%, 20% or 30% you're paying in credit card interest. Second, Cramer said every investor must have health insurance. Starting in 2014, Obamacare mandates penalties for not having health insurance, so every investor needs to get on board. Last but not least, Cramer said that every investor must have disability insurance. Without both health and disability insurance, he said, investors can get wiped out in an instant. That's why all three of these items are must-haves before considering investing in the stocks. Get Prepared Cramer's next step for building long-term wealth is preparing for retirement, preferably if you're in your 20s and have just started working. He said that planning for retirement involves a lot more than just blindly putting a little money away in an Individual Retirement Account or a 401(k) -- it involves having an active hand in both how much you save and where it goes. That's not to say investors shouldn't invest in an IRA and 401(k), he said. They should, but there's a lot more to it than just having an automatic deduction from your paycheck. Cramer one again preached the values of staying diversified, at least as much as your 401(k) will allow you to be. Cramer also warned that 401(k) savings should never be concentrated in your employer's stock. As anyone from the dot-com collapse will tell you, investing only in your own company can be deadly. The collapse of Enron is another perfect example of what can go wrong if you're not paying attention.

Slow and Steady

Getting rich quick is always alluring, said Cramer, but in fact the best way to build wealth is not overnight, it's slowly and carefully over time. That's why accounts like IRAs and 401(k)s should always be your first line of offense. Their tax-deferred nature and employer contributions may seem small and insignificant now but over time they'll add up big.

Cramer said it's also possible to be too cautious, too prudent and too risk-adverse. You should invest for retirement, he continued, not save for it. Savings implies just socking money away in something with a low return. Unfortunately, that strategy rarely works.

When saving for retirement, many investors may think bonds are the way to go since they afford less risk. But loading up on bonds in your 20s, 30s and 40s because you fear risk will never allow you to generate enough money to live comfortably. It's not enough to rely on a 3.9% Treasury bond, because those vehicles rarely keep up with inflation, let alone allow you to get ahead of the curve, Cramer advised. Adjust as Necessary So investors have their credit cards paid off, they have health and disability insurance, they're contributing to their 401(k)s and they've decided to take on a little risk and invest in stocks rather than bonds. Now they'll get rich, right? Well, not quite. Cramer said conventional wisdom will tell you to just passively have a percentage of your paycheck sent to your 401(k) every month. But if you think about it, that doesn't really make a lot of sense. After a big market rally, when stocks are expensive, ideally you'd want to invest less that month. Conversely, after a big market selloff, you'd ideally want to back up the truck and buy all you can. Cramer said any time the S&P 500 falls by 10%, investors should be doubling down and buying twice what they normally would. Will this strategy make a big difference over four or five years? Probably not, he admitted. But over 40 or 50 years, this alone could mean tens or even hundreds of thousands of extra dollars in your account. "That," Cramer said, "is the right way to manage your retirement portfolio." Take Control For as great as 401(k) accounts can be, however, Cramer said they do have plenty of downsides. First, many have high management fees and administration costs that eat away at your savings. But more important, they lack a choice in investment options and that means a big loss of control. Investors ideally want a well-diversified portfolio of individual stocks, said Cramer, and 401(k)s just don't offer that level of granularity. Fortunately, IRAs do, which is why Cramer recommends only investing in a 401(k) plan to meet the employer's match, then putting as much as you're eligible for into an individual IRA, which you can control. The limits on individual IRAs are $5,500 a year if you're under 50 and $6,500 a year if you're over 50, an investment that's definitely worth making. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned. Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money." None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser. Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

Gas prices may fall on Iran deal

Click here to see gas prices in your state.

NEW YORK (CNNMoney) The agreement to ease economic sanctions on Iran won't have a major impact on gas prices in the near term, but it could mean significantly lower gas prices by next summer.

In fact, analysts expect gas prices to decline after the big Thanksgiving travel week regardless of the Iran deal.

Iran entered into a preliminary agreement over the weekend with the United States, Russia, UK, China, France and Germany to limit its nuclear program in exchange for lighter economic sanctions. Oil prices were down Monday morning on the news. And that may be the start of a larger, long-term price decline that could occur as a result of the deal, according to Oppenheimer oil analyst Fadel Gheit.

"The market is trying to tell us, the more good news coming from Iran, the lower oil prices will be. But it's not going to happen overnight," he said.

Gheit said oil traders will wait to see if the deal goes through. Even if sanctions are eased, it will take time for new foreign investment to reach Iran and spur production there.

"But once the sanctions are removed, I think we'll all see tremendous increase in oil and gas production that is good for the consumer and the global economy," he said. "If the deal goes through with no glitches, I truly believe we could see gasoline down 40-50 cents a gallon by next summer."

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Tom Kloza, chief oil analyst with the Oil Price Information Service and GasBuddy.com, agrees that the impact on U.S. gas prices will be minimal in the near term.

"It's not a major game changer for the next six months," he said.

But he says that U.S. drivers will see the lowest pump prices in several years before Christmas anyway.

The average price of a gallon of self-serve regular gas stands at $3.28 a gallon, up about 7 cents in just last seven days. Only about 8% of stations nationwide reported prices under $3 per gallon, c! ompared to more than 20% just last week.

The recent run-up in prices has been due to short-term factors, including problems at some Gulf Coast refineries that are nearly resolved, according to Kloza.

But the average price for gas is still down 15 cents, or about 4%, compared to a year ago. The boost in U.S. oil production and a decline in U.S. demand due to more efficient vehicles has removed the threat of very expensive gas.

Only 1% of stations nationwide now charge more than $4 a gallon, compared to 10% that did six months ago.

5 Small-Cap Stocks Poised to Pop When the Shutdown Ends

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While the government shutdown has been tough for most of the market, a handful of stocks in certain industries have been hit particularly hard by the budget impasse in Washington D.C.

There is good news, though — once the political posturing is done, the budget is approved, and the debt-limit raised, the hardest-hit names should rally back equally well. Budget approval is how this will all end sooner or later, so a recovery is simply a matter of time.

These five small-cap stocks are particularly well-positioned to snap back from their recent slump.

DryShips

How does the government’s shutdown affect maritime shipping demand? It doesn't … at least not directly.

However, there’s an indirect consequence on the shipping industry when certain government offices are shuttered. The closure of the National Agriculture Statistic Service, for instance, has meant farmers and commodity buyers don’t have access to their usual demand, supply, and price reports. In turn, since these growers don’t know what their goods are worth, they’re not selling many, if at all. Ditto on the buying end.

But what does that have to do with maritime shipping, and dry-bulk shipping in general? If the food commodity market has ground to a halt, then the need to ship dry-bulk goods has also been crimped. Once the key agricultural offices reopen and price information starts flowing again, demand for transportation services will ramp up.

First in line for that rebound is small cap shipper DryShips (DRYS), which has seen its shares slide 13% since their late-September peak.

American Public Education

As if the for-profit education sector needed any more headaches — after a wave of accreditation scrutiny earlier in the year — the shutdown may have thrown them out of the frying pan and into the fire.

See, with the shutdown now lasting more than a week, the number of people processing federal aid has been reduced due to furloughs, which in turn means there’s a backlog of aid applications. It won’t affect students who are already enrolled in the fall semester; they’ve all received their aid already. Not every for-profit school follows the traditional two-semester calendar though, and a few of them cater to a student base that relies heavily on this now-backlogged aid.

American Public Education (APEI) has been one of the biggest victims of the DOE’s partial shutdown. The 41,000 individual online classes scheduled to begin a few days ago were reduced by 13,000 when many military and government employees lost their tuition assistance as of October 1st.

APEI has been under plenty of selling pressure of late, but the mere whiff of a budget deal has already prodded the stock upward again. Given time for the effects of an approved budget to kick in, the stock should continue to climb as more students flock back to school, spurred by freely flowing financial aid.

Lifeway Foods

Just for the sake of clarity, though the budget-related shutdown isn’t helping dairy farms, it’s not the lone reason dairy companies have been struggling of late. Mostly they’re the victims of a soon-to-expire (on December 31st) dairy-price stabilization bill.

The primary worry is that Congress will greatly alter the usual terms of the bill in order to come to some sort of budget consensus, leaving the dairy business unable to support itself. The lesser worry is that the shutdown will last through the December 31st deadline, preventing the introduction of any kind of new farm bill in the meantime, which means law from 1949 will be re-instituted by default. Either way, the price of milk for consumers would theoretically skyrocket and end up pricing dairy products right out of the market for these small-cap stocks.

Once the budget impasse is wrapped up though, a new Dairy Stabilization Act should be right around the corner. That’s good news for a small-cap company like dairy farm Lifeway Foods (LWAY), which saw its shares fall nearly 25% over the course of August and September when the budget impasse was shaping up.

Carrols Restaurant Group

It sounds a little too obvious to be true, but apparently, furloughed employees really do stop eating out when they’re not receiving a paycheck, even though they can remain relatively confident they’ll be back to work sooner than later. History says about three weeks’ worth of shutdown starts to take a measurable toll on the nation’s personal consumption.

Larger restaurant chains can handle the lull. A less liquid small-cap name like Carrols Restaurant Group (TAST), however, feels the pain pretty intensely. That’s why shares are down about 8% this month.

Once those 800,000 furloughed employees start getting a paycheck again though, Carrols shares should work their way right back up to where they came from.

The Ryland Group

While most of the federal government’s mortgage loan-guarantee programs (like the FHA) are still operating, many of them are operating on thinner staff, meaning it’s taking longer to complete the lending process. And, for certain loan types and agencies that require annual funding (like FHA’s multifamily housing office or the USDA), they’re not backing any mortgage loans until further notice … which is to say, until the government’s bank account is refilled.

The reduction in the number of loan approvals as well as a reduction in the length of time to get a loan approved certainly hasn’t helped homebuilders like The Ryland Group (RYL); RYL shares are down almost 5% in October.

But the bigger threat to Ryland is the sheer uncertainty of buying a home in a foggy real estate environment. Once the shutdown ends and the lending gears get oiled again, however, Ryland and other small cap stocks in the industry should perk right back up.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.

Market Wrap For November 22: Markets Finish The Week On a Positive Note

While not offering any specifics, investors seemed comfortable enough with Dennis Lockhart's comments to end the week on a positive note.

While speaking to CNBC the Atlanta Fed chief commented that tapering will begin "when the economy is ready and when the market is ready." Lockhart also noted that "we are going to remain accommodative for quite some time, in all likelihood for a number of years."

The Dow gained 0.34 percent, closing at 16,064.77. The S&P 500 gained 0.50 percent, closing at 1,804.76. The Nasdaq gained 0.57 percent, closing at 3,991.65. Gold lost 0.07 percent, trading at $1,242.70 an ounce. Oil lost 0.66 percent, trading at $94.81 a barrel. Silver lost 0.45 percent, trading at $19.84 an ounce.

News of Note

The Third Quarter E-Commerce Retail Sales rose 3.6 percent quarter over quarter to $67.0 billion. Online sales accounted for 5.9 percent of all retail sales in the quarter, up from 5.2 percent a year ago.

John Paulson revealed to clients he won't be allocating additional investment funds towards gold. His firm will maintain current exposure and out of the money option positions will expire worthless. Paulson's fund is alleged to be valued at only $370 million and is down over 60 percent year to date.

Equities-Specific News of Note

Comcast (NASDAQ: CMCSA) and Charter Communications (NASDAQ: CHTR) are reported to be considering a joint bid for Time Warner Cable (NYSE: TWC). Comcast gained 4.36 percent, closing at $49.52. Charter Communications gained 6.06 percent, closing at $134.66. Time Warner Cable was the biggest winner of the group, gaining 9.92 percent, closing at $132.85.

Related: Charter Continues Talks on Financing for Time Warner Cable Bid

BlackBerry (NASDAQ: BBRY) has apparently "blown" a chance of finding a suitor to take the company private. The CEO of a leading Canadian Pension fund Albert Investment Management Corp indicated that BlackBerry hasn't provided re-assurance that it has a successful turn around plan. Shares gained 3.31 percent for the day, closing at $6.24. Shares traded as low as $6.03 in today's trading session, not far from its 52 week lows of $5.98.

Healthcare and pharmaceutical giant Novartis (NYSE: NVS) intends to buy back $5 billion in stock over two years. The company also plans to start Phase III trials of its breast cancer treatment, LEE011 next month. Shares were relatively flat for the day, gaining 0.68 percent to close at $79.71.

After shares of GameStop (NYSE: GME) declined Thursday, and Friday morning analysts at Needham upgraded the company's shares to Buy from Hold. The bullish nod helped boost shares by 2.15 percent, closing at $49.85.

Stanley Druckenmiller has labeled IBM (NYSE: IBM) as one of the "more high probability shorts" he has seen in years. Shares of "Big Blue" lost 1.54 percent for the day, closing at $181.29.

Shares of FAB Universal (NYSE: FU) have been halted premarket, and remained as such throughout the duration of the trading day. There is no indication when shares would resume trading.

Bill Ackman failed to make an impression during his presentation at the Robin Hood Investors Conference even after vowing to "take the fight to the end of the earth." Shares of Herbalife (NYSE: HLF) erased early market losses and gained 4.69 percent, closing at $71.63.

Related: Bill Ackman to Renew Herbalife Assault Friday

Sheryl Sandberg revealed in an interview that U.S. teen usage of Facebook (NASDAQ: FB) remains stable and the majority of U.S. teens use the platform every day. Sandberg also announced that the ad business can continue growing as the company improves its ad quality and targeting capabilities. Shares of the social media company ended the day lower by 1.01 percent, closing at $46.23.

Yum Brands (NYSE: YUM) announced a further $750 million stock buyback allowance in addition to declaring a quarterly dividend of $0.37 a share. Shares hit a new 52 week high of $78.68 before settling the day at $78.30, higher by 4.51 percent for the day.

Top Investments In 2014

3D Systems (NYSE: DDD) inked a deal will Google's (NASDAQ: GOOG) Motorola division to make smartphone enclosures and modules for Project Ara. Shares of 3D Systems gained 1.05 percent to close at $73.27 while Google shares were little changed, down 0.18 percent to close at $1,032.22.

Wells Fargo downgraded two steel stocks this morning due to increasing amounts of cheaper imports that have been flooding the market. U.S. Steel (NYSE: X) and Nucor (NYSE: NUE) were downgraded to a $17 to $21 range and a $50 to $55 range respectively. U.S. Steel lost 2.98 percent for the day closing at $26.34 while Nucor lost 2.05 percent, closing at $51.96.

Winners of Note

500.com (NYSE: WBAI) rose percent after its first day of trading. Shares were originally priced at $13 but closed the day at $20.00 representing a gain of 53.85 percent after trading began at $20.00.

Biogen (NASDAQ: BIIB) won a new active substance designation for Tecfidera, implying generic competition won't be possible. Deutsche Bank raised its price target to $340 from $270. Shares rose 13.13 percent, closing at $285.58

Ariad Pharmaceutical (NASDAQ: ARIA) saw its shares surge 35.13 percent following positive comments from European Regulators that will allow the company to continue selling its Iclusig drug. Shares closed at $3.77, well off its 52 week highs of $24.59

Decliners of Note

Shares of Intel (NASDAQ: INTC) declined following two negative reports from analysts. Bernstein Research noted that the company's 2014 outlook was "likely not quite as good as some had hoped." Separately, Goldman Sachs (NYSE: GS) is also unhappy with the company's guidance and $11 billion capex budget. Jefferies, the lone bull at the table believes the company offers a compelling story as its product line is appropriate to combat new market realities. Intel closed the day lower by 5.41 percent, closing at $23.86.

Related: Mixed Response from Analysts Following Intel's Investor Day

Lumber Liquidators (NYSE: LL) tumbled, and tumbled fast following Whitney Tilson presenting the company as a short idea at the Robin Hood Investors Conference. Shares immediately fell almost nine percent, then continued lower throughout the afternoon before closing the day lower by 11.78 percent at $101.77.

The Fresh Market (NYSE: TFM) plunged 18.91 percent closing at $40.87 following the company's disappointing earnings report Thursday. The company missed on both EPS and revenues front.

Related: Fresh Market Shares Respond Following Disappointing Q3 Earnings

Violin Memory (NASDAQ: VMEM) dove following its third quarter results and guidance that was released last night. The company reported a third quarter EPS loss of $0.63 while the Street was looking for a loss of $0.47. Revenue of $28.3 million fell short of the Street's expectation of $31.7 million. Shares were downgraded by J.P. Morgan, (NYSE: JPM) Deutsche Bank (NYSE: DB) and Pacific Crest. Shares lost 48.33 percent, closing at $3.10.

Earnings of Note

Foot Locker (NYSE: FL) announced third quarter EPS of $0.68, beating the Street's forecast of $0.66. Revenue also beat coming in at $1.62 billion, ahead of the Street's $1.58 billion. Shares hit new 52 week highs of $39.15 before closing the day at $38.27, representing a 4.11 percent for the day.

Quote of the Day

"It's Friday, Friday, Gotta get down on Friday, Everybody's lookin' forward to the weekend!"

Posted-In: 3D Systems ARIAD Pharmaceuticals Bill Ackman Biogen Blackberry Charter Communications Comcast Dennis Lockhart Deutsche Bank dividends E-Commerce retail sales FAB Universal Facebook foot locker gamestop Generic drugs Goldman Sachs halted stock Herbalife Iclusig Intel Jefferies John Paulson Lumber Liquidaters Motorola Needham Novartis Project Ara Robin Hood Investors Conference Share buyback Sheryl Sandberg Tecfidera Teens the fresh market Time Warner Cables Violin Memory Whitney Tilson Yum BrandsEconomics Federal Reserve After-Hours Center Markets Best of Benzinga

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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10 Best Stocks To Own For 2014

A group led by real estate investor Nicholas Schorsch is acquiring independent broker-dealer First Allied Securities from Lovell Minnick Partners “because we believe in the alternative space,” Schorsch said Thursday, in an interview with AdvisorOne.

“We looked at First Allied’s business specifically for what it offers RCAP Holdings, not for distribution of product,” he said. “We sell so much …, have a 51% market share and have raised probably $4 billion this year … we do not need more advisors selling our products.”

Schorsch (left) is chairman and CEO of RCAP Holdings, which owns Realty Capital Securities, a wholesale broker-dealer and affiliate of American Realty Capital Properties (ARCP), as well as several other entities.

10 Best Stocks To Own For 2014: bebe stores inc.(BEBE)

bebe stores, inc. engages in the design, development, and production of women?s apparel and accessories. Its products include a range of separates, tops, dresses, active wear, and accessories in career, evening, casual, and active lifestyle categories. The company markets its products under the bebe, BEBE SPORT, bbsp, and 2b bebe brand names targeting 21 to 34-year-old woman. As of July 2, 2011, it operated 252 retail stores, and an online store at bebe.com in the United States, the District of Columbia, Puerto Rico, the U.S. Virgin Islands, Japan, and Canada, as well as 60 international licensee operated stores in south east Asia, the United Arab Emirates, Israel, Russia, Mexico, and Turkey. The company was founded in 1976 and is headquartered in Brisbane, California.

Advisors' Opinion:

• [By CRWE]

  bebe stores, inc. (Nasdaq:BEBE) reported that its Board of Directors declared bebe�� quarterly cash dividend of $0.025 per share. The dividend is payable on December 4, 2012 to shareholders of record at the close of business on November 20, 2012

• [By Rich Smith]

  This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense and which ones investors should act on. Today, our headlines include upgrades for both industrialist Aixtron (NASDAQ: AIXG  ) and fashionista bebe stores (NASDAQ: BEBE  ) . But the news isn't all good, so let's start off with a few words on...

10 Best Stocks To Own For 2014: Energold Drilling Corp.(EGD.V)

Energold Drilling Corp., together with its subsidiaries, provides contract diamond drilling services to the mining and mineral exploration industries primarily in Mexico, the Caribbean, Central America, South America, Africa, and Asia. As of December 31, 2010, it owned fleet of 103 drilling rigs. The company also engages in the acquisition, exploration, development, and mining of mineral properties, primarily silver, lead, zinc, and gold properties located in Mexico and the Dominican Republic. In addition, it manufactures drilling rigs and associated equipment for water well, mineral exploration, and geotechnical drilling. Energold Drilling Corp. is headquartered in Vancouver, Canada.

Top 5 Oil Companies To Watch In Right Now: ConocoPhillips(COP)

ConocoPhillips operates as an integrated energy company worldwide. The company?s Exploration and Production (E&P) segment explores for, produces, transports, and markets crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids. Its Midstream segment gathers, processes, and markets natural gas; and fractionates and markets natural gas liquids in the United States and Trinidad. The company?s Refining and Marketing (R&M) segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels. Its Chemicals segment manufactures and markets petrochemicals and plastics. This segment offers olefins and polyolefins, including ethylene, propylene, and other olefin products; aromatics products, such as benzene, styrene, paraxylene, and cyclohexane, as well as polystyrene and styrene-butadiene copolymers; and various specialty chemical products comprising organosulfur chemicals, solvents, catalyst s, drilling chemicals, mining chemicals, and engineering plastics and compounds. The company?s Emerging Businesses segment develops new technologies and businesses. It focuses on power generation; and technologies related to conventional and nonconventional hydrocarbon recovery, refining, alternative energy, biofuels, and the environment. This segment also offers E-Gas, a gasification technology producing high-value synthetic gas. ConocoPhillips was founded in 1917 and is based in Houston, Texas.

Advisors' Opinion:

• [By Associated Press]

  ANCHORAGE, Alaska (AP) -- ConocoPhillips (NYSE: COP  ) Alaska announced Wednesday it will not drill in Arctic waters off Alaska's northwest shore in 2014.

• [By Matt DiLallo]

  So far this year we've seen major discoveries from the likes of ConocoPhillips (NYSE: COP  ) , Chevron (NYSE: CVX  ) and Anadarko (NYSE: APC  ) . The Shenandoah discovery by ConocoPhillips and Anadarko encountered an incredible 1,000 feet of net pay, which is the portion that is commercially viable. That's more than double the size of ConocoPhillips' Coronado discovery which is partnered with Chevron. These discoveries are what's driving the industry's increased pace of investment and why it would appear that the Gulf's oil production is likely headed to new heights.

• [By Arjun Sreekumar]

  Opportunities for oilfield services firms
  Not surprisingly, Halliburton and other major energy companies view Chinese shale gas development as a significant opportunity for future growth. Many of them, including Baker Hughes (NYSE: BHI  ) , ConocoPhillips (NYSE: COP  ) , and Schlumberger (NYSE: SLB  ) , have already developed strategic relationships with Chinese firms to better evaluate the nation's shale gas potential.

10 Best Stocks To Own For 2014: Somaxon Pharmaceuticals Inc.(SOMX)

Somaxon Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the in-licensing, development, and commercialization of proprietary branded products and late-stage product candidates for the treatment medical conditions in the central nervous system therapeutic area. Its product includes Silenor for the treatment of insomnia characterized by difficulty with sleep maintenance. The company sells its products to wholesale distributors in the United States. Somaxon Pharmaceuticals, Inc. was founded in 2003 and is headquartered in San Diego, California.

Advisors' Opinion:

• [By CRWE]

  Somaxon Pharmaceuticals, Inc. (Nasdaq:SOMX), a specialty pharmaceutical company, will release its financial results for the third quarter ended September 30, 2012 on Wednesday, October 31, 2012 after the close of the U.S. financial markets.

10 Best Stocks To Own For 2014: SportingBet.com(SBT.L)

Sportingbet Plc operates as an online sports betting and gaming company. The company offers online sports betting services, including sportsbook; and gaming products comprising casino and poker, as well as other games, such as roulette, blackjack, slots, and live dealer games. It operates Websites in 21 languages; and accepts bets in 20 currencies. The company is also involved in telephone and mobile betting businesses. It operates in Europe, Australia, Canada, Brazil, Chile, and South Africa. The company was founded in 1998 and is based in London, the United Kingdom.

10 Best Stocks To Own For 2014: Kandi Technolgies Corp.(KNDI)

Kandi Technologies Corp., through its subsidiaries, engages in the design, development, manufacture, and commercialization of off-road vehicles, motorcycles, mini-cars, and special automobile related products. Its off-road vehicles include all-terrain vehicles, specialized utility vehicles, and go-karts. The company sells its products through third-party and independent distributors in the People?s Republic of China, Asia, North America, Europe, and Australia. Kandi Technologies Corp. is based in Jinhua, the People?s Republic of China.

Advisors' Opinion:

• [By Rick Munarriz]

  Shares of China's Kandi Technologies (NASDAQ: KNDI  ) soared 36% yesterday on news that China had approved the company's first electric sedan.

• [By Sean Williams]

  Rotten Kandi
  This year has certainly been the year of going green, with anything solar or electric-vehicle-based shooting to the moon. The latest in a serious of rocket stocks is China's Kandi Technologies (NASDAQ: KNDI  ) , which has basically doubled in just the past two weeks following the Chinese government's approval of the company's first all-electric sedan. Given the success of Tesla Motors (NASDAQ: TSLA  ) in the U.S., many are suspecting that Kandi will be a surefire winner with Geely Automotive in its corner as a partner. As for me, I'm not as convinced.

• [By Teresa Rivas]

  Kandi Technologies (KNDI) was soaring 17.5% at recent check as the auto maker announced that the Chinese government will offer subsidies for electric cars.

  The long-awaited policy covers not only pure electric vehicles, but also plug-in hybrid electric and fuel cell battery cars, and runs through 2015. According to the report, the government would offer up to RMB 60,000 (approximately USD 9,800) for the purchase of an all-electric passenger vehicle and up to RMB 500,000 (approximately USD 81,700) for the purchase of an electric bus.

  However, the news did little to stop Tesla (TSLA), which was revving toward fresh all-time highs, up more than 5% to $174.78.

  Nor did news Wednesday that Volkswagen plans to have electric vehicles for sale in the U.S. by 2015.

  However, Tesla plans to have its own innovations to offer not long after that year, as CEO Elon Musk said that it is designing a self-driving car that will be available within the next three years. The company is obviously taking aim at Google (GOOG), so far the leader in auto-pilot cars.

  Deutsche Bank boosted its price target for Tesla to $200 yesterday. Also, Northland Securities is making positive comments on the stock today, reports Briefing.com.

10 Best Stocks To Own For 2014: Cache Inc.(CACH)

Cache, Inc., together with its subsidiaries, operates as a mall and Web based specialty retailer of women?s lifestyle sportswear and dresses in the United States. It offers eveningwear; casual and daytime sportswear, including tops, bottoms, and dresses; and accessories, such as jewelry, belts, and handbags under the Cache brand name. The company also provides its products online through its Web site, cache.com. As of March 22, 2012, it operated 267 stores in 43 states, Puerto Rico, and the U.S. Virgin Islands. Cache, Inc. was founded in 1975 and is headquartered in New York, New York.

10 Best Stocks To Own For 2014: North Central Bancshares Inc.(FFFD)

North Central Bancshares, Inc. operates as the holding company for First Federal Savings Bank of Iowa that offers banking services in the central, north central, and southeastern parts of Iowa. The company offers various deposit products, including noninterest-bearing demand accounts, interest bearing accounts, savings accounts, money market savings, certificates of deposit, and individual retirement accounts. It also provides a loan portfolio of one-to-four family residential real estate loans, multifamily residential and commercial real estate loans, and construction and land development loans, as well as consumer loans, which consists primarily of one-to-four family second mortgage loans, including home equity lines of credit. In addition, the company offers real estate title abstracting services in Webster and Boone counties of Iowa. Further, it sells life insurance on mortgage loans, credit life and accident, and health insurance on consumer loans; and annuity product s, mutual funds, and other noninsured products. Additionally, the company engages in acquiring, developing, and managing low and moderate income housing for residents of the Fort Dodge area. It operates 10 branch offices in Fort Dodge, Nevada, Ames, Perry, Ankeny, Clive, West Des Moines, Burlington, and Mount Pleasant, Iowa. The company was founded in 1995 and is headquartered in Fort Dodge, Iowa.

10 Best Stocks To Own For 2014: VeriSign Inc.(VRSN)

VeriSign, Inc. provides Internet infrastructure services to various networks worldwide. The company provides domain name registry services and infrastructure assurance services. It offers registry services that operate the authoritative directory of various .com, .net, .cc, .tv, and .name domain names, as well as the back-end systems for various .jobs and .edu domain names; and network intelligence and availability services that provide infrastructure assurance to organizations comprising Verisign iDefense security intelligence services, managed domain name system services, and distributed denial of service mitigation. VeriSign, Inc. was founded in 1995 and is headquartered in Reston, Virginia.

Advisors' Opinion:

• [By Lisa Levin]

  VeriSign (NASDAQ: VRSN) shares gained 0.47% to touch a new 52-week high of $56.07. VeriSign's PEG ratio is 1.54.

  Micron Technology (NASDAQ: MU) shares reached a new 52-week high of $19.575. Micron's trailing-twelve-month revenue is $9.07 billion.

• [By Monica Gerson]

  VeriSign (NASDAQ: VRSN) shares surged 0.41% to touch a new 52-week high of $51.51. VeriSign's PEG ratio is 1.65.

  Tuesday Morning (NASDAQ: TUES) shares gained 4.87% to create a new 52-week high of $14.63. Tuesday Morning shares have jumped 110.09% over the past 52 weeks, while the S&P 500 index has gained 18.17% in the same period.

• [By Lee Jackson]

  The Lazard trading desk said that active traders may want to look at software stocks that still had unusually high short interest. Those included Concur Technologies (NASDAQ: CNQR), Tangoe Inc. (NASDAQ: TNGO), Jive Software (NASDAQ: JIVE), Marketo Inc. (NASDAQ: MKTO), VeriSign Inc. (NASDAQ: VRSN) and VMware Inc. (NYSE: VMW). Stocks with high short interest can explode to the upside if the company gets back on track and short sellers are forced to cover.

• [By Monica Gerson]

  VeriSign (NASDAQ: VRSN) shares rose 0.50% to touch a new 52-week high of $50.69. VeriSign's PEG ratio is 1.60.

  Zix (NASDAQ: ZIXI) shares reached a new 52-week high of $4.82. ZixCorp's trailing-twelve-month profit margin is 18.08%.

10 Best Stocks To Own For 2014: Whitehaven Coal Ltd (WHITF.PK)

Whitehaven Coal Limited (Whitehaven) is engaged in the development and operation of coal mines in New South Wales. During the fiscal year ended 30 June 2012 (fiscal 2012), Whitehaven Coal Limited and its controlled entities continued development at the Narrabri underground mine. The Company operates in two segments: Open Cut Operations and Underground Operations. The Company�� Gunnedah operations include the Tarrawonga (70% owned by Whitehaven), Rocglen (100% owned by Whitehaven), and Sunnyside (100% owned by Whitehaven) open cut mines and the Gunnedah coal handling and preparation plant and train load out facility (CHPP��(100% owned by Whitehaven). The Werris Creek mine is 100% owned by Whitehaven. During fiscal 2012, the Company produced 4.28 million tons per annum of saleable coal. On May 1, 2012, the Company acquired Boardwalk Resources Limited. On May 2, 2012, the Company acquired Aston Resources Limited. On June 20, 2012, it acquired Coalworks Limited.

Shelby brings back GT to hop up Ford Mustang

LOS ANGELES -- The Shelby GT is back -- and it's hotter than ever.

For Ford Mustang fanciers who want more power and to have their car stand out from the crowd, the aftermarket firm founded by the late automotive entreprenuer Carroll Shelby has put the Shelby GT back in its lineup. It was unveiled Thursday at the Los Angeles Auto Show.

How powerful? The stock 2014 Mustang GT is boosted to 430 horsepower or by adding a supercharger and calling it a GT/SC, to 624 horsepower. At a demonstration of the car for USA TODAY last week, the car was easily capable of burning rubber and tearing through corners with ease.

"You can go from a boulevard cruiser to a boulevard bruiser all in one," says Gary Patterson, a vice president of Shelby. The modifications "really substantially change the performance characteristics of the car."

Hot China Companies For 2014

The new Shelby GT harkens back to 2007 when Shelby, through an agreement with Ford Racing, customized Mustangs at its Las Vegas shop to be transformed into Shelby GTs. It is not to be confused with Ford's own Shelby GT 500, a trim level of the present Mustang.

Now, drivers have to buy a Ford Mustang GT, which lists for a starting price of $30,900, before delivery charges, and either arranged to have it shipped to Shelby or take one there themselves. It can become a Shelby GT for an additional $14,995 or a GT/SC for $27,995.

The upgrades include a racing suspension, special exhaust system, a short-throw shifter, racing stripes and other touches. Although modified, the cars are designed to be legal in all states and don't need to run on special, and expensive, racing fuel.

Best Heal Care Stocks To Own For 2014

One of the best buys in tech today is Baidu� (NASDAQ: BIDU  ) , and that's for good reason. Baidu does have a lot going for it: The company trades at a lower valuation than Google� (NASDAQ: GOOG  ) , yet commands a greater percentage of its domestic search market. And given the growth trends in China and the government's favoritism for domestic companies, Baidu seems like a sure-fire investment ready to pop.�

However, should investors divest from Google to fund this new investment?

Not so fast. In the video below, Fool contributor Kevin Chen explains why -- even though Google may not be a great play on Chinese growth -- it is still an excellent way to profit over the long term.

With all that said, Google is still struggling to adapt to an increasingly mobile world. Despite gaining an enviable lead with its Android operating system, the stock market isn't completely sold on its future prospects. That's why it's more important than ever to understand each piece of Google's sprawling empire. In The Motley Fool's new premium research report on Google, we break down the risks and potential rewards for Google investors. Simply click here now to unlock your copy of this invaluable resource.

Best Heal Care Stocks To Own For 2014: Samsung Electronics Co Ltd (SSNLF)

Samsung Electronics Co., Ltd. mainly engaged in the production of consumer electronic products. It operates in two divisions: DMC division, which is divided into consumer electronics (CE) and information technology & mobile communications (IM) businesses, as well as DS division, which is divided into semiconductor and liquid crystal display (LCD) businesses. Its CE business engages in the production of color televisions (CTVs), monitors, air conditioners, refrigerators and others. Its IM business engages in the production of printers, computers, handhold phones (HHPs) such as feature phones, smart phones and others, and network systems, among others. Its semiconductor business engages in the production of semiconductors, such as memories, system large scale integrated circuits (LSIs) and others. Its LCD business engages in the production of thin film transistor (TFT) LCDs and organic light-emitting diodes (OLEDs), among others. Advisors' Opinion:

• [By Robert Martin]

  The MSCI Emerging Markets Index is fairly heavily weighted in several countries. EEM has allocated 18% of its holdings to Chinese securities, 16% to South Korea, 11.5% to Brazil and 11% to Taiwan. Every other country comprises less than 10% of the fund. Samsung (SSNLF) is the current top holding, at almost 4%, with Taiwan Semiconductor Manufacturing (TSM) and China Mobile (CHL) rounding out the top three.

• [By Jim Powell]

  Samsung Electronics (SSNLF) is not only South Korea's most successful tech company, it is also a global trendsetter. Its list of cutting edge products includes HDTVs, Blu-rays, digital cameras, computers, and Android-based devices.

Best Heal Care Stocks To Own For 2014: Lexington Realty Trust (LXP)

Lexington Corporate Properties Trust operates as a self-managed and self-administered real estate investment trust (REIT). The company acquires, owns, and manages a portfolio of office, industrial, and retail properties net-leased to corporate tenants in the United States. It also provides investment advisory and asset management services to institutional investors in the net lease area. As of June 30, 2005, the company operated 185 properties and managed 2 properties. Lexington Corporate Properties Trust has elected to qualify as a REIT for federal income tax purposes. As a REIT, it would not be taxed on the portion of its income, which is distributed to shareholders, provided it distributes at least 90% of its taxable income. The company was founded in 1991 and is based in New York City.

Advisors' Opinion:

• [By CRWE]

  Lexington Realty Trust (NYSE:LXP), a real estate investment trust (REIT) focused on single-tenant real estate investments, reported that it would release its third quarter 2012 results the morning of Tuesday, November 6, 2012. Lexington will conduct a teleconference that same day at 11:00 a.m., Eastern Time.

Top 5 Canadian Companies For 2014: Apartment Investment and Management Co (AIV)

Apartment Investment and Management Company (Aimco), incorporated on January 10, 1994, is a self-administered and self-managed real estate investment trust (REIT). The Company is engaged in the ownership and operation of a portfolio of apartment properties. Through its wholly owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, it owns majority interests in AIMCO Properties, L.P., which it refers to as the Aimco Operating Partnership. The Company conducts substantially all of its business and owns substantially all of its assets through the Aimco Operating Partnership. As of December 31, 2011, Aimco�� portfolio of owned and/or managed properties consisted of 518 properties with 93,694 apartment units.

During the year ended December 31, 2011, the Company acquired limited partnership interests in 12 real estate partnerships that owned 15 properties and in which its affiliates served as general partner. During 2011, it acquired a vacant, 126-unit property located in Marin County, north of San Francisco, California. During 2011, it acquired 50% interest in entities that owned four contiguous properties with 142 units located in La Jolla, California. During 2011, it sold 67 consolidated properties. During 2011, the Company owned general and limited partner interests in real estate partnerships that owned approximately 123 properties.

Property Operations

The Company�� owned real estate portfolio consists of two business components: conventional and affordable property operations. Its conventional property operations consist of market-rate apartments with rents paid by the resident and included 198 properties with 62,834 units in which it held an average interest of 93% as of December 31, 2011. The Company�� affordable property operations consist of apartments with rents that are generally paid, in whole or part, by a government agency and consisted of 172 properties with 20,612 units in which it held an average interest of 59% as of December 31, 2011. The Compa! ny�� property operations are organized into two geographic areas, the West and East.

Portfolio Management

As of December 31, 2011, the Company�� affordable portfolio included 172 properties with 20,612 units. As of December 31, 2011, its conventional portfolio included 198 properties with 62,834 units in 33 markets.

Advisors' Opinion:

• [By Sean Williams]

  Apartment Investment & Management Co. (NYSE: AIV  )
  When long-term lending rates began rising dramatically just a few weeks ago, anything related to the housing sector dove, including apartment rental community operator Apartment Investment & Management, better known as AIMCO. Investors who sold may have made a big mistake, as rental communities look to be stronger than ever as the housing sector gets caught in a nasty catch-22.

Best Heal Care Stocks To Own For 2014: Nordstrom Inc.(JWN)

Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.

Advisors' Opinion:

• [By Paul Ausick]

  Big Earnings Movers: Agilent Technologies Inc. (NYSE: A) is up 8.7% at $54.94. Applied Materials Inc. (NASDAQ: AMAT) is down 0.3% at $17.51 on a weak forecast. Nordstrom Inc. (NYSE: JWN) is down 1% at $62.81. Youku Tudou Inc. (NYSE: YOKU) is up 11.2% at $29.30. InterCloud Systems Inc. (NASDAQ: ICLD) is up 265.9% at $9.33 on solid results and higher hopes.

Best Heal Care Stocks To Own For 2014: Prima BioMed Ltd (PBMD)

Prima BioMed Ltd is a biotechnology company is engaged in the development and commercialization of medical therapies with a focus on oncology. Its product candidates in development include Cvac, an autologous dendritic cell vaccine for ovarian cancer, monoclonal antibodies for multiple tumour types, and an oral formulation for the human papilloma virus (HPV), vaccine. Its product candidate Cvac is a dendritic cell therapy, for which it is conducting a Phase IIb trial for the treatment of ovarian cancer. Cvac is designed to target the tumour antigen mucin-1, which is expressed at high levels on different tumour types. It also has two preclinical product development programs. In May 2011, Prima BioMed GmbH, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in Germany. In May 2011, Prima BioMed Middle East FZLLC, a 100 % owned subsidiary of Prima BioMed Ltd, was incorporated in the United Arab Emirates. Advisors' Opinion:

• [By Monica Gerson]

  Prima Biomed (NASDAQ: PBMD) shares dipped 38.59% to touch a new 52-week low of $1.44 after the company reported top-line analysis of CVac Phase 2 trial.

• [By Monica Gerson]

  Prima Biomed (NASDAQ: PBMD) dropped 38.17% to $1.45 after the company reported top-line analysis of CVac Phase 2 trial.

  Tower Group International (NASDAQ: TWGP) plummeted 24.31% to $10.49. Tower Group announced its plans to release its Q2 results during the week of October 7, 2013. FBR Capital downgraded the stock from Outperform to Market Perform.

Best Heal Care Stocks To Own For 2014: Mad Catz Interactive Inc(MCZ)

Mad Catz Interactive, Inc. designs, manufactures, markets, sells, and distributes accessories for videogame platforms and personal computers (PC), as well as for iPod and other audio devices. Its products include videogame, PC, and audio accessories, such as control pads, video cables, steering wheels, joysticks, memory cards, light guns, flight sticks, dance pads, microphones, car adapters, carry cases, mice, keyboards, and headsets. It markets its products primarily under the Mad Catz, Saitek, Cyborg, Eclipse, Joytech, GameShark, Tritton, and AirDrives brands. The company also develops flight simulation software; operates flight simulation centers under its Saitek brand; operates a videogame content Website under its GameShark brand; publishes games under its Mad Catz brand; and distributes games and videogame products for third parties. It distributes its products through retailers in the United States, Europe, and Canada, as well as in Australia, Japan, Korea, New Zeal and, and Singapore. The company was founded in 1989 and is headquartered in San Diego, California

Advisors' Opinion:

• [By Bryan Murphy]

  If the name Mad Catz Interactive, Inc. (NYSEMKT:MCZ) rings a bell, it might be because yours truly penned some bullish thoughts on the video-gaming hardware (joysticks, control pads, headsets, etc.) back on August 20th. Neither MCZ nor my write-up were received as anything partially special at the time - it was just another stock dissected by just another guy, and you may or may not have given it a second thought. The 37% rally in the meantime, however, may garner a little more attention.

Why SolarCity, Stratasys, and Best Buy Dropped With the Dow Today

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

The Dow Jones Industrials (DJINDICES: ^DJI  ) began the day climbing through the 16,000 level once more, only to fall back once more and finish the day down by nine points at 15,967. With well-known financial-industry insiders advising caution as the stock market continues its nearly uninterrupted run higher, investors seemed reluctant to press on to new records. SolarCity (NASDAQ: SCTY  ) , Stratasys (NASDAQ: SSYS  ) , and Best Buy (NYSE: BBY  ) were just a few of the high-flying stocks that got punished much more severely today, as the highest-momentum stocks once more came under fire. Let's see what we can learn about these stocks and their drops today.

SolarCity fell 8% as a key member of the Senate Budget Committee wrote a letter to the Treasury Secretary questioning whether the residential solar company inflates the value of the costs it reports, thereby increasing the amount of subsidies that it receives on behalf of taxpayers who install solar systems. Sen. Jeff Sessions suggested that such practices could be detrimental to investors as well as to the government, and the potential controversy involved clearly spooked shareholders who had previously seen SolarCity's huge growth in volume expectations as a reason to get more optimistic about the company.

Stratasys declined 9% on a bad day for 3-D printing stocks in general, as the company's rivals also posted big losses. Despite no company-specific news, the immense volatility in the share prices of Stratasys and its peers lends itself to sharp corrections, especially after the gains that the stocks have seen so far this year. Despite the hair-trigger reflexes of many traders, long-term investors have to realize that truly market-moving news on Stratasys and other 3-D printing stocks won't come on a daily basis.

Best Buy plunged 11%. The electronics retailer reported fairly favorable results for its October quarter, with earnings that beat expectations and a small rise in same-store sales. But looking forward, Best Buy said that its competitors are offering substantial discounts going into the key holiday season. That gloomy guidance took some of the wind out of Best Buy's sails, especially given the huge rise the stock has seen recently, and investors might see further drops in the shares if the holidays go as badly as Best Buy seemed to imply today.

Find a stock with more room to run
These three stocks dropped in part because they've already seen huge gains. But opportunistic investors can still find other stocks that have most of their biggest growth prospects ahead of them. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!

Can This Smart Watch Become a Bullet With Butterfly Wings?

At last month's TUCON 2013 conference, I watched Qualcomm  (NASDAQ: QCOM  ) CEO Paul Jacobs wax poetic over his Qualcomm-designed smart watch. Qualcomm just moved the Toq from the experimental realm to become a real, consumer-focused retail product. You'll be able to buy one on Cyber Monday.

The Qualcomm Toq's key benefits in a couple of bullet points. Image source: Slide from Paul Jacobs' TUCON 2013 presentation.

The Qualcomm Toq may be an early launch, but it's hardly the first smart watch on the market.

Samsung's Galaxy Gear launched in September to generally poor reviews. The device must be paired with a very limited range of Samsung's own tablets or smartphones, the notifications on the smart watch aren't all that useful (although a recent software update mitigates this problem), and the battery dies too quickly. Sony (NYSE: SNE  ) also released a smart watch over the summer, also to terrible reviews. A second take, cleverly named the Sony SmartWatch 2, surfaced in October with somewhat better results. But if this is the first you hear about the Sony smart watch line, you're not alone. If a device is produced and no one buys it, does it even matter?

Top Cheap Companies To Watch For 2014

The Qualcomm Toq hopes to improve on these failed attempts in a couple of ways. The watch is compatible with all Android devices running Ice Cream Sandwich and above, which works out to 72% of all Android devices currently in use. The device should get at least two full days of use out of a single charge, and is replenished by dropping it on a wireless charging pad. And this is the first real product to come with Qualcomm's ultra-low-power Mirasol display technology.

Mirasol screens reflect incoming light instead of relying on LCD-style backlight or even generating its own photons like an OLED screen. The technology is based on research on the optics of butterfly wings. In my view, this is what sets the Toq apart from the Samsung and Sony devices. It walks the delicate line between convenience and battery life.

The Sony watch isn't always on, in order to save battery life. The Samsung watch is always showing a live display but runs out of juice too quickly. This is a play for the middle ground.

Giving his TUCON 2013 speech, Qualcomm CEO Paul Jacobs stops to admire his own Toq smartwatch. Image source: author.

That was a key point in Jacobs' presentation. "When anything happens on my phone, I can get a notification to my wrist," he said. An Android app lets you redirect anything to the watch, as long as it generates a notification on your tablet or phone.

"And you think that's gonna annoy you, but it's on your wrist as opposed to in your phone. It's in my phone, I have to pull the phone out. The screen's dead, I have to turn it on, unlock it, then I finally get what I want. Here, a notification comes to my wrist, I see it and I flick it. It's just gone. I just look at it quickly and it comes and goes."

If the Toq concept fails because the world isn't quite ready for a wrist-mounted information display yet, Jacobs has a backup plan. Mirasol is finally coming to phones, which could unlock similar convenience benefits on a more familiar platform.

"In the future we're gonna take this same kind of display technology and put it on the phone as well," Jacobs said. "Your phone is sitting there on the table looking dead, the screen is off 'cause that uses too much power. That will change in the future, so you will always have the ability to interface with the world around you, with notifications that are coming to you."

It's hard to say whether the Mirasol screen is enough to make the smartwatch concept go mainstream. The watch starts at $350, making it an expensive first-mover status symbol at best. But as a Universal Display investor, I'm sure keeping a close eye on the Toq and other Mirasol launches. This display technology has the potential to steal some of Universal Display's low-power thunder, which would be good news for Qualcomm but bad for Universal Display. If nothing else, the Toq is a useful litmus test for the as-yet unproven Mirasol technology.

What happens in tech conferences doesn't have to stay in tech conferences
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Nomura Securities Initiates Coverage on The Gap at “Neutral” (GPS)

Nomura Securities announced on Monday that it has started coverage on apparel retailer The Gap Inc. (GPS).

The firm has initiated coverage on GPS with a “Neutral” rating and $42 price target. This price target suggests a 4% increase from Friday’s closing price of $40.39.

Analyst Simeon Siegel commented: “With top- and bottom-line resurgence, there is no question this has been the year (and-a-half) to own The Gap (GPS). But interestingly, FY12 total sales were still below FY04 levels, suggesting that through improvedproduct, the new global focus on the top line, and views on an omni-channel perspective on inventory; GPS has room to drive the company to new heights. Valuation keeps us sidelined. We are projecting FY13/FY14 EPS estimates of $2.69/$3.00 versus the Street at $2.77/$3.06. Our $42 target price is based on 14x our FY14 estimate versus the peer group average 14x multiple and the company's historical average of 14.5x.”

The Gap shares were mostly flat during pre-market trading Monday. The stock is up 30% YTD.

Retailers: Fear Built In, Sector Still Not a Buy, Sterne Agee Says

Pain. That one word just about sums up how investors felt about retailing stocks after second-quarter earnings. Abercrombie & Fitch (ANF)? Down 22% during the past month. Aeropostale (ARO)? Off 30%. Urban Outfitters (URBN)? Down 3.4%.

Bloomberg News

Those big drops were the result of disappointing earnings that have caused analysts to slash their forecasts across the board. It’s still not enough to make Sterne Agee analysts Ike Boruchow and Tom Nikic want to buy the entire sector wholesale. They explain:

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Comparing today’s 2H Street estimates to forecasts made prior to Q2 earnings, one can see the fear that has been built into the group, as comp estimates have been cut by 150bp on average (to 2-3%) and OMs have been lowered by 120bps (to 14.6% - vs. 15.2% LY). 70% of retailers saw their 2H margin outlook cut by the Street -as there is low confidence in their ability to drive full-price selling into year end. The lowered bar likely presents a more-balanced risk-reward environment, but we continue to urge investors to stay selective…

Their recommendations: Buy Fifth & Pacific (FNP), L Brands (LTD), Urban Outfitters, Ross Stores (ROST) and the TJX Companies (TJX).

Fifth & Pacific has gained 0.6% to $24.98, L Brands has risen 1% to $59.56, Urban Outfitters has ticked up 0.1% to $34.82, Ross Stores has advanced 0.3% to $71.09 and the TJX Companies have gained 0.8% to $55.72.

The 5 worst performing stocks in the Dow

The Dow Jones Industrial Average is up more than 19% so far this on the year. The DJIA, an index of 30 stocks from some of the country's largest companies, is a widely followed indicator of the stock market's performance.

The Dow's growth in recent months has largely been a result of the country's improving economy. Unemployment continues to fall, the housing market is recovering and the country's largest companies, including Nike, Boeing and American Express, have benefited from recovering consumer confidence. As a further boon to the market, interest rates remain low and quantitative easing has, according to many market followers, driven investors' appetites for stocks.

However, several DJIA stocks simply are not living up to the performance of the broader stock market. 24/7 Wall St. reviewed year-to-date share price changes and dividend yields for all 30 Dow Jones stocks. We identified the five companies that have posted the worst total returns, after accounting for dividends paid, so far this year.

Each of these five companies has failed to deliver strong returns for different reasons. Some of the companies have been hampered by their international operations. IBM, which is down nearly 6% for on the year, has seen slowing demand for its hardware, especially from China. Mining business at Caterpillar, shares of which are down more than 6%, has suffered from the end of the global commodities boom.

However, some companies also face challenges domestically. Coca-Cola has had to contend with a decline in soda drinking by Americans. Exxon Mobil's refining profits have slipped as the difference in price between domestic and foreign oil has narrowed.

To identify the worst-performing stocks in the Dow Jones Industrial Average, 24/7 Wall St. reviewed total return figures, which include price changes and dividends paid, for each of the 30 component stocks. The DJIA is a price-weighted index, meaning the relative prices of each component affect their weighting in the index. Total re! turn figures for individual companies are are from FINVIZ.

These are the five worst performing stocks on the Dow:

5. Coca-Cola
• Total return: 11.67%
• Price: $39.63
• Price-to-earnings ratio: 20.6
• Dividend yield: 2.8%

Coca-Cola (KO) shares have returned just under 12%, including dividends, this year. The company's stock has recovered from recent lows of roughly $37; however, it still remains below its high this year of $43.43. Coca-Cola has had to contend with weak demand for soda among U.S. consumers, as well as weaknesses in emerging markets' currencies. This week, Coca-Cola announced it would issue $5 billion in new debt, through a combination of both fixed-rate and floating-rate securities.

4. McDonald's
• Total return: 11.49%
• Price: $96.03
• Price-to-earnings ratio: 17.6
• Dividend yield: 3.4%

Despite a total return of 11.5%, McDonald's (MCD) has lagged most of the Dow so far in 2013. The company's recent earnings releases have disappointed Wall Street. For the third quarter of its current fiscal year, McDonald's announced sales that missed analyst estimates. Sales at restaurants open for at least 12 months rose just 0.9% from the year before. Struggles at the global fast-food leader have been blamed by some on the company's inability to expand its menu. By comparison, Yum! Brands' Taco Bell chain has sold $1 billion worth of its new Doritos Locos tacos, while Wendy's recently introduced a pretzel burger as part of its plans to boost sales.

3. Exxon Mobil
• Total return: 4.7%
• Price: $88.85
• Price-to-earnings ratio: 11.2
• Dividend yield: 2.9%

Oil prices have exceeded $100 a barrel for much of the year, which may make the relatively weak performance of Exxon Mobil (XOM) seem surprising. However, the oil industry has been less profitable for refiners, including Exxon Mobil, as price differences between U.S. and foreign oil have narrowed. The company's production of oil and gas also! has slow! ed recently. Still, shares have returned nearly 5% for the year, including dividends.

2. IBM
• Total return: -4.64%
• Price: $180.28
• Price-to-earnings ratio: 14.4
• Dividend yield: 2.1%

This year has been filled with bad news for International Business Machines (IBM). The company's stock has fallen by 4.64%, after accounting for dividends paid, while the Dow has risen by more than 19%. As a result of its falling price, IBM is no longer the heaviest-weighted DJIA stock. Visa has taken that position, with a share price more than $20 higher than IBM's. In its third-quarter earnings release, IBM announced its revenue had declined by 4% from the year before. The company hopes to increase operating earnings to $20 per share by 2015. To help the company achieve that target, IBM recently announced a $15 billion share buyback, in addition to a previously authorized $5.6 billion buyback. At current prices, this would allow the company to purchase more than 10% of its outstanding shares.

1. Caterpillar
• Total return: -4.92%
• Price: $83.50
• Price-to-earnings ratio: 15.9
• Dividend yield: 2.8%

Caterpillar (CAT) has been the worst performing DJIA stock, with a negative 4.92% return so far this year. The heavy equipment maker continues to suffer from a decline in demand for mining equipment, and it recently cut its sales and profit forecast for 2013. Last quarter, Caterpillar's sales fell in every geographic region except Latin America. Shares are currently trading near $83.50, down from a 52-week high of nearly $100. Recently, analysts at J.P. Morgan and Raymond James downgraded the stock.

24/7 Wall St. is a USA TODAY content partner, offering financial news and commentary. Its content is produced independently of USA TODAY.

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Labor Day 2013 Stock Market Winners

Labor Day is always an interesting holiday, and it has serious ramifications on consumer spending and on the economy. The 2013 back-to-school spending has been down after a record 2012, and this leaves a lot of room for upside and for disappointment for retailers and businesses who prosper from spending habits around Labor Day. The holiday travel period for 2013 is defined as Thursday, August 29, through Monday, September 2. 24/7 Wall St. has used data from the National Retail Federation (NRF), AAA, the Conference Board, and the U.S. Bureau of Labor Statistics (BLS).

If you look at the AAA site, Labor Day spending for 2013 looks to be up in most categories from 2012. If you have seen data from the national Retail Federation, there is more caution. We also could not help but notice that the real measure of consumer confidence was far more optimistic than what preliminary reports indicated. We were extremely selective on naming any retail outlets that would thrive because the guidance from so many giants in the industry was so cautious. Here are five winning companies for Labor Day weekend spending by our take, in alphabetical order:

Avis Budget Group, Inc. (NYSE: CAR) is an obvious winner, particularly after selling off more than 4% on Tuesday. That is now down 20% from its highs. If car rental rates are up 30% and they still are mostly sold out, that is called a license to gouge. If you are traveling around and need to drive, hitchhiking is not legal in many places now.

DineEquity Inc. (NYSE: DIN) seems to be a likely winner if travelers will be spending more. With some 3,600 Applebee’s and IHOP restaurant chain locations offering meals for the “budget-minded but not fast food” crowd, the 15% sell-off from highs earlier in 2013 seems to be a possible gift now that its dividend yield is up at 4.5%. Analysts on average see upside of almost 20% for this restaurant chain.

Starbucks Corp. (NASDAQ: SBUX) seems an obvious choice if more people will be driving. How do you stay up for a long 200 to 300 mile drive? The legal way is coffee. Starbucks shares are now down 5% from their highs, as well due to the market sell-off. If Americans are going on a long driving trip, their favorite coffee is likely to end up in their stomachs.

Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) is a winner if the higher end rooms are working better than the lower-end room rates. Its hotels and destinations include sucn brands as St. Regis, The Luxury Collection, W, Westin, Le Méridien, Sheraton, Four Points and Element. After a drop of almost 4% on Tuesday, this stock is down 10% from its highs as well, and analysts have upside of about 15% expected for its investors.

TravelCenters of America LLC (NYSE: TA) is small enough that it is often overlooked by travel and leisure investors. It has about 500 stores owned or franchised under the TravelCenters of America, TA and Petro Stopping Centers brand names. It caters to long-distance drivers, RVs and truckers on the interstates.

There is good news for gas stations around the nation. AAA is predicting that the 2013 Labor Day weekend will have the highest number of travelers since the recession. It projected that some 34.1 million Americans will travel more than 50 miles from home over the upcoming Labor Day holiday. If it comes true, that is a 4.2% gain over the 32.7 million people who traveled last year, due mostly to increased consumer spending and the improving housing market, according to the AAA report. As far as why this is a win for gas station owners, AAA predicted that some 85% of the travelers will travel by automobile. That is up 4.3% from a year ago, and it will offset what was put as a 2.7% average decline in gas prices versus a year ago. Again, TravelCenters of America LLC (NYSE: TA) seems to likely winner.

Median spending is expected to grow to $804 from $749 last year, according to AAA. Hotels will be enjoying much of that gain. Travelers are expected to spend 24% of their budget on transportation and lodging. Food and beverages will account for 21% of the budget. Additional breakdowns are as follows for the most popular activities:

Dining at 57% — DineEquity Inc. (NYSE: DIN) for IHOP and Applebee’s Visiting with friends/family at 46% Shopping at 43%.

Airlines are not going to have as much of a boost, as AAA predicted that air travel is expected to rise by almost 3% to 2.61 million travelers. Airfares are up 4%, with an average lowest round-trip rate of $214 for the top 40 U.S. air routes, versus $205 in 2012. Sorry, but maybe only Priceline.com Inc. (NASDAQ: PCLN) is the winner here. Even then, only maybe.

Car rental companies are huge winners for Labor Day when you see this. The AAA Leisure Travel Index shows that weekend daily car rental rates will average $51 per day, a gain of 32% from 2012. Maybe the Department of Justice should have blocked car rental mergers on top of airline mergers. Again, think Avis Budget Group, Inc. (NYSE: CAR).

The mix in hotel rates will be hard to identify winners and losers because of so many price point overlaps. AAA Three Diamond rates are expected to be up 4% to an average of $161 per night. The average hotel rate for AAA Two Diamond hotels are expected to be down by 2%, averaging $115 per night. Priceline.com Inc. (NASDAQ: PCLN) is up massively this year, but it keeps backing away from that $1,000 share price. Again, Starwood Hotels & Resorts Worldwide Inc. (NYSE: HOT) seems our most likely winner here.

Now go to the National Retail Federation and things are a bit different. The NRF spokesperson called this cautious conservatism and called this an “either/or” economy on spending. The NRF said:

Given consumers' continued concerned with their macro and micro environment, I think we'll see shoppers this fall — and into the holiday season — continue to keep an eye out for promotions and make thoughtful, targeted purchases that keep them in line with their budgets.

After all the concerns in guidance from Wal-Mart Stores Inc. (NYSE: WMT) and Target Corp. (NYSE: TGT), we chose not identify any of the big giant retail destination chains. If shopping was only responded to as a top thing by 43% and behind visiting friends and family, then it seems obvious that the nearly no-cost visit will win out over retail shops.

As far as who we are celebrating exactly, the BLS showed the following statistics for workers as of May 2012, who will mostly be working over this holiday weekend:

Retail salespeople: 4,340,000 Cashiers: 3,314,010 Combined food preparation and serving workers, including fast food: 2,943,810 Waiters and waitresses: 2,332,020

America's first debt ceiling crisis

President Eisenhower used his February 1953 address to warn Congress that the federal debt would soon reach the debt ceiling.

Charlottesville, Va. (CNNMoney) Can threats to block a debt ceiling increase ever be justified as a tool to force politicians to make difficult but necessary decisions?

Republicans seem to think so. GOP leaders say they want spending cuts before raising the $16.699 trillion debt limit, which the Obama administration says has to be done before the middle of next month. And some Republicans are holding a gun to the head of Obamacare as well.

The idea of using the debt ceiling for leverage is not new. Indeed, it caused the nation's first debt limit crisis.

(Timeline: Washington's budget follies)

In the summer of 1953, President Dwight Eisenhower, a Republican, asked for a modest boost in the debt ceiling, from $275 billion to $290 billion. Austerity-minded lawmakers refused and brought the nation to the brink of default -- or to its fiscal senses, depending on your point of view.

Eisenhower began signaling the need for additional borrowing authority shortly after taking office. Conservatives were not convinced. The Wall Street Journal even suggested a debt ceiling crisis might be useful: "The government would not be able to carry out all of its spending plans," the editors predicted. "Some things would have to be cut back a little further."

But Eisenhower didn't believe that spending cuts would be sufficient to keep federal debt under the cap for long. "Despite our joint vigorous efforts to reduce expenditures," he told Congress, "it is inevitable that the public debt will undergo some further increase."

The House of Representatives swallowed hard and approved Eisenhower's request. But the Senate had other ideas.

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Harry F. Byrd, the Democratic senator from Virginia, took the lead in fighting the increase. Raising the limit would be "an invitation to extravagance," he declared. Keeping the present cap, moreover, would encourage much-needed economy. "It may be that the administration would be forced to operate on a very prudent and conservative budget in order to avoid an increase in the debt limit," he predicted.

But Eisenhower's request had considerable support outside the Capitol, and especially on newspaper editorial pages. "No one likes to contemplate a larger debt burden," observed the Washington Post in a typical editorial. "But the debt figure is the consequence rather than the cause of government spending."

Ultimately, however, senators were unmoved! , and the measure died. The Los Angeles Times called it a "stunning" defeat for the president.

After the vote, Byrd was careful to explain his reasoning. "My main objective was to emphasize the fiscal crisis that now faces us with deficits over most of the past 15 years and more deficits to come unless we cut down expenditures," he said. The debt limit debate, in other words, was a way of forcing action from reluctant politicians. It was, in a word, leverage.

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And it was pretty effective. Almost immediately, Eisenhower told his department heads to cut spending. "It is absolutely essential that you begin immediately to take every possible step progressively to reduce the expenditures of your department during the fiscal year 1954," he told them.

Even Treasury Secretary George Humphrey tried to make the best of the situation, suggesting that the government might be able to scrape by.

Humphrey did manage to avoid disaster by cutting spending more and taking other steps, such as selling some of the country's gold bullion to retire $500 million in outstanding debt.

As winter approached, Humphrey began a new campaign to raise the debt ceiling. But fiscal conservatives felt vindicated by Treasury's success in coping with the existing limit.

"The lesson is clear," exulted one editorial writer. "The way to get government expenditures down is to cut taxes and deny the administration authority to increase the debt. At an early date Congress might well consider cutting the debt limit."

Humphrey continued his campaign, however, and took care to consult with skeptical senators ahead of time. And in July -- a full year after Eisenhower's request -- he coaxed a $6 billion temporary ceiling increase from lawmakers. That ended the debt limit debate for the time being.

(Also by this author: When taxes first hit middle cl! ass)

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In retrospect, the 1953 crisis seems to bolster the arguments of modern Republicans hoping to use the ceiling as a bargaining chip. Byrd's refusal to make life easy for Eisenhower did coax extra cost-cutting.

But 60 years ago, "making do" was a plausible fiscal strategy -- budget shortfalls were small enough to be manageable. As a result, few involved in the 1953 debate believed that default was a real possibility. Certainly not Byrd, who was a fiscal conservative of the old school -- he would have been appalled by the prospect of national default. Yes, Byrd was gambling that the Treasury could stay under the debt ceiling, but it was a pretty safe bet.

Now it's anything but.

Historian Joseph J. Thorndike is a contributing editor at Tax Analysts and a columnist for Tax Notes magazine, where a version of this article first appeared. His book Their Fair Share: Taxing the Rich in the Age of FDR (Urban Institute Press) was published earlier this year.