Market Wrap-Up for June 11 (GWW, MCD, AAPL, YUM, FAST, more)

The bailout news over the weekend regarding Spain had a big open for the markets written all over it, but the early pop quickly fizzled. Looking at the financial sector, we noticed the first signs of investor concerns creeping in late morning as market watchers began to chime in with thoughts that Spain will not be the last major country bailout.

W.W. Grainger (GWW) ended lower following the company’s May sales update. GWW’s weakness follows the lead of competitor Fastenal (FAST), which was cautious in its own sales update last week. McDonald’s (MCD) shares fell as analysts came out with estimate cuts following the company’s second consecutive monthly sales disappointment from Friday. Main competitor Yum Brands (YUM) was also down in unison. Apple (AAPL) shares gave up much of its intraday spike following the company’s updates during its worldwide developer’s conference. Finally, oil (USO) prices reversed early gains to close nearly $4 off its morning highs.

The Proof is in the “Decision”

I’m not sure how many of our readers are boxing fans, but I’ve followed the sport for many years. Over that time, I’ve grown used to seeing bad judging decisions, so when I read that Manny Pacquiao lost a controversial split decision Saturday night to new WBO welterweight champion Timothy Bradley, I just shrugged my shoulders. One of the best analysts in the boxing game, HBO’s Harold Lederman, scored the fight 11 rounds to 1 for Pacquaio. That scorecard gives you an idea of how much Pacquiao dominated the fight — yet he still somehow emerged the “loser.”

I remember back in the 80′s, my friends and I used to pay to see “closed-circuit” boxing events at a local theater. We normally enjoyed these events, until we saw Mike Tyson annihilate Michael Spinks back in 1988. Tyson knocked Spinks out in the very first round, and I really felt like I wasted my money on that fight. From that point on, my friends and I lost a lot of our taste for the big events.

Obviously, the sports media has jumped all over the latest boxing controversy. Discussions have arisen about how boxing fans were burned on Pacquiao’s controversial loss. A large amount of commentators will mention that “fans don’t have to buy the Pacquiao-Bradley rematch (coming to pay-per-view in November) if they don’t want to.”

The business media reacts similarly to big controversies. Just look at Facebook’s (FB) IPO debacle, and how the media has stepped up to console the poor investors who who’ve lost money as a result of buying FB shares. How long does this commentary last, though? Just as the sports media will soon move on to promoting the next big boxing match, so too will the financial media begin touting the next great tech IPO.

We all have the ability to decide what we spend our hard-earned money on. We can also pick and choose our own sources of information. Back in the 90′s, I remember watching CNBC/Bloomberg all the time, as I was going through my initial education of life as a trader. I quickly learned the more I tuned in, the less success and confidence I had that I was making the right investing decisions. Remember, the objective of the media is to keep viewers coming back day after day. They accomplish this aim by providing various one-sided (and sometimes controversial) opinions on investing topics. It’s just a chase for ratings.

I hope that as an investor, you’ve learned your lessons early on about who to trust for your information. Just as I no longer waste my money on much-hyped boxing events, I also steer clear of the latest flavor-of-the-day investing ideas. I trust you can do the same.

Why Aren’t the Dividend Stock Ratings Higher?

We’re sometimes asked by subscribers why our recommended stocks don’t have higher ratings. It’s pretty simple. When you are in the type of economic environment we have now, where $125 billion bailouts (i.e. Spain this past weekend) take on a celebratory tone, we have to ask ourselves if what we are putting our money into is more “smoke and mirrors” than solid investment ideas. For the most part, the markets have been super-volatile since the birth of (back in early 2008), and we feel we have ridden out the ups and downs as well as anyone has when it comes to investment research and opinion.

Determining our position in the economic/investing cycle is our biggest focus, and the answers to that situation are never clear. That said, we also know investors are struggling to find income sources they can rely on. With record-low interest rates continuing to deplete many savers’ holdings, people sometimes get desperate in the pursuit of yield. We understand the frustration and it is never our intent to sour investors on income-producing ideas. We simply must maintain a strict investment research criteria regardless of investor sentiment.

Our Beat The Markets with Dividend Stocks eBook Has Arrived!

We just debuted our brand new 275-page eBook, exclusively on! In this digital-only book, we look ahead to 2012 and the main factors that could affect dividend investors. A $39.95 value, the eBook is a free download for paid Premium subscribers.

Beat The Markets with Dividend Stocks contains a full economic forecast for 2012, including in-depth analysis on 65 of the biggest dividend stocks out there. It’s a great way to get prepared for your investing next year! So head over to the Premium homepage now to download your copy.

I hope everyone had a chance to check out our Premium members-only weekend articles , including new features that highlight some of the biggest winners and losers from the week that was, such as analyst upgrades/downgrades and earnings/story stocks. These articles are a great way to catch up on the week that was in the markets. We also have a rundown of how various Dividend ETFs performed on the week.

Thanks for reading everybody. I’ll see you tomorrow!

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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