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Monday, December 29, 2008
Market Winners & Losers: Hess, Dow Chemical
David O'Brien
FOXBusiness
With only two trading days left in the year, the market crawled its way to the downside on very light volume on Monday. The major indices closed down about 0.5% each.
Here are some of the session’s winners and losers:
Losers
Jones Apparel Group Inc. (JNY)
This retailer wasn’t feeling much leftover holiday spirit. News of another credit agreement termination sent the stock plunging by more than 19%, or $1.07, to start the week. Shares closed at $4.55.
Dow Chemical Co. (DOW)
As a deal with Kuwait valued at $17.4 billion met the ax, the stock tumbled $3.60, or 19%, on Monday to $15.32.
Rohm & Haas Co. (ROH)
This stock was a casualty of the Dow Chemical deal failure, as speculation that a deal for the purchase of ROH may have gone down the tubes caused the stock to fall $1.02, or 16%, to close at $53.34.
Prologis (PLD)
The weakening dollar and continued poor data are not helping the real estate sector, which was down across the board. PLD was down nearly 10%, losing $1.34 to close at $12.25.
Micron Technology Inc. (MU)
Capital concerns hampered the stock Monday, as it lost 23 cents, or 8.9%, finishing at $2.36.
Winners
Hess Corp. (HES)
Higher oil was the name of the game to start the week. Hess was just one of the many winners, with the stock gaining $3.20, or 6.5%, Monday to end at $52.25.
Murphy Oil Corp. (MUR)
Another winner Monday was MUR, as oil climbed back above $40 a barrel. The stock was up nearly 6%, gaining $2.49 to close at $44.24.
Baker Hughes Inc. (BHI)
BHI was another beneficiary of rising oil prices, the drilling equipment and service provider gained 5.3% or $1.56, to close at $31.18.
Tesoro Corp. (TSO)
Higher oil prices work their magic once again. The refiner managed to move higher on Monday. The stock last traded at $12.66, a 61-cent, or 5%, increase.
Transocean Ltd. (RIG)
The offshore contract provider was among many making money off of oil; despite troubles in the Middle East. It closed up nearly 5%, gaining $2.20 to $46.38.
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Some mutual funds want you to pay for the privilege of them (or your investment adviser) taking your money to invest. It's called a load, and it works like a cover charge to get into a nightclub. Luckily, there are such things as no-load funds. As the name implies, shares of these funds are sold without a fee paid to a broker or investment advisor.
The entire amount you invest in no-load funds goes to work for your returns. On the other hand, with load funds, right off the bat you're charged commission (not to mention other fees incurred over the life of the investment). Let's say, for example, you invest $25,000 into a load fund that charges a 5% commission. This costs you $1,250 off the top, bringing your actual investment down to only $23,750.
The often-cited horse race analogy argues against investing in load funds. Here's the logic behind it: Would you place a bet on a horse that had to start a race 200 yards behind the others? Well, maybe you would if you got a tip from a sketchy, trench coat-clad man in a dark alley. However, under most circumstances, it's not smart to put your money on that handicapped horse.
But some argue that at times that man in the trench coat (aka your broker) knows more about the horses than you do, and has a better shot at picking a winner. Also, sometimes these fees are unavoidable because some funds are available only through investment advisers.
Cost-benefit analysis can help determine when a load fund is worth it (in other words, when it will score you a load) and when it is better to "do it yourself" and avoid the fees. Load-fund fees range depending on share class and can cover a variety of costs, such as paper work and fund management.






