Will Panera Bread Make You Extra Dough?

Question: What do you think of Oracle (ORCL)? — David (Scranton, PA)

I love the company ORACLE because they have delivered consistent earnings and sales for years. As far as the stock goes, I am bullish, but near-term, I do believe many of the big-cap technology companies are way overdue to pull back. If you are looking to buy, you may want to wait. Long-term, the company and stock remain in fine shape.

Question: Is defense contractor Raytheon (RTN) a Teflon stock? — Jim (Worcester, MA)

No stock is a “Teflon” stock. I still remember when Dell, Cisco, and Yahoo were considered “Teflon” stocks. Things do change. As far as Raytheon, it's a great company, but maybe the stock is ahead of itself. But long-term, as long as they continue to deliver their consistent earnings and revenue growth, the stock should do just fine.

Question: I usually get my lunch at Panera Bread (PNRA) and I notice it's rapidly expanding all over the place. Is it a buy? — Becky (Rutherford, NJ)

I love Panera Bread, but would be wary of the stock. Restaurant stocks have had their way recently on the back of the plunge in oil prices, so I am not sure there is much more to go near-term. I would suggest the mid-50's as a better place to look at the stock.

Question: Why does the stock market immediately react when breaking news hits the wires? I never understood the immediate correlation. — Mary (Tempe, AZ)

Mary, trillions of dollars watch the market on a minute-by-minute basis. These days, news travels fast, and when the news hits, those trillions of dollars pounce. There is a direct correlation between the movement of stocks and the good or bad news that comes out, and the reaction is usually immediate.

Gary Kaltbaum is president of money management firm Kaltbaum & Associates. He can be heard nightly on his nationally syndicated radio show "Investors Edge" on over 50 radio stations. He is a regular on FNC's Business Block. Visit Kaltbaum's Corner on TradingMarkets.com for more.