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Off to an optimistic start, stocks took a downturn after late morning trading. Even less optimistic, the euro $1.4086 against the dollar. Notice the influx of tourists brimming the streets of Times Square? The dollar will also get you 114.85 yen.
In major indexes, the DJIA fell down 31.95 to 13788.24. The S&P 500 declined 5.99 to 1519.76, and the Nasdaq declined 3.80 to 2667.42. The Russell 2000 index down 9.05 to 804.06. Finally, The 10-year note rose 2/32 to yield 4.624%. Today’s Index Spinner: S&P EURO INDEX 1,780.76-3.37-0.19%
The tech sector saw a bit more action than others today with AAPL up 2.6%, MSFT up 2.6%, and EMC up 6.8% in anticipation of the Halo 3 launch.
Tomorrow sees Consumer Confidence announcements as well as Existing Home Sales. Both report at 10amET.
For more market hotness visit FT Alphaville
Brought to you by Financial Times
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This week had investors adjusting to Tuesday’s Fed announcement and seeing increases in stocks, currencies and commodities. Texas Instruments finishing up the week as they launched a $5 billion stock-buyback plan and increased their cash dividend 25 percent, launching its shares up 3.2%
The euro hit a new record high above $1.41. The dollar was at 115.40 yen down from 114.42 yen late yesterday. The euro was at $1.4080 from $1.4066 late Thursday.
Most active stocks on the Nasdaq. ORCL, MSFT, QQQQ and JAVA.
The DJIA up 52.68 or 0.38% closing at 13819.38. The S&P 500 added 6.94 1525.69 up 0.46%, and the Nasdaq up 16.93 to 2671.22.
On the NYSE today, 2,089 stocks in the green and 1,186 in the red, with total number of 1.41 billion shares traded.
Finally, we leave you with this sage like pearl of wisdom from Jack Caffrey, U.S. stock strategist at J.P. Morgan Private Bank who told the WSJ, “Good earnings news will make people happier.”
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Not surprisingly, the Fed-inspired frenzy that followed Tuesday’s rate cut announcement ground to a halt today. Stocks slumped, oil climbed and the dollar tried to convert to the peso.
Every major index declined. The Dow Jones Industrial Average lost 54.30 points to land at 13761.26. The S&P 500 declined 8.88 to 1520.15. The Nasdaq Composite Index dropped 12.46 to 2654.02.
Goldman Sachs’ earnings were so spectacular they immediately launched Wall Street into a fit of envy, snark and conspiracy theories. The difference in performance between Goldman’s premiere hedge funds for clients and its internal proprietary trading provided grit for the snarkiest to chime in that the message of the day was that you should buy Goldman’s stock but not its client hedge funds. The conspiracy minded wondered whether Goldman was keeping its best traders for its internal desks, or perhaps engaging in something even more nefarious. There’s no evidence for any of this of course. But it’s not exactly the kind of talk you want going around the day you report stellar earnings.
After Lehman Brothers seemed to have surprisingly escaped the wrath of the mortgage market relatively intact, some began to wonder if Bear Stearns might have engaged in some clever move to avoid the brunt of the credit crunch. While it didn’t quite escape catastrophe, it seems to have convinced many that the worst days of losses, particular from hedge-fund losses and bailouts, are behind it. The stock actually climbed a bit today.
On the New York Stock Exchange Thursday, 941 stocks rose and 2,357 declined. Volume was light, with just 967.8 million shares trading on the exchange.
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Today on the NYSE – 1,030 stocks in the green and 2,240 in the red. Total volume of shares traded today 826.8 million.
Indexes bleeding today with the DJIA down -39.10 at 0.29%. Nasdaq down -20.25 at -0.79%. The S&P 500 down -7.60 at -0.51%. The 10-Year Note down -2/32 at -0.05%. Crude settled at 80.57. And finally, the dollar closed at 115.18 Yen and 1.39 against the Euro.
Some of today’s most active stocks included Ford Motors up 0.26 to $8.29 trading on NYSE. Sun Microsystems down -0.03 to $5.70 trading on the Nasdaq. And SPDR S&P 500 ETF down -0.78 closing at $148.12 on the AMEX.
Tomorrow’s announcements – PPI at 8:30am EST. Core PPI at 8:30am EST. Net Foreign Purchases for July at 9am EST and the much anticipated FOMC Policy Statement at 2:15pm EST.
For more market hotness check out FT Alphaville. Because you can’t get enough. And neither can we.
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Small movements landing on a positive note in the major indexes today. The DJIA up 17.64 at 0.13%. The SNP 500 up 0.30 at 0.02%. The Nasdaq up 1.12 at 0.04%. Volume honored the extended Jewish New Year celebration by staying at a light 1.19 billion shares. On the New York Stock Exchange Friday, 1,757 stocks went green arrow up and 1,512 saw downward facing red arrow.
And today’s random index: The JSE Market Index (Jamaica Market Index) up 228.39 at 0.24%.
Everybody read the mildly disappointing numbers in retail spending along with a weaker housing market as indicating the we’ll get the Fed rate cut that everyone expects anyway. The dollar is gaining momentum against the yen and euro. One greenback will buy you 72 euro cents (or whatever the hell it’s called in metric) and 115.3 yen.
From September 7th to today, 492 companies in the S&P 500 reported earnings for Q2. Of this group 66.46% reported above expectations, 12.80% reported in-line with expected earnings and 20.73% were reported below expectations. But take a gander at that 12.8% number for a moment and try not to think about replacing analysts with monkeys.
Finally, bonds went down. 10-Year notes down 5/32 to yield 4.49% and the 2-Year note down 4/32 to tender 4.09%.
Curious about Northern Wreck’s next moves? Check FT Alphaville. They’re English, like.
It’s a pretty appealing pitch, especially when made by the Kravis & Schwarzman traveling comedy deal-team. It is amazing that Cadbury rejected the offer, especially when all it had to do was take on a high level of risk and create a less than optimal situation for shareholders.
The setup – Blackstone, KKR and Lion Capital offered to buy Cadbury for $13-$14 billion, but wanted Cadbury to finance up to $7 billion of the deal.
The punchline – involved Kravis drinking a ton of Dr. Pepper and burping every time Schwarzman tried to talk about IPO’ing before the market turned. It was reported that Cadbury’s discounted beverage unit smirked, but the company ultimately rejected the offer.
Cadbury is thinking about demerging rather than selling or floating considering the current PE market, and still thinks it’s worth a good $14 billion or so (7 billion pounds). In the early summer, competing PE consortia were vying for Cadburys with a valuation closer to $16 billion.
Cadbury rejects drinks bid due to financing: sources [Reuters]
In the UK, where employers haven’t quite started mass firewalling facebook from corporate servers, a new study estimates that social networking productivity drainers like facebook can cost firms up to 130 million pounds a day, or over $260 million.
The study was conducted by employment law firm Peninsula and tracked 3,500 UK companies, estimating that 233 million hours are lost every month to social networking dalliances at work.
In other social networking news, those 300 facebook friends you have aren’t really your friends. Despite the massive numbers of people using these sites (MySpace is still the most trafficked site on the internet (we think even including porn, which isn’t usually accounted for)), studies are showing that an individual’s number of close friends does not increase with rampant online social networking. A huge contact list on a social networking site belies your real social status – of being a huge loser.
We’re still waiting for the study confirming that the number of times you have your shirt off in facebook pictures is inversely proportional to how often you get laid.
*Pictured – Otis may have never met Milo had he been sitting at his computer.
Facebook ‘costs businesses dear’ [BBC]
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Chain Store Retailers reported today – looks like the late back-to-school shopping sprees helped propel more aggressive numbers than expected for merchandise behemoths such as Saks, Wal-mart, and Target. Those dragging their feet – Costco, JCPenny, and Chico’s (Dad told Mom it’s time to pinch those pennies – plus, there are only so many gold lame cuffs a woman can possibly own).
US Indexes in the green today with the DJIA up .44% and the Nasdaq up .32%. The red-headed stepchild of the bunch – the 10-YR Note finishing at 4.513% down -0.38%.
It’s only fitting that post Labor Day the Labor Department reports jobless claims at a somewhat depressing although not unexpected 318,000 from 19,000.
The action in currencies was atavistic white people colonialism winning. The dollar was up slightly from 115.22 yen to 115.29 . The euro up from $1.3659 to $1.3684.
Oil trading close to $77 as worldwide oil alliances sighted a “tightness” in resources that is now hitting our shores stateside. (Maybe the taxi strike is for the best?) Additionally, hurricane season has energy traders shakin’ in their boots. Just click your heels boys and say “There’s no place like October” three times.
Additional market IQ from people who are smarter than we are FT Alphaville.
Who needs the best striker in the world (Thierry Henry) when the real power in English Premiership football is in getting backed by a Russian oligarch? From DealBook:
Russian mining magnate Alisher Usmanov has acquired a stake in Arsenal from David Dein, the club’s former vice-chairman and a close ally of manager Arsene Wenger. The sale of the 14.6 percent stake for 75 million pounds ($152 million) may fuel speculation that Mr Usmanov, who has made much of his fortune in the steel industry, may eventually mount a takover bid for the north London club.
English football is becoming like Battle-Bots (or one giant pissing contest) for Russian magnates, as Chelsea has been annoyingly good since Roman Abramovich bought the team in 2003.
(Pictured – The Arsenal SLR-105, a Bulgarian AK variant)
Russian Steel Magnate Buys Arsenal Stake [DealBook]
Dart-throwing monkeys and now Tokyo housewives prove that they should be in charge at trading desks across the Street. The one downfall of the Tokyo housewife investor, however, is that she is not as adept at tax evasion as your average fund manager.
A Tokyo housewife who made $3.4 million in recent forex trades got nabbed for tax evasion today. From Reuters:
Yukiko Ikebe, 60, got a suspended jail sentence and was fined 34 million yen after she used relatives’ names to make her gains look smaller and avoid paying tax, public broadcaster NHK said. “She felt it was unfair to have to pay tax on her gains, when she made losses some years,” NHK quoted the judge as saying. “She spent the money on kimonos and jewelry.”
Housewife hid $3 million in forex gains [Reuters]
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Bank of America invests $2 billion in Countrywide (Reuters)
Countrywide is the latest mortgage lender to sell a stake in itself at a discount price. In a move to be more liquid, the company has sold $2 billion worth of preferred stock to Bank of America. The non-voting shares yield 7.25% and can be converted into common stock at $18/share, well below the market’s closing price. There’d been lots of talk around town that Warren Buffett wanted a piece of the action, and this might be how he is getting it. Buffett owns 8.7 million shares of Bank of America.
Fighting for the pooling equilibrium (Marginal Revolution)
On the matter of major banks tapping the fed to reduce the stigma of tapping the fed, the quote of the day goes to Tyler Cowen: “I don’t know if this will work, but it is a neat trick. Imagine that you, as a smart person, went around saying stupid things, in an attempt to limit discrimination against the stupid.”
Utah Mine Boss Vows to Keep Searching (AP)
The relentless (and some might say foolish) hope on display by the continued rescue mission in Utah is both impressive and bewildering at the same time. And yet we have to wonder whether the operation would have gone the way it has had there not been such stigma attached to mine owners and mine safety. It seems pretty safe to say that no matter how safe a given mine is, if an earthquake traps a group of miners, the owner will be called negligent. It seems that if anything, the owners’ continued efforts at bringing this thing to a conclusion could be motivated by a desire to simply get the facts, in anticipation of years of legal headaches.
Fed’s Uncertainty Over Growth Makes Early Rate Cut Less Likely (Bloomberg)
All of the sudden, that rate cut with a 380% chance of happening is looking less likely — maybe it’s just 250% now (maybe less). With each passing day, a chorus of folks are starting to question the assumption. Days like yesterday, when the stock market rallied comfortably, aren’t helping anything. Perhaps that whole discount window wasn’t actually a message that rates will be cut, but just that the Fed is standing by, paying attention, not asleep, as suggested by Cramer. So if need be, a cut will be made, but if there’s no cut, it’s not because the Fed is clueless.