Taking Stock of Wall Street 2008-10-30
Who Won - the Bull or the Bear?
*******************************************************************
Folks, I am sorry, I have to discontinue this column though it was a very satisfying experience.
While googling, I found out that another person was copying this series, letter for letter, word for word, with no credits to me or AC to his website. Obviously, a new arrival to the blogging scene, that person is shamelessly stealing AC articles.
Also, that clandestine operation seems to be cashing in on the google ratings of AC articles. So, unfortunately, I am ending this column, though the work behind it still continues as part of my technical writing.
Thanks for your readership so far.
******************************************************************
Stocks meandered up and down before finally ending up in the green. The market now facing the realities is swinging between the extremes as each company or economic data comes out. It is good in a way than be pumped up by false information provided by just one greedy sector - the investment banks.
GLOBAL PICTURE
Hong Kong cut the benchmark rate from 2% to 1.5%.
Japanese's s $51bln second stimulus package may include tax relief on mortgages in addition to tax rebates.
Italy is planning a $25 bln bailout package to be infused into the banking system by buying financial sector bonds.
UK's new additional safety measures are proving burdensome, against the background of traditional deficit financing and big government spending. The European Investment Bank will provide $6.6 bln to small U.K. businesses
Germany is to announce an economic stimulus package close on the heels of its $650 bln infusion into the banking system.
China may have to implement more interest rate cuts as the target countries of its exports are in economic crisis.
US GOVERNMENTAL ACTION
Treasury's commercial paper facility is now the biggest buyer of corporate short-term securities - the government purchases account for nearly 75% of that market now.
US ECONOMIC DATA
Initial Jobless Claims - were the same as last week 479,000. It was more than the forecast figure of 475,000.
However, continuing claims of 3,715,000 were lower than the expected 3,735,000.
Four-week moving average fell by 5,000 to 475,500.
Real GDP fell by -0.3% in the third quarter, beating the forecast -0.5%. But it fell compared to the previous figure of + 2.8%.
Personal Consumption fell by -3.1% more than the projected -2.4% . In contrast the previous quarter showed a rise of +1.2%.
Consumer spending annual rate fell by 3.1%.
Money Supply for September (August figures in brackets): M1 = 1453.9 (1394.0) M2 = 7768.9 (7669.9)
Crude oil DOWN by -$1.54 (%) to $65.98
Gold DOWN by -$15.50(-2.06%) to $738.50
CBOE Volatility (VIX) settled at 62.90,DOWN by -7.06 (-10.09%) from the previous day.
US Dollar Index retreated again slightlyby-0.47 (-0.55%) to 84.61
STOCK MARKET INDICES
Dow was UP by 189.73 (2.11%) to 9,180.69
S&P 500 UP by 24.00 (2.58%) to 954.09
Nasdaq UP by 41.31 (2.49%) to 1,698.52
NYSE
Daily Volume: 1.35 bln
A/D Ratio: 2573 stocks advanced against 596 declined
52-week Hi/Lo: 18 stocks climbed to new Highs while 57 went down to new Lows
Nasdaq
Daily Volume: 2.52 bln
A/D Ratio: 2153 stocks advanced against 755 declined
52-week Hi/Lo: 4 stocks climbed to new Highs while 153 went down to new Lows
MARKET NEWS
While all sectors were upbeat today, telecom, energy and utilities proved to be the leaders. But, job cut announcement are proving a damper. And companies are announcing more and more job cuts:
Electronic Arts (ERTS) will cut 6% of its staff. American Express (AXP) will be laying off 10% employees, about 7,000 jobs.
Google (GOOG) and Yahoo (YHOO) may not go forward with their advertising partnership proposal as they ran into rough weather with the anti-trust regulators.
Despite the reported request by GM (GM), government or Treasury is not interested in playing the role of a mediator in the former's merger talks with Chrysler.
CVS Caremark (CVS) is in the final stages of its acquisition of Longs Drug Stores (LDG).
Elan (ELN) and Biogen Idec (BIIB) stocks were sold, as another case of neurological complication to their multiple sclerosis therapy Tysabri was reported.
M&A NEWS
Blackstone Group (BX) will invest up to $2 bln in South Korea. and bonds. Shares +2.0%.
United Health (UNH) is rumored to be interested in Coventry Health Care (CVH).
Singapore government is backing Las Vegas Sands (LVS) in the development of a $4B casino.
Delta (DAL) acquired Northwest Airlines (NWA) and thus becomes world's largest airline.
Motorola (MOT) is delaying the spin off of its mobile device unit into a separate division.
COMPANY RESULTS
* Companies that exceeded market's expectations on quarterly earnings:
Exxon Mobil (XOM), Waste Management (WMI), CBS (CBS), Pride International (PDE), Murphy Oil (MUR), BJ Services (BJS), Dominion Resources (D),DTE Energy (DTE), Colgate Palmolive (CL), Visa (V), CME Group (CME), Chiquita (CQB), Akamai Technologies (AKAM), McAfee (MFE),ON Semiconductor (ONNN), Oceaneering International (OII), Varian Semiconductor (VSEA), BMC Software (BMC), Monster Worldwide (MNST),Unum Group (UNM), Express Scripts (ESRX), Apache (APA), Commercial Metals Company (CMC), AstraZeneca (AZN), Marathon Oil (MRO), Energizer (ENR,) Powerwave Technologies (PWAV), Wynn Resorts (WYNN), Brink's (BCO), Newell Rubbermaid (NWL), Avon (AVP, )Waste Management (WMI), Mylan (MYL), Jarden (JAH), Eastman Kodak (EK), Alcatel-Lucent (ALU), Unilever (UL)
* Companies that were in line with market's expectations:
Electronic Arts (ERTS), CVS Caremark (CVS), Taiwan Semi (TSM)
* Companies that missed the forecasts:
Chesapeake Energy (CHK), B&G Foods (BGS), Shaw Group (SGR), Penske Auto (PAG)
ANALYSTS' RATINGS
- Following stocks received upgrades:
- Downgraded stocks are:
FED TALK
San Francisco Regional Fed President Janet Yellen spoke on Thursday at the University of California in Berkeley, California:
-the economy is likely to contract significantly in the fourth quarter (more than the -0.3% contraction in the third quarter).
-ill effects of the credit crunch has outpaced the Federal Reserve's huge interest rate cuts
-benchmark lending rate may still go down from the current 1.0%.
- mortgage meltdown is far from over and private-sector borrowing rates are higher
-considering the increase in government's spending, the 0% key interest rate may not happen.
-Fed's assets may swell to $3 tln in 2008, compared to $800 bln in 2007, Yellen said.
-for the average citizen, it is more than just a credit-crunch: falling jobs, falling incomes, falling asset values.
-there is the future danger of over-correction too.
POINTERS TO THE FUTURE
- Contraction of GDP will make it difficult to assess the presence and effects of recession. Thus, it may delay any corrective measures.
Published by scribbler
Legal and Financial Proofreader View profile
- Greed, and the Movie Wall Street is GoodWall Street was Oliver Stone at his best.
DVD Review: Wall Street 20th Anniversary EditionWall Street has been repackaged as the 20th Anniversary Edition. If anything, watch it for Michael Douglas as Gordon Gekko. Skip most of the extras.- How to Recover from Job Losses on Wall StreetJob losses on Wall Street are not limited to overpaid boardroom executives. Wall Street job losses will be felt by support staff in all functional areas as well as impact the hospitality, transportation and housing m...
Wall Street Meltdown: The Best Films About Wall Street & Big BusinessWall Street is in crisis. As the world look worriedly to the global center of commerce, here's some of the best movies that dealt with Wall Street & Big Business.- Wall Street Bailout is Barack Obama's Best IssueBarack Obama's campaign was losing ground, but the Wall Street bailout means the Sarah Palin factor is paling by comparison.
- How Wall Street Manipulates Investors
- An Analysis of the Attorney's Change in Melville's Bartleby the Scrivener: A Story...
- Top 10 Reasons Wall Street Gives for the Stock Market Correction
- Why The Wall Street Journal was the Best Investment I've Made
- Wall Street Market Crash of 1929
- New White Paper Blames the Fed, Wall Street, and Mortgage Lenders for Housing Bust
- The 20th Anniversary of Wall Street, a Possible Sequel and Deciding Whether Gordon...