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decent day...
I ditched FNM earlier cause I wasn't sure the rally would hold. I still think however, that the djia is headed back to 10500~ to churn...
Out FNM 1.64...small loss..still green for the day...
Out RDN 10.18
Out FRE 1.87
still have FNM from friday...off to school...
Djia -24
have a good day
out all 4.05-4.07
added 3.94...twice
grabbed YRCW 3.88/3.89
grabbed RDN 9.99
Futures
North/Latin America
INDEX VALUE CHANGE OPEN HIGH LOW TIME
DJIA INDEX 9,469.00 -62.00 9,490.00 9,491.00 9,440.00 08:31
S&P 500 1,029.60 -7.70 1,036.10 1,036.10 1,025.70 08:31
NASDAQ 100 1,671.00 -12.50 1,679.25 1,680.25 1,666.00 08:31
BZH SRZ YRCW ICO C may be better plays
I think its heavily dilutued; may R/S....I like C going to 15-20 better
fwiw look at jan 2011 calls on C....cheap lotto...
Grabbed FRE 1.81
European, Asian Shares Retreat; U.S. Stock-Index Futures Fall
Share | Email | Print | A A A
By Adam Haigh
Sept. 14 (Bloomberg) -- Stocks in Europe and Asia declined, ending a seven-day advance for the MSCI World Index, on concern the six-month rally in equities has outpaced the prospects for earnings and economic growth. U.S. index futures dropped.
Societe Generale SA and Deutsche Bank AG fell after Nomura Holdings Inc. downgraded the shares. BHP Billiton Ltd., the world’s biggest mining company, sank 2.2 percent in London as metals retreated. Honda Motor Co., which gets 47 percent of its sales in North America, slid 3 percent in Tokyo on concern the yen’s appreciation to a seven-month high against the dollar will reduce the value of overseas revenue.
The MSCI World fell 0.9 percent at 12:20 p.m. in London, as all 10 industry groups declined. The measure’s 61 percent surge since March 9 pushed valuations to 27.3 times the profits of its 1,659 companies at the end of last week, the most expensive level in more than six years, data compiled by Bloomberg show.
“There’s a lot of vulnerability still in the global economy,” said Michael Dicks, head of research and investment strategy at Barclays Wealth in London, which oversees about $203 billion. “There’s still a lot to do. Stocks are getting back to fair value and it requires the economy to keep going for them to keep going,” he said in a Bloomberg Television interview.
Europe’s Dow Jones Stoxx 600 Index dropped 1.2 percent today, while Standard & Poor’s 500 Index futures expiring in December slid 0.8 percent. The MSCI Asia Pacific Index sank 1.8 percent, led by Hankook Tire Co., as the U.S. imposed a 35 percent tariff on Chinese-made tires.
Recovery, Recession
The U.S. recovery may be the slowest since World War II to regain all the ground lost during the recession, even if economists’ more optimistic forecasts for expansion turn out to be right.
The slump this time was so deep, said JPMorgan Chase & Co. chief economist Bruce Kasman, that the 3.5 percent average quarterly growth rate he sees in the next year won’t be enough to bring gross domestic product back to its $13.42 trillion pre- crisis peak. That’s in contrast with the last 10 recoveries, when GDP returned to its previous levels within 12 months.
Joseph Stiglitz, the Nobel Prize-winning economist, said yesterday that the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.
“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview in Paris. “The problems are worse than they were in 2007 before the crisis.”
European Economy
Europe’s economy probably returned to growth in the current quarter, the European Union said today. The euro-area economy may expand 0.2 percent in the third quarter and 0.1 percent in the fourth after shrinking 0.1 percent in the three months through June, the European Commission said in updated economic forecasts.
Fund managers including Rothschild & Cie Gestion’s Philippe Chaumel are betting that the global economic recovery won’t be strong enough to support further gains in so-called cyclical stocks. BlackRock Inc. and OppenheimerFunds Inc. are moving money out of shares whose profits are more tied to economic growth into defensive equities after a six-month, 162 percent surge in the Morgan Stanley Cyclical Index.
Societe Generale, France’s second-biggest bank by market value, declined 3.2 percent to 49.16 euros after Nomura downgraded the shares to “reduce” from “neutral.” Deutsche Bank slipped 2.4 percent to 48.59 euros as the brokerage trimmed its recommendation to “reduce” from “buy.”
Mining Companies
BHP Billiton slid 2.2 percent to 1,676.5 pence. Rio Tinto Group, the world’s third-biggest mining company, declined 2.7 percent to 2,548 pence. Copper, nickel and zinc retreated on the London Metal Exchange.
Honda fell 3 percent to 2,780 yen as the Japanese currency appreciated versus the dollar to as high as 90.21 today, a level not seen since Feb. 12. A stronger yen reduces the value of overseas sales at Japanese companies when converted into their home currency.
Sony Corp., the world’s second-biggest maker of consumer electronics, dropped 2.4 percent to 2,425 yen. Toyota Motor Corp., which got 31 percent of its revenue last fiscal year in North America, lost 2.6 percent to 3,740 yen.
Hankook Tire Co., the largest overseas tiremaker in China, tumbled 8.8 percent to 20,200 won in Seoul after the U.S. placed tariffs on $1.8 billion of tires from China, acting on a union complaint that imports were pushing U.S. workers out of jobs. Aeolus Tyre Co., the largest Chinese-listed tiremaker by market value, fell 3.3 percent to 12.84 yuan.
Sri Trang Slips
Sri Trang Agro-Industry Pcl, Thailand’s biggest publicly traded rubber producer, dropped 3.4 percent to 14.3 baht. Rubber slumped by the most in eight months in Tokyo as the U.S. tariffs spurred concern demand in the world’s largest consumer of the commodity may decline.
PSA Peugeot Citroen retreated 4.5 percent to 20.41 euros after Credit Suisse Group AG cut its recommendation on Europe’s second-largest automaker to “underperform” from “outperform,” citing the stock’s jump this year and the possible size of a decline in sales as incentive plans end.
Deutsche Telekom AG slipped 1.5 percent to 9.39 euros. Europe’s biggest phone company asked adviser Deutsche Bank to study a potential takeover bid for U.S. mobile-phone operator Sprint Nextel Corp., the Sunday Telegraph reported, citing unidentified people.
Deutsche Telekom, Sprint
Deutsche Telekom will probably need to call on shareholders, including the German government which owns a 32 percent stake, for cash to fund an acquisition of Sprint, the newspaper said. Sprint shares rallied 12 percent to $4.21 in pre-market New York trading.
Deutsche Bank spokesman Michael Lermer declined to comment to Bloomberg, and Sprint spokesman James Fisher said, “We do not comment on rumor or speculation.”
HeidelbergCement AG lost 3.5 percent to 41.73 euros after the German cement maker owned by the Merckle family said it plans a two-for-one share sale to raise funds that will help reduce debt.
Wienerberger AG slid 3.1 percent to 15.02 euros. The world’s biggest brickmaker plans to raise 335.8 million euros ($488 million) in a share sale that hands the Libyan sovereign wealth fund as much as 10 percent of the company.
To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net
Last Updated: September 14, 2009 07:23 EDT
Oil 68.69
Futures
North/Latin America
INDEX VALUE CHANGE OPEN HIGH LOW TIME
DJIA INDEX 9,467.00 -64.00 9,490.00 9,491.00 9,440.00 07:44
S&P 500 1,028.90 -8.40 1,036.10 1,036.10 1,025.70 07:44
NASDAQ 100 1,669.75 -13.75 1,679.25 1,680.25 1,666.00 07:44
S gapping this AM
European, Asian Shares Retreat; U.S. Stock-Index Futures Fall
Share | Email | Print | A A A
By Adam Haigh
Sept. 14 (Bloomberg) -- Stocks in Europe and Asia declined, ending a seven-day advance for the MSCI World Index, on concern the six-month rally in equities has outpaced the prospects for earnings and economic growth. U.S. index futures dropped.
Societe Generale SA and Deutsche Bank AG fell after Nomura Holdings Inc. downgraded the shares. BHP Billiton Ltd., the world’s biggest mining company, sank 2.2 percent in London as metals retreated. Honda Motor Co., which gets 47 percent of its sales in North America, slid 3 percent in Tokyo on concern the yen’s appreciation to a seven-month high against the dollar will reduce the value of overseas revenue.
The MSCI World fell 0.9 percent at 12:20 p.m. in London, as all 10 industry groups declined. The measure’s 61 percent surge since March 9 pushed valuations to 27.3 times the profits of its 1,659 companies at the end of last week, the most expensive level in more than six years, data compiled by Bloomberg show.
“There’s a lot of vulnerability still in the global economy,” said Michael Dicks, head of research and investment strategy at Barclays Wealth in London, which oversees about $203 billion. “There’s still a lot to do. Stocks are getting back to fair value and it requires the economy to keep going for them to keep going,” he said in a Bloomberg Television interview.
Europe’s Dow Jones Stoxx 600 Index dropped 1.2 percent today, while Standard & Poor’s 500 Index futures expiring in December slid 0.8 percent. The MSCI Asia Pacific Index sank 1.8 percent, led by Hankook Tire Co., as the U.S. imposed a 35 percent tariff on Chinese-made tires.
Recovery, Recession
The U.S. recovery may be the slowest since World War II to regain all the ground lost during the recession, even if economists’ more optimistic forecasts for expansion turn out to be right.
The slump this time was so deep, said JPMorgan Chase & Co. chief economist Bruce Kasman, that the 3.5 percent average quarterly growth rate he sees in the next year won’t be enough to bring gross domestic product back to its $13.42 trillion pre- crisis peak. That’s in contrast with the last 10 recoveries, when GDP returned to its previous levels within 12 months.
Joseph Stiglitz, the Nobel Prize-winning economist, said yesterday that the U.S. has failed to fix the underlying problems of its banking system after the credit crunch and the collapse of Lehman Brothers Holdings Inc.
“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger,” Stiglitz said in an interview in Paris. “The problems are worse than they were in 2007 before the crisis.”
European Economy
Europe’s economy probably returned to growth in the current quarter, the European Union said today. The euro-area economy may expand 0.2 percent in the third quarter and 0.1 percent in the fourth after shrinking 0.1 percent in the three months through June, the European Commission said in updated economic forecasts.
Fund managers including Rothschild & Cie Gestion’s Philippe Chaumel are betting that the global economic recovery won’t be strong enough to support further gains in so-called cyclical stocks. BlackRock Inc. and OppenheimerFunds Inc. are moving money out of shares whose profits are more tied to economic growth into defensive equities after a six-month, 162 percent surge in the Morgan Stanley Cyclical Index.
Societe Generale, France’s second-biggest bank by market value, declined 3.2 percent to 49.16 euros after Nomura downgraded the shares to “reduce” from “neutral.” Deutsche Bank slipped 2.4 percent to 48.59 euros as the brokerage trimmed its recommendation to “reduce” from “buy.”
Mining Companies
BHP Billiton slid 2.2 percent to 1,676.5 pence. Rio Tinto Group, the world’s third-biggest mining company, declined 2.7 percent to 2,548 pence. Copper, nickel and zinc retreated on the London Metal Exchange.
Honda fell 3 percent to 2,780 yen as the Japanese currency appreciated versus the dollar to as high as 90.21 today, a level not seen since Feb. 12. A stronger yen reduces the value of overseas sales at Japanese companies when converted into their home currency.
Sony Corp., the world’s second-biggest maker of consumer electronics, dropped 2.4 percent to 2,425 yen. Toyota Motor Corp., which got 31 percent of its revenue last fiscal year in North America, lost 2.6 percent to 3,740 yen.
Hankook Tire Co., the largest overseas tiremaker in China, tumbled 8.8 percent to 20,200 won in Seoul after the U.S. placed tariffs on $1.8 billion of tires from China, acting on a union complaint that imports were pushing U.S. workers out of jobs. Aeolus Tyre Co., the largest Chinese-listed tiremaker by market value, fell 3.3 percent to 12.84 yuan.
Sri Trang Slips
Sri Trang Agro-Industry Pcl, Thailand’s biggest publicly traded rubber producer, dropped 3.4 percent to 14.3 baht. Rubber slumped by the most in eight months in Tokyo as the U.S. tariffs spurred concern demand in the world’s largest consumer of the commodity may decline.
PSA Peugeot Citroen retreated 4.5 percent to 20.41 euros after Credit Suisse Group AG cut its recommendation on Europe’s second-largest automaker to “underperform” from “outperform,” citing the stock’s jump this year and the possible size of a decline in sales as incentive plans end.
Deutsche Telekom AG slipped 1.5 percent to 9.39 euros. Europe’s biggest phone company asked adviser Deutsche Bank to study a potential takeover bid for U.S. mobile-phone operator Sprint Nextel Corp., the Sunday Telegraph reported, citing unidentified people.
Deutsche Telekom, Sprint
Deutsche Telekom will probably need to call on shareholders, including the German government which owns a 32 percent stake, for cash to fund an acquisition of Sprint, the newspaper said. Sprint shares rallied 12 percent to $4.21 in pre-market New York trading.
Deutsche Bank spokesman Michael Lermer declined to comment to Bloomberg, and Sprint spokesman James Fisher said, “We do not comment on rumor or speculation.”
HeidelbergCement AG lost 3.5 percent to 41.73 euros after the German cement maker owned by the Merckle family said it plans a two-for-one share sale to raise funds that will help reduce debt.
Wienerberger AG slid 3.1 percent to 15.02 euros. The world’s biggest brickmaker plans to raise 335.8 million euros ($488 million) in a share sale that hands the Libyan sovereign wealth fund as much as 10 percent of the company.
To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net
Last Updated: September 14, 2009 07:23 EDT
Asian Stocks Fall Amid Valuation Concerns; Honda Drops on Yen
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By Shani Raja
Sept. 14 (Bloomberg) -- Asian stocks fell, dragging the MSCI Asia Pacific Index from a one-year high, amid concern a six-month rally had overvalued prospects for an earnings recovery in the region.
Honda Motor Co., which gets 47 percent of its sales in North America, retreated 3 percent in Tokyo on concern the yen’s appreciation to a seven-month high against the dollar will reduce the value of overseas revenue. National Australian Bank Ltd., the nation’s biggest by assets, dropped 3.2 percent in Sydney after Treasurer Wayne Swan said unemployment will climb. Santos Ltd., Australia’s No. 3 oil producer, sank 3.7 percent as commodity prices declined.
“Expectations may be beginning to moderate regarding the ongoing strength of the recovery,” said Tim Schroeders, who helps manage about $1 billion at Pengana Capital Ltd. in Melbourne. “Investors will be concentrating on discerning real underlying growth in the global economy.”
The MSCI Asia Pacific Index sank 1.8 percent to 115.72 as of 5:53 p.m. in Tokyo after ending last week at its highest level since Sept. 9, 2008. The gauge has climbed 64 percent from a five-year low on March 9 as government stimulus measures worldwide pulled economies out of recession.
Japan’s Nikkei 225 Stock Average fell 2.3 percent. Real- estate investor K.K. DaVinci Holdings tumbled 14 percent in Tokyo after saying it wasn’t likely to reach agreement on a loan extension. Hong Kong’s Hang Seng Index dropped 1.1 percent, led by Li & Fung Ltd., which retreated for a second day from a 15- month high. Australia’s S&P/ASX 200 Index declined 1.4 percent.
Consumer Confidence
China’s Shanghai Composite Index rose 1.2 percent. Shandong Minhe Animal Husbandry Co. climbed 10 percent, leading gains among poultry producers, after the government announced a probe into U.S. chicken imports.
Futures on the U.S. Standard & Poor’s 500 Index dropped 1 percent. The gauge dipped 0.1 percent on Sept. 11 even after a report showed the Reuters/University of Michigan preliminary index of consumer sentiment rose more than economists had estimated in September.
U.S. Treasuries rose on speculation declines in Asian stocks and the euro will bolster demand for the safest assets. Philippe Chaumel, a Paris-based money manager at Rothschild & Cie Gestion who beat 94 percent of his peers in the past year, said he’s switching investments into so-called defensive stocks.
The MSCI Asia Pacific Index gained 4.4 percent last week, its biggest weekly advance since the period ended July 24. The average price of the gauge’s companies has climbed to 24 times estimated net income, up from 15 times at the index’s March low.
Stronger Yen
Profit reports in the region have helped fuel the six-month rally, with 35 percent of the 642 companies in the MSCI Asia Pacific beating analyst predictions in the latest quarter, while 21 percent missed, according to data compiled by Bloomberg. Net income in the latest period still tumbled 47 percent from a year earlier, the data showed.
Honda fell 3 percent to 2,780 yen as the yen appreciated versus the dollar to as much as 90.21 today, a level not seen since Feb. 12. A stronger yen reduces the value of overseas sales at Japanese companies when converted into their home currency.
Sony Corp., the world’s second-biggest maker of consumer electronics, dropped 2.4 percent to 2,425 yen. Toyota Motor Corp., which got 31 percent of its revenue last fiscal year in North America, lost 2.6 percent to 3,740 yen.
Japan’s large manufacturers expect the yen to trade at an average of 94.85 this year, according to the Bank of Japan’s most recent quarterly Tankan survey.
Australia’s Jobless Rate
“The current exchange rate will adversely affect companies that base their forecasts on 95 yen per dollar,” said Yoshinori Nagano, a senior strategist at Tokyo-based Daiwa Asset Management Co., which oversees the equivalent of $95 billion. “There aren’t a lot of players in the market and that amplifies declines and gains in equities.”
In Sydney, National Australia shares dropped 3.2 percent to A$28.10. Australia & New Zealand Banking Group Ltd. declined 3 percent to A$22.01.
Australia’s unemployment rate will rise from 5.8 percent, boosting the need to maintain the government’s economic stimulus measures, Treasurer Swan said in his weekly economic note released yesterday.
“Ripping the stimulus out prematurely would only pull the rug out from under the recovery, undermine confidence and threaten jobs,” Swan wrote.
Lehman Bankruptcy
HSBC Holdings Plc, the London-based bank that has the biggest representation in the Hang Seng Index, lost 0.9 percent to HK$83.85. Joseph Stiglitz, a Nobel Prize-winning economist, said in an interview in Paris over the weekend that the U.S. banking system is in a worse state than before the seizure in credit markets and collapse of Lehman Brothers Holdings Inc.
Tomorrow is the one-year anniversary of Lehman’s bankruptcy filing, which exacerbated the credit crunch and helped drag the global economy into its worst slowdown since World War II. Losses from the credit crisis at the world’s biggest financial institutions since the start of 2007 have climbed to more than $1.6 trillion.
New Zealand’s statistics office today reported a 0.5 percent decline in the country’s retail sales, missing the 0.4 percent increase anticipated by economists in a Bloomberg survey.
Fisher & Paykel Appliances Holdings Ltd., the nation’s biggest maker of cookers and washers, lost 1.3 percent to 77 New Zealand cents in Wellington. Warehouse Group Ltd., the biggest discount retailer, dropped 0.7 percent to NZ$4.22.
Copper, Oil
K.K. DaVinci, which manages real-estate investment funds, tumbled 14 percent to 12,350 yen following the statement on its loan extension.
Hong Kong’s Li & Fung, the biggest supplier of clothes and toys to Wal-Mart Stores Inc. and Target Corp. sank 3.8 percent to HK$28.10, adding to a 3.3 percent drop on Sept. 11. The stock closed on Sept. 10 at the highest since May 28, 2008.
In Sydney, Santos sank 3.7 percent to A$15.30, while Rio Tinto Group, the world’s No. 3 mining company, fell 2 percent to A$58.05. Mitsui & Co., which counts commodities as its biggest source of profit, lost 1.5 percent to 1,215 yen in Tokyo.
Copper futures in New York dropped 2.4 percent today, the fourth day of declines. A gauge of six metals in London lost 3.5 percent on Sept. 11. Crude oil dropped 1.1 percent today, adding to a 3.7 percent slump on Sept. 11.
The Australian and New Zealand dollars fell today, retreating from last week’s strongest levels since August 2008, following the declines in commodities, which account for more than half of the two nations’ exports.
Government Probe
Shandong Minhe, which breeds chickens, surged 10 percent to 15.05 yuan, while rival Shanghai Dajiang (Group) Stock Co. added 10 percent to 9.03 yuan on speculation demand for their products will rise.
The Chinese government announced a dumping and subsidy probe into U.S. imports two days after President Barack Obama imposed tariffs on tires from the Asian nation.
Among stocks that gained today, Japan Airlines Corp. jumped 8 percent to 176 yen after people familiar with the plan said American Airlines may buy a stake in the carrier. Japan Airlines, which has received three government bailouts since 2001, is also discussing possible stake sales to Delta Air Lines Inc. and Air France-KLM, people acquainted with those negotiations have said.
Japan Air is talking with other carriers to strengthen its business, spokeswoman Sze Hunn Yap said in Tokyo, declining to comment on discussions or possible investments.
Alibaba.com Ltd. climbed 3.7 percent to HK$21.15 in Hong Kong. The operator of China’s biggest trading Web site is attracting more sellers from Europe and has 1.4 million users in the region after boosting its marketing activity there, according to Maggie Choo, Alibaba’s director for Europe.
To contact the reporter for this story: Shani Raja in Sydney at sraja4@bloomberg.net.
Last Updated: September 14, 2009 04:53 EDT
Oil 68.69
No EA today
From another board:
Economic Releases for the week of Monday, September 14th, 2009:
Sep 15 - PPI
Sep 15 - Retail Sales
Sep 15 - Business Inventories
Sep 16 - CPI
Sep 16 - Building Permits
Sep 16 - Crude Inventories
Sep 17 - Housing Starts
Sep 17 - Initial Claims
Sep 17 - Philadelphia Fed
Futures
North/Latin America
INDEX VALUE CHANGE OPEN HIGH LOW TIME
DJIA INDEX 9,467.00 -64.00 9,490.00 9,491.00 9,440.00 07:44
S&P 500 1,028.90 -8.40 1,036.10 1,036.10 1,025.70 07:44
NASDAQ 100 1,669.75 -13.75 1,679.25 1,680.25 1,666.00 07:44
GM all
hmmm...I'll be graduating then...would be a great time for a vacation...
futures down here...lets hope asia/europe turn up overnight
at least we'll be able to trade with you again...I think you'd do greeat trading ft
lol
me too
that might work...when were you thinking?
hey dallas...you ever around anymore?
we miss you here...you need to take a few vacation days...the year is almost over and you don't want to lose them...
FRE FNM have settled down a bit, but are still good for daytrading. I would think we see at least 1.74-1.75 next week. (probably monday morning if futures turn up)
fwiw I typically take semi-large positions, barren, in most stuff I trade and take profit at 3% or so
for instance I have 60K FNM at 1.66 I'll sell at 1.71-1.74.
I find if I take profits at that level, I remain a profiatble trader and see a success rate that I can survive on. My last 12 trading days my profit is 61K$....and I haven't had a red day...
also...are you thinking about going back to panama this next year?...I'd love to organize a trip back to where I used to live in Costa Rica...
later all...have a good weekend..
I want FNM to hit 1.71 so I can unload on the bid these shares before close
or quit...