Market News

[weatherweenie]

Initial claims for state unemployment benefits dropped 12,000 to a seasonally adjusted 377,000, the labor department said on Thursday. That was spot on the median forecast in a Reuters poll. The government revised the prior week's figure up to 389,000 from the previously reported 383,000.

 

[nnuut]

WHAT the HECK?
[h=1]Bank Investors Dismiss Moody’s Cuts as Years Too Late[/h]
By Dakin Campbell and Michael J. Moore - Jun 22, 2012 8:02 AM ET

Downgrades of Morgan Stanley (MS), Credit Suisse Group AG (CSGN) and 13 other global banks, announced by Moody’s Investors Service after months of speculation about dire fallout, were met instead by rallies in stocks and bonds.
The cost to protect Morgan Stanley’s debt against losses dropped, and the shares rallied as much as 4.6 percent in extended trading yesterday after the ratings firm cut the bank by two levels rather than a threatened three grades. Credit- default swaps tied to Bank of America Corp., which was lowered to within two levels of junk along with Citigroup Inc. (C), also improved, along with those of Goldman Sachs Group Inc. (GS)

“American banks are stronger today than they were three years ago,” said Gerard Cassidy, a bank equity analyst with RBC Capital Markets, adding that market prices have long reflected concerns raised by Moody’s. “Yes, their ratings are lower, but is Citi tomorrow going to have to pay an extra 50 basis points for commercial paper? I don’t think so.
Bank Investors Dismiss Moody

 

[Mcqlives]

And besides the significance of the bank downgrades being downplayed I can hardy find a mention of Frances new chief claiming that the highest tax rate will be raised to 75%...I don't think I could count the number of businesses that will leave that county. Our taxes don't look so bad anymore.

 

[nnuut]

And besides the significance of the bank downgrades being downplayed I can hardy find a mention of Frances new chief claiming that the highest tax rate will be raised to 75%...I don't think I could count the number of businesses that will leave that county. Our taxes don't look so bad anymore.

Wait until January 1st, Obama has plans for us.

 

[Sensei]

Quick question about futures: The S&P closed at 1335 on Friday. The futures show it UP 0.6% at a price of 1326. I notice such a discrepancy every day. Why?

 

[nnuut]

Quick question about futures: The S&P closed at 1335 on Friday. The futures show it UP 0.6% at a price of 1326. I notice such a discrepancy every day. Why?

I see what you mean, that's one on me.

 

[tsptalk]

Quick question about futures: The S&P closed at 1335 on Friday. The futures show it UP 0.6% at a price of 1326. I notice such a discrepancy every day. Why?

The S&P futures continue to trade for 15 minutes after the market closes so their closing price will be different. That difference is what they are talking about when they say "fair value" in the futures.

For example:

Monday the cash S&P 500 closes up 8.50 for the day at 4 PM ET. If some good news comes out after the close, the futures may close up 12.00 for the day because it took into consideration the news. That gives it a negative fair value of 3.50.

The next morning when the futures are trading the quote may say they are up 2.00 but that is +2 above the +3.50 it gained in those 15 minutes the prior day, so you would add the 3.50 to get an approximate opening value for the S&P cash, which would be about +5.50.

Confusing, I know. The futures are open almost all day with two short closings between 4:15 PM ET and 4:30 PM ET, and between 5:30 PM ET and 6 PM ET. But because cash and futures markets post their closing numbers 15 minutes apart, the gain / loss on the day would be different.

 

[nnuut]

Yeah, what Tom said!

 

[nnuut]

Health-Care Ruling May Be a Catalyst for Stocks

Published: Friday, 22 Jun 2012 | 7:23 PM ET
By: Patti Domm
Markets are bracing for the Supreme Court ruling on health care in the week ahead and it could be a positive catalyst for stocks if the new law is overturned.
But any pop is likely to be brief and the focus will return to Europe as the European Union leadership gathers to discuss a banking union at the end of the week. Early in the week, the focus will be on Greece’s efforts to restructure its bailout and Spain’s expected request Monday for funds to recapitalize its banks. There is also a stream of U.S. economic data, including durable goods, weekly jobless claims and consumer confidence readings.
The Supreme Court decision on President Obama’s health-care reforms could possibly come Monday but certainly by the end of the week. Some analysts say if the law is overturned, stocks could instantly spring into rally mode, though that could be short-lived since uncertainties remain. Health-care stocks have been moving higher ahead of the ruling on the Affordable Care Act, and were the best-performing sector in the past week, gaining 0.8 percent.
News Headlines

 

[Sensei]

Looks like that head test is going to come sooner than later.

 

[nnuut]

[h=1]Jobless Claims in U.S. Rise as Auto Layoff Effects Ease[/h]
By Alex Kowalski - Jul 19, 2012 8:55 AM ET
More Americans than forecast filed first-time claims for unemployment insurance payments last week as the volatility induced by the annual auto-plant retooling period started to wear off.
Applications for jobless benefits increased by 34,000 to 386,000 in the week ended July 14, Labor Department figures showed today. Economists forecast 365,000 claims, according to the median estimate in a Bloomberg News survey. The volatility in the numbers was due to a change in the timing of annual automobile plant layoffs, a Labor Department spokesman said as the data were released.
Jobless Claims in U.S. Rise as Auto Layoff Effects Ease - Bloomberg

 

[nnuut]

GDP!!!

[TABLE="class: actual_consensus_box"] [TR="class: actual_consensus_toprow"] [TD]	Prior	Consensus	Consensus Range	Actual
Real GDP - Q/Q change - SAAR
GDP price index - Q/Q change - SAAR

[TD="class: econo-releaseinfo"] Released On 7/27/2012 8:30:00 AM For Q2a:2012
[/TD]

[TD="class: actual_consensus_box_numbers"] 1.9 %
[/TD]
[TD="class: actual_consensus_box_numbers"] 1.2 %
[/TD]
[TD="class: actual_consensus_box_numbers"] 0.9 % to 2.4 %
[/TD]
[TD="class: actual_consensus_box_numbers"] 1.5 %
[/TD]

[TD="class: actual_consensus_box_numbers"] 2.0 %
[/TD]
[TD="class: actual_consensus_box_numbers"] 1.6 %
[/TD]
[TD="class: actual_consensus_box_numbers"] 1.2 % to 2.2 %
[/TD]
[TD="class: actual_consensus_box_numbers"] 1.6 %
[/TD]

Economic Calendar - Bloomberg
[/TD]
[/TR]
[/TABLE]

 

[nnuut]

July 27, 2012, 8:30 a.m. EDT
U.S. growth tapers off to 1.5% in second quarter
U.S. growth tapers off to 1.5% in second quarter - MarketWatch

 

[weatherweenie]

The Federal Reserve says the economy is losing strength and repeated a pledge to take further steps if the job market doesn't show sustained improvement.

 

[Birchtree]

Well isn't that a big surprise - I say watch what they'll do and not what they say.

 

[weatherweenie]

Asian stocks rose after reports showed China’s consumer prices climbed at a slower pace for a fourth month and Australian employment exceeded estimates in July ahead of a Bank of Japan decision today.

 

[tsptalk]

http://www.bloomberg.com/news/2012-08-09/u-s-jobless-claims-were-available-early-firm-says.html

"Jobless claims unexpectedly dropped by 6,000 to 361,000 in the week ended Aug. 4, according to Labor Department figures released in Washington. The median forecast of 43 economists surveyed by Bloomberg called for an increase to 370,000."

 

[wavecoder]

Another flat day, what in the wide world of sports is going on here? lol

 

[RealMoneyIssues]

Another flat day, what in the wide world of sports is going on here? lol

Um, nothing...

 

[weatherweenie]

Cisco Systems reported fiscal Q4 revenue and profit per share that topped expectations and raised its dividend 75%.