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fedgolfer said:
What is meant by, "cut $12.1 of debt"? Does that mean that they're cutting back on the high rates of subprime debt before it reaches the point of mass foreclosures? As in, some is better than none?
Click to expand...

NEW YORK, July 10 (Reuters) - Standard & Poor's on Tuesday said it may start cutting ratings on $12.1 billion of mortgage-related debt this week on expectations of an 8 percent drop in U.S. home prices and more mortgages defaults, rattling financial markets.
 
Would somebody please give my the 50-words-or-less explanation of "dovish" versus "hawkish." Does it relate passive versus aggressive attitude regardless of interest rate direction, or does one or the other indicate the direction of the proposed change? What is the origin--etymology (not to be confused with entomology, which would only apply if Bernacke were acting buggish, I suppose) --of these terms?

And as long as we're talking about market lore, why bulls and bears? Neither of them sound very friendly. Is there a Chicago connection?
 
qibovin said:
Would somebody please give my the 50-words-or-less explanation of "dovish" versus "hawkish." Does it relate passive versus aggressive attitude regardless of interest rate direction, or does one or the other indicate the direction of the proposed change? What is the origin--etymology (not to be confused with entomology, which would only apply if Bernacke were acting buggish, I suppose) --of these terms?

And as long as we're talking about market lore, why bulls and bears? Neither of them sound very friendly. Is there a Chicago connection?
Click to expand...

hawkish = 'attacking' inflation = raising rates

bull = charging ahead = higher market
bear = hybernating or maybe grumpy (my interpretation) = lower market
 
[BRIEFING.COM] S&P futures vs fair value: -1.2. Nasdaq futures vs fair value: -3.3. Futures indications continue to claw their way back from earlier lows but still suggest Tuesday's sell-off may carry over into this morning's open. On a positive note, investors are sifting through some M&A news. Last night, Gerdau Ameristeel (GNA) said it agreed to buy Chaparral Steel (CHAP) for $4.22 bln.
However, since that's hardly a blockbuster deal and lingering subprime woes may again remove leadership from the influential Financial sector, buyers are struggling to find any incentive, other than viewing yesterday's sizable pullback as an overreaction, to get back in.
 
2:00 pm : Since the last update, equities have extended their reach to the upside Exacerbating the move higher was the ability by the Dow, S&P 500 and Nasdaq to break through key resistance levels of 13570, 1515, and 2648, respectively.
However, reports have surfaced within the last 15 minutes that JP Morgan Chase (JPM 48.36 +0.85) has informed SLM Corp (SLM 50.47 -7.33) that it believes current legislative proposals pending before the U.S. Congress "could result in a failure of the conditions to the closing of the merger." SLM Corp, also known as Sallie Mae, has been halted; and, with M&A activity providing an underlying bid in stocks for so long, the news has taken the wind out of the market's sails for the time being.DJ30 +71.78 NASDAQ +8.34 SP500 +6.51 NASDAQ Dec/Adv/Vol 1378/1578/1.21 bln NYSE Dec/Adv/Vol 1414/1797/874 mln
 
Briefing.com
08:00 am : S&P futures vs fair value: +6.0. Nasdaq futures vs fair value: +8.0. Early indications suggest that yesterday's recovery efforts will carry over into this morning's open. While it's still too early to tell just how healthy the consumer was last month, as June same-store sales continue to roll in, a potential blockbuster acquisition is helping investors so far look past a Q2 warning from Motorola (MOT).
Rio Tinto (RTP) has made a $38.1 bln cash bid for Alcan (AL). That's a 12% premium to yesterday's closing price and easily tops Alcoa's (AA) original cash and stock offer of $26.9 bln.
 
8:35am ET
[BRIEFING.COM] S&P futures vs fair value: +6.0. Nasdaq futures vs fair value: +8.3. Initial claims fell 12K last week to 308K (consensus 315K), the lowest level since mid-May and reflective of healthy labor conditions. The May Trade Deficit, however, widened to $60 bln, matching economists' forecasts.
The initial response in stocks has been relatively muted, still indicating an upbeat open for the cash market. Bonds, though, have given up some ground. The 10-year note was up 4 ticks to yield 5.06% before the data but is now flat, lifting the yield to 5.08%.
​
 
9:00am ET
[BRIEFING.COM] S&P futures vs fair value: +6.3. Nasdaq futures vs fair value: +9.3. Stocks continue to exhibit a positive disposition as another day of deal making lends further evidence that liquidity remains prevalent. Sure, General Electric (GE) called off its proposed $8.1 bln offer for two Abbott Labs (ABT) diagnostics units; but concerns that GE was over paying for the businesses has the stock trading higher in pre-market action. Fellow Dow component Wal-Mart (WMT), though, is providing the bulk of early blue-chip support as its much stronger than expected June comps help counter what is still shaping up to be mixed month of same-store sales.
 
Briefing.com
However, as we argued yesterday about the lack of convincing fundamental evidence for Tuesday's bloodletting, today's rally leaves room for debate as well since the market is again getting ahead of itself in the face of earnings trends that are decent, but hardly fantastic. As a reminder, the S&P 500 index surged 4.3% in April during the heavy period of first quarter reports, which was completely out of proportion to actual earnings growth.
 
Today after the close look for the following companies to report: CREL, ESIO, and VIMC. Tomorrow before the open GE is scheduled to report.
 
I own a nice chunk of GE and they could conceivably surprise and blow the doors off their earnings - and simultaneously announce a terrific stock buy back. I'll sell mine when the price reaches $80. Nah, maybe not - I remember in 1989 when they split 2 for 1 twice in the same year. Jimmy Crickets that was golden.
 
8:00am
[BRIEFING.COM] S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: -2.0. After such a remarkably strong session, especially a rally sparked by less than overwhelming evidence and exacerbated by short covering, it's not surprising to see investors take a step back and reevaluate just how justifiable yesterday's sizable gains are. The Dow (+2.1%) posted its biggest one-day point gain since October 2002 in route to another record finish while a 1.9% surge on the S&P 500 lifted it to a new all-time high as well. Investors may also be showing some reserve ahead of the June retail sales report. The data should provide a more accurate read on the health of consumer spending than the better than feared same-store sales figures that contributed to Thursday's surprise rally.
 
General Electric beats by a penny, ex items; guides Q3 in-line; raises buy-back to $14 bln from $12 bln (GE) 39.00 : Reports Q2 (Jun) earnings of $0.53 per share, excluding non-recurring items, $0.01 better than the Reuters Estimates consensus of $0.52; revenues rose 12.1% year/year to $42.32 bln vs the $42 bln consensus. GE share repurchase program increased to $14 bln. Co issues in-line guidance for Q3, sees EPS of $0.54-0.56 vs. $0.55 consensus. Co reaffirms FY07 guidance and is on track to deliver a solid, low-risk performance in 2007 with high visibility to organic growth.
 
08:33 am : S&P futures vs fair value: -2.3. Nasdaq futures vs fair value: -5.8. Futures trade is weakening since the last update and now suggest the S&P 500 may join the Nasdaq in negative territory when the opening bell sounds. June retail sales fell 0.1% (consensus 0.0%) while more closely-watched sales, ex-autos, unexpectedly fell 0.4% (consensus 0.2%). The data counter yesterday's renewed optimism about the health of the consumer following surprisingly decent chain-store sales figures. Bonds, though, have strengthened slightly; the 10-year note is now four ticks to yield 5.10%.
 
http://www.bloomberg.com/apps/news?pid=20601087&sid=awxSspXYRr3s&refer=home

U.S. Retail Sales Fell 0.9% in June; Drop 0.4% Excluding Autos

By Shobhana Chandra
July 13 (Bloomberg) -- Retail sales in the U.S. fell in June by the most in almost two years, raising concern near-record gasoline prices and falling home values are taking a toll.
The bigger-than-forecast 0.9 percent decrease followed a revised 1.5 percent gain the prior month, the Commerce Department said today in Washington. Purchases excluding automobiles unexpectedly fell 0.4 percent, the most since September.
The figures suggest consumer spending, which accounts for more than two-thirds of the economy, cooled heading into the second half of the year. More jobs and rising wages will limit the damage to growth, along with gains in exports, manufacturing and business investment, economists said.
 
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