Posts Tagged Asian Stocks

Wednesday’s Brew (Nov 8)

Posted by admin in Uncategorized on April 11th, 2010

Enjoy your fresh morning coffee with our summary of the market outlook for the day and a medley of important information you should find useful. are down sharply in early activity, as the market is likely to have difficulty digesting Democratic wins in both the House and Senate. The Senate results appear set to drag out, as two close battles remain unsettled. Wall Street had not counted on Democratic wins in both houses of Congress, but you heard it here yesterday. This is likely the catalyst to take markets another leg lower, though anything short of total control for the Democrats is not enough to influence the administration meaningfully. With the Dems controlling both houses, President Bush will have to make some concessions in order to avoid being a leader for the rest of his term.
The NIKKEI dropped over 1%, the Hang Seng fell 0.68% and the S&P/ shed 0.59%, as concern for U.S. markets post the potential shift of power toward the Democrats pressured shares globally. In Australia, economists expected and received an interest rate increase, and many markets in Asia were trading at or near heading into the , allowing slack for retracing.
Shares across the U.K. and Europe have followed suit to start the day, as shares of firms with sensitivity to U.S. markets are leading the drive downward. Among early losers today are Plc, as pharmaceuticals appear especially susceptible to earnings impact should the Dems push for lower prescription drug pricing.
ECONOMIC DATA & NEWS
The U.S. economic calendar is rather muted today. As previously noted, Australia’s Reserve Bank impacted as it ended its meeting and issued its decision to raise interest rates.
Back home, SEC Chairman and other market notables will headline the SIFMA meeting in Florida. The New York Society of holds its today as well.
COMMODITY MARKETS
Natural gas leads all commodities, rebounding after a sharp fall yesterday. Nat gas is up approximately 1.68% today. After its sharp rise yesterday, ethanol demand beneficiary, sugar is down about 1.45% today. However, confounding consensus, corn is up roughly 1.28% today. Corn is benefiting specifically from speculation that the government may reduce the nation’s crop forecast due to July weather damage.
Crude oil is up fractionally, as traders speculate heating oil supplies declined last week due to the cold spell that swept much of the country. The U.S. Energy Department will announce inventory levels at its regular time today, 10:30 EST. Analysts surveyed by Bloomberg News expect distillate supplies, including heating oil and diesel fuel, likely fell 800,000 barrels last week.
STOCKS NEWS
Reporting earnings Wednesday, look for Cisco Systems Inc., Federated Department Stores, Barr Pharmaceuticals, Dynegy, Hospira, Interpublic Group, PG&E Corp., and BMC Software Inc.
Sirius Satellite Radio (SIRI) posted a narrower than expected third quarter loss, reporting a loss of $0.12, versus analysts’ consensus for a $0.14 miss. SIRI’s results came on a strong rise in subscriptions, and the company reaffirmed its full-year outlook. SIRI shares were up 3.7% in pre-market trading. Drugmaker, Merck & Co. (MRK), indicated in an SEC filing that it may face $5.58 billion in tax liability related to disputes over accounting for past transactions. Shares of MRK are down 2.5% in early activity.
While big pharma should be pressured by the Democrats’ rise to power, there are some firms that may benefit within the health care space. Genetic engineering firms that have suffered from conservative restraint, may rise as that restraint is potentially removed. We hope you enjoyed your “Morning Coffee” and wish you a good day trading. Be sure to read “The Greek’s Week Ahead” for your market-moving event planner for the week. (disclosure)
Wednesdays Brew (Nov 8)
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Today’s Key Market News – Fed Up

Posted by admin in Uncategorized on April 11th, 2010

“Today’s ” is meant to provide the key market-moving news of the day for your quick reference.

U.S. markets defied the direction of Asia and Europe this morning, where stocks were broadly lower. Rather, investors in American shares look to be anticipating a positive Fed note on Tuesday. Please be sure to see our weekly market-moving event planner, to help you and your portfolio get a handle on the week’s market-moving schedule. This week’s copy, “The Greek’s Week Ahead – The Fed is on the Clock” discusses the importance of Tuesday’s FOMC decision and statement.

Today, Bear Stearns (NYSE: BSC) is once again in the news, as it drops another key executive. American Home Mortgage (NYSE: AHM) filed for bankruptcy, but there weren’t really any blowups of note that might have significant negative impact for Wall Street. We expect the market to anticipate some sort of positive Fed action, whether it be simply indicating it would act if credit markets required it, or if Bernanke’s group actually cuts rates. We expect meaningful words from the Fed to help create a positive tone to trading in the early part of the week, but a rate cut seems unlikely. How the trading week ends depends a lot on the of corporations within sensitive sectors of the economy. Toll Brothers (NYSE: TOL), a high end home builder, could provide that kind of news this week, as could several surviving home lending players.

See our sidebar section, “Key Headlines,” below:

CNN Money: Asian Stocks Drop
CNN Money: European Stocks Fall
CNBC: U.S. Markets Open Higher
CNBC: As Greek Warned, Oil Dipping on Economic Worries
USA Today: Bear Stearns Co-COO Forced Out
Forbes: Nardelli Comeback at Chrysler
Yahoo! Earnings Calendar
AP/Yahoo!: Aqua America Profit Rises
AP/Yahoo!: Cooper Tire Swings Profit
Financial Times: ICI Opens Books to Akzo
Bloomberg: AHM Files for Bankruptcy
AP/Yahoo!: UAW, Automakers Enter Contract Negotiations
AP/Yahoo!: House Approves Energy Bill
Economist: The Geopolitical Week Ahead
BBC: Abbas and Olmert Talking
DebkaFile: Iran Prep Exercise, “Valiant Shield,” Underway Near Guam
Iran Daily: Tales from the Dark Side

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