- New Zealand: ANZ Commodity Price Index falls 1.2% in May
- Forex: JPY, USD and CHF rise across the board amid global recovery concerns
- Crude Oil Inventory Watch: Week Ending 6/25/2010
- Australia: Building approvals rise 26.6% in May (YoY), but disappoints
- Forex: AUD/USD quotes near daily lows, tests supports around 0.8400
Our Mission is to keep our audience with an interrupted stream of financial information from serious sources, with the objective to provide the tools and sufficient knowledge about investments in the financial markets. we inform you, for example, closing market reports(Asia Europe & U.S.) CNBC Selected News, The Guardian, Washington Post, New York Times Selected News, selected financial news and videos, the Fed, FDIC, SEC, FTC press releases and enforcement actions.
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Jun 30, 2010
NASDAQ: Market News & Analysis
NASDAQ
FGC BOLSA - FGC FINANCIAL MARKETS : MarketWatch - Industry - Financial Services.- Stocks to Watch Thursday, "Constellation Fr..June 30th., 2010
INDUSTRY- FINANCIAL SERVICES
By Rebecca L. McClay MarketWatch
6/30/2010 7:50:00 PM
| |
House OKs sweeping bank-reform bill for big banks
By Ronald D. Orol MarketWatch
6/30/2010 7:15:00 PM
| |
Yahoo sets $3 billion stock repurchase program
By John Letzing MarketWatch
6/30/2010 6:19:00 PM
| |
MarketWatch: Personal Finance Stories. June 30th., 2010
Personal Finance Daily
JUNE 30, 2010
Wednesday's Personal Finance stories
By MarketWatch
 |
- Six ways for small-business owners to save
- New deadline for home-buyer credit nears approval
- Portfolio moves you should make now
- Private-sector employment tepid
- An easy way to set your financial goals
When it comes to cutting costs, you do what you can when you need to, right? So why not change to a smaller type font before printing anything, as a way to save on paper (it's good for the environment, too)? That's just one of the tips noted today in our story on six ways small-business owners can dig up some extra cash in these tough times.
May as well give everything a try, because the tough times seem to be here to stay -- at least for the foreseeable future. Lawmakers apparently are intent on managing the deficit even as many economists say now is the time for the government to spend money to help Americans get jobs and to help states avoid even more layoffs. Meanwhile, a private-sector employment report released Wednesday finds hiring is still very tepid. Better brace ourselves for Friday's jobs report.
-- Andrea Coombes , Personal Finance editor
SMALL BUSINESS
Six ways for small-business owners to save money
In these tough economic times, owners of businesses small and large are coming up with unexpected ways to save money.
See Small Business Report.
REAL ESTATE
New deadline for home-buyer tax credit nears approval
Home buyers may soon win more time to get to the closing table to qualify for a federal home-buyer tax credit of up to $8,000.
See story on new deadline for home-buyer tax credit nears approval.
INVESTING
Moves to make with your portfolio right now
This is the week for market prognosticators' midyear updates -- and the time to assess tactical moves you should make to your portfolio, right now. And we do mean right now, since Tuesday's steep decline shows that reality is starting to set into the market.
See Robert Powell's Your Portfolio.
Insurance stocks could finally pay off
Insurance companies turn into nervous Nellies around hurricane season. But even if the storms get especially bad this year, one part of the industry could see sunny days ahead: insurance brokers.
See SmartMoney.
SAVING & SPENDING
Financial goals at a glance
When most people hear the word "budget," they groan about all the numbers and spreadsheets involved in setting financial goals. Instead they procrastinate and continue spending without any specific savings goals. Case in point: I recently postponed a meeting with my financial planner because I didn't have the energy after a long business trip to work through my finances.
See story on setting financial goals.
TRAVEL
Landing cheap airfare
Travelers hunting for airfare deals have their work cut out for them this year.
See SmartMoney.
THE GULF OIL SPILL
BP extends financial relief to U.S. distributors
BP PLC, shoring up defenses to cope with calls for a nationwide boycott, said Tuesday it is offering financial relief to service stations that bear its brand.
See story on BP extends financial relief to U.S. distributors.
Hurricane Alex sending oil to Gulf coast beaches
Hurricane Alex, which strengthened overnight from a tropical storm, is heading for the coastline near the Texas-Mexico border and is starting to churn oil from the massive BP spill on to beaches along the Gulf of Mexico, reports said Wednesday.
See story on Hurricane Alex sending oil to Gulf coast beaches.
ECONOMY & POLITICS
Goldman shorted $615 million of its CDOs, mortgages
Goldman Sachs Group Inc. shorted roughly $615 million of the collateralized debt obligations and residential mortgage-backed securities the firm underwrote since late 2006, according to prepared testimony by Chief Operating Officer Gary Cohn released Wednesday.
See story on Goldman shorted $615 million of its own CDOs, mortgages.
THE JOB MARKET
U.S. private-sector jobs rise by only 13,000: ADP
In another sign of tepid growth, U.S. private-sector firms created a lackluster 13,000 jobs in June, according to the ADP employment report released Wednesday.
See Economic Report.
:7ABCNews : Australia Busines.- Gold ore mining to Begin in Gulf.June 30th., 2010 7:08p.m. GMT - 5
Gold ore mining to begin in Gulf
A gold exploration company in Queensland's Gulf of Carpentaria is planning to start mining in the next few months.
Mine suspends work after shuttle car accident
Operations at a central Queensland coal mine have been suspended after two workers were badly injured in a shuttle car accident at the weekend.
University faces foreign application drop
The Canberra Institute of Technology (CIT) could face a drop of up to 25 per cent in international enrolments as a result of the Government's new immigration rules which come into effect today.
FGC BOLSA - FGC FINANCIAL MARKETS : U.S. Markets at Close. June 30th., 2010
Market Snapshot
| Index | Last | Change | %Change | |
|---|---|---|---|---|
| DJIA | 9,774.02 | -96.28 | 0.98% |  |
| Nasdaq | 2,109.24 | -25.94 | 1.21% | |
| S&P 500 | 1,030.71 | -10.53 | 1.01% | |
| FOX 50 | 753.66 | -8.07 | 1.06% |
NASDAQ
6/30/2010 4:35:00 PM ET DJ30 PointChange: -96.28 Level: 9774.02 NASDAQ PointChange: -25.94 Level: 2109.24 NQ100 PercentChange: -1.4 R2K PercentChange: -1.1 SP400 PercentChange: -0.8 SP500 PointChange: -10.53 Level: 1030.71 NASDAQ-Adv:959 Dec: 1699 NYSE-Adv:1108 Dec: 1907
[BRIEFING.COM] The stock market spent the session stuck in choppy trade with a modest gain before it rolled over in the final hour to log another loss -- its seventh in eight sessions.
Stocks had dropped 3% in the prior session, but they attempted a modest rebound this time around. The financial sector initially showed leadership as bank stocks were boosted by news that the financial reform bill's language regarding some $19 billion in new fees and taxes was removed. Meanwhile, banks in Europe conveyed that recent liquidity concerns in the continent may be a bit overdone, given that a recent short-term debt issuance from European Central Bank was rather lightly subscribed. The financial sector was up more than 1% in the early going, but that would inevitably reverse into a 1.1% loss.
Prior to a late downturn, the mood among market participants appeared to have improved since the prior session's selloff. Still, the improvement was restrained by a disappointing ADP Employment Change Report, which showed that private payrolls for June increased by a paltry 13,000 when an increase of 61,000 had been widely expected. That portends a dour monthly jobs report from the government at the end of the week.
Restrained gains eventually gave way to another barrage of selling. In turn, all 10 major sectors settled in the red.
There wasn't any real catalyst to account for the slide. Though it followed the afternoon headline that Moody's has placed Spain's debt on review for possible downgrade, the announcement was no surprise since both Fitch and S&P had already downgraded Spain.
Corporate news had little affect on overall trade, though there were a few merger and acquisition items. Specifically, Abraxis Bioscience (ABII 74.20, +12.89) will be acquired by Celgene (CELG 50.82, -2.42) for $71.93 per share and privately held TargeGen will be acquired by Sanofi-Aventis (SNY 30.06, +0.31).
In earnings news, Monsanto (MON 46.22, -1.12) beat the consensus earnings estimate for the latest quarter, but it reaffirmed an outlook that had previously disappointed investors. General Mills (GIS 35.52, -1.38) also offered disappointing guidance, which overshadowed in-line earnings.
Trading volume had been rather underwhelming until the stock market's late slide induced a surge in participation so that share volume on the NYSE surpassed 1.4 billion shares. Volume is expected to climb tomorrow as money managers make end-of-month and end-of-quarter portfolio rebalances.
Stocks had dropped 3% in the prior session, but they attempted a modest rebound this time around. The financial sector initially showed leadership as bank stocks were boosted by news that the financial reform bill's language regarding some $19 billion in new fees and taxes was removed. Meanwhile, banks in Europe conveyed that recent liquidity concerns in the continent may be a bit overdone, given that a recent short-term debt issuance from European Central Bank was rather lightly subscribed. The financial sector was up more than 1% in the early going, but that would inevitably reverse into a 1.1% loss.
Prior to a late downturn, the mood among market participants appeared to have improved since the prior session's selloff. Still, the improvement was restrained by a disappointing ADP Employment Change Report, which showed that private payrolls for June increased by a paltry 13,000 when an increase of 61,000 had been widely expected. That portends a dour monthly jobs report from the government at the end of the week.
Restrained gains eventually gave way to another barrage of selling. In turn, all 10 major sectors settled in the red.
There wasn't any real catalyst to account for the slide. Though it followed the afternoon headline that Moody's has placed Spain's debt on review for possible downgrade, the announcement was no surprise since both Fitch and S&P had already downgraded Spain.
Corporate news had little affect on overall trade, though there were a few merger and acquisition items. Specifically, Abraxis Bioscience (ABII 74.20, +12.89) will be acquired by Celgene (CELG 50.82, -2.42) for $71.93 per share and privately held TargeGen will be acquired by Sanofi-Aventis (SNY 30.06, +0.31).
In earnings news, Monsanto (MON 46.22, -1.12) beat the consensus earnings estimate for the latest quarter, but it reaffirmed an outlook that had previously disappointed investors. General Mills (GIS 35.52, -1.38) also offered disappointing guidance, which overshadowed in-line earnings.
Trading volume had been rather underwhelming until the stock market's late slide induced a surge in participation so that share volume on the NYSE surpassed 1.4 billion shares. Volume is expected to climb tomorrow as money managers make end-of-month and end-of-quarter portfolio rebalances.
Read more: http://www.nasdaq.com/aspx/market-summary.aspx#ixzz0sNKNSGfW
FGC BOLSA - FGC FINANCIAL MARKETS : MarketWatch - Industry Financial Services- Financial stocks rebound in financial wednesday
INDUSTRY-- FINANCIAL SERVICES
Financial Stocks: Citi, AIG lead rebound in financials Wednesday
By April H. Lee MarketWatch
6/30/2010 11:00:00 AM
| |
FOX BUSINESS: Markets Flatline on Mixed Data, Euro. June 30th., 2010
There's No Business Like FOX Business
Wall Street bounced off its lows and alternated between gains and losses Wednesday morning as a gloomy ADP report on private-sector job growth was offset by a more upbeat regional report and a rallying euro.
Today’s Markets
As of 10:30 a.m. ET, the Dow Jones Industrial Average fell 2.72 points, or 0.03%, to 9867.73, the Standard & Poor's 500 rose 1.74 points, or 0.17%, to 1042.98 and the Nasdaq Composite picked up 6.89 points, or 0.33%, to 2142.30. The FOX 50 dropped 0.40 points, or 0.05%, to 761.33.
In a reversal of the news flow for much of this year, upbeat overseas news on the European banking system was overshadowed by the gloomy labor headlines on the domestic economy. However, the bearish data may have already been factored into the beaten-down markets, especially considering Tuesday’s 268-point plunge.
“There’s a fairly large disconnect between what the economists are looking for and what the markets are expecting,” said Nick Kalivas, vice president of financial research at MF Global. “Equities are very oversold and I think that’s providing a little bit of a cushion.”
Still, the sluggish start wasn’t exactly what the bulls had in mind given Tuesday’s steep selloff that was triggered by a wave of global risk aversion amid signs the economic recovery is slowing. The markets were most spooked by an unexpected plunge in consumer confidence in the U.S.
“Can’t catch a break. ADP’s numbers this morning are really underwhelming; further confirmation that the recovery is in question and that the market turn we saw from the beginning of June has been aborted,” Peter Kenny, managing director at Knight Capital Group, said in a note.
Just over half of the Dow's 30 components headed north, led by manufacturing giant 3M (MMM: 79.75, 1.26, 1.61%) and aluminum maker Alcoa (AA: 10.35, 0.012, 0.12%). The index's worst performers were defensive in nature: Kraft (KFT: 28.1366, -0.2934, -1.03%) and Verizon (VZ: 28.26, -0.35, -1.22%).
The Nasdaq Composite posted steadier gains than the broader markets as technology stocks like Amazon.com (AMZN: 111.07, 2.46, 2.26%) and Garmin (GRMN: undefined, undefined, undefined%) bounced back from Tuesday's tumble.
The choppy trading comes as Wall Street marks the end of a bleak second quarter that has seen the Dow tumble 9%, its worst quarterly performance since the first quarter of 2009 and first negative period in a year.
Market sentiment took a hit Wednesday morning after ADP said the U.S. private sector hired just 13,000 new workers in June, widely missing expectations for a gain of 55,000 workers and below May’s gain of 57,000 workers. While it represents the fifth-straight monthly gain for the private sector, the report illustrates the fragile nature of the recovery.
The weaker-than-expected labor report also reinforces the bearish tone on the economy ahead of Friday’s much more important government jobs report. Economists expect that report will show the U.S. lost 100,000 jobs in June and the unemployment rate remained at 9.8%. The bar may have just been lowered, however.
However, Wall Street received a boost from the Institute for Supply Management's Chicago Business Barometer, which came in at 59.1 for June, lower than the 59.7 reading of May but above economists’ forecasts for 59. The index's employment component also rose from 49.2 in May to 54.2 in June.
For a change, Wall Street actually received upbeat overseas news on Wednesday as the results of an European Central Bank lending program showed the European banking system may not be as weak as some had feared. The ECB’s 442 billion euro program only drew 131 billion euros of loans, just half of what the markets had been bracing for.
The lending program results lifted the euro, lowered the cost to insure government sovereign debt and buoyed shares of European banks like HSBC (HBC: 46.15, -0.04, -0.09%) and Deutsche Bank (DB: 57.34, 1.39, 2.48%). The euro jumped 0.85% to $1.2287 in recent trading.
The commodities complex was mixed amid the economic data and stronger euro. Crude oil rose 45 cents a barrel, or 0.59%, to $76.39. Economically-sensitive copper slid 0.38% to $2.9205 a pound. Gold gained $4.00 a troy ounce, or 0.33%, to $1,246.40.
On the earnings front, seed giant Monsanto (MON: 45.465, -1.845, -3.9%) reported weaker-than-expected sales and greeting card company American Greetings (AM: 18.37, -1.15, -5.89%) posted a disappointing quarterly profit.
Corporate Movers
Monsanto (MON: 45.465, -1.845, -3.9%) said its fiscal third-quarter net income tumbled 45% and its sales slid by a worse-than-expected 6.3% to $2.96 billion. The world’s largest seed producer’s non-GAAP EPS of 81 cents narrowly topped estimates for 79 cents. Monsanto reaffirmed its fiscal 2011 non-GAAP view that would be mostly in line with analysts’ forecasts.
Ford’s (F: 10.38, 0.5, 5.06%) stock jumped 5% as the auto maker said it plans to pay $3.8 billion in cash to a retiree union benefits trust ahead of schedule in an effort to save $470 million in interest payments and strengthened its balance sheet. The auto maker said it was able to make these moves due to “momentum” in its recovery plan and expected “solid profits” and cash flow this year.
Celgene (CELG: 51.63, -1.61, -3.02%) said it plans to acquire Abraxis BioScience (ABII: 74.34, 13.03, 21.25%) for at least $2.9 billion in cash and stock in an effort to enhance its cancer-drug portfolio. The deal implies a premium of 17% on Abraxis’s closing price on Tuesday.
Boeing (BA: 63.92, 0.86, 1.36%) inked a $775 million deal to scoop up defense-equipment company Argon at a 41% premium. Boeing said it plans to pay for the deal with existing cash on its balance sheet.
American Greetings (AM: 18.37, -1.15, -5.89%) missed expectations with EPS of 75 cents, compared to the Street’s view of 79 cents. The greeting card company’s revenue fell 4% to $396.3 million, falling shy of estimates for $416.87 million.
Global Markets
The U.K.'s FTSE 100 lost 0.27% to 4901.13, Germany's DAX dropped 0.12% to 5944.76 and France's CAC 40 slid 0.63% to 3411.41.
In Asia, Japan's Nikkei 225 slid 1.96% to 9382.64 and Hong Kong's Hang Seng sank 0.59% 20128.99.
Wall Street bounced off its lows and alternated between gains and losses Wednesday morning as a gloomy ADP report on private-sector job growth was offset by a more upbeat regional report and a rallying euro.
Today’s Markets
As of 10:30 a.m. ET, the Dow Jones Industrial Average fell 2.72 points, or 0.03%, to 9867.73, the Standard & Poor's 500 rose 1.74 points, or 0.17%, to 1042.98 and the Nasdaq Composite picked up 6.89 points, or 0.33%, to 2142.30. The FOX 50 dropped 0.40 points, or 0.05%, to 761.33.
In a reversal of the news flow for much of this year, upbeat overseas news on the European banking system was overshadowed by the gloomy labor headlines on the domestic economy. However, the bearish data may have already been factored into the beaten-down markets, especially considering Tuesday’s 268-point plunge.
“There’s a fairly large disconnect between what the economists are looking for and what the markets are expecting,” said Nick Kalivas, vice president of financial research at MF Global. “Equities are very oversold and I think that’s providing a little bit of a cushion.”
Still, the sluggish start wasn’t exactly what the bulls had in mind given Tuesday’s steep selloff that was triggered by a wave of global risk aversion amid signs the economic recovery is slowing. The markets were most spooked by an unexpected plunge in consumer confidence in the U.S.
“Can’t catch a break. ADP’s numbers this morning are really underwhelming; further confirmation that the recovery is in question and that the market turn we saw from the beginning of June has been aborted,” Peter Kenny, managing director at Knight Capital Group, said in a note.
Just over half of the Dow's 30 components headed north, led by manufacturing giant 3M (MMM: 79.75, 1.26, 1.61%) and aluminum maker Alcoa (AA: 10.35, 0.012, 0.12%). The index's worst performers were defensive in nature: Kraft (KFT: 28.1366, -0.2934, -1.03%) and Verizon (VZ: 28.26, -0.35, -1.22%).
The Nasdaq Composite posted steadier gains than the broader markets as technology stocks like Amazon.com (AMZN: 111.07, 2.46, 2.26%) and Garmin (GRMN: undefined, undefined, undefined%) bounced back from Tuesday's tumble.
The choppy trading comes as Wall Street marks the end of a bleak second quarter that has seen the Dow tumble 9%, its worst quarterly performance since the first quarter of 2009 and first negative period in a year.
Market sentiment took a hit Wednesday morning after ADP said the U.S. private sector hired just 13,000 new workers in June, widely missing expectations for a gain of 55,000 workers and below May’s gain of 57,000 workers. While it represents the fifth-straight monthly gain for the private sector, the report illustrates the fragile nature of the recovery.
The weaker-than-expected labor report also reinforces the bearish tone on the economy ahead of Friday’s much more important government jobs report. Economists expect that report will show the U.S. lost 100,000 jobs in June and the unemployment rate remained at 9.8%. The bar may have just been lowered, however.
However, Wall Street received a boost from the Institute for Supply Management's Chicago Business Barometer, which came in at 59.1 for June, lower than the 59.7 reading of May but above economists’ forecasts for 59. The index's employment component also rose from 49.2 in May to 54.2 in June.
For a change, Wall Street actually received upbeat overseas news on Wednesday as the results of an European Central Bank lending program showed the European banking system may not be as weak as some had feared. The ECB’s 442 billion euro program only drew 131 billion euros of loans, just half of what the markets had been bracing for.
The lending program results lifted the euro, lowered the cost to insure government sovereign debt and buoyed shares of European banks like HSBC (HBC: 46.15, -0.04, -0.09%) and Deutsche Bank (DB: 57.34, 1.39, 2.48%). The euro jumped 0.85% to $1.2287 in recent trading.
The commodities complex was mixed amid the economic data and stronger euro. Crude oil rose 45 cents a barrel, or 0.59%, to $76.39. Economically-sensitive copper slid 0.38% to $2.9205 a pound. Gold gained $4.00 a troy ounce, or 0.33%, to $1,246.40.
On the earnings front, seed giant Monsanto (MON: 45.465, -1.845, -3.9%) reported weaker-than-expected sales and greeting card company American Greetings (AM: 18.37, -1.15, -5.89%) posted a disappointing quarterly profit.
Corporate Movers
Monsanto (MON: 45.465, -1.845, -3.9%) said its fiscal third-quarter net income tumbled 45% and its sales slid by a worse-than-expected 6.3% to $2.96 billion. The world’s largest seed producer’s non-GAAP EPS of 81 cents narrowly topped estimates for 79 cents. Monsanto reaffirmed its fiscal 2011 non-GAAP view that would be mostly in line with analysts’ forecasts.
Ford’s (F: 10.38, 0.5, 5.06%) stock jumped 5% as the auto maker said it plans to pay $3.8 billion in cash to a retiree union benefits trust ahead of schedule in an effort to save $470 million in interest payments and strengthened its balance sheet. The auto maker said it was able to make these moves due to “momentum” in its recovery plan and expected “solid profits” and cash flow this year.
Celgene (CELG: 51.63, -1.61, -3.02%) said it plans to acquire Abraxis BioScience (ABII: 74.34, 13.03, 21.25%) for at least $2.9 billion in cash and stock in an effort to enhance its cancer-drug portfolio. The deal implies a premium of 17% on Abraxis’s closing price on Tuesday.
Boeing (BA: 63.92, 0.86, 1.36%) inked a $775 million deal to scoop up defense-equipment company Argon at a 41% premium. Boeing said it plans to pay for the deal with existing cash on its balance sheet.
American Greetings (AM: 18.37, -1.15, -5.89%) missed expectations with EPS of 75 cents, compared to the Street’s view of 79 cents. The greeting card company’s revenue fell 4% to $396.3 million, falling shy of estimates for $416.87 million.
Global Markets
The U.K.'s FTSE 100 lost 0.27% to 4901.13, Germany's DAX dropped 0.12% to 5944.76 and France's CAC 40 slid 0.63% to 3411.41.
In Asia, Japan's Nikkei 225 slid 1.96% to 9382.64 and Hong Kong's Hang Seng sank 0.59% 20128.99.
REal Clear Politics: June 30th., 2010
Real Clear Politics Wednesday
Why Obama's Economic Policies Aren't Working - Allan Meltzer, WSJBet on Private Sector Could Prove Risky - David Leonhardt, New York Times
Financial Overhaul Is Politics in Worst Sense - Richard Posner, Bloomberg
Cutting Stimulus Puts Recovery at Risk - Michael Hiltzik, Los Angeles Times
Spend, Baby, Spend - David Harsanyi, Denver Post
Obama's Big Oil Spill Bungle - Dick Morris, The Hill
A Split-Screen Tale of Two Generals - Maureen Dowd, New York Times
The Conflict Obama Must Resolve - Michael Goodwin, New York Post
Vapid? Hollow? Kagan Nails It - Roger Simon, Politico
Kagan's Charm Shines Through - Dahlia Lithwick, Slate
Attack Kagan's Thin Resume Already! - Paul Campos, The Daily Beast
Obama Ignores the Dangers of Radical Islam - Daniel Pipes, Jerusalem Post
The Myth of Modern Jihad - Robert Wright, New York Times
James Madison & Mainstream Legal Thought - Tony Blankley, Wash Times
Gun Shy: 4 Justices Take on Constitutional Rights - Jacob Sullum, Reason
After the Fall, John Edwards Parties On - Gabriel Sherman, New Republic
The Press & the "Journolist" Scandal - James Taranto, Wall Street Journal
Politics Nation: Dems Alter Wall Street Reform Bill In Dash For Votes
RCP Blog: OH Sen Poll: Fisher, Portman Locked In Tight Race
Editorials
Enough Debt, Already - Chicago TribuneWho Will Fight For Unemployed? - New York Times
The Confirmation Process is Broken - Washington Times
SCOTUS Gun Ruling on Target - Denver Post
RTTNews: Daily Market Analysis : Weak Jobs Data May Lead To Lackluster Session On Wall Street. June 30th., 2010
 | Daily Market Analysis Wed Jun 30 09:26 2010 | |
Jun 30, 2010 Weak Jobs Data May Lead To Lackluster Session On Wall Street - RTTNews Daily Market Analysis The major U.S. index futures are pointing to modestly lower opening on Wednesday, with the early enthusiasm reflected by a modest gain by the futures evaporating following the release of ADP's private sector employment report. The report showed that the private sector added fewer than expected jobs in June. Although markets may take cues from the direction of oil prices and the ISM-Chicago's manufacturing purchasing managers' index, some buying may not be ruled out, given the oversold levels. Full Article
RTTNews: Morning Market Briefing: .- Stocks May Open Higher Amid Calming News On Euro Bank Health - U.S. Commentary. June 30th., 2010
| | Morning Market Briefing Wed Jun 30 09:01 2010 | |
Commentary
Jun?30,?2010 Stocks May Open Higher Amid Calming News On Euro Bank Health - U.S. Commentary Stocks are poised for a slightly higher open on Wednesday, as European banks borrowed less than expected from the European Central Bank, calming some fears over the health of the region's banks. However, optimism is being limited by disappointing U.S. private payroll figures. The major index futures are all in positive territory, with the Dow futures up by 20 points. Full Article
Economic News
Jun?30,?2010 U.K. June House Price Inflation Eases More Than Expected: Nationwide U.K. house prices rose less than expected in June as the supply of property coming to the market increased amid the abolition of the Home Information Packs, while demand remained broadly stable. Full Article
Jun?30,?2010 ADP Says Private Sector Added 13,000 Jobs In June With the data likely to add to recent concerns about the outlook for the labor market, Automatic Data Processing, Inc. (ADP) released a report Wednesday morning showing that private sector employment increased by much less than expected in the month of June. Full Article
Jun?30,?2010 German Unemployment Continues To Fall In June German unemployment fell for the twelfth consecutive month in June, although the pace of decline slowed compared to the previous three months, official figures showed Wednesday. Full Article
Jun?30,?2010 U.K. Consumer Morale Hurt By Emergency BudgetSentiment among British consumers weakened further in June on the back of growing concerns over government spending cuts and tax hikes in the run up to the emergency budget unveiled by the new government. Full Article
Jun?30,?2010 Eurozone Consumer Price Inflation Eases In June Eurozone annual inflation slowed in June and remained within the central bank target, giving relief to policy makers. Full Article
Earnings News
Jun?30,?2010 Monsanto Q3 profit slides 45%, misses estimate; backs FY10 EPS viewWednesday, Monsanto Co. (MON) reported a 44.7% drop in its third-quarter profit, reflecting a 6.3% dip in sales, as well as lower gross margin. Agricultural productivity for the quarter took a hit as revenue from herbicides declined year-over-year. Both earnings and revenue came in below the Street view. Gross profit margin for the period shrank to 47% from 58% last year. Looking ahead to the full year, the company reiterated its earnings outlook. Full Article
Jun?30,?2010 General Mills Q4 profit down 41%, adj. EPS meets Street; guides FY11 EPS below estimateTuesday, General Mills Inc. (GIS) posted a 41% drop in its fourth-quarter profit as sales dipped 2.1% year-over-year in the period consisting of fewer days of operation. However, adjusted earnings per share came in line with the Street view. Gross margin also shrank to $36.2% from 42.4% in the year-ago quarter. Looking ahead to fiscal year 2011, the company guided earnings to fall short of the current estimate of analysts. Full Article
Jun?30,?2010 Phillips-Van Heusen backs Q2, FY10 guidanceWednesday, Phillips-Van Heusen Corp. (PVH) said it's maintaining its earlier earnings guidance for the second quarter and full year 2010, but indicated that if the current business trends continued, results could surpass the previous outlook. The company reiterated its outlook based on the continuation of a comparable store sales increase for the U.S. outlet business at around 12%, and also on strong trends across other businesses. Full Article
Corporate News
Jun?30,?2010 Boeing to buy Argon ST for around $775 mlnWednesday, Boeing Co. (BA) said it agreed to acquire Argon ST (STST) for $34.5 per share, or about $775 million, net of cash acquired. The companies expect the transaction to close by the end of this September. Argon ST will function as a stand-alone subsidiary of Boeing and a new division of Boeing Network & Space Systems. Further, the firms confirmed that Argon will continue to be headed by its present chief executive Terry Collins. Boeing revealed that it plans to fund the purchase with existing cash. Full Article
Jun?30,?2010 Celgene to buy Abraxis in $2.9 bln cash and stock dealWednesday, Celgene Corporation (CELG) said it's acquiring Abraxis BioScience, Inc. (ABII) for $2.9 billion in cash and stock to expand its cancer drugs business. Under terms of the deal, Celgene will exchange $58 in cash and 0.2617 shares of the company for every Abraxis share. The deal values Abraxis at $71.9 a share, representing a 17% premium over the stock's Tuesday closing price. Celgene expects the acquisition to be dilutive to adjusted earnings in 2011 and accretive in 2012. The company also anticipates the deal to close in the fourth quarter. Full Article
Broker Ratings Changes
Jun?30,?2010 FBR Capital Markets Ups US Bancorp (USB) To Outperform From Market Perform With $28 Price Target
Todays WS Events
Jun?30,?2010 Monsanto Q3 10 Earnings Conference Call At 9:30 AM ET Monsanto Co (MON) will host a conference call at 9:30 AM ET, to discuss Q3 10 earnings results, on June 30, 2010. To access the live webcast, log on at www.monsanto.com/investors
Jun?30,?2010 Apollo Q3 10 Earnings Conference Call At 5:00 PM ET Apollo Group Inc. (APOL) SVP Brian Swartz, will host a conference call at 5:00 PM ET, June 30, 2010, to discuss its Q3 10 earnings resutls. To access the live webcast, log on at www.apollogrp.edu To Participate a call, dial 877-292-6888 (US) or 973-200-3381 (international) with Conference ID: 78017946 For replay, dial 800-642-1687 (US) or 706-645-9291 (International) with Conference ID: 78017946
Wonkbook : Bank fee replaced with other bank fees; a utilities-only carbon price? June 30th., 2010
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Wonkbook: Bank fee replaced with other bank fees; a utilities-only carbon price?
In a last-ditch attempt to secure Scott Brown's vote, FinReg conferees have scrapped a $19 billion bank fee intended to pay for the bill's implementation and replaced it with TARP money and a hike in FDIC fees. That means small banks, not just large banks and large hedge funds, will be on the hook for implementation.
Meanwhile, a White House summit on climate policy ended without agreement, but with Obama reiterating a commitment to carbon pricing and various senators -- including, crucially, Olympia Snowe -- moving towards a utilities-only cap-and-trade bill. Elena Kagan had a calm first day of testimony, and did offer some insight into how she'd judge different issues. Oh, and the Supreme Court ruled that the McCain-Feingold Act's ban on "soft" money campaign expenditures is constitutional. It was a busy day. Look forward, the Senate is going to try again on a jobs bill, the FCIC is hearing testimony on derivatives, the president's fiscal commission is meeting, and Kagan is answering more questions.
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In an effort to appease Senator Scott Brown, FinReg conferees have replaced the proposed $19 billion bank fee, reports Jia Lynn Yang: "To win back Brown's support, the House-Senate conference committee agreed Tuesday to instead pay for most of the bill by ending the Troubled Assets Relief Program early and shifting some of the money marked for that program toward the financial regulation bill, a move that would yield $11 billion. The rest would come from raising premiums paid by commercial banks to the Federal Deposit Insurance Corp., whose fund serves as a safety net for consumers when their banks fail."
While no consensus emerged from the White House climate summit, Senate advocates say they're willing to deal, reports Juliet Eilperin: "Kerry said in an interview that they would make more concessions to win Republican support, but he added: 'My question is, which is the compromise of any of the others? Show me the compromise.'¿Lawmakers discussed a more modest climate and energy bill that would target electric utilities and other stationary sources: Power plants account for roughly 40 percent of the nation's greenhouse gas emissions. Snowe issued a statement after the meeting supporting such a plan."
Elena Kagan opened up on her legal views in Senate questioning, report Amy Goldstein and Alec MacGillis: "Kagan said that she respects legal precedent that upholds people's right to own guns and that she supports the use of military commissions to prosecute enemy combatants -- positions favored by many conservatives. But she also suggested that a controversial requirement in the new federal health-care law that most Americans obtain insurance has a legal basis -- a question that is likely to come before the courts. She indicated that she differed with a recent Supreme Court decision that struck down limits on corporate contributions to political campaigns."
The Senate is making yet another go at passing a jobs bill, albeit a pared down one, reports David Herszenhorn: "The new bill would reinstate extended federal unemployment benefits retroactive to the end of May, and provide extended benefits for those who qualify through November. The bill also extends the deadline for homebuyers to close on their deal to Oct. 30 from July 1 and still claim a tax credit of up to $8,000. To qualify, homebuyers must have signed a contract by April 30."
An equivalent measure failed to pass under expedited rules in the House: http://bit.ly/cwhADR
What do you do with bay leaves? interlude: Even Mark Bittman isn't sure.
Still to come: David Leonhardt thinks withdrawing stimulus now could lead us into a 1930s-style secondary recession; most Americans want empathic Supreme Court Justices; Yucca Mountain may be going forward; and origami paper learns how to fold itself.
Economy/ FinReg
David Leonhardt warns that withdrawing the stimulus now would be a dangerous bet: " From 1936 to 1938, when the Roosevelt administration believed that the Great Depression was largely over, tax increases and spending declines combined to equal 5 percent of gross domestic product. Back then, however, European governments were raising their spending in the run-up to World War II. This time, almost the entire world will be withdrawing its stimulus at once. From 2009 to 2011, the tightening in the United States will equal 4.6 percent of G.D.P., according to the International Monetary Fund.--Worldwide, it will equal a little more than 2 percent of total output."
Concerns about growth in the US, Europe, and China scared markets yesterday: http://bit.ly/dApEmo
Brace yourself for the coming public-sector job cuts, reports Annie Lowrey: "The teachers and other public-sector employees might be just the start. The CBPP has estimated that if states cut their spending from 2009 to 2010 the same level they did from 2008 to 2009, it might cost as many as 900,000 public- and private-sector jobs ¿ swelling the ranks of the unemployed by five percent or more."
The financial services industry is hiring aggressively again, reports Brett Philbin: "From the end of February through May, financial-services employment grew by 6,800 in New York City-the largest three-month increase in nearly two years, according to data from the New York State Department of Labor. The employment boost is the largest such gain within the industry since it reported the addition of 7,200 positions from May to August 2008."
Steve Pearlstein argues US needs to establish a tariff on Chinese and other currency-manipulated imports: http://bit.ly/c1zQ37
Allan Meltzer argues Obama's economic agenda creates dangerous uncertainty: "The president asks for cap and trade. That's more cost and more uncertainty. Who will be forced to pay? What will it do to costs here compared to foreign producers? We should not expect businesses to invest in new, export-led growth when uncertainty about future costs is so large."
Simpsons interlude: The complete filmography of Troy McClure.
Domestic Policy
The current Supreme Court could be the "least deferential since the New Deal": http://bit.ly/cnDO6o
Obama is still trying to juggle both immigration and climate change, reports Sam Youngman: "He met first with a bipartisan group of senators for talks on the way ahead on climate legislation, then sat down with members of the Congressional Hispanic Caucus on immigration reform.¿The White House's strategy continues to be to put the onus on Republicans to come to the table on both issues, claiming that neither can be done until the GOP puts politics aside."
Elena Kagan rejected an "empathy" standards for judges: http://bit.ly/aH1pOg
Automatic 401(k) enrollment may actually hurt retirement savings, writes Howard Gleckman: "Mauricio and Barbara found that employer match rates are about 7 percentage points lower for opt-out plans. They can't say for sure whether auto enrollment causes lower match rates. But it sure is possible. After all, if more employees participate, their employers will have to spend more to match their contributions. Whatever the cause, it seems that while auto-enrollment may increase the number of workers with 401(k)s, it won't necessarily boost their retirement savings."
Transportation Secretary Ray LaHood is winning fights at the bully pulpit: http://bit.ly/bsVd5V
A study suggests most Americans want judges to demonstrate empathy, writes James Gibson: "In terms of the other expectations about which we asked, strong correlations are observed between the empathy expectation and the items about protecting people without power, listening to people when making decisions and making fair, not just legal, decisions. Clearly, these expectations reflect a contextualized view of judging, one in which strict legality is expected to take a back seat to fairness."
The Supreme Court upheld a lower court's affirmation of McCain-Feingold's "soft" money ban: http://bit.ly/c44mUd
90s cover interlude: Frightened Rabbit covers the Lemonheads' "Confetti".
Energy
Tony Hayward did not improve BP's safety record, report Guy Chazan, Benoit Faucon, and Ben Casselman: "A Wall Street Journal examination of internal BP documents, legal filings, official investigations and reports by federal inspectors, as well as interviews with regulators, shows a record that doesn't always match Mr. Hayward's reports of safety improvements. Since Mr. Hayward took over, BP has continued to spar with regulators over the same issues that got it into trouble before his tenure as CEO. Some of its refineries still get poor marks for safety. And four years after one of Alaska's worst oil spills, BP's pipelines there have continued to leak."
BP is considering an alternative to relief wells: http://nyti.ms/cZ5zOT
A court ruled the Energy Department must move ahead with the Yucca Mountain nuclear waste site, reports Matthew Wald: "The three-judge panel noted that the Energy Department was not claiming that Yucca was unsafe or that there was anything wrong with the 86,000-page application, but was saying only that the site was 'not a workable option.' The decision on Tuesday could be overruled by the five-member Nuclear Regulatory Commission itself. The commission is studying the order, said a commission spokesman, Eliot Brenner."
Even the best scientists find predicting the aftershocks of climate change difficult: http://bit.ly/ar9PhS
David Roberts thinks Jeff Bingaman's pronouncements on cap and trade's viability evade responsibility: "After all, when a powerful U.S. senator says 'there aren't 60 votes,' he's not just observing the political situation, he's shaping it. He is a player in the game, not a referee or a spectator. Every time he says there aren't enough votes, it reassures Republicans and wavering Dems that they'll have plenty of cover from the herd if they duck and run. It takes the pressure off."
Science is magical interlude: Self-folding origami.
Closing credits: Wonkbook compiled with the help of Dylan Matthews and Mike Shepard.
-Ezra Klein
FOX BUSINESS: Breaking News .-PRIVATE SECTOR ADDS 13,000 JOBS IN JUNE. June 30th., 2010
Hiring Still Weak Private employers added a paltry 13,000 jobs in June, compared to a revised gain of 57,000 in May.
THE MOST POWERFUL NAME IN BUSINESS NEWS
THE MOST POWERFUL NAME IN BUSINESS NEWS
House Backs Homebuyer Tax Credit
Is the World Broke? The House approved giving extra time to homebuyers wanting a federal tax credit.Wall Street Points Green
Futures were indicating a positive opening after less the stellar news from the private sector.New Cleanup Blow: Hurricane Alex
The season's first Atlantic hurricane is disrupting cleanup of BP's massive oil spill in the Gulf of Mexico.AIG,Goldman: Bad Breakup?
The firms face two days of questioning about their destructive relationship that contributed to the crisis.Democrats Mount Final Reform Push
Democrats could bring the sweeping bill up for a vote in the House today, where it is expected to pass.FGC BOLSA - FGC FINANCIAL MARKETS : MarketWatch.- Industry- Financial Services: Beijing's ICBC to Enter U.S. Real Estae Lending. June 30th., 2010.
INDUSTRY- FINANCIAL SERVICES
Beijing's ICBC to enter U.S. real estate lending
By MarketWatch
6/30/2010 7:36:00 AM
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Weak demand for ECB 3-month loans eases worries
By William L. Watts MarketWatch
6/30/2010 5:46:00 AM
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Money Morning: The only two Latin America countries to buy into now.... June 30th., 2010
June 30, 2010
48 American States Have Secretly Transformed Themselves into New Rogue-Trading ENRONs...
And now they're about to blow up one of Mom & Pop's favorite financial retirement sanctuaries...
When it goes, it will take down Blue-Chip Stocks... Bonds... Money Markets... CDs... (and even your neighborhood) with it...
But if you retreat to these 6 Ponzi-Proof investments right now, your wealth could multiply 3-5 fold, even as millions of Americans watch their retirement accounts go up in smoke.
48 American States Have Secretly Transformed Themselves into New Rogue-Trading ENRONs...
And now they're about to blow up one of Mom & Pop's favorite financial retirement sanctuaries...
When it goes, it will take down Blue-Chip Stocks... Bonds... Money Markets... CDs... (and even your neighborhood) with it...
But if you retreat to these 6 Ponzi-Proof investments right now, your wealth could multiply 3-5 fold, even as millions of Americans watch their retirement accounts go up in smoke.
It's Time to Invest in Chile and Colombia - Latin America's Reigning
'Good Guys'
By Martin Hutchinson, Contributing Editor, Money Morning
For decades, investors with an interest in Latin America were essentially limited to two choices: Invest in countries that were moderately badly run; or invest in countries that were truly dreadfully run.
Most recently, it's been the "dreadfully run" group that seems to be attracting new members: Bolivia, Ecuador and Nicaragua have subscribed to the economic and political doctrines of Hugo Chavez's Venezuela.
However, two elections this year have created a new category of Latin American country - the "truly well run" class - and installed the first two members: Chile and Colombia. As investors, we should rejoice, make them part of our portfolio, and keep an eagle eye out for other countries that may join this promising new category - the "good guys."
For an overview of the two Latin America stocks to buy now, please read on...
| Hutchinson on... - How to Profit From Europe's Stealthy Resurgence - The Midterm Elections: No Panacea for the U.S. Economy |
29 Picks. 29 Wins. 100% Perfect Record.
What more can we say? Since launch, The Geiger Index has made 29 picks and ALL of them were winners. Zero losses. Here's how you can get in on the next pick. Just click here...
Commodities Are Key as China Continues to Call the Shots
By Jon D. Markman, Contributing Writer, Money Morning
China ended up being the big story this month, as investors looked past Europe to the Far East for clues about what shape the global recovery - if you can even call it that - is taking.
Markets around the globe tanked yesterday (Tuesday) after the Conference Board revised its leading economic index for China to show the smallest gain in five months in April. The index rose just 0.3% in April, which was a significant reduction from the 1.7% gain the Board reported on June 19.
The news of the error contributed to the biggest sell-off in Chinese stocks in more than a month, and sent U.S. indices into a dizzying downward spiral. The Dow Jones Industrial Average plunged 268.22 points, or 2.65%, to close at 9,870.30 and the Standard & Poor's 500 Index tumbled 33.33 points, or 3.10%, to close at 1,041.24.
Continue
Question of the Week: Readers Respond to Money Morning's Question on China's Currency
By Kerri Shannon, Associate Editor, Money Morning
After months of intense political pressure, China last week announced that it would allow its currency to gradually appreciate against the U.S. dollar. China's currency - the yuan - has been pegged to the American greenback since 2008.
"This is going to lead to a transition from export-lead, investment-lead to more of a consumption-lead economy going forward," Jing Ulrich, chair of China equities and commodities at JPMorgan Chase & Co. (NYSE: JPM), told CNBC. "I think the ramifications are profound not just for the next few months but actually for the coming years."
Not surprisingly, U.S. exporters embraced the news as an opportunity to compete against Chinese companies and to reduce the U.S. trade deficit. Foreign nations, including the United States, have accused China of undervaluing its currency to give its exporters an advantage in global trade.
Chinese domestic consumption stands to benefit the most, as consumers will have more purchasing power on top of China's recent wave of multi-industry wage increases. Western companies that reach out to Mainland China can access a consumer base with more money and an increased desire to spend, which should give Western investors a chance to cash in on climbing profits.
However, not everyone will see immediate benefits from the new currency policy. In fact, the combination of big double-digit wage increases in China and an increase in the yuan will reanimate inflation.
Read full story...
NYT: Business.- In U.S. Bailout of A.I.G., Forgiveness for Big Banks . June 30th., 2010
In U.S. Bailout of A.I.G., Forgiveness for Big Banks
By LOUISE STORY and GRETCHEN MORGENSON
Documents indicate that federal regulators ignored recommendations to force banks that did business with A.I.G. to accept losses on the deals.
Circuit Breaker Kicks In, Stopping Trades of Citigroup
By GRAHAM BOWLEY
Trading was paused for five minutes after a large trade was posted at a price 12.7 percent lower than the previous trade.
Bank Fee Is Eliminated in Financial Bill
By DAVID M. HERSZENHORN
Congressional negotiators voted down a tax on big banks, instead adopting a new plan to pay the legislation’s cost.
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