Jun 5, 2013
Australia trade surplus shrinks on forex strength LOS ANGELES (MarketWatch) -- Australia reported Thursday a narrowing of its trade surplus in April, as exports logged a 1% drop from the previous month, with the result missing forecasts. The April trade account was just 28 million Australian dollars ($26.6 million) in surplus, shrinking drastically from a A$555 million suplus in March, the Australian Bureau of Statistics said. The drop in exports came as the Australian dollar hit its recent peak near $1.06, and despite a 12% rise in non-monetary gold exports during the month. Since then, the Australian currency has slipped back to its lowest levels in more than a year. April imports, meanwhile, ticked 1% higher from March. The Australian dollar fell immediately after the data, but quickly moved higher, trading at 95.03 U.S. cents from 94.90 U.S. cents ahead of the numbers.
Hong Kong stocks drop on weak U.S., China cues HONG KONG (MarketWatch) -- Hong Kong stocks dropped Thursday as property developers and banks were dragged lower after a weak U.S. private-sector jobs report and as economic worries about China put the Shanghai stock benchmark on path for a sixth straight day of losses. The Hang Seng Index fell 0.9% to 21,867.63 and the Hang Seng China Enterprises Index gave up 1% to 10,368.15. Shares of China Overseas Land & Investment Ltd. fell 2.2% and Hang Lung Properties Ltd. dropped 2.6%, while Industrial & Commercial Bank of China Ltd. shed 1.1%. The Shanghai Composite Index fell 0.5% to 2,2658.95. 9:46 p.m. Today
In Besieged Syrian Town, Bitterness of Sunnis Points to Rending of Sects: The New York Times Global Update; June 05, 2013.
June 5, 2013
Compiled 20:45 GMT
Compiled 20:45 GMT
By an EMPLOYEE of THE NEW YORK TIMES in SYRIA and ANNE BARNARD
As Hezbollah guerrillas from Lebanon and Syrian troops fought for Qusayr, many Sunnis declared the social fabric had been destroyed.
By ANNE BARNARD
The apparent victory in Qusayr, after a siege pitting rebels against Syrian Army and Lebanese Hezbollah militia forces, was seen as an advance for President Bashar al-Assad.
By MARK LANDLER
The choice of Susan E. Rice to replace Tom Donilon as national security adviser represented a defiant gesture to Republicans. Samantha Power was named as the United Nations ambassador.
By GI-WOOK SHIN, THOMAS FINGAR and DAVID STRAUB
The United States needs to use this first encounter to focus on underscoring for China where the two nations' interests on the Korean Peninsula overlap.
By C. J. CHIVERS
The rebels have been pulled between the limits of a lightly equipped guerrilla force and their urge to fight with the battlefield weight of an army.
By MARK LANDLER
Susan E. Rice and Samantha Power say the United States should act aggressively to defend human rights, but what that means for Syria is unclear.
By SEBNEM ARSU
The group is seeking the dismissal of the governors of Istanbul, Ankara and Hatay as well as the heads of the security forces in those three cities.
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Economy Shows Slim Advances, by Associated Press: The New York Times: Alert FGC BOLSA - FGC FINANCIAL MARKETS; June 05, 2013.
FGC BOLSA- FGC FIN
Compiled: June 5, 2013 06:36:16 PM
By THE ASSOCIATED PRESS
The Labor Department found modest quarterly gains in productivity after it dropped in the previous quarter, and a private survey reported a weak increase in new jobs.
U.S. stocks tumble with jobs report in mind: Wall Street at Close Report by MarketWatch, June 05, 2013.
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks tumbled on Wednesday for a second session as data on U.S. private-sector job growth darkened views of the monthly nonfarm-payrolls report to be released in two days.
“More attention is being brought to the economic data, so everyone can play Nostradamus and guess what the Fed’s next move will be,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, said of ongoing guessing as to when the Federal Reserve would begin tapering its $85 billion in monthly bond purchases.
Stock indexes remained deeply under water after the release of the Fed’s so-called Beige Book, which found the U.S. economy to be still growing at a “modest to moderate” pace.
“In the past few weeks, good news is bad, and bad news is bad, as we started to see talk of the tapering come through,” said Sean Lynch, global investment strategist for Wells Fargo Private Bank.
In its worst session in more than a month, the Dow Jones Industrial Average DJIA -1.43% lost 216.95 points to 14,960.59, with Intel Corp. INTC -2.60% pacing declines that included all of its 30 components.
The S&P 500 index SPX -1.38% declined 22.48 points to 1,608.90, with materials and financials leading losses that included all of its 10 major industry groups. Read a blog: S&P 500 sinks 4% from May highs
A Dell Inc. DELL +0.07% board panel found Carl Icahn’s takeover bid to be short due to an estimated $3.9 billion funding deficit necessary to pay a proposed dividend and operate the PC maker.
Apple Inc. AAPL -0.93% shares shed 0.9% after the International Trade Commission found the iPhone maker infringed on a Samsung Electronics Co. patent, with Apple facing a possible import ban on some products.
General Motors Co. GM -2.69% fell 2.7% after the U.S. Treasury said it would sell 30 million more shares of the car manufacturer’s common stock.
The Nasdaq Composite COMP -1.27% fell 43.78 points to 3,401.48.
For every share rising, four fell on the New York Stock Exchange, where 738 million shares traded. Composite volume approached 3.6 billion.
Gold GCQ3 +0.37% and oil CLN3 +0.44% prices rose; the U.S. dollar DXY -0.27% declined and the yield on the 10-year Treasury note (TICKER:10_YEAR) used in determining mortgage rates and other consumer loans fell to 2.087%.
U.S. companies created 135,000 jobs in May, according to ADP Employer Services.
“The market is in the midst of a bit of a correction, so the bias is lower anyway. But with the ADP report being as underwhelming as it was, there is an increasing loss of enthusiasm for equities at the moment,” said Janney Montgomery Scott’s Luschini.
FactSet Enlarge Image
Revised government figures showed productivity rising 0.5% in the January-to-March period, and hourly compensation falling 3.8%. Wednesday’s data came ahead of Friday’s nonfarm-payrolls report, and added credence to the view that a soft labor market would extend the time frame before the Federal Reserve begins tapering its bond purchases.
“The market is playing wait-and-see with Friday’s numbers, but certainly the ADP number that came out showed there is probably moderate downside risk to that May employment number,” said Lynch at Wells Fargo Private Bank.
Another report, this one from the Institute for Supply Management, found a slight acceleration in service-sector activity in May.
Also Wednesday, the Commerce Department reported orders for goods made by U.S. factories rose 1% in April.
Getty Images Enlarge Image
A 20-Tuesday-long win streak for the Dow industrials was derailed, with the index falling 76.49 points, or 0.5%, to end at 15,177.54. Fears over when the Federal Reserve will begin to pull back on its bond-buying program weighed on sentiment.
On Tuesday, Fed Bank of Kansas City President Esther George advocated for the Fed to pare back its bond-buying program, and Dallas Fed President Richard Fisher stepped up his criticism of the Fed’s easy-money program.
Strategists at Credit Suisse said Wednesday that they see 15% more upside for stocks. They lifted their S&P 500 year-end target to 1,730 from 1,640 and introduced a new target of 1,900 for the end of 2014. The strategists gave five reasons for staying overweight in equities, including an overly pessimistic view on when the Fed will curb its bond-buying program. Read more on Credit Suisse's equity call.
Kate Gibson is a reporter for MarketWatch, based in New York.
Broad Selloff: Stocks Tumble 1%, Dow Falls 200 to Close Below 15,000: Wall Street at Close Report by CNBC; June 05, 2013
Stocks posted sharp declines across the board Wednesday, with the Dow ending below 15,000, following weakness in overseas markets and amid concerns over when the Fed will start tapering its bond-buying program on the heels of several mixed economic reports.
"There has to be some sort of convergence between stock prices and economic data," said Sal Arnuk, co-manager of trading at Themis, noting that the move lower has been "quiet and orderly" with "adequate volume." "The selloff's based on lukewarm economic data, fear over Fed tapering and it's also somewhat natural given the highs we've recently made."
|DJIA||Dow Jones Industrial Average||14960.59||-216.95||-1.43%|
|S&P 500||S&P 500 Index||1608.90||-22.48||-1.38%|
|NASDAQ||Nasdaq Composite Index||3401.48||-43.78||-1.27%|
The Dow Jones Industrial Average tumbled more than 200 points, suffering its worst one-day drop in nearly two months, led by Alcoa and Walt Disney.
The S&P 500 and the Nasdaq also ended sharply lower. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, spiked above 17.
All key S&P sectors were in the red, dragged by materials and financials.
(Read More: June Market Swoon Ahead? Maybe Not, Traders Say)
90 Seconds with Art Cashin: Markets Are Nervous CNBC's Bob Pisani and Art Cashin, of UBS, discuss the dollar and the yen, and why they're being watched so carefully.
"For most of the year, the best thing that could happen for the market was to get data that were not too hot and not too cold—that would drive the Fed to keep QE and continue to provide liquidity for the markets," said Michael Sheldon, chief market strategist at RDM Financial Group. "However, at some point, if the economic data start to deteriorate, then instead of bad news becoming good news, the bad news may just be bad news. In other words, if the economic data really start to turn lower, investors may start to wonder whether the Fed really has any power left to turn the economy around." The private sector created just 135,000 jobs in May, according to the ADP National Employment Report, less than estimates for 165,000. The government's labor market report, which includes both public and private sector employment, will be reported on Friday. Economists surveyed by Reuters expect to see a gain of 170,000 jobs, slightly higher than the 165,000 jobs added in April. Lee Hardman, a currency economist at Bank of Tokyo-Mitsubishi, said in a note that the ADP report has been an inaccurate predictor of nonfarm private payrolls so far in 2013, over or underestimating numbers by just under 50,000 on average each month. Traders, however, have used the weak economic conditions to keep hopes up that the Federal Reserve will not back off its easing measures anytime soon. Meanwhile,the pace of activity in the services sector ticked higher in May to 53.7 from 53.1 in April, according to the Institute for Supply Management's services index. A reading above 50 indicates expansion in the sector. However, a key employment measure slipped to the lowest level since last July at 50.1 from 52.0. "The ADP employment data and the employment component within the ISM services report, while not perfect, provide a hit that this month's employment data may be on the softer side," said Sheldon. (Read More: Why Bad News Soon May Just Become...Bad News) Economic expansion increased throughout the U.S. from April through mid-May, fueled by home construction, consumer spending and steady hiring, with eleven of the Fed's banking districts reporting "modest to moderate" growth, according to the Federal Reserve's latest region-by-region Beige Book survey. In other economic news, factory orders rose 1 percent in April, recovering from a 4.7 percent drop in March, according to the Commerce Department. And unit labor costs tumbled 4.3 percent, while productivity rose 0.5 percent.
Stocks In for a Rocky Summer: Pro
More unpredictability in the market means it's anyone's guess how stocks will trade on Friday's employment report, Stephen Weiss of Short Hills Capital says.
Earlier, the Japanese Nikkei tumbled nearly 4 percent when Prime Minister Shinzo Abe's third "Abenomics" arrow to boost the economy failed to impress investors. Other Asian indexes and European bourses also traded lower on the news. "The comments made by Abe today were not really a game changer and disappointed a market which seems to have been positioned for a USD/JPY and Nikkei rally," wrote IG Index market strategist Stan Shamu. (Read More: Japan Fires 'Third Arrow,' Execution Now Key) The so-called third arrow of Abe's growth-reviving strategy follows monetary and fiscal stimulus measures that were put into place earlier this year. So far, however, Japanese stocks remain jittery on fears of a tapering of stimulus measures by the Federal Reserve, and stuttering growth in China. In company news, Apple declined after the U.S. International Trade Commission ruled that the company infringed on a patent owned by Samsung and issued a limited order stopping all imports and sales for AT&T models of the iPhone 4, iPhone 3GS, iPad 3G and iPad 2 3G. (Read More: With Latest Ban, Has Samsung Cornered Apple?) Juniper Networks zipped higher after the networking equipment company's CEO Kevin Johnson said demand from its crucial telecom customer base looked better than previous years. Shares of rival Cisco also gained. The Treasury Department said it will sell an additional 30 million shares of General Motors common stock from the government's bailout of the U.S. auto sector. The Treasury, has said it will finish its exit by early next year. JPMorgan Chase will take an $842 million hit due to the bankruptcy of Jefferson County, Ala., the company said, sending its shares down 0.4 percent. Hovnanian zipped higher after the homebuilder posted quarterly results that topped expectations. The Mortgage Bankers Association said home loan applications fell 11.5 percent last week as interest rates climbed past 4 percent for the first time in a year.—By CNBC's JeeYeon Park. Follow JeeYeon on Twitter: @JeeYeonParkCNBC
Paul Craig Roberts on gold suppression, the dollar's decline, and gangster capitalism: GATA I THE DISPATCH; June 05, 2013.
Paul Craig Roberts on gold suppression, the dollar's decline, and 'gangster capitalism'
GoldMoney's Andy Duncan today interviews former U.S. Assistant Treasury Secretary Paul Craig Roberts about the Federal Reserve's suppression of gold prices, the decline of the U.S. dollar as the world reserve currency, and the "gangster capitalism" that has resulted from deregulation of the financial markets and failure to enforce anti-trust law. The interview is 40 minutes long and is posted at GoldMoney's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
The Conscience of a Liberal Heritage Shock; by Paul krugman: The New York Times Opinion Today; June 05, 2013.
June 5, 2013
By DAVID BROOKS and GAIL COLLINS
Brooks and Collins on the prospects for immigration reform, Obama nominees and environmental action.
By RANDALL R. RADER, COLLEEN V. CHIEN and DAVID HRICIK
Judges already have the authority to make frivolous litigants pay for their abusive lawsuits. They just have to use it.
By MARK BITTMAN
The Farm Bill is impenetrable, important and worthy of our outrage.
By THE EDITORIAL BOARD
President Obama did his job with three fine nominations to a top appeals court. Now the Senate has a job to do.
By THE EDITORIAL BOARD
Much is riding on the unscripted big power talks beginning Friday between President Obama and President Xi Jinping of China.
By THE EDITORIAL BOARD
The governor of New Jersey called for a special election to fill Frank Lautenberg's Senate seat because it might give him a political advantage. But it will cost state taxpayers.
Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
By ANDREW ROSENTHAL
Why hasn't President Obama banned discrimination among federal contractors on the basis of sexual orientation?
The Conscience of a Liberal
By PAUL KRUGMAN
Nonsense as usual, but called out in public.
Joe Nocera's Blog
A day in the life of armed America.
Dot Earth Blog
By ANDREW C. REVKIN
A rare look at a baby kipunji, one of the most endangered monkeys on the planet.