FGC BOLSA- FGC FIN
Compiled: August 8, 2013 09:40:37 PM
Aug 8, 2013
NYT | ALERT FGC BOLSA - FGC FINANCIAL MARKETS AUGUST 08, 2013: Op-Ed Columnist Phony Fear Factor by Paul Krugman
The confidence men strike out again as the latest economic myth about “economic policy uncertainty” bites the dust.
TF Metals Report: Not a good time to be short gold
Turd Ferguson of the TF Metals Report tonight comprehensively reviews the major recent developments in the gold futures markets and concludes:
-- GOFO rates in London have been more negative only for one time and for just one day in recorded history, at least as far back as I can look.
-- JPMorgan suddenly decided to claim for themselves 82 percent of all July Comex silver deliveries and has so far taken 69 percent of all August gold.
-- Registered and total gold stocks on the Comex are at the lowest level since at least 2005.
-- Oddly, JPM has "borrowed" gold from two other bullion banks each of the past two days.
-- GLD has been raided for nearly a third of its inventory over the past seven months. All the while, the comparable silver ETF, SLV, has actually seen its inventory increase.
-- Market expert Ted Butler shows that, over the past eight months, JPMorgan has methodically flipped a 50,000 contract net short position to an 85,000 net long position.
As a result, Ferguson is not short.
His commentary is headlined "More JPM Hoarding Gold" and it's posted at the TF Metals Report here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
August 8, 2013
Compiled 20:45 GMT
Compiled 20:45 GMT
By CHARLIE SAVAGE
The National Security Agency is hunting for Americans' messages that mention foreigners under surveillance, not just communications with the targeted individuals themselves, officials said.
By ROBERT F. WORTH and ERIC SCHMITT
The decision to shut some American diplomatic posts in the Middle East has prompted gloating among jihadists and criticism by some officials who say the Obama administration overreacted.
By IAN URBINA and KEITH BRADSHER
The Hong Kong-based company Li & Fung is a matchmaker between poor countries' factories and affluent nations' vendors. But critics call it the garment industry's "sweatshop locator."
By DAVID WALDSTEIN
Ichiro Suzuki is closing in on 4,000 combined hits in Japan and Major League Baseball, and he has no plans to stop playing.
By LIEN HOANG
Despite reports that the Vietnamese government represses religious groups, peace prevails among faiths here - and that's partly thanks to state control.
By MARTIN FACKLER
Prime Minister Shinzo Abe called for intervention as concern grew over new contamination from the Fukushima Daiichi plant into the Pacific Ocean.
By PETER BAKER and STEVEN LEE MYERS
The sides have been at loggerheads over arms control, missile defense, Syria, trade and human rights, and Obama aides said Moscow was no longer responding to their proposals.
By NASSER ARRABYEE and ALAN COWELL
Yemeni officials said they had thwarted a plan to kidnap or kill foreigners working at an oil terminal, but the claim aroused skepticism among terrorism analysts.
Thursday August 8th 2013
For European readers, we put the British economy on the cover this week. The pace of recovery is encouraging, as are the ideas of Mark Carney, the Canadian who has just taken over at the Bank of England. But under the bonnet, things are not looking good. For the rest of the world, we highlight China's attempts to clean up its environment. The world's worst polluter is also the world's biggest investor in green energy
John Micklethwait, Editor-in-Chief
|Politics this week|
SEE ARTICLE »
MORE FROM: BUSINESS THIS WEEK »
BIV Today's Business News August 08, 2013: B.C. Business Council urges Ottawa to change telecom policy.
Politics and Policy
This Week's Issue
U.S. stocks rise, snapping 3-session losing streakBy Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks rose on Thursday, bouncing back after a three-session slide, as Chinese trade data beat expectations and Wall Street considered the impact of jobless claims on the timing of reductions in the Federal Reserve’s bond-buying program.
In China, data showed that exports and imports rebounded sharply in July, confirming that “China is going from an export-driven to a consumer-led economy,” said Gaffney.
After rising 86 points and falling 52, the Dow Jones Industrial Average DJIA +0.18% gained 27.65 points, or 0.2%, to end at 15,498.32.
Among the blue-chip losses, J.P. Morgan Chase & Co.’s JPM -0.85% shares fell 0.9% after the bank on Wednesday disclosed it faces a federal criminal probe of its practices relating to sales of mortgage-backed bonds.
McDonald’s Corp. MCD -0.29% reported sales at stores open at least 13 months climbed 0.7% in July, beating Wall Street’s expectations. The fast-food chain and Dow component fell 0.3%. Its shares are up more than 11% this year.
Probe turns up heat on banks
The Justice Department is targeting banks that service a broad range of what it considers questionable financial ventures, including online payday lender, that officials worry may harm consumers.
The S&P 500 index SPX +0.39% rose 6.57 points, or 0.4%, to 1,697.48, halting a decline that had the index off 1.1% during the first three days of the week on thinking the Federal Reserve would cut back on its bond purchases as soon as next month.
Telecommunications led declines among the S&P 500’s major industry groups and materials performed the best, with the price of gold GCZ3 +2.07% climbing back above $1,300 an ounce.
CenturyLink Inc. CTL -5.58% shares declined 5.6%, a day after the phone company reduced its sales forecast for the year.
Cliffs Natural Resources Inc. CLF +8.91% and Newmont Mining Corp. NEM +8.69% were among the lead gainers on the S&P 500, with the former up 8.9% and the latter rising 8.7%.
The Nasdaq Composite COMP +0.41% rose 15.12 points, or 0.4%, to 3,669.12.
For every share falling, nearly two gained on the New York Stock Exchange, where 689 million shares traded.
Composite volume cleared 3.2 billion.
The dollar DXY -0.33% dipped against the currencies of major U.S. trading partners including the euro EURUSD +0.33% , helping boost dollar-denominated commodities such as gold.
Treasury prices rose after yields close to two-year highs sparked demand for the 10-year note 10_YEAR -0.42% at an auction Wednesday. The yield on the 10-year on Thursday fell 2 basis points to 2.59%.
The price of oil fell for a fifth session, with the September futures contract CLU3 -0.58% losing 97 cents to end at $103.40 a barrel on the New York Mercantile Exchange.
The Labor Department said Thursday that initial claims for unemployment benefits climbed to 333,000 last week, while the number of claims in the four weeks ending Aug. 3 fell to 335,500 on average, the lowest level since November 2007, the month before the recession started.
The improving labor market and rising home prices helped the percentage of seriously-delinquent mortgages fall to a near five-year low in the second quarter, the Mortgage Bankers Association reported Thursday.
“Clearly the U.S. economy is getting stronger; we’ve seen steady improvement in the companies we cover,” Peter Sidoti, chief executive officer of Sidoti & Co., said of nearly 800 small-cap companies.
“Very few are talking about reducing employment at this time. We certainly see more strength in earnings growth we cover and revenue than [gross national product] numbers would indicate,” Sidoti said.
And, unlike many investment strategists, Sidoti is not concerned with the timetable for changes in the Fed’s monetary policy and what Federal Reserve Chairman Ben Bernanke and his colleagues might be thinking.
“My CEOs and CFOs don’t get up every morning worrying about what Bernanke is going to do. The companies we cover make decisions based on customers and revenue coming in the door,” Sidoti said.
Kate Gibson is a reporter for MarketWatch, based in New York.
Stocks snap 3-day losing streak, lifted by materials; JCP soars 6%
Stocks snapped a three-day losing streak Thursday, with the SandP 500 finishing just below the 1,700 mark, buoyed by stronger-than-expected Chinese trade data and following a favorable jobless claims report.
|DJIA||Dow Jones Industrial Average||15498.32||27.65||0.18%|
|S&P 500||SaP 500 Index||1697.48||6.57||0.39%|
|NASDAQ||Nasdaq Composite Index||3669.12||15.12||0.41%|
The Dow Jones Industrial Average finished in positive territory, lifted by Microsoft and Caterpillar.
The S&P 500 and the Nasdaq also closed higher. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, finished below 13.
(Read more: SaP 1,900possible in 12 months: JPMorgan's Lee)
Most key SaP sectors ended higher, led by materials and consumer discretionary, while telecoms remained in the red.
Major averages have been dented this week amid uncertainty about when the Fed may start winding down its stimulus program. The Dow and SaP 500 have declined more than 1 percent each for the week. The Dow is poised to log its first weekly drop in seven weeks.
Looking for market catalysts
Sam Stovall, chief equity strategist, SaP Capital IQ, says the market is looking for the Fed to start tapering in December and not September.
"For a significant move, we need to have some clarity on what the Fed is going to be doing—we need to get to the point where we know when the Fed will be tapering and see that things will be fine economically," said Paul Hogan, managing of the FAM Equity-Income Fund. "[In the meantime,] this becomes a little bit of a stock picker's market." Most recently, Dallas Fed President Richard Fisher told German business newspaper Handelsblatt that the central bank should begin to taper its bond purchases in September, unless the economy worsens significantly, reiterating his comments from earlier this week. Fisher's comments echo similar sentiments from other Fed officials. On Tuesday, Chicago Federal Reserve President Charles Evans and Atlanta Fed president Dennis Lockhart both said the initial taper in the central bank's asset purchase program could start as early as September. "The drumbeat of Fed officials point to a possible tapering later this year and these comments likely had an impact on capping the market upside and leading to a bit of profit taking," said Michael Sheldon, chief market strategist at RDM Financial Group. "September and October have been more difficult months for the markets, so it would be reasonable for investors to be cautious…monetary policy and the Fed will move to the front burner and will be the market mover in the next couple of weeks." Still, Sheldon noted that market internals have been "extremely positive" over the last several months. "So unless we see the transports, small caps, and leadership groups like the financials and consumer discretionary falter, the benefit of the doubt is still with the bulls at this point," he said. Meanwhile, investors cheered as China posted stronger-than-expected July trade figures, rebounding after a disappointing report in June, raising hopes that the world's second biggest economy may be stabilizing. Materials stocks including Cliffs Natural Resources, Newmont Mining and US Steel rallied following the report. "July seems to reflect a return to a 'normal', relatively uninspiring trend," analysts from Moody's said in a note. "In other words, while the worst seems to be over, the upturn will be relatively flat." (Read more: China market bounce: trend change or false alarm?) Meanwhile, Japan's Nikkei extended losses after tumbling 4 percent in the previous session, after the Bank of Japan opted to leave monetary policy unchanged at the end of its two-day meeting. The dollar-yen traded near a seven-week low of 96.15.
CBS edged higher after the media company's executive said it has resumed negotiations with Time Warner Cable. Time Warner Cable's blackout of CBS programming is now in its seventh day. JCPenney spiked to lead the S&P 500 gainers after hedge fund manager Bill Ackman wrote in a letter to the retailer's board that the company has started its search for a new CEO, replacing interim CEO Mike Ullman. Ackman is the largest shareholder in JCPenney and has a seat on the retailer's board. In the letter, Ackman also expressed his frustration that the search process is not going fast enough, adding that he wants a new CEO to be installed within 30 to 45 days. In addition, Ackman said he has asked former JCPenney CEO Allen Questrom to return as the company's chairman. McDonald's ticked higher after the fast-food giant posted July same-store sales that rose 0.7 percent, edging past expectations, as stronger-than-expected sales in the U.S. helped offset weakness in Europe. (Read more: Food prices couldkeep falling as crops boom) Among retailers, L Brands rallied after the parent company of Victoria's Secret and Bath & Body Works posted same-store sales that rose 3 percent in July and lifted its second quarter earnings guidance. Costco posted July same-store sales that rose 4 percent, but still missed expectations, hurt by a stronger dollar. Aeropostale slumped after the teen apparel retailer said same-store sales in the second quarter plunged 15 percent and the company now sees a second-quarter loss of between 23 cents a share and 25 cents a share, versus Wall Street estimates for a loss of 17 cents a share. Adding to woes, teen specialty apparel store Zumiez posted a weaker-than-expected 0.8 percent gain in July same-store sales. Roth Capital cut its price target on Zumiez to $32 a share from $36. And earlier this week, rival teen clothing retailer American Eagle Outfitters said its second-quarter profit will likely be less than half of what Wall Street was expecting, citing weak sales and lower margins. Among earnings, Groupon spiked nearly 25 percent after the daily-deals website named co-founder Eric Lefkofsky its CEO and reported a record quarter for its North American business. In addition, the firm announced a $300 million share buyback program. At least eight brokerages lifted their price targets on the company. Tesla surged after the electric-car maker posted earnings and revenue that blew past Wall Street expectations. In an earnings calls, CEO and founder Elon Musk said a compact electric sedan model due in 2016 is expected to have a 200-mile range per charge. At least five brokerages boosted their price targets on the firm. (Read more: Half of small carsfail on tougher US crash tests) Orbitz soared nearly 20 percent after the travel website posted topped earnings expectations and handed in a full-year revenue guidance that beat estimates. Beam posted quarterly results that exceeded expectations and announced a stock buyback program of up to 3 million shares. The company also reiterated its full-year earnings target. Lions Gate Entertainment, Nvidia and Priceline.com are among notable companies slated to report quarterly results after the closing bell. Approximately 90 percent of S&P 500 companies have reported second-quarter results so far, with 67 percent of firms topping earnings estimates and 54 percent exceeding revenue forecasts, according to the latest data from Thomson Reuters. If all remaining companies report earnings in line with estimates, earnings will be up 4.5 percent from last year's second quarter. On the economic front, weekly jobless claims ticked up 5,000 to a seasonally adjusted 333,000 last week, according to the Labor Department, but still remained near its lowest level since the recession. Economists polled by Reuters had expected first-time applications to rise to 336,000 last week. The government auctioned $16 billion in 30-year bonds at high yield of 3.652 percent. The bid-to-cover ratio, an indicator of demand was 2.11, versus a recent average of 2.55. In Europe, shares staged a mild recovery following the Bank of England's press conference, at which governor Mark Carney outlined his plans to link interest rates to unemployment.—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: