Market Soapbox 04/19/07
THU, down 100 then up, DJIA +5 on average volume with bad internals. All DOWN cept DJTA & SOX.
Bonds down 10 yr yield +2 bps 4.67, $ down vs 118.46y & vs 1.3607E, gold down $688.3, WTI crude down 2% $61.83
In late Feb, a 9% decline of the Shanghai index triggered a global markets sell-off, which affected a number of asset classes. Most markets have since recovered.
Last night, Beijing's National Bureau of Statistics reported China's gross domestic product grew 11.1% in Q1, quickening from a 10.4% pace of growth in Q406.
In Asia, stocks fell sharply, China's Shanghai Composite Index, dropped 4.5% on renewed concerns that rapid growth may lead to higher interest rates and bank reserve requirements.
The dollar at a 2 year low vs Euro; fears of another Yen carry trade unwind and liquidity crisis abound.
Oil dropped 2%; following reports that Enbridge has resumed shipments through a previously shutdown pipeline from Canada, last year's biggest source of U.S. crude-oil imports.
Merrill Lynch said its newly acquired First Franklin unit made record numbers of subprime home loans in January and February.
Unitedhealth Group (UNH) posting lower than expected Q1 revenue and forecasting higher medical costs.
#1 US railroad Union Pacific (UNP) reporting +24% Q1 profit; sales +3.7%; on corn shipments +55% for ethanol; driving up ag shipments +8% and chemical shipments +9%. However...
The #1 freight item, coal shipments -2%; automotive & industrial -2.5%; overall demand or cars loaded -2%; all due to housing & automotive sector weakness.
Novellus Systems (NVLS) a microchips tools supplier, doubled profits in Q1 on an 8% revenue increase. But, said Q1 bookings were down 6.7% and could fall by 20% in Q2.
The worlds #1 supplier of power semiconductors; Fairchild (FCS) reported Q1 profit -27% sequentially & -76% Yoy. Q1 sales -3.7%; gross profit -1.3% sequentially & -2.2% Yoy.
#2 US Semiconductor Co. AMD reported a Q1 loss of $611 M vs a loss of $585 M in Q4 (vs profit of $185 M a year ago) on significantly lower microprocessor unit shipments and lower microprocessor average selling prices.
Revenue vs Q4 -30%; Yoy -7%; Gross margin shrinking to 28% from Q4 36% & Yoy from 58%; Q2 guidance, AMD expects revenue to be flat to slightly up.
Afterhours: Google Q1 profit +69%... FRI: Caterpillar, McDonalds, Xerox.
Yesterday & today: NDX holding 1832, perhaps headed for 1861; SP500 holding 1470 perhaps headed for 1520.
15 advances in 16 sessions, DJIA closing above 12,800 again; RUT, XAU, XOI, MID all declining for 3rd or 4th day. SOX banging off magic number 490 and looking like its time to sell Semis.
Often wrong, but never in doubt, this is the Nattering Naybob and your not!!!
Bonds down 10 yr yield +2 bps 4.67, $ down vs 118.46y & vs 1.3607E, gold down $688.3, WTI crude down 2% $61.83
In late Feb, a 9% decline of the Shanghai index triggered a global markets sell-off, which affected a number of asset classes. Most markets have since recovered.
Last night, Beijing's National Bureau of Statistics reported China's gross domestic product grew 11.1% in Q1, quickening from a 10.4% pace of growth in Q406.
In Asia, stocks fell sharply, China's Shanghai Composite Index, dropped 4.5% on renewed concerns that rapid growth may lead to higher interest rates and bank reserve requirements.
The dollar at a 2 year low vs Euro; fears of another Yen carry trade unwind and liquidity crisis abound.
Oil dropped 2%; following reports that Enbridge has resumed shipments through a previously shutdown pipeline from Canada, last year's biggest source of U.S. crude-oil imports.
Merrill Lynch said its newly acquired First Franklin unit made record numbers of subprime home loans in January and February.
Unitedhealth Group (UNH) posting lower than expected Q1 revenue and forecasting higher medical costs.
#1 US railroad Union Pacific (UNP) reporting +24% Q1 profit; sales +3.7%; on corn shipments +55% for ethanol; driving up ag shipments +8% and chemical shipments +9%. However...
The #1 freight item, coal shipments -2%; automotive & industrial -2.5%; overall demand or cars loaded -2%; all due to housing & automotive sector weakness.
Novellus Systems (NVLS) a microchips tools supplier, doubled profits in Q1 on an 8% revenue increase. But, said Q1 bookings were down 6.7% and could fall by 20% in Q2.
The worlds #1 supplier of power semiconductors; Fairchild (FCS) reported Q1 profit -27% sequentially & -76% Yoy. Q1 sales -3.7%; gross profit -1.3% sequentially & -2.2% Yoy.
#2 US Semiconductor Co. AMD reported a Q1 loss of $611 M vs a loss of $585 M in Q4 (vs profit of $185 M a year ago) on significantly lower microprocessor unit shipments and lower microprocessor average selling prices.
Revenue vs Q4 -30%; Yoy -7%; Gross margin shrinking to 28% from Q4 36% & Yoy from 58%; Q2 guidance, AMD expects revenue to be flat to slightly up.
Afterhours: Google Q1 profit +69%... FRI: Caterpillar, McDonalds, Xerox.
Yesterday & today: NDX holding 1832, perhaps headed for 1861; SP500 holding 1470 perhaps headed for 1520.
15 advances in 16 sessions, DJIA closing above 12,800 again; RUT, XAU, XOI, MID all declining for 3rd or 4th day. SOX banging off magic number 490 and looking like its time to sell Semis.
Often wrong, but never in doubt, this is the Nattering Naybob and your not!!!
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