Market Soapbox 11/13/08
THU, violent swing, DJIA +553 on very high volume with sterling internals. All UP 6%+
Bonds down 10 yr +21bps 3.86. $ clubbed vs E1.2782 & down vs 97.664y, WTI +5% $58.24, gold -1% $705; TED Spread -1bps 1.97%; 3mo Libor +2bps 2.15
SP500 852, drop 818; rise to close 911. NDX 1167, drop 1109, rise to close 1240.
FRI: Unemployment 6.5% highest since 1994; unemployed over 10 million; highest in 25 years. Grim economic reality will take this market down to new depths.
MON: Circuit City BK; AIG $24.5 billion Q3 loss; China $586 billion bailout, by year end 100K factories will be closed. Starbucks Q4 net income -94%.
TUE: What will you do? due to imminent insolvency Fed waives 30 day wait for American Express to covert to bank holding company.
WEN: crude oil at our $55 target; Home values fell 9.7% in Q3, the 7th consecutive decline, as 30% of sellers sold at a loss.
Treasury $139 billion guarantee for GECC debt. YTD SP500 -43%; more to come, after a small bounce?
Today, down 300, at a multi year low the DJIA swings 800 points on "good" news.
#4 dept store Kohls net -17% 5th straight decline; cut outlook along with Intel & WalMart.
Initial Claims +32K at 516K; a 7 year high as long term unemployment exceeds 3.8 million.
Corporate income tax receipts $81 million vs $6 billion a year earlier.
Federal deficit in the first month of fiscal 2009 exceeds all of last years with a record $237.2 billion, vs $56.8 billion in October last year...
spending soared 71% as the government loaded up on soon to fail bank shares. Yesterdays bailout shift by Hank Paulson undermines executive pay limits.
Sen. Grassley said tax penalties on golden parachute severances and pay exceeding $500K aren't enforceable under Paulson's strategy of buying stakes in banks.
This dead cat bounce comes off new multi year lows, again, do not be fooled, grim reality is setting in.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
Bonds down 10 yr +21bps 3.86. $ clubbed vs E1.2782 & down vs 97.664y, WTI +5% $58.24, gold -1% $705; TED Spread -1bps 1.97%; 3mo Libor +2bps 2.15
SP500 852, drop 818; rise to close 911. NDX 1167, drop 1109, rise to close 1240.
FRI: Unemployment 6.5% highest since 1994; unemployed over 10 million; highest in 25 years. Grim economic reality will take this market down to new depths.
MON: Circuit City BK; AIG $24.5 billion Q3 loss; China $586 billion bailout, by year end 100K factories will be closed. Starbucks Q4 net income -94%.
TUE: What will you do? due to imminent insolvency Fed waives 30 day wait for American Express to covert to bank holding company.
WEN: crude oil at our $55 target; Home values fell 9.7% in Q3, the 7th consecutive decline, as 30% of sellers sold at a loss.
Treasury $139 billion guarantee for GECC debt. YTD SP500 -43%; more to come, after a small bounce?
Today, down 300, at a multi year low the DJIA swings 800 points on "good" news.
#4 dept store Kohls net -17% 5th straight decline; cut outlook along with Intel & WalMart.
Initial Claims +32K at 516K; a 7 year high as long term unemployment exceeds 3.8 million.
Corporate income tax receipts $81 million vs $6 billion a year earlier.
Federal deficit in the first month of fiscal 2009 exceeds all of last years with a record $237.2 billion, vs $56.8 billion in October last year...
spending soared 71% as the government loaded up on soon to fail bank shares. Yesterdays bailout shift by Hank Paulson undermines executive pay limits.
Sen. Grassley said tax penalties on golden parachute severances and pay exceeding $500K aren't enforceable under Paulson's strategy of buying stakes in banks.
This dead cat bounce comes off new multi year lows, again, do not be fooled, grim reality is setting in.
Often wrong, but never in doubt, this is the Nattering Naybob and you're not.
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