Market Soapbox 06/20/07
WEN, triple digit fall, DJIA -146 on average volume with ugly internals. All DOWN BIG.
Bonds down 10yr yield +6 bps 5.14, $ up vs 123.595y & vs 1.3403E, WTI crude down $68.86, gold down 1.4% $655.5
DJIA up 41 for 59; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 48 for 70.
Today only $7 B in Fed reanimation; Monday: "Tomorrow Housing Starts & Permits, more bad news indeed and there is the slightest hint of consolidation in the air."
Today's bond liquidation hit home from 2PM on, SP500 falling 20 points to 1512. Oil & gold falling while the $ rallyied and REITS & financials got clubbed.
CompUSA liquidation of their stores is almost complete. Pulte Homes announced they are firing 16% of staff in order to cut expenses.
Circuit City comp store sales -5.6% vs +14.5% last year; net Q1 sales -4.3%; Q1 $54.6M loss vs $6.37M Q4 profit.
CC withdrew its financial guidance for fiscal 2008 due to "sales volatility". Yep, no spillover here, just a big black slick skimming the water...
FedEx met the number, but gave substantially lowered forward guidance.
FedEx CEO: "The weakened industrial sector is currently limiting demand for transportation services."
Shipment volumes and revenues at FedEx Express, FedEx Ground and FedEx Freight divisions were lower than anticipated in Q4 due to the softer economy.
Re Bear Stearns failing Hedge Fund... the High-Grade Structured Credit Strategies Enhanced Leverage Fund.
Two lenders, Goldman Sachs Group Inc. and Bank of America Corp., agreed to unwind transactions directly with Bear Stearns without dumping the bonds on the market.
JPMorgan Chase canceled its plans to sell about $400 million of bonds today. But, Merrill Lynch decided to seize and sell $800 million of bonds held as collateral for loans to the funds.
BS may now shut down TWO of its hedge fund operations. Gambling? I'm shocked and appalled.... "Who knows what this will trigger in another hedge fund?'' said Barry James, who manages $2B at James Investment Research.
Really, that Rick, he's most unpredictable... "There's a lot of this kind of stuff going on today, I don't think any of us know how much of an impact that will have when it unwinds.''
Securities and Exchange Commission Chairman Christopher Cox: "Our concerns are with any potential systemic fallout."
Thank you Sir!, May I have another! According to the FED, the only systemic danger is with the GSE's FHLMC & FNMA, and they hold around $2.5 Trillion in MBS...
so I'm feeling all warm & fuzzy, are'nt you? Sacha, pour me a double... Often wrong, but never in doubt, this is the Nattering Naybob and your not!
Bonds down 10yr yield +6 bps 5.14, $ up vs 123.595y & vs 1.3403E, WTI crude down $68.86, gold down 1.4% $655.5
DJIA up 41 for 59; 48 record closes since Oct.; 26 YTD; and on a parallel with 1989 Nikkei 225: the DJIA is now 48 for 70.
Today only $7 B in Fed reanimation; Monday: "Tomorrow Housing Starts & Permits, more bad news indeed and there is the slightest hint of consolidation in the air."
Today's bond liquidation hit home from 2PM on, SP500 falling 20 points to 1512. Oil & gold falling while the $ rallyied and REITS & financials got clubbed.
CompUSA liquidation of their stores is almost complete. Pulte Homes announced they are firing 16% of staff in order to cut expenses.
Circuit City comp store sales -5.6% vs +14.5% last year; net Q1 sales -4.3%; Q1 $54.6M loss vs $6.37M Q4 profit.
CC withdrew its financial guidance for fiscal 2008 due to "sales volatility". Yep, no spillover here, just a big black slick skimming the water...
FedEx met the number, but gave substantially lowered forward guidance.
FedEx CEO: "The weakened industrial sector is currently limiting demand for transportation services."
Shipment volumes and revenues at FedEx Express, FedEx Ground and FedEx Freight divisions were lower than anticipated in Q4 due to the softer economy.
Re Bear Stearns failing Hedge Fund... the High-Grade Structured Credit Strategies Enhanced Leverage Fund.
Two lenders, Goldman Sachs Group Inc. and Bank of America Corp., agreed to unwind transactions directly with Bear Stearns without dumping the bonds on the market.
JPMorgan Chase canceled its plans to sell about $400 million of bonds today. But, Merrill Lynch decided to seize and sell $800 million of bonds held as collateral for loans to the funds.
BS may now shut down TWO of its hedge fund operations. Gambling? I'm shocked and appalled.... "Who knows what this will trigger in another hedge fund?'' said Barry James, who manages $2B at James Investment Research.
Really, that Rick, he's most unpredictable... "There's a lot of this kind of stuff going on today, I don't think any of us know how much of an impact that will have when it unwinds.''
Securities and Exchange Commission Chairman Christopher Cox: "Our concerns are with any potential systemic fallout."
Thank you Sir!, May I have another! According to the FED, the only systemic danger is with the GSE's FHLMC & FNMA, and they hold around $2.5 Trillion in MBS...
so I'm feeling all warm & fuzzy, are'nt you? Sacha, pour me a double... Often wrong, but never in doubt, this is the Nattering Naybob and your not!
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