The Sigh of Relief Rally of 2011

The popular press would have you believe that the rally on the start of the year's trading had something to do with the day's suspect economic data. However, we expect the move higher across US stocks has more to do with a sigh of relief following a holiday season and New Year's Eve passing without major terrorist attack, and the return of parked and protected capital.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

(Tickers: NYSE: GE, NYSE: LII, NYSE: SPB, Nasdaq: HELE, NYSE: NPK, Nasdaq: IRBT, NYSE: XRX, NYSE: PBI, NYSE: PAY, NYSE: DBD, Nasdaq: CSTR, NYSE: HNI, Nasdaq: MLHR, NYSE: SCS, NYSE: KNL, NYSE: FO, NYSE: LEG, NYSE: TPX, NYSE: AYI, NYSE: ETH, Nasdaq: SORL, NYSE: UTX, NYSE: MMM, NYSE: DHR, NYSE: PPG, NYSE: IX, NYSE: CBE, NYSE: TXT, NYSE: CR, NYSE: HON, NYSE: GD, NYSE: GR, NYSE: LLL, NYSE: ERJ, Nasdaq: FLIR, NYSE: TDG, Nasdaq: BEAV, NYSE: CAE, NYSE: ATK, NYSE: TGI, NYSE: CAT, NYSE: WHR, NYSE: F, NYSE: HMC, NYSE: TM, NYSE: BA, Nasdaq: AAPL, Nasdaq: MSFT, Nasdaq: DELL, Nasdaq: CSCO, NYSE: TSM, Nasdaq: INTC, NYSE: RTP, NYSE: BHP, Nasdaq: VALE, NYSE: CAT, NYSE: LMT, NYSE: COL, NYSE: NOC, NYSE: X, NYSE: AZN, Nasdaq: SCHW, NYSE: BA, Nasdaq: SYMC, NYSE: S, NYSE: IP, Nasdaq: CTXS, NYSE: EK, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: NYX, Nasdaq: NDAQ, NYSE: ICE, Nasdaq: SERAX, Nasdaq: SERBX, Nasdaq: SERCX, Nasdaq: SERNX, Nasdaq: FEUFX, Nasdaq: FEEEX, Nasdaq: FAEAX, Nasdaq: FBEAX, Nasdaq: FIEUX, Nasdaq: FECAX, Nasdaq: IERAX, Nasdaq: XRNEX, Nasdaq: PBEUX, Nasdaq: UEPIX, Nasdaq: UEPSX, Nasdaq: PEUGX, Nasdaq: RYAEX, NYSE: CEE, NYSE: RNE, NYSE: PEF, NYSE: GUR, NYSE: EPV, NYSE: VEA, NYSE: DFE, NYSE: DEB, NYSE: IEV, Nasdaq: ANEFX, Nasdaq: CNGAX, Nasdaq: HNEAX, NYSE: BAC, NYSE: GS, NYSE: AIG, NYSE: WFC, NYSE: MS, NYSE: C, NYSE: DB, NYSE: CS, NYSE: UBS, OTC: FNMA.OB, OTC: FMCC.OB, NYSE: MCG, NYSE: MCO, NYSE: TD, NYSE: PNC, NYSE: STD, AMEX: GLE, NYSE: BCS, NYSE: GLD, NYSE: XLE, NYSE: XLF)

The Sigh of Relief Rally of 2011

The Dow is driving higher by 0.9%, the S&P 500 Index is celebrating a gain of 1.1% and the Nasdaq is nearing 1.4% in trading near the close on the first day of the new year. Do you suppose the investment community is celebrating prospectively, and can foresee economic gains and stock market surge for the long-term? I suggest that is not the driver today, and instead hereby Christen this "The Sigh of Relief Rally of 2011."

The popular press quickly attributed the year's sizzling start to a month-over-month gain in manufacturing activity and better than expected construction spending. However, ISM's Manufacturing Index also missed the economists' consensus forecast, while construction spending was down from the prior month's result. In other words, the movement of the market and its tie to economic data is suspect. If stocks were down today, we suggest the same information would have been used to describe why. In fact, stocks started rising well ahead of the 10:00 AM data releases. The real reason for the day's stock market activity is a little less obvious, and we suggest perhaps completely overlooked.

While terrorism struck in Athens at the hands of hooligans born of a struggling citizenry; and after al-Qaeda gremlins sought to inspire chaos and religious conflict in Alexandria, Egypt on New Year's Eve; and despite the mitigated subway bombing in Rome, the US markets are today celebrating with a sigh of relief. Within the common subconscious of our community, we suggest there is a shared feeling that eventually something big and bad will happen somewhere important to us. Thus, we believe today's rally is at least possibly due to the fact that the big bang did not happen this year. Investors might even be contemplating that perhaps a safer world might be possible and that world peace can exist, but I doubt it. For now though, they are at least glad the American damage was limited to thus far unexplained events in Arkansas, where a few thousand birds and a hundred thousand fish mysteriously died suddenly.

New Year's Eve passed without a catastrophe, the ball fell purposefully in Times Square, and not a crystal was shattered. The Mummer's Parade in Philadelphia brought only the explosions of string band play and the fray of children. The rose parade was cliche', colored with flowers.

A bomb exploded killing many, but it was dropped by a robot on a foreign land far away, against the enemies of the state. In other words, whew! Nothing happened here. So, on Monday morning, the investors who had perhaps taken note of The Greek's suggestion to put cash aside and to hedge against the risk of terrorism, got it back to work again.

This implies that there is good enough reason to expect the rally to be short-lived, lasting only as long as it takes the parked capital to flow into securities. That does not mean stocks will not end higher on the year, but we suggest it means you cannot contemplate the future based on the day's action.



Article should interest investors in Caterpillar (NYSE: CAT), Whirlpool (NYSE: WHR), Ford (NYSE: F), Honda (NYSE: HMC), Toyota (NYSE: TM), Boeing (NYSE: BA), Apple (Nasdaq: AAPL), Microsoft (Nasdaq: MSFT), Dell (Nasdaq: DELL), Cisco Systems (Nasdaq: CSCO), Taiwan Semi (NYSE: TSM), Intel (Nasdaq: INTC), Rio Tinto (NYSE: RTP), BHP Billiton (NYSE: BHP), Vale (Nasdaq: VALE), Lockheed Martin (NYSE: LMT), Rockwell Collins (NYSE: COL), Northrop Grumman (NYSE: NOC), United States Steel (NYSE: X), Symantec (Nasdaq: SYMC), Sprint (NYSE: S), International Paper (NYSE: IP), Citrix Systems (Nasdaq: CTXS), Eastman Kodak (NYSE: EK), General Electric (NYSE: GE), Lennox (NYSE: LII), Spectrum Brands (NYSE: SPB), Helen of Troy (Nasdaq: HELE), National Presto (NYSE: NPK), iRobot (Nasdaq: IRBT), Xerox (NYSE: XRX), Pitney Bowes (NYSE: PBI), VeriFone (NYSE: PAY), Diebold (NYSE: DBD), Coinstar (Nasdaq: CSTR), HNI (NYSE: HNI), Herman Miller (Nasdaq: MLHR), Steelcase (NYSE: SCS), Knoll (NYSE: KNL), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur Pedic (NYSE: TPX), Acuity Brands (NYSE: AYI), Ethan Allen (NYSE: ETH), SORL Auto Parts (Nasdaq: SORL), United Technologies (NYSE: UTX), 3M (NYSE: MMM), Danaher (NYSE: DHR), PPG Industries (NYSE: PPG), ORIX (NYSE: IX), Cooper (NYSE: CBE), Textron (NYSE: TXT), Crane (NYSE: CR), Honeywell (NYSE: HON), General Dynamics (NYSE: GD), Goodrich (NYSE: GR), L-3 Communications (NYSE: LLL), EMBRAER (NYSE: ERJ), FLIR (Nasdaq: FLIR), Transdigm (NYSE: TDG), BE Aerospace (Nasdaq: BEAV), CAE (NYSE: CAE), Alliant Tech Systems (NYSE: ATK), Triumph (NYSE: TGI).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Market Movers - China Rates, Oil, AIG, TSLA, CALM, HRB, JTX

Monday's Markets

The day after a blizzard walloped the Northeastern U.S., stock traders somehow managed to borough their way through to Wall Street. With a dearth of economic data, news from China, the BOJ and American corporates mostly moved the market.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative tickers: NYSE: AIG, Nasdaq: CALM, NYSE: M, NYSE: WMT, NYSE: TGT, NYSE: JWN, NYSE: LTD, NYSE: HBC, NYSE: HRB, NYSE: JTX, Nasdaq: AMAP, Nasdaq: SFUN, Nasdaq: DARA, Nasdaq: RPRX, NYSE: GU, AMEX: AVL, NYSE: CBC-PB, Nasdaq: BPAX, Nasdaq: VRML, Nasdaq: PRVT, Nasdaq: BASI, AMEX: TOF, Nasdaq: VLNC, AMEX: ELC, NYSE: MHH, AMEX: REE, Nasdaq: VSCP, Nasdaq: LACO, Nasdaq: WLBC, Nasdaq: SPCHB, Nasdaq: STSA, Nasdaq: JSDA, Nasdaq: ADLR, AMEX: SHZ, Nasdaq: PSDV, Nasdaq: CAEID, Nasdaq: TSLA, Nasdaq: XOMA, Nasdaq: CART, Nasdaq: ARCW, Nasdaq: FFBH, Nasdaq: MBTF, Nasdaq: ACAD, NYSE: LAS, Nasdaq: TNGN, Nasdaq: SBAY, Nasdaq: APRI, Nasdaq: KGJI, Nasdaq: FXEN, Nasdaq: KONE, Nasdaq: ALIM, Nasdaq: DRYS.

Market Movers – China Rates, Oil, AIG, TSLA, CALM, HRB, JTX

Markets remained closed for Christmas in Australia, Canada, the U.K. and Hong Kong, but even with the stymieing snowfall, the NYSE (NYSE: NYX) opened just fine below a buried Wall Street. The big market moving news originated from China today, where the government again raised its benchmark interest rate for the second time in a little more than two months. The announcement came on December 25th, setting the benchmark 1-year lending rate higher by 25 basis points, to 5.81%, and the deposit rate raised by the same amount, to 2.75%. China is dealing with its highest inflation in two years time.

The Bank of Japan published the minutes of its October and November meetings Monday. The BOJ minutes show some members' discontent with the US Fed's quantitative easing. The Bank of Israel kept its key rate steady at 2.0%, meeting the markets' expectation. Annual inflation in Israel in November was marked at 2.3%, falling within the Bank's target range of 1-3%. The government says housing activity slowed at the most recent check, easing some of the pressure on the bank to act.

Commodities Markets

Oil prices garnered some news Monday, rising to a fresh two-year high. Crude prices benefited from rumors that producing nations saw no need for any production boost in the near-term. However, prices fell from their high at $92, toward $91, on concern tied to the Chinese actions to curb inflation. Meanwhile, US and UK representatives expressed disdain with Russia, as Mikhail Khodorkovsky and his business partner Platon Lebedev were found guilty of theft and money laundering by a court in Moscow.

Gold shrugged off the Chinese bank action, with futures for February delivery rising to $1382.90, off some from the December 7 high of $1432.50.

Retail Snowed Out?

From boom to bust, a recently excited investor base has now shifted to concern. We caught a retail sector guru on CNBC calling the loss of the day after Christmas selling opportunity permanent to retailers. Retail stocks from Macy's (NYSE: M) to The Limited (NYSE: LTD), Target (NYSE: TGT) and Wal-Mart (NYSE: WMT) showed only fractional variance today, though Nordstrom (NYSE: JWN) was off 1.6%. Many retailers will likely offer after-after-Christmas deals in order to make up the miss, in my view. Retail industry creativity is infinite.

Corporate Drivers

The corporate wire was headed by news that AIG (NYSE: AIG) had secured $4.3 billion in credit facilities. The capital raising effort will help the insurance giant free itself from government grips, and the stock rose 11% on the news to a two-year high. This marks the first time AIG has been able to access credit markets since 2008. 36 banks came together to replace the Fed's rescue funding. The stock has doubled year-to-date, but after taking into account its reverse split, AIG still has far to come to return to pre-crisis levels.

Cal-Maine (Nasdaq: CALM) reported earnings today of $0.63, but missed the analysts' consensus peg at $0.72. CALM shares were anything but today, falling 3.6%. The nation's major egg producer exceeded expectations on the revenue line, but its profit margins slipped on higher feed costs. At first glance, I would not be a buyer on today's weakness, as I see agricultural prices only coming under more pressure over the long-term trend-line. Without the proper hedges against this, perhaps CALM is vulnerable to more misses.

Tesla Motors (Nasdaq: TSLA) shares fell 15%, as about 80% of the company's stock became tradable for the first time on the expiration of the IPO lock-up period. The electric carmaker is under pressure to get its products to the market, and IPO buyers clearly felt the heat to unload shares.

HSBC (NYSE: HBC) was told by bank regulators it can no longer continue a deal with H&R Block (NYSE: HRB), through which the two offered short-term loans to HRB's customers anticipating tax refunds. HBC was off a half point, while HRB dropped 7% on the loss of the important business draw. Jackson-Hewitt Tax Services (NYSE: JTX) is one beneficiary, with its shares up 30% today.

AmBev is splitting its shares 5-for-1 after the close of trading. IPO lockup restrictions expire on AutoNavi Holdings (Nasdaq: AMAP). The EPS schedule includes KV Pharmaceutical (NYSE: KV-A, NYSE: KV-B). SouFun (Nasdaq: SFUN) has a conference call scheduled.

Market movers on the upside included DARA Biosciences (Nasdaq: DARA), Repros Therapeutics (Nasdaq: RPRX), Gushan Environmental Energy (NYSE: GU), Avalon Rare Metals (AMEX: AVL), Capitol Bancorp Ltd. Trust Pfd. (NYSE: CBC-PB), Biosante Pharmaceuticals (Nasdaq: BPAX), Vermillion (Nasdaq: VRML), Private Media Group (Nasdaq: PRVT), Bioanalytical Systems (Nasdaq: BASI), Tofutti Brands (AMEX: TOF), Valence Technology (Nasdaq: VLNC), Eastern Light Capital (AMEX: ELC), Mastech (NYSE: MHH), Rare Element Resources (AMEX: REE), VirtualScopics (Nasdaq: VSCP), Lakes Entertainment (Nasdaq: LACO), Western Liberty Bancorp (Nasdaq: WLBC), Sport Chalet (Nasdaq: SPCHB), Sterling Financial (Nasdaq: STSA), Jones Soda (Nasdaq: JSDA), Adolor (Nasdaq: ADLR) and China Shen Zhou Mining and Resources (AMEX: SHZ). On the decline: pSividia (Nasdaq: PSDV), China Architectural Engineering (Nasdaq: CAEID), Tesla Motors (Nasdaq: TSLA), XOMA (Nasdaq: XOMA), Carolina Trust Bank (Nasdaq: CART), Arc Wireless Solutions (Nasdaq: ARCW), First Federal Bancshares of Ark (Nasdaq: FFBH), MBT Financial (Nasdaq: MBTF), Acadia Pharmaceuticals (Nasdaq: ACAD), Lentuo International (NYSE: LAS), Tengion (Nasdaq: TNGN), Subaye (Nasdaq: SBAY), Apricus Biosciences (Nasdaq: APRI), Kingold Jewelry (Nasdaq: KGJI), FX Energy (Nasdaq: FXEN), Kingtone Wireless Info (Nasdaq: KONE), Alimera Sciences (Nasdaq: ALIM), Dryships (Nasdaq: DRYS).



Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

News Summary 11-24-09

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(Tickers: Nasdaq: AHCI, AIPC, AMWD, ASYS, AVNR, BCSI, CEDU, CWTR, CBRL, DAKT, DLIA, DLTR, FRED, GORX, QADI, TIVO, NYSE: AEO, BMO, BKS, BGP, FRE, FNM, STT, HPQ, BWS, DSW, EV, GCO, GA, HNZ, HI, HRL, NTZ, JCG, MDT, NZ, SIG, WMG, WBD, WH, DIA, SPY, QQQQ, NYX, DOG, SDS, QLD)

Today's news summary highlights several important economic datapoints. The revision of third quarter GDP carried significant weight this morning, but despite the deceleration of growth, GDP was reported in line with expectations. This news summary also includes analytical color on Home Prices, Consumer Confidence, Weekly Same-Store Sales, Investor Sentiment and Hewlett-Packard's results.

News Summary 11-24-09

GDP Revision

Third quarter GDP faced its first revision today, and the result was a reduction from 3.5% growth to 2.8%. That's not the best news for an economy that has recently raised concerns again, however, the result was right in line with the economists' consensus view. Still, the market drifted lower through midday on GDP and other data detailed below. Look for our followup article on GDP that is sure to help your understanding of the report.

Consumer Confidence

Very little change ensued today in the Conference Board's Consumer Confidence Index. No change, however, is no longer good news, especially after the index had fallen in the prior month's checkup.

The Confidence Index improved slightly to 49.5 in November, up from 48.7 in October. The October reading was down sharply though from August's stronger take on consumers, which read 54.5. The Expectations Index, at heightened importance now due to consumers' poor view of the current situation, improved only slightly to 68.5, from 67.0 in October.

Investor Confidence

State Street (NYSE: STT) reports monthly on Global Investor Confidence, and bases its index on held risk within institutional portfolios. Investor Confidence dropped for the third month in a row, and is now well off of the summer peak of 122.8, sitting currently at 100.8. The 100 point mark represents neutrality on the part of institutional investor fund flows toward/away from risky assets, so we are now at the threshold of trouble.

Housing Prices

The S&P Case Shiller Home Price Index showed home price improvement in both its 10-City and 20-City Composite Indexes. However, the gains were not as substantial as in recent months, or rather the pace of gain is decelerating significantly. It seems home prices have also been buoyed by the First-Time Homebuyer Tax Credit. Case Shiller's 20-City Composite improved for the fifth straight month, but the pace of improvement was down to 0.33% in September, from 1.21% in August.

The FHFA Home Price Index was also published today. FHFA's take on September also produced no change from August prices. FHFA's data is limited by the ceiling amount for conforming loans purchased by GSEs: Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE).

Same-Store Sales

The ICSC's regular report on weekly same-store sales showed no change on a week-to-week basis and a strong 3.3% gain over the easy comp from a year ago. We told you about this trend in our copy, "This Week."

FOMC Meeting Minutes

The Dow rose after the Fed published its November FOMC meeting minutes, but still closed the day lower than it opened it. We did not get a chance to review the minutes, and so offer a link to the data here for you to peruse.

Corporate News Drivers

Hewlett-Packard (NYSE: HPQ) reported results last evening, and the shares traded 1.6% lower Tuesday as a result. HP offered preliminary results ahead of this report though, and so its nice expectations beating was less flavorful given the time passage. The company exceeded analysts' expectations on both the revenue and EPS lines, but revenues declined and so gains came on margin improvement (on cost cuts). In its PC business, however, prices are eroding as competition is getting to be cutthroat for slim pickings among poor consumers. Still, demand for HP's goods is coming from China and American consumers, as businesses continue to exhibit cautious spending traits. The company's acquisition of EDS has also helped smooth out a traditionally cyclical revenue stream, allowing HPQ to post growth even now.

Tuesday's EPS reports included Allied Healthcare (Nasdaq: AHCI), American Eagle Outfitters (NYSE: AEO), American Italian Pasta (Nasdaq: AIPC), American Woodmark (Nasdaq: AMWD), Amtech Systems (Nasdaq: ASYS), Avanir Pharmaceuticals (Nasdaq: AVNR), Bank of Montreal (NYSE: BMO), Barnes & Noble (NYSE: BKS), Blue Coat Systems (Nasdaq: BCSI), Borders Group (NYSE: BGP), Brown Shoe (NYSE: BWS), ChinaEdu (Nasdaq: CEDU), Coldwater Creek (Nasdaq: CWTR), Cracker Barrel Old Country Store (Nasdaq: CBRL), Daktronics (Nasdaq: DAKT), dELiA*s (Nasdaq: DLIA), Dollar Tree Stores (Nasdaq: DLTR), DSW (NYSE: DSW), Eaton Vance (NYSE: EV), Fred's (Nasdaq: FRED), Genesco (NYSE: GCO), GeoPharma (Nasdaq: GORX), Giant Interactive Group (NYSE: GA), H.J. Heinz (NYSE: HNZ), Hillenbrand (NYSE: HI), Hormel Foods (NYSE: HRL), Industrie Natuzzi (NYSE: NTZ), J. Crew Group (NYSE: JCG), Medtronic (NYSE: MDT), Netezza (NYSE: NZ), QAD (Nasdaq: QADI), Signet Jewelers (NYSE: SIG), TIVO Inc. (Nasdaq: TIVO), Warner Music Group (NYSE: WMG), Wimm-Bill-Dann Foods (NYSE: WBD) and WSP Holdings (NYSE: WH). That's all for today's news summary...


Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Stock Market Summary Video - Jan-30-09

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We offer a stock market summary on a daily basis via either video or word format. Visit our site when you've missed the day's news due to travel or other business. You should see a video player here, but if you do not see it from your vantage point, simply click the image below:


Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Article interests: NYSE: XOM, NYSE: CVX, NYSE: HON, NYSE: DNA, NYSE: HMC, Nasdaq: AMZN, NYSE: PG, AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK, NYSE: SDS, NYSE: QLD)

Market Briefing - Jan-29-09

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You should see a video player displayed here providing the day's business news summary, which is produced by Bloomberg this time. If you do not see the player, simply click on the image below and you will be taken to our blog site.


Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK, NYSE: QLD, NYSE: SDS)

Market Wrap Up - Jan-28-09

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Today's market wrap up is produced by the Associated Press. You should see a video player here, but if you do not, simply click on the image below.


Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK, NYSE: QLD, NYSE: SDS)

Nightly Business News

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Tonight's nightly business news summary is available here, but if you do not see our video player from your vantage point, you will need to advance to our blog page by clicking upon this image:


Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK, NYSE: SDS, NYSE: QLD)

Today's Business Summary - The New Sexy

By Markos N. Kaminis - Economy & Markets:

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.

This article is not as boring as the title makes it seem, so read on! Business news is anything but boring these days. In fact, it's the new sexy! Today's market-moving business included some more depressing data out of the U.K. This was a rough week for the Brits, and we're guessing the pubs are full tonight. The economic scene offered no reports, but plenty of D.C. happenings, including Tim Geithner bad mouthing our loan shark, China. President Obama spoke to the GOP today about fiscal stimulus, and while he offered an open ear, he made "no promises." The corporate front was troubling, but Google showed there's still money to be made, or at least there was anyhow, before they made it all.

(Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK, NYSE: QLD, NYSE: SDS)

Overseas Markets

Overseas markets traded tumultuously today, as U.K. economic contraction in Q4 was the worst seen since 1980. GDP contracted by 1.5% in the fourth quarter, after a 0.6% drift in Q3. Applying the popular recession measuring stick of two consecutive contracting quarters, this marked the first recession in the U.K. since 1991. That news compounded upon yesterday's revelation that China's growth slipped to 6.8% in Q4, taking its full year rate to 9.0%. Growth fell short of what economists had foreseen, and raised panic levels in Asia.

Meanwhile, unimaginable speculation about pending bank nationalization across the globe is raising the level of investor concern the world over. Global corporate news releases have only offered more reason for worry. For instance, China's largest car maker declared today its 2008 profit would be more than halved due to slowing sales in China and South Korea. Also, a UBS analyst noted expectations for a 10% dividend decline across European firms (in 2008) and another 3% this year. Despite the heavy dose of reality, European markets flattened out by the close of trading.

Asia:

1. MSCI Asia APEX 50: -1.4%


2. Japan NIKKEI 225: -3.8%


3. Hong Kong Hang Seng: -0.6%


4. China CSI 300: -0.6%


5. India BSE SENSEX 30: -1.6%

Europe:

1. DJ Euro STOXX 50: -0.6%


2. UK FTSE 100: +0.01%


3. France CAC 40: -0.7%


4. Germany DAX: -1.0%

(Prices as of hour of publishing, which may not be the close)

Economic Events

There were no economic reports on today's schedule, but President Obama met with GOP lawmakers in order to win the opposing party's favor for his stimulus package. He is, of course, hearing suggestions and likely making concessions in order to do so. Republicans are concerned that the President's plan is too forward looking, and will not get people to work quickly enough. The GOP is pushing for more of the same tax refunds we saw last year.

Tax cuts are welcomed, we have to agree, but we would direct them to the lowest tax brackets where they might make meaningful impact. I'm not sure that people who remain fully employed necessarily need a tax cut, where that money could be spent to create jobs and bring long-term gains for the nation. I would like to see greater assistance to those forced to work part-time now and barely making it, and those unemployed who are seeking work (you know, but not bums like me). We (America, and actually me too) need to find money, and make proper use of it.

I for one would like to see smart government spending, and cuts in areas where we are wasting funds. I agree that investment in our long-term energy independence is important, and believe it will put people to work over the long run as well.

Sorry to offend Republicans (I'm now an Independent), but Obama's plan really incorporates a form of trickle-down economics, since he seeks to create jobs by promoting industry. Was that right there, blasphemous of me to say? Will I ever be welcome at another GOP shindig? We need an alternative energy infrastructure in America, something I've been pushing for for over eight years now! Many concerns could be remedied this way: energy independence could be gained; global warming quelled; Middle East tensions perhaps somewhat eased.

Through experience, I've come to see too many struggling citizens of countries in peril too often blame America for anything and everything wrong in their individual lives because of our demand for oil. I suggest that argument can be proven false through energy independence. Let me say that again in case you missed it! Too frequently, I find the case made against America that everything we do is driven by our oil interests. I'm not so naive to say oil has not swayed some political decisions here or there, and that it even lies behind a few supposedly noble political causes. But, the view outside the United States is too often overwhelmingly biased toward this argument.

In case you think I missed it... it being the whole Timothy Geithner thing, where he pissed off our most important trading partner and our most critical lender, China... well I didn't. The topic is just too big to discuss here. It'll have to have it's own place on our little blogosphere... stay tuned

Corporate News Drivers

Depressing corporate news dominated market direction this week. However, one bright spot came from Internet search giant Google (Nasdaq: GOOG). The tech leader reported earnings last evening, and it was one of very few companies to actually beat estimates. As a result, GOOG shares jumped $18 or 5.9%. Sales jumped 18%, and both revenue and profits exceeded estimates when excluding charges. That 18% sales increase represented a not insignificant $870 million dollars more than the year ago period.

General Electric (NYSE: GE) shares sank 10.8% through late afternoon trading, despite meeting analysts views. That said, meeting estimates meant posting 44% lower net income than the prior year period. Investors were not only concerned about the present though, as there's growing fear that GE could lose its coveted AAA credit rating and find itself forced to cut its dividend eventually... as the global economy sags upon it.

A sign of the times? Even though it had warned investors a month ago, Schlumberger (NYSE: SLB) still posted results that disappointed today, though only by a penny. What troubled shareholders most was management's warning that customers were likely to reduce spending in 2009. The shares, however, followed the price of oil, which soared 6.6%. SLB followed suit and rose 10%. You need to know why oil traded up, considering the economy is finished and the world sunken. Well, it seems traders finally started thinking about what we warned you would be the stabilizing factor for oil eventually, draws from storage. OPEC cuts are anticipated to start working shortly, and limited supply means higher pricing, even when the supply is held captive by an unruly consortium. Love all my Arab brothers... send money (or potatoes) for nice words though.

Are people trading down, and if they are, how far down? For instance, would motorcycle enthusiasts hit by financial strife ride bicycles instead? Judging by Harley Davidson's (NYSE: HOG) news today, they just might! Noting a slowdown in motorcycle sales, Harley is closing plants and laying off 1,100 employees. The company's fourth quarter earnings fell 60%, and its shares shed 7% today as a result.

The Wall Street Journal reported that Pfizer (NYSE: PFE) is in talks to buy rival drug maker Wyeth (NYSE: WYE). Wyeth shares rocketed higher 12.6%, and even Pfizer's shares edged up on the news, something atypical of acquirers in merger deals... unless special "synergies" exist. Speaking of SYNERGY! Did you see 30 Rock last night? "Never bad mouth synergy!"


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Daily Business News - Jan-22-09

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.



On a daily basis, we provide a video or text summary of the day's business news and economic activity. You should see a video player before you, but if you do not, simply click on the ticket image below this text and you will be directed to our blog.

Today's market activity was greatly impacted by difficult corporate news from Microsoft (Nasdaq: MSFT), Intel (Nasdaq: INTC), Southwest Airlines (NYSE: LUV), Northrop Grumman (NYSE: NOC), eBay (Nasdaq: EBAY), Huntsman (NYSE: HUN) and several others. Most notably, Microsoft declared it would layoff 5K employees and refrain from providing EPS guidance. Needless to say, the outlook is suspect, and the present fell short of expectations as well. The day's economic news was sour also, as weekly jobless claims jumped and housing starts plummeted. The Dow fell 1.3%, while the Nasdaq dropped 2.8%.


Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, NYSE: QLD, NYSE: SDS, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK)

Stock News Wrap - Jan-13-09

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You should see a video player here, but if you do not see it from your vantage point, then simply advance to the original post at the blog: STOCK NEWS WRAP VIDEO. Be advised that we may not notify you of the market wrap article regularly, but it will be available on the site each evening just the same.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD and AMEX: SDK.

Daily Stock News - Jan-12-09

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If you do not see a video player from your vantage point, please simply click here to view today's video at our website: DAILY STOCK NEWS

Please see our disclosures at the Wall Street Greek website and author bio pages found there. Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD and AMEX: SDK

Business News Summary - Jan-9-09

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We have committed to providing a daily business news summary that you can count on finding here each weekday evening. If you do not see our video player from your vantage point, simply click here to view it on our site: BUSINESS NEWS SUMMARY VIDEO

Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK)

Stock Market Wrap Up - Jan-8-09

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Please see our disclosures at the Wall Street Greek website and author bio pages found there. (Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK)

Daily Stock Market Summary - Jan-7-09

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The opinions expressed in videos may not agree with the view of Wall Street Greek. Please see our disclosures at the Wall Street Greek website and author bio pages found there. Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK.

Daily Stock Market Wrap - Jan-6-09

Visit the front pages of Wall Street Greek and Market Moving News to see our current coverage of economic reports and financial markets.



If you do not see the video, please click here: DAILY STOCK MARKET WRAP.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD and AMEX: SDK.

Stock Market Wrap Up: Jan-5-09

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Starting today, you'll find a stock market wrap up video or article here daily. We've heard you, and are responding to fill your financial market needs. If you do not see the video from where you are, click here: STOCK MARKET WRAP UP.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. Article interests: AMEX: DIA, AMEX: SPY, Nasdaq: QQQQ, NYSE: NYX, AMEX: DOG, AMEX: SDS, AMEX: QLD, AMEX: XLF, AMEX: IWM, AMEX: TWM, AMEX: IWD, AMEX: SDK.