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Showing posts with label Market. Show all posts
Showing posts with label Market. Show all posts
Stock futures showed little loss
"We're in a post-earnings season environment, and it would take a pretty major catalyst to move us significantly higher from here," said Art Hogan, managing director at Lazard Capital Markets in New York.
Dow Jones industrial average futures fell 30 points and Nasdaq 100 futures dipped 2 points.
The S&P's 50-day moving average, currently at 1,692.77, could serve as a support level in any market decline.
A number of analysts downgraded the stock.
Cognizant Tech (CTSH.O) rose 4.9 percent to $77 in premarket trading after reporting a 20 percent rise in second-quarter revenue, while Fossil Group Inc (FOSL.O) rose 9.2 percent to $117.31 after its results.
Archer Daniels Midland (ADM.N) reported a drop in profits as U.S. crop supplies tightened, the sending shares 1.4 percent lower to $37.33 in premarket trading.
Of the 391 companies in the S&P 500 that reported earnings for the second quarter through Monday, 67.8 percent have topped analysts' expectations, in line with the average beat over the past four quarters, data from Thomson Reuters showed. The firm cut its price target on the Dow component by $25 to $175.
Shares of IBM fell 1.4 percent to $192.80.
The U.S. trade deficit narrowed sharply in June to its lowest level in more than 3-1/2 years as imports reversed the prior month's spike, suggesting an upward revision to second-quarter growth.
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Sony experienced decline
Jonathan Krinsky, the chief technical market analyst at Miller Tabak, published a note Monday saying that the New York Stock Exchange composite volume on Monday was running 22% below Friday's pace, which had already been 17% below Thursday's pace. Futures for the Dow Jones Industrial Average were falling 13 points, or 9.13 points below fair value, to 15,541. Futures for the Nasdaq were up 0.25 points, or 1.14 points below fair value, to 3,136.25.
Sony (SNE_) was slumping 3.95% to $20.90 after the company's board unanimously rejected a proposal from U.S. hedge fund manager Daniel Loeb, CEO of Third Point, that the Japanese company sell part of its entertainment business. Sony, in a letter to Loeb, said continuing to own 100% of Sony Pictures and Sony Music is "fundamental" to the company's success.
Third Point owns about 6.5% of Sony was slipping 1.05% to $562.73 in premarket trading. Icahn's latest purchase makes him the second-largest shareholder of Dell shares behind founder and CEO Michael Dell, who owns about 14% of the company.
The company spun off its publishing segment into a separate publicly traded company on July 1. The publishing company has retained the name News Corp.
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S&P 500 Tops 1,700 for First Time Ever
In the meantime, with the risk of the Fed tapering its bond purchases put off, investors have at least a seven-week window of opportunity until the central bank's next meeting on September 17th and 18th.
"I don't think it's going to be the last time we say 'all time high' this year," says Jeff Kleintop, chief market strategist at LPL Financial in the attached video. Officially, the big change in the Fed's economic assessment was that it now says growth in the first half of the year was "modest", where previously it had said it was "moderate."
First, because it will be a quarterly meeting, there will be updated FOMC economic projections as well as a press conference. For now, the rally that started June 24th in the aftermath of the last Fed meeting is showing no signs of collapsing, and is quickly closing in on the 10% mark.
Viewer Pic
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Investing George Soros' In Herbalife
The Soros investment means that in continuing his massive bet against Herbalife’s stock, Ackman’s Pershing Square hedge fund is on the opposite side of arguably the two greatest traders in the history of Wall Street. The other legend Ackman is up against in his Herbalife trade is the only guy on Wall Street who is richer than Soros. Carl Icahn, whose net worth is $20 billion, invented the investment strategy that Ackman now practices, now known as activist investing. Icahn owns 16.5% of Herbalife and has two representatives on the company’s board.
According to CNBC, Soros’ position in Herbalife is large enough to be one of his top three positions. Soros is involved in the managing of his money but the chief investment officer at Soros Fund Management is Scott Bessent, who handles the day-to-day operations. The forces of Ackman claim that the man responsible for Soros’ Herbalife investment is Paul Sohn. Nevertheless, Ackman is shorting 20 million shares of Herbalife, a $1 billion bet, because he thinks the company is a pyramid scheme that will collapse once people realize the fraud and regulators shut it down. The optics of the Soros investment in Herbalife get even worse for Ackman because his short investment thesis includes a strong moral component. Ackman has said he has a “moral obligation” to fight Herbalife, claiming the company takes advantage of low-income people and minority groups, and will give his personal profits from the short trade to charity.
Ackman’s lawyers have reportedly asked the Securities & Exchange Commission to investigate how Soros’ position in Herbalife was leaked to CNBC’s Scott Wapner, the star reporter who orchestrated Ackman’s televised verbal brawl with nemesis Carl Icahn in January by getting Icahn to make a surprise call during Ackman’s interview with Wapner. Ackman’s surrogates are suggesting that the leaking of Soros’ position potentially constituted improper market manipulation designed to create a short squeeze. Herbalife’s stock is now up by 100% in 2013 and continued to rise in Thursday morning trading. That means that the Pershing Square hedge fund’s Herbalife position has suffered estimated paper losses of some $650 million in 2013, given that Ackman has said he shorted 20 million shares and told CNBC on Wednesday that he has not covered a share.
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Ex-Goldmanite 'Hebat Fab' Tourre
Amid a broader crackdown on the securities industries, the Securities and Exchange Commission secured one of their most high profile victories on Thursday, as a jury in New York found former Goldman Sachs trader Fabrice Tourre liable of civil-fraud. Tourre is one of the most visible faces of Wall Streethubris during the financial crisis, having been found to mislead investors in a mortgage-backed securities deal that netted billionaire John Paulson’s hedge fund $1 billion just as the housing bubble was bursting.
The jury’s decision puts the focus on Tourre’s defense team, bankrolled by Goldman Sachs, which days ago chose not to call any witnesses to the stand in an apparent show of confidence.
The case was centered on Abacus 2007 AC1, a mortgage-backed security (MBS) that Goldman helped to build and Tourre sold, and hits at the core of what major Wall Street banks were doing in the buildup to the financial crisis.
Goldman Sachs then brought in financial firm ACA to work with Paulson in selecting the mortgages that made up the MBS.
Tourre then turned around and offered the security to clients, using language the jury found to be purposefully misleading, masking Paulson’s intention to short the security, and in some cases masking his involvement in the deal. Andrew Ceresney, co-director of the SEC’s enforcement division, said: “we are gratified by the jury’s verdict finding Mr. Tourre liable for fraud. Goldman Sachs had settled the case with the SEC for half a billion dollars in 2010, while Tourre chose to fight the charges.
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Wall Street Markets
JPMorgan Chase (NYS:JPM - News), Bank of America (NYS:BAC- News) and Wells Fargo (NYS:WFC - News) were among the companies giving the greatest boost to the S&P 500. Shares of JPMorgan gained 1.6 percent to $56.61, Bank of America rose 2.3 percent to $14.94 and Wells Fargo added 1.7 percent to $44.24. The S&P 500 financial index was up 1.7 percent.
Data on weekly U.S. initial jobless claims and national manufacturing came in better than expected, while construction spending dropped 0.6 percent in June, below forecasts calling for a 0.4 percent rise.
The drop in initial claims, coupled with Wednesday's better-than-expected ADP employment report, bodes well for July payrolls data on Friday.
The Dow Jones industrial average was up 133.94 points, or 0.86 percent, at 15,633.48. The Standard & Poor's 500 Index was up 19.98 points, or 1.19 percent, at 1,705.71. Global central banks on Thursday also remained accommodative, with European Central Bank President Mario Draghi reiterating the ECB's rates will remain at their present level or lower for an "extended period.
Yelp Inc (YELP.N) surged 25.6 percent to $52.51 after the consumer reviews website posted a smaller-than-expected quarterly loss and forecast third-quarter revenue above analysts' expectations.
The company's shares jumped 13.5 percent to $175.65, after hitting an all-time high of $180.99 earlier in the session.
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