There was absolutely nothing upon which to base trades upon today, other than the concept that on Friday the Dow fell to the low end of the recent range (i.e., 17,500-18,000).
Therefore, it was incumbent upon market participants - meaning the Fed and their agents, particularly, Citadel - to boost asset prices to a more reasonable level in terms of keeping the charade going.
If there was any news at all that would have affected equities, it was the Empire Manufacturing Index falling nineteen points from April to -9.0 for the May reading. It's obvious that business conditions in Andrew Cuomo's fairy-tale land of the $15 minimum wage are horrible. one only has to visit upstate New York communities such as Rochester, Syracuse or Buffalo to understand the depth of despair in the business community.
Nonetheless, Wall Street is disturbingly disconnected from the reality of Main Street America and even further removed from their upstate brethren.
Carry on.
Bad Joke of the Day: Recovery!
S&P 500: 2,066.66, +20.05 (0.98%)
Dow: 17,710.71, +175.39 (1.00%)
NASDAQ: 4,775.46, +57.78 (1.22%)
Crude Oil 47.86 +0.29% Gold 1,276.70 +0.20% EUR/USD 1.1316 -0.02% 10-Yr Bond 1.7530 +2.82% Corn 392.50 -0.38% Copper 2.09 +0.17% Silver 17.21 +0.33% Natural Gas 2.04 +0.44% Russell 2000 1,116.21 +1.25% VIX 14.68 -2.39% BATS 1000 20,677.17 0.00% GBP/USD 1.4419 +0.08% USD/JPY 109.05 -0.0046%
Showing posts with label Andrew Cuomo. Show all posts
Showing posts with label Andrew Cuomo. Show all posts
Monday, May 16, 2016
Friday, July 16, 2010
SMASHING! Stock Hammered as Banks, Google Disappoint
The first week of second quarter earnings season actually came to an abrupt end on Tuesday, when all the major indices topped out after a six day rally. Wednesday and Thursday were flat-lined, as nervous investors jockeyed in and out of equities. With options expiring on Friday, the stage was set for a near-panic sell-off, and it was a doozy.
When Bank of America (BAC) and Citigroup (C) followed JP Morgan Chase's lead with unsettling results prior to Friday's open, the trade was set and sellers pounded stocks in the opening minutes. Just before 10:00 am, the university of Michigan's Consumer Sentiment Index delivered another in a series of economic blows, as the gauge fell from 76.0 in June, to 66.5 for the current month. The rout was on, as the Dow soon dipped down 200 points from the previous close.
There was no relief for stockholders in a relentless grind lower which lasted through the end of the session.
For the week, all f the major indices ended with losses, as the Dow finished 100 points lower, the NASDAQ shed 17 points, the S&P 500 surrendered 13 points and the NYSE Composite dropped 99 points.
Dow 10,097.90, -261.41 (2.52%)
NASDAQ 2,179.05, -70.03 (3.11%)
S&P 500 1,064.88, -31.60 (2.88%)
NYSE Composite 6,709.51, -207.30 (3.00%)
As expected, internals told the same stark story. Decliners pounded advancers, 5321-1154, with losers beating winners by a 7:1 margin on the NASDAQ. New highs managed to stay ahead of new lows, 150-124, though that trend is weakening and about to roll over again. Volume was not spectacular, though it was far better then the previous three sessions.
NASDAQ Volume 2,183,108,750
NYSE Volume 6,016,648,500
Stock investors were not alone in their desperation. Commodities were also pummeled in concert with the CPI reading (0.2). Crude for August delivery fell another 61 cents, to $76.01. Gold continued its recent shaky form, losing $20.10, to $1,188.00. Silver followed that lead, dropping 57 cents, to $17.77.
Gold hit its lowest level since May, though it is still well above its 200-day moving average. Silver continues to flirt with its 200-day MA, touching it again today. Any further deterioration in precious metals prices might just spread the panic through the commodity space in a deflationary sell-off.
Bank of America was the Dow's worst performer, losing 1.41, to 13.98, a decline of 9%. Citigroup fell 26 cents, to 3.90, a 6.25% loss. Google, after announcing a slight miss on earnings per share Thursday after the close, was punished with a 7$ decline, off 34.41, to 459.61.
All of this in the middle of earnings season does not bode well for bulls. The next two weeks will be interesting, to say the least, and challenging to see where any support might appear.
When Bank of America (BAC) and Citigroup (C) followed JP Morgan Chase's lead with unsettling results prior to Friday's open, the trade was set and sellers pounded stocks in the opening minutes. Just before 10:00 am, the university of Michigan's Consumer Sentiment Index delivered another in a series of economic blows, as the gauge fell from 76.0 in June, to 66.5 for the current month. The rout was on, as the Dow soon dipped down 200 points from the previous close.
There was no relief for stockholders in a relentless grind lower which lasted through the end of the session.
For the week, all f the major indices ended with losses, as the Dow finished 100 points lower, the NASDAQ shed 17 points, the S&P 500 surrendered 13 points and the NYSE Composite dropped 99 points.
Dow 10,097.90, -261.41 (2.52%)
NASDAQ 2,179.05, -70.03 (3.11%)
S&P 500 1,064.88, -31.60 (2.88%)
NYSE Composite 6,709.51, -207.30 (3.00%)
As expected, internals told the same stark story. Decliners pounded advancers, 5321-1154, with losers beating winners by a 7:1 margin on the NASDAQ. New highs managed to stay ahead of new lows, 150-124, though that trend is weakening and about to roll over again. Volume was not spectacular, though it was far better then the previous three sessions.
NASDAQ Volume 2,183,108,750
NYSE Volume 6,016,648,500
Stock investors were not alone in their desperation. Commodities were also pummeled in concert with the CPI reading (0.2). Crude for August delivery fell another 61 cents, to $76.01. Gold continued its recent shaky form, losing $20.10, to $1,188.00. Silver followed that lead, dropping 57 cents, to $17.77.
Gold hit its lowest level since May, though it is still well above its 200-day moving average. Silver continues to flirt with its 200-day MA, touching it again today. Any further deterioration in precious metals prices might just spread the panic through the commodity space in a deflationary sell-off.
Bank of America was the Dow's worst performer, losing 1.41, to 13.98, a decline of 9%. Citigroup fell 26 cents, to 3.90, a 6.25% loss. Google, after announcing a slight miss on earnings per share Thursday after the close, was punished with a 7$ decline, off 34.41, to 459.61.
All of this in the middle of earnings season does not bode well for bulls. The next two weeks will be interesting, to say the least, and challenging to see where any support might appear.
Monday, March 16, 2009
Fear Factor: AIG, Cuomo, Obama Kill Rally
After jawboning the economy higher last week with announcements from Citigroup, Bank of America and JP Morgan CEOs that their respective banking enterprises were making money, Tim Geithner's appearance on the Charlie Rose show and Sunday's 60 Minutes interview with Fed Chair Ben Bernanke, the greed and avarice that is still alive and well on Wall Street finally put an end to the madness on Monday.
Amid reports that failed insurance black hole AIG had been using government bailout monies to make payments to foreign and American financial institutions - in the form of credit default swaps payouts and other payments - and also planned to pay out over $1.2 billion in bonuses, first the President, and later, NY Attorney General Andrew Cuomo issued stern statements that AIG must come clean and stop paying bonuses with taxpayer money.
Cuomo demanded a list of names of AIG bonus recipients. The AG threatened to issue subpoenas for the names if he was not in receipt of the list by the close of trading (4:00 pm).
President Obama ordered Treasury Secretary Timothy Geithner to use "every single legal avenue" available to block the bonuses.
While all of this was swirling through the news wires and trading desks, stocks (except for the NASDAQ, which was up only briefly) were well on their way to a 5th straight day of gains. The plan, or so it seemed, was to make outsize profits in call options on a wide variety of stocks and indices. With options expiring on Friday, today and Tuesday, appeared to be prime times to cash in on the recent rally.
Case in point on the options front was the trade in JP Morgan, which was up as high as 25.27 today (up 1.52), but finished with a 0.66 loss, at 23.09. Trading in the March 24 and 25 options was a wild ride. Ditto General Electric, which popped up over 10.00, but closed up just 0.04 at 9.66.
All of that changed shortly before 2:00 pm, when the Dow reached its high of the day at 7392, nearly a 750 point rise in less than five days. From there, it was straight down as Wall Street and savvy investors figured that the jig was up on AIG and the major banking scam that makes Bernie Madoff look like a rank amateur.
As I've said countless times on this blog, AIG is a black hole, with no money to pay off TRILLIONS OF DOLLARS WORTH OF CREDIT DEFAULT SWAPS COVERING NEAR-WORTHLESS SECURITIZED DEBT.
Wall Street's unending greed has finally ignited a public backlash to which the politicians are responding. This monumental struggle - between the bandits (Wall St.) and the benefactors (Washington) - is more than likely to get much worse before it gets better, culminating not just in subpoenas, but in trials, convictions and hopefully, jail time for many of the CEOs still running the defaulted banks.
Make no doubt about it, this is the beginning of the end. The final phase of the market meltdown begins today. There has not yet been a final capitulation, but it is sure to come, probably before the end of summer, if not sooner.
By the end of the session, stocks had given up all of their gains, except on the NYSE Composite, which finished marginally higher. As happens so often during bear market rallies, complacent bulls were mauled today by the most ferocious bears the market has ever experienced. Anyone who did not get out today could greet tomorrow's opening with a huge gap down at the open, completely shut out of profits. By Monday of next week - if not sooner - the Dow should almost certainly be trading below 7000 again.
One week of manufactured "happy news" cannot replace months of honestly bad reports. Mostly ignored were today's economic reports: The New York State Empire Manufacturing Index for March fell to its lowest level ever, at -38.2. Capacity utilization continued to decline, from 71.9% in January to 70.9% in February. Industrial production took another hit last month, falling 1.4%.
Dow 7,216.97, -7.01 (0.10%)
Nasdaq 1,404.02, -27.48 (1.92%)
S&P 500 753.89, -2.66 (0.35%)
NYSE Composite 4,728.91, +7.91 (0.17%)
Market internals finished in line with the turmoil. Advancing issues outpaced declining ones, by the slightest of margins, 3476-3073. New lows were again subdued in number, but held their edge over new highs, 101-14.
Volume was roughly the same as last week's levels, indicating that the rally may have more gas in the tank, or that the buying of stocks was replaced by selling late in the day.
NYSE Volume 1,898,380,000
Nasdaq Volume 2,159,946,000
Oil finished up just a nickel, at $46.30. The precious metals were both losers, with gold off $8.10, to $922.00 and silver down 33 cents, to $12.89.
Tomorrow morning should be fascinating, with February PPI announced prior to the open - at 8:30 am - along with February figures for New Home Sales and Building Permits.
Amid reports that failed insurance black hole AIG had been using government bailout monies to make payments to foreign and American financial institutions - in the form of credit default swaps payouts and other payments - and also planned to pay out over $1.2 billion in bonuses, first the President, and later, NY Attorney General Andrew Cuomo issued stern statements that AIG must come clean and stop paying bonuses with taxpayer money.
Cuomo demanded a list of names of AIG bonus recipients. The AG threatened to issue subpoenas for the names if he was not in receipt of the list by the close of trading (4:00 pm).
President Obama ordered Treasury Secretary Timothy Geithner to use "every single legal avenue" available to block the bonuses.
While all of this was swirling through the news wires and trading desks, stocks (except for the NASDAQ, which was up only briefly) were well on their way to a 5th straight day of gains. The plan, or so it seemed, was to make outsize profits in call options on a wide variety of stocks and indices. With options expiring on Friday, today and Tuesday, appeared to be prime times to cash in on the recent rally.
Case in point on the options front was the trade in JP Morgan, which was up as high as 25.27 today (up 1.52), but finished with a 0.66 loss, at 23.09. Trading in the March 24 and 25 options was a wild ride. Ditto General Electric, which popped up over 10.00, but closed up just 0.04 at 9.66.
All of that changed shortly before 2:00 pm, when the Dow reached its high of the day at 7392, nearly a 750 point rise in less than five days. From there, it was straight down as Wall Street and savvy investors figured that the jig was up on AIG and the major banking scam that makes Bernie Madoff look like a rank amateur.
As I've said countless times on this blog, AIG is a black hole, with no money to pay off TRILLIONS OF DOLLARS WORTH OF CREDIT DEFAULT SWAPS COVERING NEAR-WORTHLESS SECURITIZED DEBT.
Wall Street's unending greed has finally ignited a public backlash to which the politicians are responding. This monumental struggle - between the bandits (Wall St.) and the benefactors (Washington) - is more than likely to get much worse before it gets better, culminating not just in subpoenas, but in trials, convictions and hopefully, jail time for many of the CEOs still running the defaulted banks.
Make no doubt about it, this is the beginning of the end. The final phase of the market meltdown begins today. There has not yet been a final capitulation, but it is sure to come, probably before the end of summer, if not sooner.
By the end of the session, stocks had given up all of their gains, except on the NYSE Composite, which finished marginally higher. As happens so often during bear market rallies, complacent bulls were mauled today by the most ferocious bears the market has ever experienced. Anyone who did not get out today could greet tomorrow's opening with a huge gap down at the open, completely shut out of profits. By Monday of next week - if not sooner - the Dow should almost certainly be trading below 7000 again.
One week of manufactured "happy news" cannot replace months of honestly bad reports. Mostly ignored were today's economic reports: The New York State Empire Manufacturing Index for March fell to its lowest level ever, at -38.2. Capacity utilization continued to decline, from 71.9% in January to 70.9% in February. Industrial production took another hit last month, falling 1.4%.
Dow 7,216.97, -7.01 (0.10%)
Nasdaq 1,404.02, -27.48 (1.92%)
S&P 500 753.89, -2.66 (0.35%)
NYSE Composite 4,728.91, +7.91 (0.17%)
Market internals finished in line with the turmoil. Advancing issues outpaced declining ones, by the slightest of margins, 3476-3073. New lows were again subdued in number, but held their edge over new highs, 101-14.
Volume was roughly the same as last week's levels, indicating that the rally may have more gas in the tank, or that the buying of stocks was replaced by selling late in the day.
NYSE Volume 1,898,380,000
Nasdaq Volume 2,159,946,000
Oil finished up just a nickel, at $46.30. The precious metals were both losers, with gold off $8.10, to $922.00 and silver down 33 cents, to $12.89.
Tomorrow morning should be fascinating, with February PPI announced prior to the open - at 8:30 am - along with February figures for New Home Sales and Building Permits.
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