How about tax cuts for start ups and new equipment expenditures, but a tax on earnings with no loopholes…..
Comments »Monthly Archives: May 2011
Obama Urges Companies to “Step Up” Hiring
That will create jobs…
“President Obama urged businesses to “step up” and hire workers, pressing banks and other corporations to do more to help an economy that he said would take “several years” to recover fully.
In a town-hall style meeting conducted by CBS News on Wednesday, Obama said the weak housing market and high gasoline prices were the biggest “headwinds” dragging on the economy.
“We’ve got a lot more work to do to get businesses to invest and to hire,” he told the audience in remarks broadcast on Thursday.
“It’s going to take us several years for us to get back where we need to be.”
Comments »Flash: Brent-WTI Spread Passes $15
The spread between Brent and WTI crude is widening again, now more than $15 or 16%.
Comments »Upgrades and Downgrades This Morning
Upgrades
TJX – TJX initiated with a Buy at UBS
RIG – Transocean upgraded to Neutral from Underweight at JP Morgan
WDC – Western Digital initiated with a Buy at Auriga U.S.A
AEO – Jefferies chages their rating on select retailers
ATI – Allegheny Tech upgraded to Buy from Neutral at Goldman
PDS – Precision Drilling upgraded to Buy from Hold at TD Newcrest
SYMC – Symantec: Hearing tier 1 firm upgrade following earnings
FSLR – First Solar: Auriga believes FSLR has been positively notified by the DOE that three of its largest projects are moving through the final steps
BCS – Barclays PLC upgraded to Buy from Hold at Citigroup
DELL – Dell initiated with a Buy at Auriga U.S.A
STX – Seagate Tech initiated with a Buy at Auriga U.S.A; tgt $29
DMND – Diamond Foods initiated with a Buy at Deutsche Bank
FEIC – FEI target raised to $44 from $37 at Stifel Nicolaus
SINA – Sina target raised to $140 from $130 at Stifel Nicolaus
MCP – Molycorp: Hearing JPMorgan defending the name; sees weakness as buying opportunity
Downgrades
CSCO – Cisco Systems downgraded to Hold from Buy at Canaccord Genuity
IL – IntraLinks Holdings downgraded to Accumulate from Buy at Craig Hallum
NTAP – NetApp initiated with a Hold at Auriga U.S.A
EMC – EMC initiated with a Hold at Auriga U.S.A
HPQ – Hewlett-Packard initiated with a Hold at Auriga U.S.A; tgt $46
MOH – Molina Healthcare downgraded to Reduce at Citadel
Comments »Gapping Up and Down This Morning
Gapping Up
SEP +2%, DVOX +7.4%, VRSN +5.7%, PEIX +15.4%, TZOO +1.4%, IL +1.2%, AERL +2.8%, , TNK +4.6%
Gapping Down
NRF -8.5%, GOLD -2.4%, BP -2.2%, SVM -2%, BBL -1.7%, AUY -2.8%, RIO -2.6%, ABX -2.5%, CSIQ -1.5%, SSRI-1.4%, HL -1.1% MT -1.7%, C -1.7%, RDS.A -1.7%, EXR -1.6%, GLD -1.6%, SLV -6.9%, CLWR -4.9%, SLW -3.4%, BHP -3.3%, CSCO -3.3%, TOT -2.9%, ARMH -2.9%,
Comments »In Play and On The Wires
April Retail Sales Up 0.5%
“WASHINGTON (MarketWatch) – Sales at U.S. retailers increased 0.5% in April to a seasonally adjusted $389.4 billion, the Commerce Department estimated Thursday. This is the 10th straight month of sales gains. Ahead of the report, economists surveyed by MarketWatch expected total sales to rise 0.7% in April. Details of the April increase were mixed. On the positive side, retail sales were revised higher in March and February. But the gain in April was due in large part to higher gasoline prices. Sales excluding autos and gasoline rose 0.2% in April, which was the smallest gain since December. Excluding the 0.2% rise in motor vehicle sales, retail sales rose 0.6%. Economists had expected a 0.7% increase.”
Comments »PPI: Prior 0.7%, Market Expects 0.5%, Actual 0.8%
Initial Claims: Prior 474, Market Expects 423k, Actual 434k
SEC Probing State Street Regarding Forex Pricing
“(Reuters) – State Street Corp (STT.N), the world’s third largest institutional investor, said it was under investigation by the Securities and Exchange Commission (SEC) for its foreign exchange pricing methods for pension plans.
The SEC’s investigation comes a week after two top Massachusetts officials began reviewing foreign exchange trading operations involving State Street and rival Bank of New York Mellon (BK.N).”
Comments »IMF: Euro Debt Crisis Could Spread to Core
“(Reuters) – Despite bailouts for Greece, Ireland and Portugal, Europe’s debt crisis could still spread to core euro zone countries and the emerging economies of eastern Europe, the International Monetary Fund warned on Thursday.
The IMF said it stood ready to provide more aid to Greece if requested, though the country that triggered the sovereign debt crisis in 2009 still had plenty of untapped options for raising extra cash itself through privatizations.
Government sources in Athens meanwhile said international inspectors checking on Greece’s compliance with its EU/IMF rescue package had found problems and were pressing for deeper spending cuts to cover a revenue shortfall.”
Comments »Foreclosures Decline To Hit a 40 Month Low
“Foreclosure activity decreased in April for the seventh straight month, bringing total foreclosure activity to a 40-month low, according to a new report from RealtyTrac.
This is not to say that default notices, scheduled auctions and bank repossessions aren’t running well above the norms, with one in every 593 US households receiving a foreclosure filing in April. The numbers are actually quite deceptive.
“This slowdown continues to be largely the result of massive delays in processing foreclosures, rather than the result of a housing recovery that is lifting people out of foreclosure,” notes RealtyTrac CEO James Saccacio in a statement.”
Comments »U.S. Futures Fall on Global Outlook
“Stocks fell for a second day and commodities extended declines as investors scaled back bets on economic growth and China restrained bank lending. U.S. index futures dropped after Cisco Systems Inc. (CSCO)’s profit forecast trailed analyst estimates.
The MSCI World (MXWO) Index slid 1 percent to a three-week low at 7:25 a.m. in New York. Standard & Poor’s 500 Index futures lost 0.6 percent. The S&P GSCI index of 24 commodities fell 2 percent as oil sank 2.7 percent and copper retreated to a five-month low. The euro depreciated against the dollar and the yen, while Australia’s currency weakened versus all 16 of its major peers. The yield on the Greek 10-year bond jumped seven basis points.”
Comments »European Stocks Decline on Earnings and Asia Weakness
“European stocks slumped, following a decline in U.S. and Asian equities, as commodities extended yesterday’s rout and Cisco Systems Inc. forecast earnings that missed analysts’ estimates. U.S. index futures slid.
BHP Billiton Ltd. lost 2.3 percent after copper slumped to a five-month low and crude sank more than 5 percent in New York yesterday. Alcatel-Lucent SA declined 1.8 percent after Cisco, the largest maker of networking gear, abandoned a four-year-old forecast.
The benchmark Stoxx Europe 600 Index dropped 0.9 percent to 281.1 at 8:03 a.m. in London. The gauge yesterday rose for a second day after results from A.P. Moeller-Maersk A/S to Hermes International SCA topped estimates. Standard & Poor’s 500 Index futures slid 0.4 percent to 1,333.1.”
Comments »Asian Stocks Fall The Most Since March
“Asian stocks fell, with the key regional index set for its biggest slide since markets crashed in the wake of Japan’s record earthquake in March, as commodity prices tumbled amid concern that China will further tighten monetary policy.
BHP Billiton Ltd. (BHP), the world’s largest mining company, dropped 2.6 percent in Sydney after oil and metal prices sank yesterday in New York. Jiangxi Copper Co., China’s No. 1 producer of the metal, declined 2.2 percent in Hong Kong. Korea Zinc Co. slid 5.7 percent in Seoul, while Mitsubishi Corp., Japan’s biggest commodities trader, fell 2 percent. Olympus Corp., an optical-equipment maker, lost 5.6 percent in Tokyoafter reporting an 85 percent slump in profit.
The MSCI Asia Pacific Index declined 1.6 percent to 136.14 as of 7:44 p.m. in Tokyo after commodity prices tumbled yesterday as China reported faster-than-estimated inflation and as the U.S. Federal Reserve gets closer to ending a $600 billion asset-purchase program, known as quantitative easing, in June.”
Comments »Gold and Silver Fall on a Stronger Dollar
“Gold fell for a second day in London as a strengthening dollar cut demand and as some investors sold the metal to cover losses in other assets. Silver dropped to a two-month low.
The dollar traded at its highest level in more than three weeks against six other major currencies, after yesterday climbing 1 percent. Gold typically moves inversely to the greenback. All six main industrial metals on the London Metal Exchange and crude oil slipped, while the MSCI World Index of equities declined for a second day. China raised banks’ reserve requirements for the fifth time this year to cool inflation.
Precious metals are “under pressure from the rising U.S. dollar,” Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt, said in a report to clients. “Investors are taking profits with gold to compensate for losses with other assets.””
Comments »China’s Inflation is Spreading Beyond Food Items
“China’s inflation is spreading beyond food, signaling PremierWen Jiabao’s strategy of quarter-point interest-rate increases every two months has yet to contain consumer prices.
Clothing costs climbed 1.4 percent in April from a year earlier, the biggest gain since 1997, a statistics bureau report showed yesterday. Non-food inflation held at 2.7 percent, the fastest pace in at least six years, while overall consumer prices rose 5.3 percent.
Higher wages and commodity costs are adding to price pressures as the government restrains gains in the yuan that would cut the cost of imports. Deutsche Bank AG sees inflation peaking at as much as 6 percent in June, with policy makers raising borrowing costs at least once more as they aim to limit full-year price gains to 4 percent.”
Comments »The Euro Bounces Off Three Week Low
“The euro rose from a three-week low versus the dollar as optimism that growth in Europe is accelerating overshadowed concern that the region’s debt crisis will worsen.
The single currency strengthened against 13 of its 16 major counterparts before a report tomorrow that’s forecast to show Europe’s economy grew at a faster pace in the first quarter. Australia’s dollar weakened after a government report showed employers unexpectedly cut workers last month. The Norwegian krone advanced on speculation the central bank may raise its benchmark interest rate for the first time in a year.”
Comments »U.K. Manufacturing Rose Less Than Expected
“U.K. manufacturing rose less than economists forecast in March as production of electrical equipment and durable consumer goods declined.
Factory output climbed 0.2 percent from February, the Office for National Statistics said today in London. The median forecast of 24 economists in a Bloomberg News survey was for an increase of 0.3 percent. Overall industrial production rose 0.3 percent, less than the 0.8 percent forecast by economists.
In the first quarter, industrial output rose 0.2 percent, less than the 0.4 percent estimate in gross-domestic-product data published on April 27, the statistics office said. The revision will have a “minimal downward impact” of “less than” 0.05 percentage points on GDP data for that period.”
Comments »What the Rating Agencies and Osama Bin Laden Have in Common
The rating agencies benefitted from a dismissal of lawsuits to hold them liable as underwriters for MBS. Osama Bin Laden’s son will also see a dismissal of a lawsuit, most likely, but it will be to his chagrin.
Click Here for Rating Agency Story
Click Here for Bin Laden Story
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