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synnexo
Veteran |
09-Nov-2007 23:58
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Folks, if u have the time do read this interesting write-up interview with Citigroup biggest single investor. http://money.cnn.com/2007/11/08/news/companies/citigroup_alwaleed.fortune/index.htm?postversion=2007110906 I like the following question asked: Q: Do you think Citi is undervalued now? Are you going to buy more of it? A: Look, frankly speaking, Citibank at this price is ridiculous. Citibank does not deserve that. Citibank deserves a lot better. What will be your answer? For me...YEEEESSSSSS !!!!!! 
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Pinnacle
Master |
09-Nov-2007 23:41
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Stocks battered by mortgage messDow falls over 150 points on news Wachovia will take a $1 billion hit, forecasts for slower growth in Europe.Stocks sold off early Friday, continuing steep losses for the week as Wachovia became the latest bank hit by fallout in the mortgage sector.
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reisspoh
Member |
09-Nov-2007 22:57
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Fannie Mae Profit Falls; Defaults Fuel Credit Losses (Update1)
By James Tyson Nov. 9 (Bloomberg) -- Fannie Mae, the biggest source of money for U.S. home loans, said profit in the first nine months of the year fell 57 percent as mortgage defaults fueled an increase in credit losses. The shares dropped. The company had been behind on its financial reporting because of an accounting overhaul. Net income for the first three quarters of 2007 dropped to $1.5 billion, or $1.17 a share, from $3.5 billion, or $3.16, a year earlier, the government-chartered company said in a Securities and Exchange Commission filing today. The filing, which brings the company up-to-date on its earnings reports, shows Fannie Mae hasn't been immune to the worst U.S. housing slump in 16 years. The company is grappling with the same loan delinquencies and foreclosures that led to losses at Citigroup Inc., Washington Mutual Inc. and Countrywide Financial Corp., and it was recently subpoenaed by New York Andrew Cuomo in an investigation into fraudulent home appraisals. ``Fannie Mae is becoming another poster child for the problem you see with Countrywide Financial, Washington Mutual and any of the firms with a good chunk of mortgage business,'' said Michael Mullaney, who manages $10 billion at Fiduciary Trust Co. in Boston. ``You just don't know anymore where you're going to get a negative surprise that comes out of the woodwork.'' The Washington-based company in August reported 2006 profit fell 36 percent on reduced interest income. Credit losses this year have risen to as much as 6 basis points from about 2 basis points, Chief Executive Officer Daniel Mudd said in a Sept. 27 interview. A basis point is 0.01 percentage point. ``I suspect we will see credit losses increase 200-, 300- or 400 percent,'' said Josh Rosner, managing director at New York- based research firm Graham Fisher & Co. ``It will be dramatic.'' Foreclosures Fannie Mae shares tumbled 10 percent two days ago because of the tightening credit market and an announcement by Cuomo that he expanded his probe of the mortgage industry to include the company. The shares fell $2.51 to $47.29 at 9:31 a.m. in New York Stock Exchange composite trading. Fannie Mae owns or guarantees about 20 percent of the nation's $11.5 trillion residential mortgage market. Congress created Fannie Mae to expand home ownership. The company, which increases mortgage financing by buying loans from lenders, profits by holding mortgages and mortgage bonds as investments and by charging a fee to guarantee and package loans as securities. It sees losses when defaults and foreclosures rise. Home foreclosures doubled in September from a year earlier as subprime borrowers struggled to make payments on adjustable- rate loans, according to RealtyTrac Inc. Foreclosures are plunging the housing industry deeper into recession by pushing more homes onto a market where sales and prices are dropping. There's a 10-month supply of unsold homes, the highest in at least eight years. As many as half of the 450,000 subprime borrowers whose mortgages will reset through December may lose their homes because they can't afford the higher payments and can't refinance into new loans, according to data compiled by UBS AG and Credit Suisse Group. Current Filer Cuomo said Nov. 7 that he subpoenaed Fannie Mae and Freddie Mac to determine whether home loans purchased by the companies were based on tainted property valuations stemming from ``widespread'' collusion between lenders and property appraisers. The restoration of current financial statements satisfies a prerequisite for the removal of limits on Fannie Mae's $723.2 billion mortgage portfolio and other regulatory constraints imposed after disclosures of the accounting errors in 2004. The company hadn't filed timely results since July of that year. ``Becoming a current SEC filer again eliminates the remaining arguments of'' Fannie Mae's regulator for insisting the company continue to curb growth and set aside 30 percent more capital than the usual minimum, David Hochstim, a Bear Stearns & Co. analyst, said in a Nov. 6 report to clients. Fannie Mae had been working to correct the flaws in its accounting and internal controls that led to a $6.3 billion overstatement of earnings. The errors prompted the ouster of Chief Executive Officer Franklin Raines, delayed financial reporting and resulted in a $400 million federal fine. |
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Pinnacle
Master |
09-Nov-2007 22:50
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US STOCKS-Wall St opens lower on bank losses, tech U.S. stocks dropped sharply at the market open on Friday as Wachovia (WB.N: Quote, Profile, Research) joined other major banks reporting huge credit losses and as worries about the outlook for tech company profits mounted. The Dow Jones industrial average (.DJI: Quote, Profile, Research) was down 88.28 points, or 0.67 percent, at 13,178.01. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) was down 14.36 points, or 0.97 percent, at 1,460.41. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) was down 47.25 points, or 1.75 percent, at 2,648.75. |
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Pinnacle
Master |
09-Nov-2007 20:46
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Stocks set to slide further Futures point to sharply lower open after Wachovia warns of further losses linked to mortgage debt.LONDON (CNNMoney.com) -- U.S. stocks looked set to slide at the open on Friday after Wachovia warned of further losses due to risky mortgage bets, escalating credit worries. At 7:01 a.m. ET, Nasdaq and S&P futures had turned sharply lower and were pointing to sizeable losses at the start for Wall Street. In a filing with the Securities and Exchange Commission, Wachovia (Charts, Fortune 500) said the complex debt instruments it had in its portfolio declined in value by an estimated $1.1 billion pre-tax in October. The bank had reported $1.3 billion in pre-tax losses in the third quarter tied to pools of debt backed by home loans The additional losses from Wachovia come after Citigroup (Charts, Fortune 500) said last week it expects to write down a further $8 billion to $11 billion in the fourth quarter due to credit- and mortgage-related problems. Adding to investor woes was a weak growth forecast from the European Union, which said growth in the area of 27 nations is expected to slow to 2.4 percent next year and in 2009, down from 2.9 percent this year. The EU attributed weaker growth to problems stemming from the subprime mess in the U.S and the rise in oil prices. The University of Michigan releases a report on November consumer sentiment at 10 a.m. ET. The reading will be monitored for signs of whether the credit crunch is hitting consumers. Elsewhere on the economic front, a report on October import and export prices is on tap before the market open, as is a reading on the September trade balance. Stocks in the news early Friday included Merck (Charts, Fortune 500), which has agreed to pay $4.85 billion to settle up to 27,000 claims involving its pain medication Vioxx, according to published reports. Disney (Charts, Fortune 500) reported earnings that beat expectations on sales that were roughly in line with analysts' estimates. Clearwire (Charts) and Sprint Nextel (Charts, Fortune 500) said they ended an earlier agreement they had to build a high-speed wireless network. Oil prices eased in electronic trading. Light, sweet crude for December delivery slipped 5 cents to $95.41 a barrel in Asia. The dollar fell to another record low versus the euro. Major markets in Asia finished lower on mounting credit fears. In Europe, stocks lost ground around and were slightly lower in midday trade. |
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Pinnacle
Master |
09-Nov-2007 20:35
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Futures drop further after Wachovia newsNEW YORK (Reuters) - Stock index futures slid further on Friday as Wachovia Corp (WB.N: Quote, Profile, Research), the fourth-largest U.S. bank, disclosed exposure to securities linked to subprime mortgages, heightening investor concern about the impact of the credit crisis. S&P 500 futures fell 12.5 points and were below fair value, a formula to evaluate pricing taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dropped 88 points, and Nasdaq 100 futures slid 13.5 points. |
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Pinnacle
Master |
09-Nov-2007 08:40
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US STOCKS-Market drops on Cisco's view; Qualcomm off late U.S. stocks fell for a second straight day on Thursday, led by declines in the Nasdaq after tech bellwether Cisco Systems Inc (CSCO.O: Quote, Profile, Research) signaled the credit crisis was hurting demand from key customers, including banks. A late-day rebound in beaten-down financial stocks, however, pulled the indexes well off their worst levels of the day. The rebound was attributed to traders buying stocks to cover their earlier bets against the financial sector, which has been trading at two-year lows. The Nasdaq was still left with its biggest two-day percentage drop in five years. Cisco's chief executive said late on Wednesday the largest maker of computer networking equipment had suffered a dramatic drop in orders from banks and retailers, triggering concerns about Cisco's growth prospects, which relies on business spending. For details, see [ID:nN08236573] Voicing similar worries about the outlook for the economy, Federal Reserve Chairman Ben Bernanke added to the sense of caution. He said the economy faced risks on both the growth and inflation fronts. "They got the stocks that were doing well, the big-cap tech, the ones that have been immune to the subprime story," said Stephen Massocca, co-chief executive, San Francisco-based investment bank Pacific Growth Equities, in reference to the impact of the Cisco CEO's comments. Until recently, investors had been optimistic that tech shares offered a safe haven amid the credit turmoil that has roiled shares of banks and brokerages. But, "when you have dramatic moves in the market, you're going to have a lot of day trading and that leads to volatility. A lot of people got short midday and had to cover at the close." The Dow Jones industrial average (.DJI: Quote, Profile, Research) fell 33.73 points, or 0.25 percent, to end at 13,266.29. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) was down just 0.85 of a point, or 0.06 percent, at 1,474.77. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) was down 52.76 points, or 1.92 percent, at 2,696.00. QUALCOMM OFF 7 PERCENT ON OUTLOOK After the closing bell, wireless technology developer Qualcomm Inc (QCOM.O: Quote, Profile, Research) gave a disappointing outlook for fiscal 2008 earnings and revenue. [ID:nN08264266] Its stock slid 7.4 percent to $36.80 in extended-hours trading. On the Nasdaq, Qualcomm closed at $39.76, down 3.5 percent. During the regular session, the Dow and S&P had been down 1 percent each and the Nasdaq was down 3 percent. The blue-chip Dow average at one point broke below its 200-day moving average, joining the S&P 500, which had a similar breakdown on Wednesday. The Dow and S&P still finished at their lowest since mid-September and have given back all of the ground gained since the first of the Federal Reserve's two interest-rate cuts this fall. Shares of Cisco fell 9.5 percent to $29.63 and were the catalyst for the slide by other tech shares, analysts said. The heaviest weight on the Nasdaq 100 (.NDX: Quote, Profile, Research) was Apple (AAPL.O: Quote, Profile, Research), down 5.8 percent at $175.46, followed by Cisco. The top-weighted decliner in the S&P 500 was Cisco. Shares of International Business Machines Corp (IBM.N: Quote, Profile, Research), the technology services company, were the biggest drag on the Dow. IBM shares were down 4.5 percent at $106.11 on the New York Stock Exchange. Computer maker Hewlett-Packard Co (HPQ.N: Quote, Profile, Research), another Dow component, fell 3.7 percent to $49.94. Gains in a handful of big technology companies, including Apple, had offset recent stock market losses, allowing the S&P to post a 1.5 percent gain last month and the Nasdaq to rise 5.8 percent. Among Thursday's top gainers in the financial sector were shares of Morgan Stanley (MS.N: Quote, Profile, Research), which ended up 4.9 percent at $53.68. The investment bank said late on Wednesday it has suffered a $3.7 billion loss stemming from subprime mortgage exposure, which it expects will reduce fourth-quarter earnings by about $2.5 billion. Some analysts had projected a larger write-down. But not all the financial stocks rebounded, with Citigroup being a prime example. Citigroup has fallen for eight straight sessions, its longest uninterrupted slide in more than six years and a slump that has chopped its value by 23 percent, or $48.5 billion. Citigroup ended Thursday's session down 1.5 percent at $32.90 on the NYSE. Trading was above average on the New York Stock Exchange, with about 2.19 billion shares changing hands, above last year's estimated daily average of 1.84 billion. On Nasdaq, about 3.46 billion shares traded, far ahead of last year's daily average of 2.02 billion. Declining stocks outnumbered advancing ones by a ratio of about 17 to 16 on the NYSE and by about 8 to 7 on Nasdaq. |
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Pinnacle
Master |
09-Nov-2007 08:30
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US stocks fell for a second straight day on Thursday, led by declines in the Nasdaq after tech bellwether Cisco Systems signalled the credit crisis was hurting demand from key customers, including banks. A late-day rebound in beaten-down financial stocks, however, pulled the indexes well off their worst levels of the day. The rebound was attributed to traders buying stocks to cover their earlier bets against the financial sector, which has been trading at two-year lows. The Dow Jones industrial average fell 33.73 points, or 0.25 per cent, to end at 13,266.29. The Standard & Poor's 500 Index was down just 0.85 of a point, or 0.06 per cent, at 1,474.77. The Nasdaq Composite Index was down 52.76 points, or 1.92 per cent, at 2,696.00. The European Central Bank held its key interest rate at 4.0 per cent on Thursday as the bank contends with conflicting pressures from a soaring euro and a jump in euro zone inflation. The Bank of England held interest rates at a six-year high of 5.75 per cent for the fourth month running on Thursday, but expectations of a cut soon are growing as stocks slide and house prices fall. |
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mirage
Veteran |
09-Nov-2007 08:03
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WASHINGTON (MarketWatch) -- The U.S. economy not only faces the risk of a sharp slowdown from the housing market's contraction but also of an inflationary surge from sharply higher crude-oil prices and the weaker dollar, Federal Reserve Chairman Ben Bernanke said Thursday.
In prepared testimony to the Joint Economic Committee of Congress, Bernanke painted a picture of an economy in a perilous position, even though it has shown remarkable resilience so far this year, with third-quarter gross domestic product rising at a solid 3.9% annual pace.
Bernanke said that he and his colleagues on the policy-setting Federal Open Market Committee expect the economy to slow "noticeably" from the third-quarter growth rate and remain sluggish in the first half of 2008. But Bernanke also suggested that the hawkish members of the Fed might have a point about inflation.
There were downside risks to the subdued growth forecast, and upside risks to the benign inflation outlook, Bernanke said.
The FOMC also believes that overall and core inflation will be "in a range consistent with price stability" in 2008, Bernanke said.
He noted that prices for crude oil and other commodities have risen sharply in recent weeks and that the dollar has weakened in foreign-exchange markets.
"These factors were likely to increase overall inflation in the short run and, should inflation expectations become unmoored, had the potential to boost inflation in the longer run as well," Bernanke said.
The run-up in crude prices since the FOMC meeting on Oct. 31 has "renewed upward pressure on inflation and may impose further restraint on economic activity," Bernanke said.
Bernanke bluntly said that headline inflation is going to rise in the short term.
Reading the tea leaves on rates
Sen. Charles Schumer, chairman of the economic panel, said he was concerned about a big downturn on the horizon.
"Quite frankly, I think we are at a moment of economic crisis stemming from four key areas: falling housing prices, lack of confidence in creditworthiness, the weak dollar and high oil prices," said Schumer, D-N.Y.
"Each of these problems alone would be enough of a threat to our economic well-being. But taken together, they are essentially the four horsemen of economic crisis."
The FOMC cut benchmark interest rates by a quarter of a percentage point on Oct. 31 and moved to a "neutral" stance by saying that the risks of a downturn and higher inflation were roughly in balance. See full story.
Analysts said this could be taken as a sign that the Fed wants to hold rates steady at least through the end of the year, but they conceded that developments could overtake such a scenario.
Allen Sinai, chief economist for Decision Economics in New York, said Bernanke's remarks underscore this desire to hold rates steady until at least the Jan. 30 FOMC meeting.
"We see nothing here to alter our view that after pausing at the next meeting on December 11, the FOMC will respond to a weakening economy with a 25bp rate cut in late January and another in the early spring," agreed Josh Shapiro, chief U.S. economist at MFR Inc.
But other economists said Bernanke was still being too rosy about the outlook.
"Until the Fed gets real and stops referring to the housing disaster as a mere "correction." they will be behind the curve. The data will force them to ease more, likely on Dec 11," said Ian Shepherdson, chief U.S. economist at High Frequency Economics.
Regarding the outlook for rates policy, Bernanke said only that the FOMC would continue to assess the economic data and financial market developments "and will act as needed to foster price stability and sustainable economic growth."
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CWQuah
Master |
09-Nov-2007 00:00
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Looks like for the week from 12 - 16 Nov, we may see recovery to the 13400 level if oil price starts dropping and US$ currency rebounds. But if these 2 conditions remain adverse, expect DJIA to test 13200 support, or even the 13100 or 13150 support. | |
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edcifer
Member |
08-Nov-2007 23:44
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Billionaire George Soros who is famous for causing the collapse of Bank of England warn that US might be on a verge of a serious correction.
"We have borrowed an awful lot of money and now the bill is coming to us," he said during a lecture at the New York University, also adding that the war on terror "has thrown America out of the rails."
Asked whether a recession was inevitable, Soros said: "I think we are definitely in for a slowdown that I think will be a bigger slowdown than (Fed Chairman Ben) Bernanke is seeing."
Soros said that, for now, China is the "absolute winner" in economic terms, and will continue to see its economy soaring during the next few years.
If China's economy is to expand and grow, it would be wise for investors to allocate some funds to invest in good quality China company.
I would highly recommend investors to sell away shares of companies that highly dependent of US for revenue.
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Pinnacle
Master |
08-Nov-2007 23:42
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Wall St. selloff continuesImproved results from Ford fail to sooth investors' credit market worriesStocks retreated at the start of Thursday's session as Wall Street wrestled with surprisingly strong results from automaker Ford and lingering credit market fears.
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ROI25per
Master |
08-Nov-2007 23:33
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http://www.marketwatch.com/tools/quotes/quotes.asp?symb=$INDU | |
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Pinnacle
Master |
08-Nov-2007 23:27
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Bernanke-U.S. economy resilient, strains persist Federal Reserve Chairman Ben Bernanke said on Thursday the U.S. economy has been resilient in the face of credit market strains but it faces risks on both the growth and inflation fronts. "Financial market volatility and strains have persisted," Bernanke said in testimony prepared for delivery to the congressional Joint Economic Committee. "In addition, further sharp increases in crude oil prices have put renewed upward pressure on inflation and may impose further restraint on economic activity." Bernanke said that when Fed policy-makers met on Oct. 30-31, they saw both downside risks to economic growth and "important upside risks" to inflation, citing oil and other commodity price increases and a drop in the dollar's value. "These factors were likely to increase overall inflation in the short run and, should inflation expectations become unmoored, had the potential to boost inflation in the longer run as well," he said. Policy-makers expect economic growth to slow "noticeably" in the fourth quarter of the year from the third quarter, the Fed chairman said. The housing market contraction seems likely to intensify, and household spending and business investment may decelerate as well, he said. Financial markets saw the testimony as suggesting a greater likelihood of further interest rates cuts. Prices for U.S. government debt rose and the dollar fell, while stock prices declined further in a sign investors were worried on growth. The U.S. central bank has lowered benchmark borrowing costs by three-quarters of a percentage point over the past two months in an effort to buffer the economy from a sharp housing downturn and related turmoil in credit markets. |
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ROI25per
Master |
08-Nov-2007 23:25
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dow super volatile today... | |
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Pinnacle
Master |
08-Nov-2007 23:24
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The truth always hurt. OUCH!! | |
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Pinnacle
Master |
08-Nov-2007 23:22
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US STOCKS-Market adds to losses after BernankeU.S. stocks extended losses on Thursday after Federal Reserve Chairman Ben Bernanke said the economy faced risks on both the growth and inflation fronts. The Dow Jones industrial average (.DJI: Quote, Profile, Research) was down 66.09 points, or 0.50 percent, at 13,233.93. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) was down 3.94 points, or 0.27 percent, at 1,471.68. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) was down 29.82 points, or 1.08 percent, at 2,718.94. |
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Pinnacle
Master |
08-Nov-2007 23:15
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US STOCKS-Market falls as tech drags, Bernanke eyed U.S. stocks fell on Thursday, weighed down by a sell-off in shares of technology companies such as Cisco Systems Inc (CSCO.O: Quote, Profile, Research) on concerns that the credit crisis may be starting to hurt tech spending. Caution ahead of Federal Reserve Chairman Ben Bernanke's testimony on the economy also kept investors on the defensive. The Dow Jones industrial average (.DJI: Quote, Profile, Research) was down 22.60 points, or 0.17 percent, at 13,277.42. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) was down 2.10 points, or 0.14 percent, at 1,473.52. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) was down 22.91 points, or 0.83 percent, at 2,725.85. |
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Pinnacle
Master |
08-Nov-2007 22:52
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US STOCKS-Blue chips up on Rio Tinto news; Nasdaq sags The S&P 500 and Dow rose at the open on Thursday as shares of natural resources companies gained after BHP Billiton's bid for rival miner Rio Tinto. The Nasdaq was flat, held down by shares of Cisco (CSCO.O: Quote, Profile, Research) after the network-equipment maker made negative comments about demand from some customers. The Dow Jones industrial average (.DJI: Quote, Profile, Research) was up 46.09 points, or 0.35 percent, at 13,346.11. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) was up 4.36 points, or 0.30 percent, at 1,479.98. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) was down 3.95 points, or 0.14 percent, at 2,744.81. |
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Pinnacle
Master |
08-Nov-2007 22:48
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Ford offers Wall Street some reliefAutomaker reports better-than-expected quarterly results, helping to offset dim outlook from Cisco, credit jitters.U.S. stock futures gained some ground early Thursday after better-than-expected earnings from Ford Motor helped offset concerns about the credit crunch and economic outlook.
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