Dow fell 72, decliners over advancers 4-1 & NAZ was up 2. Banks stocks are lower, but selling has been limited so far. In overnight trading & before the open, Dow had been off 200,.
The MLP index fell 5 to the 243s & the REIT index fell 2 to the 216s. Junk bond funds were mixed & Treasruies are firm with the yield on the 10 yar Treasury essentially at its record lows from last week. Oil rose for the first time in 3 days as the euro rebounded from a 6-month low, increasing the appeal of commodities as an alternate investment. Gold is sloshing around the 1800s, looking for a base to build on.
George Papandreou
Photo: Bloomberg
Union opposition to the Greek gov austerity program intensified as tax collectors went on strike, & power workers vowed to sabotage a new emergency property tax aimed at plugging a budget gap spotted by intl creditors. Tax & customs workers walked off the job for 2 days to protest cuts in their bonus pay while the power company union said it would "not allow the company to be used as a tax-collecting mechanism" for the property levy, which will be included on household electricity bills. The gov chose that system of payment because of inefficiencies within the tax authorities. The European Commission said Greece's budget deficit this year will be more than expected, likely reach 9.5%, up from the originally predicted 7.6%. In the first 8 months of the year, the country's budget deficit was €18.1B, already exceeding the annual target of €17.1B. The ministry attributed the bulk of the shortfall to the deeper than expected recession this year, the Greek economy is expected to contract a further 5.3%, but said that the public finances will get better in the next 4 months as new tax hikes & spending cuts come into effect. This is a sorry state of affairs & explains why Greek debts yield over 50%.
Papandreou Sets New Measures to Skirt Default
Photo: Yahoo
McGraw-Hill, a Dividend Aristocrat, will split into 2 public companies with one focused on education & the other centered on markets (featuring the Standard & Poor's unit). The decision, comes after a yearlong review of the company's business. Investors have pushed MHP to boost the stock price which has dropped 40% in 5 years. MHP will also accelerate share buybacks to $1B for 2011. McGraw-Hill Education will be the new company focused on education services & digital learning, while McGraw-Hill Markets will retain S&P & JD Power, a market research company. The markets business expects 2011 revenue of about $4B, with almost 40% coming from intl markets. The education segment is forecasting revenue of about $2.4B. The stock rose 69¢.
McGraw-Hill to Split Into Two Companies
Bank of America, a Dow stock & the biggest US lender, will likely lose that distinction as it's partly dismantled. Chief Executive Officer Brian Moynihan has reorganization plan, called Project New BAC, which will pare the workforce by tens of thousands & probably relinquish its lead in assets, jobs & mortgage servicing. Being the biggest doesn’t matter anymore. Project New BAC is designed to make the bank easier to manage, more focused -- and smaller, said Moynihan. The stock has a dreary chart, but is up 2 pennies today.
BofA to Cede Top U.S. Rank as Moynihan Trims
Greece is at the center of attention for the markets & it doesn't look pretty. Of course, domestic problems are not far away. Fixing the US deficit makes the problems in Greece look like chump change. Dow is below 11K & the 10.7K low from last month is haunting the markets. It would take just a downdraft to break thru with a next stop of 10K. Dow is down over 700 so far in Sep.
S&P 500 Financials Sector Index
| Value | 163.60 | |
| Change | -0.61 (-0.4%) |
The MLP index fell 5 to the 243s & the REIT index fell 2 to the 216s. Junk bond funds were mixed & Treasruies are firm with the yield on the 10 yar Treasury essentially at its record lows from last week. Oil rose for the first time in 3 days as the euro rebounded from a 6-month low, increasing the appeal of commodities as an alternate investment. Gold is sloshing around the 1800s, looking for a base to build on.
ALERIAN MLP Index (^AMZ)
Treasury yields:
U.S. 3-month | 0.005% | |
U.S. 2-year | 0.189% | |
U.S. 10-year | 1.917% |
| CLV11.NYM | ....Crude Oil Oct 11... | 87.69 | ...... 0.45 | (0.5%) |
| GCU11.CMX | ...Gold Sep 11 | .....1,834.40 | .... 22.00 | (1.2%) |
Click below for the latest market update:
Photo: Bloomberg
Union opposition to the Greek gov austerity program intensified as tax collectors went on strike, & power workers vowed to sabotage a new emergency property tax aimed at plugging a budget gap spotted by intl creditors. Tax & customs workers walked off the job for 2 days to protest cuts in their bonus pay while the power company union said it would "not allow the company to be used as a tax-collecting mechanism" for the property levy, which will be included on household electricity bills. The gov chose that system of payment because of inefficiencies within the tax authorities. The European Commission said Greece's budget deficit this year will be more than expected, likely reach 9.5%, up from the originally predicted 7.6%. In the first 8 months of the year, the country's budget deficit was €18.1B, already exceeding the annual target of €17.1B. The ministry attributed the bulk of the shortfall to the deeper than expected recession this year, the Greek economy is expected to contract a further 5.3%, but said that the public finances will get better in the next 4 months as new tax hikes & spending cuts come into effect. This is a sorry state of affairs & explains why Greek debts yield over 50%.
Papandreou Sets New Measures to Skirt Default
Photo: Yahoo
McGraw-Hill, a Dividend Aristocrat, will split into 2 public companies with one focused on education & the other centered on markets (featuring the Standard & Poor's unit). The decision, comes after a yearlong review of the company's business. Investors have pushed MHP to boost the stock price which has dropped 40% in 5 years. MHP will also accelerate share buybacks to $1B for 2011. McGraw-Hill Education will be the new company focused on education services & digital learning, while McGraw-Hill Markets will retain S&P & JD Power, a market research company. The markets business expects 2011 revenue of about $4B, with almost 40% coming from intl markets. The education segment is forecasting revenue of about $2.4B. The stock rose 69¢.
McGraw-Hill to Split Into Two Companies
McGraw-Hill Companies, Inc. (The) (MHP)
Bank of America, a Dow stock & the biggest US lender, will likely lose that distinction as it's partly dismantled. Chief Executive Officer Brian Moynihan has reorganization plan, called Project New BAC, which will pare the workforce by tens of thousands & probably relinquish its lead in assets, jobs & mortgage servicing. Being the biggest doesn’t matter anymore. Project New BAC is designed to make the bank easier to manage, more focused -- and smaller, said Moynihan. The stock has a dreary chart, but is up 2 pennies today.
BofA to Cede Top U.S. Rank as Moynihan Trims
Bank of America Corporation (BAC)
Greece is at the center of attention for the markets & it doesn't look pretty. Of course, domestic problems are not far away. Fixing the US deficit makes the problems in Greece look like chump change. Dow is below 11K & the 10.7K low from last month is haunting the markets. It would take just a downdraft to break thru with a next stop of 10K. Dow is down over 700 so far in Sep.
Dow Industrials (INDU)
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1 comment:
Euro zone has become very volatile due to the debt crisis..Germany and France who has come as savior for other Euro countries are themselves facing the heat..
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