Dow was higher all day & ended with a gain of 32 (70 below its high), decliners slightly ahead of advancers & NAZ fell 11. Bank stocks were mixed, with the Financial Index down a fraction after yesterday's big gain.
The MLP index was up 2 to 368 & the REIT index fell a fraction in the 212s. Junk bond funds were mixed & Treasuries drifted lower. Oil rose above $100 after US consumer confidence climbed & Iranian protesters broke into & vandalized the British Embassy’s compound in Tehran. Gold continued trading flat, above $1700.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Bloomberg
The ECB failed to fully offset the extra liquidity created by its bond purchases for the first time in 7 months, a sign of mounting tensions among euro-area banks. 85 banks bid €194.2B ($259B) for 7-day term deposits, but it's goal was to drain €203.5B, the amount its bond purchases have created since the program began in May last year. The ECB last fell short of its intended total on Apr 26. Banks are hoarding cash as the debt crisis worsens, driving up gov borrowing costs & increasing the risk of sovereign defaults. The ECB’s balance sheet rose to a record €2.4T in the week thru Nov 25, €500B more than a year ago, as banks tapped it for funds rather than trading with one another. The ECB, which lends banks as much cash as they want at its benchmark interest rate also said that weekly lending rose to a 2-year high. This is another example of the high degree of uncertainty over European debts as the debt crisis worsens.
ECB Fails to Attract Sufficient Bids to Mop Up Liquidity From Buying Bonds
Corning is lowering its glass capacity to match lower demand. It expects demand for its Gorilla Glass to fall by 25% sequentially (Q4/Q3), down from its earlier prediction of a 15% decline. While the company had expected to regain lost market share in South Korea in Q4, this did not happen. It lowered prices because of a glass over-supply in the industry, thinking this would prompt the return of a large customer in that country. "However, following initial positive reactions, including higher shipments in October and early November, this customer recently informed us that they do not expect to honor the contract for the remainder of the quarter," said Tony Tripeny, senior VP & corp controller. GLW is the world's largest maker of liquid-crystal-display glass with more than 60% of the global market. Ultra-strong Gorilla Glass is used in handheld gadgets as well as tablets & high-end TV sets (such as SONY). The stock sank 1.59 (11%).
Corning slashes outlook in glass glut, shares dropat Reuters
Photo: Yahoo
On a lighter note, the questions being asked, is Facebook worth more than Dow stock Cisco (CSCO)? Facebook could launch an IPO in a few months that is expected to raise $10B & value the company at $100B. CSCO market cap is $97B. Although CSCO has not grown rapidly in recent years, with revenue of $43B & profits of $6½B (not to mention $42B in cash), that should make it worth much more than the social network. You make the call! CSCO fell 33¢ to $17.68.
Is Facebook Worth More Than Cisco? 24/7 Wall St
If yesterday's rally had meaning, it should been followed by strong day today. Not so. Encouraging consumer confidence data was offset by the bankruptcy of AA while the debt mess in Europe keeps getting worse. Europe’s effort to expand its bailout fund is falling short, forcing euro-area finance ministers to consider greater roles for the IMF & the ECB to insulate Spain & Italy from the debt crisis. But the IMF does not have an infinite supply of money. Where will additional funds come from? Dow is down 400 in Nov & barely down YTD.
Dow Jones Industrial Average
S&P 500 Financials Sector Index
| Value | 161.82 | |
| Change | -0.97 (-0.6%) |
The MLP index was up 2 to 368 & the REIT index fell a fraction in the 212s. Junk bond funds were mixed & Treasuries drifted lower. Oil rose above $100 after US consumer confidence climbed & Iranian protesters broke into & vandalized the British Embassy’s compound in Tehran. Gold continued trading flat, above $1700.
AMZ Alerian MLP Index
DJR Dow Jones Equity REIT Index
Click below for the latest market update:
Treasury yields:
U.S. 3-month | 0.010% | |
U.S. 2-year | 0.254% | |
U.S. 10-year | 1.996% |
| CLF12.NYM | ....Crude Oil Jan 12 | ....99.84 | ... 1.63 | (1.7%) |
The ECB failed to fully offset the extra liquidity created by its bond purchases for the first time in 7 months, a sign of mounting tensions among euro-area banks. 85 banks bid €194.2B ($259B) for 7-day term deposits, but it's goal was to drain €203.5B, the amount its bond purchases have created since the program began in May last year. The ECB last fell short of its intended total on Apr 26. Banks are hoarding cash as the debt crisis worsens, driving up gov borrowing costs & increasing the risk of sovereign defaults. The ECB’s balance sheet rose to a record €2.4T in the week thru Nov 25, €500B more than a year ago, as banks tapped it for funds rather than trading with one another. The ECB, which lends banks as much cash as they want at its benchmark interest rate also said that weekly lending rose to a 2-year high. This is another example of the high degree of uncertainty over European debts as the debt crisis worsens.
ECB Fails to Attract Sufficient Bids to Mop Up Liquidity From Buying Bonds
Corning is lowering its glass capacity to match lower demand. It expects demand for its Gorilla Glass to fall by 25% sequentially (Q4/Q3), down from its earlier prediction of a 15% decline. While the company had expected to regain lost market share in South Korea in Q4, this did not happen. It lowered prices because of a glass over-supply in the industry, thinking this would prompt the return of a large customer in that country. "However, following initial positive reactions, including higher shipments in October and early November, this customer recently informed us that they do not expect to honor the contract for the remainder of the quarter," said Tony Tripeny, senior VP & corp controller. GLW is the world's largest maker of liquid-crystal-display glass with more than 60% of the global market. Ultra-strong Gorilla Glass is used in handheld gadgets as well as tablets & high-end TV sets (such as SONY). The stock sank 1.59 (11%).
Corning slashes outlook in glass glut, shares dropat Reuters
GLW Corning Inc.
On a lighter note, the questions being asked, is Facebook worth more than Dow stock Cisco (CSCO)? Facebook could launch an IPO in a few months that is expected to raise $10B & value the company at $100B. CSCO market cap is $97B. Although CSCO has not grown rapidly in recent years, with revenue of $43B & profits of $6½B (not to mention $42B in cash), that should make it worth much more than the social network. You make the call! CSCO fell 33¢ to $17.68.
Is Facebook Worth More Than Cisco? 24/7 Wall St
CSCO Cisco Systems Inc.
If yesterday's rally had meaning, it should been followed by strong day today. Not so. Encouraging consumer confidence data was offset by the bankruptcy of AA while the debt mess in Europe keeps getting worse. Europe’s effort to expand its bailout fund is falling short, forcing euro-area finance ministers to consider greater roles for the IMF & the ECB to insulate Spain & Italy from the debt crisis. But the IMF does not have an infinite supply of money. Where will additional funds come from? Dow is down 400 in Nov & barely down YTD.
Dow Jones Industrial Average
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