Stocks pulled back in the PM. Dow ended barely in the red (just above 12K), advancers over decliners 3-2 & NAZ inched up a fraction (called that even). Bank stocks led the price swings. The Financial Index gained 2+ to 173, but was 3 below its AM highs.
AM gains for MLPs & REITs were trimmed, bringing the indices to around even on the day. Junk bond funds were mixed but Treasuries gained off AM lows amid concern about the resolve of European officials in their efforts to contain the region’s sovereign debt crisis. Oil fluctuated as it headed for its first gain in 3 weeks on concern that tension between Iran & the West will intensify, threatening its oil shipments. Gold has been marking time in the mid 1700s.
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Bloomberg
Zynga, the maker of games on Facebook, is seeking as much as $1B in the biggest IPO since Google (GOOG). The company wants to offer 100M shares for $8.50-$10, The high end of the range would value Zynga at $7B (more than many established companies with shares that have traded for decades). Zynga is selling all of the shares & expects to receive about $889M. It had originally planned a larger IPO, scaling back after internet companies including sank following their debuts. Zynga is selling about 14% of its stock, a larger portion than other companies have sold this year. In addition, Facebook may raise about $10B in an IPO next year that would value it at more than $100B. By way of comparison, GOOG raised $1.9B in its 2004 IPO.
Zynga Eyes $1B in Biggest Web IPO Since Google
Greece has sped up plans to pass a 2012 austerity budget, hoping to press ahead with tough debt-reduction talks despite financial turmoil threatening the eurozone. Debate has begun on the budget a day earlier than initially planned, maintaining deep cuts to slash the budget deficit from an estimated 9% of GDP this year to 5.4% in 2012. Recent cuts introduced include a new property tax that would lead to households' electricity being cut off if they delay payments. The tax is described as "absolutely necessary." The budget, which will see Greece suffer a 4th year of recession in 2012, is to be voted on next week. Greece fears Europe's escalating crisis could affect its own efforts to negotiate a massive 2nd bailout deal worth €130B ($176B). The new deal hinges on plans for 50% writedowns on the value of Greek bonds held by private creditors, who will be offered bonds from a European rescue fund. Negotiations on the large number of details involved in that deal are expected to extend for several weeks into the new year. This Greek drama is nowhere near a conclusion.
A European proposal to for central bank loans to go thru the IMF may deliver up to €200B ($270B) to fight the debt crisis. At a meeting on Tues, euro-area finance ministers gave approval for work on the plan. The need for a new crisis-containment tool emerged as the effort to boost the €440B rescue fund to €1T fell short of agreement. Under the proposal, central banks would recycle funds thru the IMF, potentially to underwrite precautionary lending programs for Italy or Spain, the 2 countries judged to be the most vulnerable now. No fewer than 4 “comprehensive” rescue packages over 19 months have failed to arrest the crisis, fueling speculation that a currency designed to last forever might break up unless European leaders forge a more united economy. Central bank loans may be linked to an adoption of tougher budget policing by govs & tighter economic ties. This is called make it up as we go along, only they are talking about $1Ts, mind boggling sums.
Euro Central Banks May Provide $270B via IMF
After settling back in the last 2 days, Dow gained almost 800 this week. This ranks as one of its best weeks ever. OK, it was coming off deeply oversold conditions which can create violent reactions. But this has been an unusually wild time along with other highly volatile times in 2011. 2 weeks ago was a down market & this week was an up market. Anybody want to make a call for next week?
Dow Jones Industrial Average
AM gains for MLPs & REITs were trimmed, bringing the indices to around even on the day. Junk bond funds were mixed but Treasuries gained off AM lows amid concern about the resolve of European officials in their efforts to contain the region’s sovereign debt crisis. Oil fluctuated as it headed for its first gain in 3 weeks on concern that tension between Iran & the West will intensify, threatening its oil shipments. Gold has been marking time in the mid 1700s.
AMZ Alerian MLP Index
DJR Dow Jones Equity REIT Index
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Treasury yields:
U.S. 3-month | -0.005% | |
U.S. 2-year | 0.250% | |
U.S. 10-year | 2.044% |
| CLF12.NYM | ...Crude Oil Jan 12 | ...100.83 | ... 0.63 | (0.6%) |
Zynga, the maker of games on Facebook, is seeking as much as $1B in the biggest IPO since Google (GOOG). The company wants to offer 100M shares for $8.50-$10, The high end of the range would value Zynga at $7B (more than many established companies with shares that have traded for decades). Zynga is selling all of the shares & expects to receive about $889M. It had originally planned a larger IPO, scaling back after internet companies including sank following their debuts. Zynga is selling about 14% of its stock, a larger portion than other companies have sold this year. In addition, Facebook may raise about $10B in an IPO next year that would value it at more than $100B. By way of comparison, GOOG raised $1.9B in its 2004 IPO.
Zynga Eyes $1B in Biggest Web IPO Since Google
Greece has sped up plans to pass a 2012 austerity budget, hoping to press ahead with tough debt-reduction talks despite financial turmoil threatening the eurozone. Debate has begun on the budget a day earlier than initially planned, maintaining deep cuts to slash the budget deficit from an estimated 9% of GDP this year to 5.4% in 2012. Recent cuts introduced include a new property tax that would lead to households' electricity being cut off if they delay payments. The tax is described as "absolutely necessary." The budget, which will see Greece suffer a 4th year of recession in 2012, is to be voted on next week. Greece fears Europe's escalating crisis could affect its own efforts to negotiate a massive 2nd bailout deal worth €130B ($176B). The new deal hinges on plans for 50% writedowns on the value of Greek bonds held by private creditors, who will be offered bonds from a European rescue fund. Negotiations on the large number of details involved in that deal are expected to extend for several weeks into the new year. This Greek drama is nowhere near a conclusion.
A European proposal to for central bank loans to go thru the IMF may deliver up to €200B ($270B) to fight the debt crisis. At a meeting on Tues, euro-area finance ministers gave approval for work on the plan. The need for a new crisis-containment tool emerged as the effort to boost the €440B rescue fund to €1T fell short of agreement. Under the proposal, central banks would recycle funds thru the IMF, potentially to underwrite precautionary lending programs for Italy or Spain, the 2 countries judged to be the most vulnerable now. No fewer than 4 “comprehensive” rescue packages over 19 months have failed to arrest the crisis, fueling speculation that a currency designed to last forever might break up unless European leaders forge a more united economy. Central bank loans may be linked to an adoption of tougher budget policing by govs & tighter economic ties. This is called make it up as we go along, only they are talking about $1Ts, mind boggling sums.
Euro Central Banks May Provide $270B via IMF
After settling back in the last 2 days, Dow gained almost 800 this week. This ranks as one of its best weeks ever. OK, it was coming off deeply oversold conditions which can create violent reactions. But this has been an unusually wild time along with other highly volatile times in 2011. 2 weeks ago was a down market & this week was an up market. Anybody want to make a call for next week?
Dow Jones Industrial Average
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