Dow slid 25, decliners over advancers 5-4 & NAZ slipped 1. The Financial Index was off a fraction to 200+ (from yesterday's 7 month high).
The MLP index fell 1 to the 408s & the REIT index was up a fraction to 245+. Junk bond funds were mixed at their lofty levels & Treasuries strengthened, taking the yield on the 10 year Treasury back below 2%. Oil fell for the first time in 3 days after Saudi Arabia denied a report of a pipeline explosion in its Eastern province & as the dollar headed for its biggest weekly gain this year. That news brought selling to gold.
Photo: Yahoo
The leaders of 25 European countries signed a new treaty designed to prevent its members from living beyond their means and avoid a repeat of the region's crippling debt crisis. They hope the rules for budget discipline will also lead to closer political & economic integration in the eurozone. "It will bring us, as it were, the economic and monetary union that is finally walking on two legs," said European Council President Van Rompuy at its signing in Brussels. Only Britain & the Czech Republic decided not to sign the agreement, a move that triggered concern over a rift in the 27-country EU. Many Europeans have grown weary of the EU & the €. 2 years of painful austerity in the poorer countries have taken their economic toll, while many richer countries are getting frustrated over funding the expensive bailouts for Greece, Ireland & Portugal. Others fear that tighter spending rules will limit gov' ability to maneuver in tough economic times & force German-style fiscal discipline on countries with vastly different economies & cultures. But new deficit limits make some exceptions, such as for severe recessions & other unexpected economic circumstances .The economic outlook is darkening as unemployment is at a record high & several countries are forecast to fall back into recession this year. "We remain in a fragile situation," German Chancellor Merkel warned. "The crisis is far from over." After a relatively smooth drafting process, the most difficult part of bringing the new rules into force begins. All participating govs have to ratify the treaty, a process that may prove difficult in some counties. Eurozone remains a bunch of individual countries with different agendas.
EU Leaders Declare Shift to Growth
Photo Bloomberg:
Yelp (YELP) opened to 5-star reviews from investors, soaring 60% in the first hour after pricing at $15 Thurs night. The IPO priced above its target of $12-$14 but below its likely value so it will start trading on the right foot (for an 8-year-old online reviews site which has yet to turn a profit). 7.1M shares were sold & its charitable foundation sold another 50K. Investment bankers also have an option to buy an additional 1M. If those shares are sold, YELP expects proceeds of $111M. The IPO valued YELP at $900M, but with the price jump, it's valued at $1.5B. Though it's best known for restaurant reviews, YELP users have reviewed churches, strip clubs, hospitals, hotels & high schools. The company makes money from advertising, coming from the local businesses that its users review. In 2011, it's revenue was $83M, up 74% from 2010. But it had a net loss of $16.7M after a $9.6M loss in 2010. The company faces challenges translating advertising budgets of local businesses into profitability with 70% of ad revenues eaten up by sales & marketing expenses." The stock is up $9.35 to $24.35.
Yelp Surges in Trade Debut After Initial Offer Raises More Than Forecast
Stocks are back to bumbling along but the averages are doing quite well. The S&P 500 is at an almost 4 year high while Dow broke above 13K & NAZ inched over 3K. These achievements were greeted with yawns. European biggies are trying to get their act together, but nobody believes they really know what they are doing. Stocks have had a stellar run & may need time to digest it all. That means profit taking which should bring on selling.
The MLP index fell 1 to the 408s & the REIT index was up a fraction to 245+. Junk bond funds were mixed at their lofty levels & Treasuries strengthened, taking the yield on the 10 year Treasury back below 2%. Oil fell for the first time in 3 days after Saudi Arabia denied a report of a pipeline explosion in its Eastern province & as the dollar headed for its biggest weekly gain this year. That news brought selling to gold.
JPMorgan Chase Capital XVI (AMJ)
Treasury yields:
U.S. 3-month | 0.071% | |
U.S. 2-year | 0.278% | |
U.S. 10-year | 1.984% |
| CLJ12.NYM | ....Crude Oil Apr 12 | ...107.43 | ..... 1.41 | (1.3%) |
| GCH12.CMX | ...Gold Mar 12 | ......1,705.30 | ... 15.80 | (0.9%) |
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Photo: Yahoo
The leaders of 25 European countries signed a new treaty designed to prevent its members from living beyond their means and avoid a repeat of the region's crippling debt crisis. They hope the rules for budget discipline will also lead to closer political & economic integration in the eurozone. "It will bring us, as it were, the economic and monetary union that is finally walking on two legs," said European Council President Van Rompuy at its signing in Brussels. Only Britain & the Czech Republic decided not to sign the agreement, a move that triggered concern over a rift in the 27-country EU. Many Europeans have grown weary of the EU & the €. 2 years of painful austerity in the poorer countries have taken their economic toll, while many richer countries are getting frustrated over funding the expensive bailouts for Greece, Ireland & Portugal. Others fear that tighter spending rules will limit gov' ability to maneuver in tough economic times & force German-style fiscal discipline on countries with vastly different economies & cultures. But new deficit limits make some exceptions, such as for severe recessions & other unexpected economic circumstances .The economic outlook is darkening as unemployment is at a record high & several countries are forecast to fall back into recession this year. "We remain in a fragile situation," German Chancellor Merkel warned. "The crisis is far from over." After a relatively smooth drafting process, the most difficult part of bringing the new rules into force begins. All participating govs have to ratify the treaty, a process that may prove difficult in some counties. Eurozone remains a bunch of individual countries with different agendas.
EU Leaders Declare Shift to Growth
Photo Bloomberg:
Yelp (YELP) opened to 5-star reviews from investors, soaring 60% in the first hour after pricing at $15 Thurs night. The IPO priced above its target of $12-$14 but below its likely value so it will start trading on the right foot (for an 8-year-old online reviews site which has yet to turn a profit). 7.1M shares were sold & its charitable foundation sold another 50K. Investment bankers also have an option to buy an additional 1M. If those shares are sold, YELP expects proceeds of $111M. The IPO valued YELP at $900M, but with the price jump, it's valued at $1.5B. Though it's best known for restaurant reviews, YELP users have reviewed churches, strip clubs, hospitals, hotels & high schools. The company makes money from advertising, coming from the local businesses that its users review. In 2011, it's revenue was $83M, up 74% from 2010. But it had a net loss of $16.7M after a $9.6M loss in 2010. The company faces challenges translating advertising budgets of local businesses into profitability with 70% of ad revenues eaten up by sales & marketing expenses." The stock is up $9.35 to $24.35.
Yelp Surges in Trade Debut After Initial Offer Raises More Than Forecast
Stocks are back to bumbling along but the averages are doing quite well. The S&P 500 is at an almost 4 year high while Dow broke above 13K & NAZ inched over 3K. These achievements were greeted with yawns. European biggies are trying to get their act together, but nobody believes they really know what they are doing. Stocks have had a stellar run & may need time to digest it all. That means profit taking which should bring on selling.
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