Dow dropped 49, decliners over advancers 5-2 & NAZ fell 6 (a strong Apple stock is limiting the damage from selling in other stocks). The Financial Index was off fractionally to 204. The MLP index fell 1+ to the 393s & the REIT index was off 2 to the 262s. Both have been flattish for a few months. Junk bond funds were mixed & Treasuries rose as stocks.were sold. Oil was little changed after the Energy Dept said stockpiles fell more than expected last week. Gold also did little although it is at highs since early May.
Photo: Bloomberg
People’s Bank of China Governor Zhou Xiaochuan said adjustments to interest rates & banks’ reserve requirements are still possible after the central bank stepped up temporary cash injections this month. “Use of either tool can’t be ruled out,” Zhou said. But he didn’t elaborate. The remarks leave the door open for further monetary stimulus after the PBOC added 220B yuan ($34.6B) to the banking system via reverse-repurchase agreements yesterday, tempering speculation the reserve-requirement ratio will be reduced. China lowered interest rates in Jun & Jul for the first time since 2008 & has made 3 cuts in the ratio starting in Nov as economic growth slowed. Chinese Premier Wen Jiabao said last week that easing inflation allows more room to adjust monetary policy & positive signs are emerging in the economy, expressing confidence after Jul data showed a further slowdown in growth. State television reported Wen as saying there’s “growing room for monetary policy operation.” Stay tuned, what China does affects the global economy.
Zhou Signals China Rate Cut Possible After Injecting Cas
Greek Prime Minister Samaras called for "more time" to carry out policy changes to deal with his nation's debt crisis before receiving Luxembourg Prime Minister Juncker today. What a surprise!! "All we want is a little more air to breathe to get the economy going and increase government revenue," Samaras said. "More time doesn't necessarily mean more money." Limited concessions to Greece are possible as long as they are made within the framework of the 2nd aid program for the over-indebted country, a spokesman for Chancellor Angela Merkel's Christian Democratic Union, said yesterday. Almost 3 years after the crisis started in Greece, the country remains at the heart of the turmoil even as contagion spreads to Italy & Spain, prompting ECB chief Mario Draghi to announce proposals to re-enter the bond market to help lower gov borrowing costs. The € rose to 6-week highs yesterday before euro region leaders meet to discuss Greece's fiscal adjustment program amid optimism the European debt crisis is being contained. French President Hollande is due in Berlin tomorrow for talks on the crisis with Merkel. The Greek drama plays on.
Greece Asks for More Time as Juncker Meets Samaras in Athens
Photo: Bloomberg
Dell cut this year’s profit forecast as revenue from corp customers fails to counter shrinking personal computer sales. The company forecast Q3 revenue that missed estimates & cut its profit outlook by 20%, as competition from the iPad & an anemic global economic recovery drags down PC demand. DELL’s strategy of using acquisitions to add software, storage & networking equipment has been slow to offset declining sales of desktops & laptops, which account for half of revenue. Business customers are taking “a wait-and-see approach” on forthcoming tablets based on Windows 8, CFO Brian Gladden said. Revenue in the current qtr that ends in Oct will decline 2-5% from the prior qtr. That’s the equivalent of $13.8- $14.2B, less than the $14.9B average estimate. Fiscal 2013 EPS (excluding some items) will be at least $1.70. That’s less than the company’s Feb projection of at least $2.13, & below the average $1.90 estimate. The stock slumped 86¢.
Dell Forecast Misses Estimates as PC Sales Continue Slump
This is another drab day of trading in late Aug. Traditionally, little happens in these days. The market's main attention is looking east towards Europe & all those meetings. But this is the talking phase when little is expected. With today's decline, Dow needs 250 to reach a new 2012 high. News from Europe can give it a lift along with the announcement by Big Ben on Fri.
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month | 0.101% | |
U.S. 2-year | 0.279% | |
U.S. 10-year | 1.748% |
| CLU12.NYM | ...Crude Oil Sep 12 | ...96.40 | ... 0.28 | (0.3%) |
| GCQ12.CMX | ...Gold Aug 12 | ....1,637.60 | .... 2.30 | (0.1%) |
Get the latest daily market update below:
People’s Bank of China Governor Zhou Xiaochuan said adjustments to interest rates & banks’ reserve requirements are still possible after the central bank stepped up temporary cash injections this month. “Use of either tool can’t be ruled out,” Zhou said. But he didn’t elaborate. The remarks leave the door open for further monetary stimulus after the PBOC added 220B yuan ($34.6B) to the banking system via reverse-repurchase agreements yesterday, tempering speculation the reserve-requirement ratio will be reduced. China lowered interest rates in Jun & Jul for the first time since 2008 & has made 3 cuts in the ratio starting in Nov as economic growth slowed. Chinese Premier Wen Jiabao said last week that easing inflation allows more room to adjust monetary policy & positive signs are emerging in the economy, expressing confidence after Jul data showed a further slowdown in growth. State television reported Wen as saying there’s “growing room for monetary policy operation.” Stay tuned, what China does affects the global economy.
Zhou Signals China Rate Cut Possible After Injecting Cas
Greek Prime Minister Samaras called for "more time" to carry out policy changes to deal with his nation's debt crisis before receiving Luxembourg Prime Minister Juncker today. What a surprise!! "All we want is a little more air to breathe to get the economy going and increase government revenue," Samaras said. "More time doesn't necessarily mean more money." Limited concessions to Greece are possible as long as they are made within the framework of the 2nd aid program for the over-indebted country, a spokesman for Chancellor Angela Merkel's Christian Democratic Union, said yesterday. Almost 3 years after the crisis started in Greece, the country remains at the heart of the turmoil even as contagion spreads to Italy & Spain, prompting ECB chief Mario Draghi to announce proposals to re-enter the bond market to help lower gov borrowing costs. The € rose to 6-week highs yesterday before euro region leaders meet to discuss Greece's fiscal adjustment program amid optimism the European debt crisis is being contained. French President Hollande is due in Berlin tomorrow for talks on the crisis with Merkel. The Greek drama plays on.
Greece Asks for More Time as Juncker Meets Samaras in Athens
Dell cut this year’s profit forecast as revenue from corp customers fails to counter shrinking personal computer sales. The company forecast Q3 revenue that missed estimates & cut its profit outlook by 20%, as competition from the iPad & an anemic global economic recovery drags down PC demand. DELL’s strategy of using acquisitions to add software, storage & networking equipment has been slow to offset declining sales of desktops & laptops, which account for half of revenue. Business customers are taking “a wait-and-see approach” on forthcoming tablets based on Windows 8, CFO Brian Gladden said. Revenue in the current qtr that ends in Oct will decline 2-5% from the prior qtr. That’s the equivalent of $13.8- $14.2B, less than the $14.9B average estimate. Fiscal 2013 EPS (excluding some items) will be at least $1.70. That’s less than the company’s Feb projection of at least $2.13, & below the average $1.90 estimate. The stock slumped 86¢.
Dell Forecast Misses Estimates as PC Sales Continue Slump
Dell (DELL)
This is another drab day of trading in late Aug. Traditionally, little happens in these days. The market's main attention is looking east towards Europe & all those meetings. But this is the talking phase when little is expected. With today's decline, Dow needs 250 to reach a new 2012 high. News from Europe can give it a lift along with the announcement by Big Ben on Fri.
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