Dow gained 82, advancers ahead of decliners a modest 5-4 & NAZ sank 22 because of a bad day for Apple (AAPL) stock, down $35. The Financial Index rose 3+ to the 212s. The MLP Index lost 2+ to the 285s (down 13 this week) & the REIT index fell 1 to 260. Junk bond funds were mixed to lower & Treasuries edged higher again, taking the yield on the 10 year Treasury below 1.6%. Oil was lower & gold lost pocket change (call that even).
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
Photo: Yahoo
Citigroup will cut 11K jobs, a bold early move by new CEO Michael Corbat, eliminating about 4% of its workforce of 262K. The bulk of the cuts, about 6.2K, will come from the consumer banking unit, which handles everyday functions like branches & checking accounts. Citi will sell or scale back consumer operations in Pakistan, Paraguay, Romania, Turkey & Uruguay & focus on 150 cities around the world "that have the highest growth potential in consumer banking." The bank did not say how many jobs it will cut in the US. Almost 2K job cuts will come from the institutional clients group, which includes the investment bank. The company will also cut jobs in technology & operations by using more automation and moving jobs to "lower-cost locations." After a long stretch of empire-building, it has been shrinking for the past several years, shedding units & trying to find a business model that's more streamlined and efficient. Corbat said his bank remains committed to "our unparalleled global network and footprint." However, he added: "We have identified areas and products where our scale does not provide for meaningful returns." He promised that the bank would continue to trim, whether in "technology, real estate or simplifying our operations." The stock shot up $2.20.
Citigroup to Cut 11,000 Jobs, Take $1 Billion Charge
Photo: Yahoo
US service companies grew at a slightly faster pace in Nov because sales & new orders rose, a good sign for the economy. The Institute for Supply Management (ISM) said that its index of non-manufacturing activity rose to 54.7 from 54.2 in Oct & is above the 12-month average of 54.4. The report measures growth in a broad range of businesses from retail & construction companies to health care & financial services firms. The industries covered employ about 90% of the work force. Service companies have been a key source of job growth this year, having created about 90% of the net jobs added since Jan. Still, many of the service jobs have been low-paying retail & restaurant positions. The report suggests that Superstorm Sandy may have actually helped some businesses. A company in the wholesale trade industry said its business benefited "tremendously" from shipping emergency supplies.
Photo: Bloomberg:
Facebook will join the Nasdaq 100 next week after the exchange operator shortened its waiting period for inclusion in the gauge, potentially making the stock more attractive to fund managers. The company with more than 1B users will replace Infosys (INFO) before the start of trading on Dec 12, 7 months after its $16B IPO. The addition to the index may attract buyers amid a 55% rebound from its low 3 months ago as funds that track the Nasdaq-100 buy the shares. Q3 sales rose 32% to $1.26B, topping estimates, as it boosted revenue from advertising on mobile devices. Gaining entry to gauges tracked by investors is attractive to public companies because it provides a guaranteed shareholder base. Exchange-traded funds & other products linked to the NAZ100 managed about $49B at the end of last year. The stock rose 26¢.
Facebook to Replace Infosys in Nasdaq-100 Seven Months After IPO
This ended up as a confusing day. While Dow had a good advance, it only continued its sideways trading pattern when it has stayed close to 13K. There were no major news developments about the fiscal cliff talks, but buyers viewed that as a good sign (a lack of negative news). Even if there is a last minute agreement, it's effect is unclear. Many execs have made plans for 2013 based on guesses about how the debt debate will turn out. The outcome of raising the debt ceiling is also uncertain, not to mention extending the lower Social Security rates. These are very troubling times for the stock market. In its defense, it has taken uncertainty very well (so far).
AMJ (Alerian MLP Index tracking fund)
Treasury yields:
U.S. 3-month |
0.091% | |
U.S. 2-year |
0.238% | |
U.S. 10-year |
1.589% |
| CLF13.NYM | ...Crude Oil Jan 13 | ...87.94 | ... 0.56 (0.6%) |
Citigroup will cut 11K jobs, a bold early move by new CEO Michael Corbat, eliminating about 4% of its workforce of 262K. The bulk of the cuts, about 6.2K, will come from the consumer banking unit, which handles everyday functions like branches & checking accounts. Citi will sell or scale back consumer operations in Pakistan, Paraguay, Romania, Turkey & Uruguay & focus on 150 cities around the world "that have the highest growth potential in consumer banking." The bank did not say how many jobs it will cut in the US. Almost 2K job cuts will come from the institutional clients group, which includes the investment bank. The company will also cut jobs in technology & operations by using more automation and moving jobs to "lower-cost locations." After a long stretch of empire-building, it has been shrinking for the past several years, shedding units & trying to find a business model that's more streamlined and efficient. Corbat said his bank remains committed to "our unparalleled global network and footprint." However, he added: "We have identified areas and products where our scale does not provide for meaningful returns." He promised that the bank would continue to trim, whether in "technology, real estate or simplifying our operations." The stock shot up $2.20.
Citigroup to Cut 11,000 Jobs, Take $1 Billion Charge
Citigroup (C)
US service companies grew at a slightly faster pace in Nov because sales & new orders rose, a good sign for the economy. The Institute for Supply Management (ISM) said that its index of non-manufacturing activity rose to 54.7 from 54.2 in Oct & is above the 12-month average of 54.4. The report measures growth in a broad range of businesses from retail & construction companies to health care & financial services firms. The industries covered employ about 90% of the work force. Service companies have been a key source of job growth this year, having created about 90% of the net jobs added since Jan. Still, many of the service jobs have been low-paying retail & restaurant positions. The report suggests that Superstorm Sandy may have actually helped some businesses. A company in the wholesale trade industry said its business benefited "tremendously" from shipping emergency supplies.
Photo: Bloomberg:
Facebook will join the Nasdaq 100 next week after the exchange operator shortened its waiting period for inclusion in the gauge, potentially making the stock more attractive to fund managers. The company with more than 1B users will replace Infosys (INFO) before the start of trading on Dec 12, 7 months after its $16B IPO. The addition to the index may attract buyers amid a 55% rebound from its low 3 months ago as funds that track the Nasdaq-100 buy the shares. Q3 sales rose 32% to $1.26B, topping estimates, as it boosted revenue from advertising on mobile devices. Gaining entry to gauges tracked by investors is attractive to public companies because it provides a guaranteed shareholder base. Exchange-traded funds & other products linked to the NAZ100 managed about $49B at the end of last year. The stock rose 26¢.
Facebook to Replace Infosys in Nasdaq-100 Seven Months After IPO
Facebook (FB)
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This ended up as a confusing day. While Dow had a good advance, it only continued its sideways trading pattern when it has stayed close to 13K. There were no major news developments about the fiscal cliff talks, but buyers viewed that as a good sign (a lack of negative news). Even if there is a last minute agreement, it's effect is unclear. Many execs have made plans for 2013 based on guesses about how the debt debate will turn out. The outcome of raising the debt ceiling is also uncertain, not to mention extending the lower Social Security rates. These are very troubling times for the stock market. In its defense, it has taken uncertainty very well (so far).
Dow Jones Industrials
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