Tuesday, June 11, 2013

Markets sink as BOJ move unnerves traders

Dow dropped 116 with selling at the close, decliners over advancers almost 6-1 & NAZ fell 36.  The MLP index sank 5+ to the 442s & the REIT index was off 4+ to the 278s (down 37 from its highs last month).  Junk bond funds were lower & Treasuries found some buying, ending higher on the day.  Oil, gold & most other commodities lost ground.

AMJ (Alerian MLP Index tracking fund)

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Teasury yields:

U.S. 3-month


U.S. 2-year


U.S. 10-year


CLN13.NYM...Crude Oil Jul 13...95.16 Down ...0.61  (0.6%)

Live 24 hours gold chart [Kitco Inc.]

<p> FILE - In this May 30, 2007 file photo, a Google sign is seen inside Google headquarters in Mountain View, Calif. Google is buying online mapping service Waze in a deal that keeps a potentially valuable tool away from its rivals while gaining technology that could improve the accuracy and usefulness of its own popular navigation system, the company announced Tuesday, June 11, 2013. (AP Photo/Paul Sakuma, File)

Photo:   Yahoo

Google made it official by buying online mapping service Waze in a $1+B deal that keeps a potentially valuable tool away from its rivals while allowing it to gain technology that could improve the accuracy & usefulness of its own popular navigation system.  Waze blends elements of a social network into its maps to produce more precise directions & more reliable information about local traffic conditions.  "We evaluated many options and believe Google is the best partner," Waze CEO wrote in a blog post.  Financial terms of the deal weren't disclosed, but The AP confirmed the sale price with a person familiar with the negotiations.  Waze ranks as the 4th most expensive acquisition among the more than 240 deals that GOOG has completed in nearly 15 years.  The price underscores the increasing importance of digital maps as people frequently check navigation services on their smartphones & tablets to help steer them in the right direction.  The reliance on mobile maps creates more opportunities to show money-making ads, particularly those from local merchants.  GOOG fell $9.

Google Buys Waze in Push to Expand in Mobile Mapping

Google (GOOG)

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Apple Introduces ITunes Radio at Conference

Photo:   Bloomberg

Apple introduced iTunes Radio yesterday as part of a broad overhaul of its mobile operating system for the iPhone & iPad.  The service shares many features with other Web-radio products, such as letting users create stations based on preferences.  The music service, which will be supported by advertising & aimed at driving new song purchases through iTunes, was part of a sweeping redesign of the iOS mobile operating system that CEO Tim Cook unveiled.  ITunes Radio will be available later this year when iOS 7 is rolled out to users.  Its iOS 7 lets users switch between programs more easily & gives quicker access to frequently used features, such as Wi-Fi settings.  A new security tool lets owners disable a stolen iPhone so it can’t be reused.  The Siri voice application was also updated and will rely on Bing search engine, from Microsoft (MSFT), rather than GOOG, for some tasks.  AAPL stock was up 1+ on the news.

Apple ITunes Radio Seen Posing Little Threat to Pandora’s Online Service

Apple (AAPL)

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The credit-rating outlook for JPMorgan, a Dow stock, was revised to negative by S&P, which said the likelihood of “extraordinary” gov support for the largest US banks is waning.  The outlook on JPM long-term rating of A was lowered from stable, S&P said, bringing JPM in line with the 7 other “systemically important” banks.  JPM is the biggest US bank, with $2.4T in assets.  S&P may stop giving weight to the implied taxpayer support that has bolstered credit ratings at 8 of the largest US bank-holding companies.  In the wake of the 2008 credit crunch, investors have assumed the federal gov would bail out lenders in a renewed crisis because their failure would be catastrophic for the financial system.  If S&P entirely removed US support from the credit rating of the bank-holding companies, it could result in a one- to two-level cut in their grades, S&P said.  JPM stock lost 91¢.

JPMorgan Chase’s Credit Outlook Changed to Negative by Standard & Poor’s

J P Morgan (JPM)

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The stock market is jittery.  Treasuries & other bonds are being sold in anticipation of higher interest rates.  But stocks are hanging tough with the Dow very close to its recent record highs.  As I have been saying for some time, the hardest hit are stocks whose main attraction is high yields.  Next week we will learn what Big Ben has to say about QE3 & its future.  Until then, nervous traders will probably sell stocks

Dow Jones Industrials

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