Stocks pulled back on news that Microsoft (MSFT) pulled its bid for Yahoo (YHOO). Dow was down 89 (to 12,969), decliners ahead of advancers 3-2 & NAZ slipped 13. Volume continues to drag along, today at only 1.1B. MLPs had a good day. Their index had stalled at 293 in the last 2 weeks, but closed above 294.
On NYSE new highs vs low lows doesn't look good:
new highs 53
new low 62
IP, a former Dow stock, was one of the leading new low stocks.
When a major deal like Yahoo does not go thru, a lot of speculators get nervous about betting on the next deal. Speaking of the next deal, it appears likely that Bank of America (BAC) will readjust it's price downward for troubled Countrywide (CFC) sending that stock down 62¢ (10%).
Commodities are back in action on a weaker dollar. Oil went above the important 120 level, but closed at 119.98 up 3.66. Gold rebounded from it's lows around 850 in recent days to 872.80 up 16.70. There are no major news developments this week, so the markets will be on their own.n Good luck!
Showing posts with label Countrywide. Show all posts
Showing posts with label Countrywide. Show all posts
Monday, May 5, 2008
Dow slips below 13K
Dow was not able to hold 13K this AM. Dow was down 88 taking it below 13K, internals weren't too bad with decliners ahead of advancers by only 40% & NAZ was down 8. The breakup of the Yahoo (YHOO) purchase by Micrososft (MSFT) didn't help stocks. In addition, oil reached another record, above 120, on supply concerns primarily from Nigeria. Helping the market is a report by the Institute for Supply Management that non-manufacturing index rose to 52.0 in Apr from 49.6 in the prior month. This was the biggest improvement in 7 months, economists had expected 49.1 for April. The reading supports thinking that the U.S. economy is not as disappointing as many initially thought.
Another big acquisition may be in trouble. Analysts are talking about Bank of America (BAC) revising downward the terms for Countrywide (CFC) causing CFC to drop 1. One analyst reduced his target price from 7 to 2, uh-oh! Troubled CFC has a $95B mortgage portfolio, many loans will be be subject to downward revisions. The market is taking today's news pretty well, but delays & problems with acquisitions remains a negative for the markets.
Another big acquisition may be in trouble. Analysts are talking about Bank of America (BAC) revising downward the terms for Countrywide (CFC) causing CFC to drop 1. One analyst reduced his target price from 7 to 2, uh-oh! Troubled CFC has a $95B mortgage portfolio, many loans will be be subject to downward revisions. The market is taking today's news pretty well, but delays & problems with acquisitions remains a negative for the markets.
Friday, May 2, 2008
After early gains, stocks hold modest gains
Stocks pulled back after gaining more than 100 points early in the trading day to settle with only modest gains. Dow was up 48, advancers 40% above decliners while NAZ pulled back a couple of points. Dow is at a level not seen since Jan 3, but volume continues light at only 1.27B. Commodities rose, reversing their recent declines. Oil was up 3.80 to 116.32 & gold was up 5 to 853. Bank of America, a Dow stock, was up 40¢ after there were doubts it would guarantee the debt of Countrywide (CFC) assuming the acquisition goes thru in the next qtr.
Microsoft (MSFT) may be upping the price several dollars for Yahoo. In the tech sector, Sun's (JAVA) announced loss yesterday was very significant, causing the stock to drop 3.69 (23%). Google (GOOG) was down 12, indicating the serious nature of Sun's loss & how it affected other tech stocks. Overall, the stock market is considered "overbought" at these levels, but the Dow remained over 13K for a second day. Next week, the drama will play out.
Microsoft (MSFT) may be upping the price several dollars for Yahoo. In the tech sector, Sun's (JAVA) announced loss yesterday was very significant, causing the stock to drop 3.69 (23%). Google (GOOG) was down 12, indicating the serious nature of Sun's loss & how it affected other tech stocks. Overall, the stock market is considered "overbought" at these levels, but the Dow remained over 13K for a second day. Next week, the drama will play out.
Tuesday, April 29, 2008
Stocks continue mixed
Stocks continue mixed afraid to make a major move ahead of the FED's meeting. Dow is down 52, decliners over advancers 3-2 & NAZ down 9. Gloomy economic news has not been able to attract sellers in a big way. Foreclosures for homes more than doubled in Q1 compared with the prior year. The trend continues negative as the number is 23% ahead of the prior qtr. Home prices dropped 12.7% in Feb, the fast rate recorded. It's no secret, the housing slump is dragging on & promises to be with us for months.
Some company reports were better. MasterCard (MA) had a great qtr with profits more than doubling, stock up 22.53. Foreign business, up 30%, showed the greatest gains, although US business was also strong, up 9%, helped when I used my card. BP (BP), Europe's 2nd biggest oil producer reported profits were up 63% from higher oil prices. BP gained 3.07 & Royal Dutch Shell (RDS-B), Europe's biggest oil producer, also reported substantially higher earnings sending its stock up 3.77. Meanwhile Countrywide (CFC) reported another whopper loss which may result in Bank of America (BAC) reducing the price it's paying for the company, although CFC is down only fractionally today.
Some company reports were better. MasterCard (MA) had a great qtr with profits more than doubling, stock up 22.53. Foreign business, up 30%, showed the greatest gains, although US business was also strong, up 9%, helped when I used my card. BP (BP), Europe's 2nd biggest oil producer reported profits were up 63% from higher oil prices. BP gained 3.07 & Royal Dutch Shell (RDS-B), Europe's biggest oil producer, also reported substantially higher earnings sending its stock up 3.77. Meanwhile Countrywide (CFC) reported another whopper loss which may result in Bank of America (BAC) reducing the price it's paying for the company, although CFC is down only fractionally today.
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