Stock markets in Asia/Australia are having very strong sessions (up 1-2+%) following the lead in the US. Once again banks in Japan, Korea, Australia & Hong Kong are leading the charge, some up 4-8%. What seems to have brought out buyers for US bank stocks is that they said it will not be necessary to raise more capital (following guidance by Washington Mutual). This has been a scary concept, banks do not want to have to compete with Fannie Mae & Freddie Mac when they sell stock. Moody's is considering cutting the credit rating for Washington Mutual to "junk."
Record high oil prices has Asian contractors hoping to get contracts to build nuclear plants in southeast Asia (Vietnam, etc.). Also, Asian analysts are also trying to evaluate Yahoo's earnings & how it will affect Asian businesses.
Showing posts with label Moody's. Show all posts
Showing posts with label Moody's. Show all posts
Tuesday, July 22, 2008
Friday, May 23, 2008
Ugly day in markets again
Ugly days are becoming a habit. The Dow, which just last week was pushing 13K, is now at 12½K & heading for 12K. Lower home sales & the fallout from high oil prices is sending stocks lower. Dow is down 110, decliners over advancers better than 3-1 & NAZ was down 24. Home sales fell 1% in Apr, the 8th decline in that last 9 months, & the median home price fell 8%. At the current sales rate, there is a record 10.7 months supply of homes which brings dreary forecasts from analysts. Oil prices are roaring back to the 133s on supply concerns. Now there are reports China is hungry for diesel oil to help cover the problems it's having with a lack of coal for power plants. AAA reported price for gas at the pumps is up to 3.88. Prices may get near $4 during the Memorial Day weekend.
JPMorgan (JPM), a Dow stock, down 57¢, on news of layoffs to make room for Bear Stearns people. There are indications of more layoffs to help it get thru the credit crisis. Banks are weak on the news (check BAC on the right). Bloomberg News reported that the Attorney General of CT is investigating Moody's to see if there is any connection between their AAA rating screw up, computer glitches, investment bankers, etc. He said the rating agencies are cooperating with the investigation. This could be another tough day in the markets going into the long weekend.
JPMorgan (JPM), a Dow stock, down 57¢, on news of layoffs to make room for Bear Stearns people. There are indications of more layoffs to help it get thru the credit crisis. Banks are weak on the news (check BAC on the right). Bloomberg News reported that the Attorney General of CT is investigating Moody's to see if there is any connection between their AAA rating screw up, computer glitches, investment bankers, etc. He said the rating agencies are cooperating with the investigation. This could be another tough day in the markets going into the long weekend.
Thursday, May 22, 2008
Quiet day for stocks
Following 2 very rough days, today was quiet for stocks. Dow was up 24, advancers about 20% ahead of decliners but NAZ, up 16, had a good day. Oil continues to dominate the news after reaching another record, this one at 135. It closed below 131 in NY as traders cashed in recent profits. But short term forces remain in place, the bulls are in charge of the market. There are signals already that record prices at the pump will bring less driving. The Memorial Day holiday weekend driving will give early signals. The home prices index reported the largest, 3.1%, decline in history (since 1991).
Moody's (MCO) dropped another 2.40. In the last 2 days, the stock has been punished, down 20%, caused by sloppy handling of AAA bond ratings issued by their computers. It's unclear how much damage this mistake has caused or how it may impact bond values going forward. After breaking 13K last year, the Dow have been pretty much living under that level this year. This sideways market may continue, at best, for some time.
Moody's (MCO) dropped another 2.40. In the last 2 days, the stock has been punished, down 20%, caused by sloppy handling of AAA bond ratings issued by their computers. It's unclear how much damage this mistake has caused or how it may impact bond values going forward. After breaking 13K last year, the Dow have been pretty much living under that level this year. This sideways market may continue, at best, for some time.
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