Good morning. Happy Friday. It’s options expiration day.
For the most part, the world markets are brushing aside the extreme weakness from the US.
Asia/Pacific is trading mostly up, and there are some big winners. India and Seoul closed up more than 5%. Singapore, Japan and Hong Kong gained almost 3%. Australia and Taiwan almost 2%. China and Indonesia fell slightly.
In Europe, Spain and Norway are up more than 1% while France Germany, Italy, Stockholm and the Swiss market are down more than 1%. London is flat.
Futures here in the States indicate a gap up open for the cash market, but considering yesterday huge late-day sell-off, the market is hardly in good shape. Nevertheless, 30-min before the open, the Nas 100 is up 17.25 (1.66%) to trade at 1056.75 while the SPX is up 20.25 (2.71%) to trade at.768.50.
Lots of extremes are being hit. SPX is at an 11-year low. Jobless claims surged to a 16-year high. The number of people collecting unemployment benefits has reached its highest level since 1982. The demand for a safe storage place has pushed US Treasuries down to a 3% yield. The S&P financials index dropped to a 13-year low.
Supposedly the big 3 auto makers have reached an agreement with a group of senators on a bailout package, but such would still have to be voted on, and yesterday it was clearly stated the auto makers aren’t getting any money until they first produce a game plan as to how it would spent.
Heinz (HNZ) profit rose 22% in Q2, boosted by frozen food sales and currency hedging.
Dell (DELL) Q3 profit dropped 5% as business spending on PC fell.
Bank of New York Mellon (BK) is cutting 1,800 jobs or about 4% of its workforce.
Ann Taylor (ANN) swung to a loss in the third quarter due to restructuring charges and a consumer spending drop off, and said it would curtail capital spending to combat the weak environment.
J.M. Smucker (SJM) Q2 profit rose 3% and they maintain their full-year profit outlook.
Citigroup (C) is finally admitting they may sell part or all of the company.
Dick’s Sporting Goods (DKS) is slowing their store expansion because people are spending less on sports equipment in this sluggish economy.
The New York Times (NYT) cut its dividend 74%, and an analyst cut its price target to $7.50 from $12.
Image Entertainment (DISK) is selling itself to San Francisco investment group Nyx Acquisitions for cash.
Moody’s lowered Nordstrom’s (JWN) outlook to negative from stable, citing the retailer’s Q3 same-store sales decline.
Honda (HMC) is cutting global output amid slowing demand. Production will be reduced by 140,000 vehicles worldwide.
JP Morgan (JPM) is cutting 10% of its investment banking staff.
Nike (NKE) is boosting its quarterly dividend 9% to 25 cents.
Gold is up 2.95%…silver up 5.16%.
Crude oil is flat and trading at $48.70 – first time in 3 years oil is below $50.
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| UPGRADES | GPS, BXS, HCSG, CRM, SWC, PEC, OSG, NIHD, NVTL, CYBX, INTU, MCHX, FSS, FARO, DISCA, CXG, CLF, E, DRI, MYGN, BMRN, LTD, WSH, ARBA, MSFT |
| DOWNGRADES | TD, TNL, PEIX, LEE, HBI, GVA, CCRN, BKR, AVX, ZUMZ, DELL, VMW, MCHP, CE, SPR, GR, BEAV, SOL, ADSK, ORCL |
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| EARNINGS | |
| before the open | ANN, HNZ, SJM, KIRK |
| during trading | none |
| after the close | ANSV |
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ECONOMIC RELEASES
none
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