Indices
- S&P 500 1,411.94 -1.48%
- DJIA 13,107.21 -1.77%
- NASDAQ 2,987.95 -.59%
- Russell 2000 813.25 -.94%
- Value Line Geometric(broad market) 352.28 -1.32%
- Russell 1000 Growth 650.23 -1.13%
- Russell 1000 Value 704.94 -1.80%
- Morgan Stanley Consumer 831.38 -1.40%
- Morgan Stanley Cyclical 982.09 -1.13%
- Morgan Stanley Technology 644.67 -1.56%
- Transports 5,052.35 -.59%
- Utilities 475.49 -1.71%
- Bloomberg European Bank/Financial Services 84.26 -1.24%
- MSCI Emerging Markets 41.11 -1.49%
- Lyxor L/S Equity Long Bias 1,061.37 -.98%
- Lyxor L/S Equity Variable Bias 798.61 -1.24%
Sentiment/Internals
- NYSE Cumulative A/D Line 157,105 -1.09%
- Bloomberg New Highs-Lows Index -57 -321
- Bloomberg Crude Oil % Bulls 41.7 +96.7%
- CFTC Oil Net Speculative Position 186,381 -9.73%
- CFTC Oil Total Open Interest 1,578,997 -.1%
- Total Put/Call .99 -11.61%
- OEX Put/Call 1.18 -4.84%
- ISE Sentiment 106.0 +19.10%
- NYSE Arms 1.59 -36.4%
- Volatility(VIX) 17.81 +4.4%
- S&P 500 Implied Correlation 52.28 +6.02%
- G7 Currency Volatility (VXY) 7.73 +1.98%
- Smart Money Flow Index 11,214.39 -2.33%
- Money Mkt Mutual Fund Assets $2.569 Trillion unch.
- AAII % Bulls 29.3 +2.1%
- AAII % Bears 43.1 -3.30%
Futures Spot Prices
- CRB Index 296.84 -3.01%
- Crude Oil 86.28 -4.77%
- Reformulated Gasoline 269.91 -.07%
- Natural Gas 3.40 -5.0%
- Heating Oil 309.78 -1.20%
- Gold 1,711.90 -.56%
- Bloomberg Base Metals Index 200.53 -4.65%
- Copper 355.0 -2.26%
- US No. 1 Heavy Melt Scrap Steel 347.67 USD/Ton unch.
- China Iron Ore Spot 119.60 USD/Ton +3.73%
- Lumber 320.80 +3.32%
- UBS-Bloomberg Agriculture 1,643.63 -1.39%
Economy
- ECRI Weekly Leading Economic Index Growth Rate +6.0% -10 basis points
- Philly Fed ADS Real-Time Business Conditions Index -.2373 +10.59%
- S&P 500 Blended Forward 12 Months Mean EPS Estimate 111.78 -.42%
- Citi US Economic Surprise Index 54.60 +1.4 points
- Fed Fund Futures imply 56.0% chance of no change, 44.0% chance of 25 basis point cut on 12/12
- US Dollar Index 80.07 +.56%
- Yield Curve 145.0 -2 basis points
- 10-Year US Treasury Yield 1.75% -1 basis point
- Federal Reserve's Balance Sheet $2.823 Trillion -.21%
- U.S. Sovereign Debt Credit Default Swap 29.86 -5.95%
- Illinois Municipal Debt Credit Default Swap 190.0 -.55%
- Western Europe Sovereign Debt Credit Default Swap Index 105.37 -.15%
- Emerging Markets Sovereign Debt CDS Index 180.61 +1.51%
- Saudi Sovereign Debt Credit Default Swap 81.41 -2.57%
- Iraq Sovereign Debt Credit Default Swap 440.81 -2.90%
- China Blended Corporate Spread Index 380.0 +4 basis points
- 10-Year TIPS Spread 2.47% -3 basis points
- TED Spread 20.25 -2.25 basis points
- 2-Year Swap Spread 10.0 -.75 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -23.75 -1.5 basis points
- N. America Investment Grade Credit Default Swap Index 98.87 +6.58%
- European Financial Sector Credit Default Swap Index 175.0 +7.69%
- Emerging Markets Credit Default Swap Index 229.60 +7.76%
- CMBS Super Senior AAA 10-Year Treasury Spread 90.0 unch.
- M1 Money Supply $2.430 Trillion +1.21%
- Commercial Paper Outstanding 924.40 -2.0%
- 4-Week Moving Average of Jobless Claims 368,000 +2,500
- Continuing Claims Unemployment Rate 2.5% unch.
- Average 30-Year Mortgage Rate 3.41% +4 basis points
- Weekly Mortgage Applications 848.30 -12.0%
- Bloomberg Consumer Comfort -34.6 +.2 point
- Weekly Retail Sales +1.60% -10.0 basis points
- Nationwide Gas $3.58/gallon -.13/gallon
- U.S. Heating Demand Next 7 Days 14.0% above normal
- Baltic Dry Index 1,049 +3.86%
- China (Export) Containerized Freight Index 1,166.05 -.99%
- Oil Tanker Rate(Arabian Gulf to U.S. Gulf Coast) 22.50 unch.
- Rail Freight Carloads 253,883 +1.22%
Best Performing Style
Worst Performing Style
Leading Sectors
- Coal +4.15%
- Education +1.54%
- HMOs +1.27%
- Semis +.65%
- Gaming +.57%
Lagging Sectors
- Biotech -3.16%
- Homebuilders -4.22%
- Computer Hardware -4.43%
- Oil Service -5.02%
- Disk Drives -7.88%
Weekly High-Volume Stock Gainers (23)
- OSTK, PSSI, STMP, ANGI, LOGM, PRLB, CYNO, CASC, GDI, CRR, FB, SLAB, LBY, MM, POL, EGBN, IBKC, WHR, ACOM, WBMD, SBNY, GLT and NSM
Weekly High-Volume Stock Losers (42)
- TAL, INVN, KMT, IACI, DTG, EAT, BDN, CIT, BMRN, DD, FTI,
BNNY, BWLD, DFT, UA, LPNT, ALXN, BKI, HSTM, MJN, SIX, CLGX, ATHN, MNST,
BJRI, SUPN, ACAT, VRSN, RGS, UTHR, ESI, ATI, UIS, TBI, DECK, NFX, IMGN,
IPCM, IRBT, CROX, CTCT and SPR
Weekly Charts
ETFs
Stocks
*5-Day Change
Style Underperformer:
Sector Underperformers:
- 1) Homebuilders -2.60% 2) Hospitals -2.0% 3) Banks -1.21%
Stocks Faling on Unusual Volume:
- FFBC, SD, MBT, SIVB, IMOS, RGS, MU, AN, ZLC, CTCT, BJRI, VRSN, HMSY, LPNT, IPCM, WWWW, AXL, QSII, DECK, DF, MCRS, QLIK, RMD, CA, VPRT, IMGN, ECHO, CPSI, YZC, BZH, GT, ROC, TMH, CLF, ESI, OLN, IPG, AXL, CLGX, DLR and MHO
Stocks With Unusual Put Option Activity:
- 1) EMN 2) LYB 3) ASML 4) DECK 5) COG
Stocks With Most Negative News Mentions:
- 1) DECK 2) CTCT 3) XOM 4) IPCM 5) AXL
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Coal +1.65% 2) Oil Tankers +.39% 3) Networking +.36%
Stocks Rising on Unusual Volume:
- AMCC, CERN, POWI, RDWR, COG, VAR, AAN, DV, EXPE, GDI, CERN, EMN, CLD, N, BYI, PKI, NWL and MCO
Stocks With Unusual Call Option Activity:
- 1) WFR 2) DF 3) MRK 4) DECK 5) CSTR
Stocks With Most Positive News Mentions:
- 1) EXPE 2) PCAR 3) CMCSA 4) BYI 5) MYL
Charts:
Evening Headlines
Bloomberg:
- BNP Paribas Downgraded by S&P as SocGen Gets Negative Outlook. BNP
Paribas SA was among three French banks cut by Standard & Poor’s on
concern that their home market may be hurt by prolonged economic
weakness in Europe and a housing slump. BNP, the nation’s biggest bank,
had its long-term counterparty credit grade lowered one level to A+ from
AA-, S&P said yesterday in a statement. The ratings company also
revised its outlook to negative from stable for 10 other French banks,
including Credit Agricole SA and Societe Generale SA. The effects of
joblessness, government debt and international competition
“are being aggravated in our view by the ongoing euro-zone crisis, a
more protracted recession across Europe, and lower domestic-growth
prospects,” S&P said. French banks also face “potentially limited,
but still noteworthy, impact from an ongoing correction in the
housing market.”
- RBC, SocGen Said to Be Among Banks Subpoenaed in Probe. Royal Bank of Canada, Societe Generale SA (GLE) and Bank of America Corp. are among nine additional
banks that were subpoenaed in New York and Connecticut’s probe
of alleged manipulation of Libor, a person familiar with the
matter said. The subpoenas, issued by New York Attorney General Eric Schneiderman starting in August, bring to 16 the total number of
banks that have been subpoenaed in the states’ investigation,
said the person, who asked not to be named because there wasn’t
authorization to speak publicly.
- China’s Stocks Decline Most in Five Weeks on Earnings Concerns. China’s
stocks fell, dragging the benchmark index down the most in five weeks,
as companies from Maanshan Iron & Steel (323) Co. to ZTE Corp.
reported losses. Maanshan Iron & Steel Co. tumbled the most in two
years after its third-quarter loss was wider than analysts estimated.
ZTE, China’s second-largest maker of telephone equipment, retreated 2.6
percent to its lowest level since 2008. Hisense Electric Co., China’s
biggest manufacturer of flat-panel televisions, plunged by the 10
percent maximum limit after profit dropped. “The market is still
worried about the magnitude of the economic recovery and deterioration
of corporate earnings,” said Wu Kan, a fund manager at Dazhong Insurance
Co. in Shanghai, which oversees $285 million. The Shanghai Composite
Index (SHCOMP) dropped 1.7 percent to
2,066.71 at the 11:30 a.m. local-time break, the most since
Sept. 20.
- Korea’s Growth Slows as Global Cooling Caps Export Demand.
South Korea’s economy grew at the slowest pace in three years as
Europe’s debt crisis and a slowdown in emerging markets reduced
corporate investment and capped demand for exports. Gross domestic
product expanded 1.6 percent in the three months through September from a
year earlier, the slowest pace since 2009, Bank of Korea data
showed today. That compares with the median 1.7 percent estimate of 13
economists surveyed by Bloomberg News. Asia’s fourth-largest economy
grew 0.2 percent
from a quarter ago.
- Bo Xilai Removed From National People’s Congress, Xinhua Says. Former Politburo member Bo Xilai was
removed from the National People’s Congress, China’s legislature, a month after he was expelled from the ruling
Communist Party and accused of involvement in the death of a
British businessman.
- Expedia(EXPE) Jumps After Third-Quarter Profit Tops Estimates. Expedia Inc. surged as much as 16
percent in extended trading after the second-biggest online
travel agency by market value reported third-quarter earnings
that topped analysts’ estimates. Excluding some items, profit rose 4.2 percent to $188
million, or $1.32 a share, from $180.5 million, or $1.28, a year
earlier, the Bellevue, Washington-based company said today in a
statement. Analysts on average expected profit to decline to
$1.26 a share, according to a Bloomberg survey.
- Ballmer Sees Billions Lost From China Piracy. (video)
- Amazon(AMZN) Posts Loss on Higher Spending, LivingSocial Stake. Amazon.com
Inc., the world’s largest online retailer, reported revenue that missed
analysts’ estimates and posted the first quarterly net loss since 2003,
hurt by higher expenses and its investment in LivingSocial.com.
Wall Street Journal:
- Iranians Build Up Afghan Clout. Iran is funding aid projects and expanding intelligence networks
across Afghanistan, moving to fill the void to be left by the U.S.
withdrawal from Afghanistan by the end of 2014, according to U.S. and
Afghan officials. While Iran's spending here is nowhere near the
billions the U.S. spends, Tehran's ability to run grass-roots programs
and work directly with Afghans is giving its efforts disproportionate
clout—something it could wield against American interests should the
U.S. military strike Iran's nuclear program.
- Troops Shot After Taliban Leader's Call. Two U.S. Special Operations troops were killed by a man in Afghan
police uniform on Thursday, a day after Taliban leader Mullah Omar
called on more Afghan soldiers and policemen to kill Americans. The attack in southern Uruzgan province came a day after two British
troops—a female medic and a Royal Marine commando—were gunned down in
another suspected insider attack that involved an off-duty Afghan
policeman. Insider attacks have become a critical issue for the
U.S.-led coalition. Thursday's U.S. deaths brought to 55 the number of
coalition troops killed by their Afghan comrades-in-arms this year,
according to coalition statistics.
- Credit Suisse Seeks to Run Exchange. Bank in Talks With U.S. to Win Status for New Trading System; Concerns of Potential Conflicts. Credit Suisse Group AG is quietly pushing to turn one of its trading
venues into an exchange, an unusual bid that, if successful, would
create the only U.S. stock exchange owned outright by a Wall Street
bank.
- Hang Up the Phone, Swaps Traders. CFTC Drafts Rules Designed to Bring Sunlight to Derivatives Market; '15-Second Rule' Draws Fire.
Swaps trading is one the last bastions of Wall Street where brokers
arrange deals over the phone. That clubby way of doing business could go
the way of the rest of Wall
Street, where trading takes place on computers, under a roughly 500-page
draft set of rules designed to push the market away from the opaque
world of over-the-counter, phone-based trading, into more transparent
electronic venues.
- Noonan: When Americans Saw the Real Obama. Why the Denver debate changed everything.
- Strassel: A Chronic Case of Obamnesia. The president has left a long trail of flip-flops.
MarketWatch.com:
CNBC:
Zero Hedge:
Business Insider:
NY Times:
- Iran Said to Nearly Finish Nuclear Enrichment Plant. Intelligence officials from several countries say Iran in recent weeks has virtually completed an underground nuclear
enrichment plant, racing ahead despite international pressure and heavy
economic sanctions in what experts say may be an effort to give it
leverage in any negotiations with the United States and its allies.
- Citi(C) Chairman Is Said to Have Planned Chief’s Exit Over Months.
Vikram Pandit’s last day at Citigroup swung from celebratory to
devastating in a matter of minutes. Having fielded congratulatory
e-mails about the earnings report in the morning that suggested the bank
was finally on more solid ground, Mr. Pandit strode into the office of
the chairman at day’s end on Oct. 15 for what he considered just another
of their frequent meetings on his calendar.
Nasdaq:
- Deckers Outdoor(DECK) Q3 Profit Down; Cuts Q4, FY12 Outlook - Quick Facts. Deckers
Outdoor Corp. reported that its third-quarter net income declined to
$43.06 million from $62.35 million in the year ago quarter. Earnings per
share was $1.18 compared to $1.59 last year. Analysts polled by Thomson
Reuters expected the company to report earnings of $1.04 per share for
the quarter. Analysts' estimates typically exclude special items.
Washington Post:
- FBI investigating Metropolitan Washington Airports Authority, according to sources. The FBI is investigating the authority responsible for overseeing the
$ 5.6 billion Dulles Rail project, the latest in a series of
revelations that has rocked a board seeking to right itself after a
series of scathing reports about ethical lapses in its operations,
according to people with knowledge of the investigation. News of the probe comes just days before the expected arrival
of a federal inspector general’s report critical of the Metropolitan
Washington Airport Authority’s contracting and hiring practices.
- Fiscal cliff already hampering U.S. economy, report says. The fiscal cliff is still two months off, but the scheduled blast of
tax hikes and spending cuts is already reverberating through the U.S.
economy, hampering growth and, according to a new study, wiping out
nearly 1 million jobs this year alone. The report, scheduled for release Friday by the National
Association of Manufacturers, predicts that the economic damage would
deepen considerably if Congress failed to avert the cliff, destroying
nearly 6 million jobs through 2014 and sending the unemployment rate
soaring to near 12 percent.
- U.N. to probe drone attacks by U.S., others resulting in civilian deaths. An independent U.N. human rights researcher on Thursday announced plans
to launch an investigation into the use of drone attacks and other
targeted assassinations by the United States and other governments that
result in civilian deaths or injuries.
Reuters:
- Greek debt to badly miss target - euro zone official. Greek debt will be
above the target of 120 percent of GDP in 2020, a preliminary report by
the IMF showed on Thursday, and Athens will need more reforms before
emergency credit from international lenders can start flowing again. "It
is clear that Greece is off track and there is no chance they will cut
the debt to 120 percent of GDP in 2020 as envisaged. It will be rather
136 percent, and this would be under a positive scenario of a primary
budget surplus, a return to economic growth, and privatisation," a euro
zone official, who insisted on anonymity, said. "New prior
actions will be needed, on top of the existing 89," the official said,
referring to a list of already agreed reforms that need to be in place
before any new tranches of euro zone and IMF emergency loans to Greece
can be paid.
- Obama Tells Magazine He Will Target Executive Pay Next- report. In
an interview to be published on Friday in Rolling Stone magazine, Obama
said that despite passage of Dodd-Frank financial reform legislation,
there is more to be done to make financial markets safe after the damage
caused by the crisis of
2007-2009. "The single biggest thing that I would like to see is
changing incentives on Wall Street and how people get
compensated," Obama said. It's questionable, even after
enactment of Dodd-Frank reforms, that those incentives have
completely been changed, he added.
Financial Times:
- Finland
policy makers have begun discussing scenarios of a possible exit from
the euro, without indicating that the nation would begin such a process,
citing Heikki Neimelaeinen, CEO of the Municipal Guarantee Board. If
the nation were to exit the euro, one possible mechanism would be a
parallel currency system in which both the euro and markka would be
legal tender for a transition period, citing a Nordea analysis.
Evening Recommendations
Jefferies:
- Downgraded Wynn Macau Ltd(1128 HK) to Underperform, target HKD 15.90.
Night Trading
- Asian equity indices are -1.50% to -.75% on average.
- Asia Ex-Japan Investment Grade CDS Index 119.0 -4.0 basis points.
- Asia Pacific Sovereign CDS Index 93.50 -2.5 basis points.
- FTSE-100 futures -.66%.
- S&P 500 futures -.72%.
- NASDAQ 100 futures -.63%.
Morning Preview Links
Earnings of Note
Company/Estimate
- (AXL)/.33
- (ACI)/-.15
- (B)/.48
- (CMCSA)/.46
- (CVH)/.73
- (GT)/.60
- (HMSY)/.22
- (LEA)/1.19
- (LM)/.79
- (MRK)/.93
- (MCO)/.62
- (OSK)/.46
- (QSII)/.28
- (SUP)/.19
- (WY)/.18
Economic Releases
9:30 am EST
- Advance 3Q GDP is estimated to rise +1.8% versus a +1.3% gain in 2Q.
- Advance 3Q Personal Consumption is estimated to rise +2.1% versus a +1.5% gain in 2Q.
- Advance 3Q GDP Price Index is estimated to rise +2.1% versus a +1.6% gain in 2Q.
- Advance 3Q Core PCE QoQ is estimated to rise 1.3% versus a +1.7% gain in 2Q.
9:55 am EST
- Final Univ. of Mich. Consumer Confidence for October is estimated to fall to 83.0 versus a prior estimate of 83.1.
Upcoming Splits
Other Potential Market Movers
- The Italian bond auction and the Spanish/French Unemployment data could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by technology and real estate shares in the region. I expect US stocks to open modestly lower and to maintain losses into the afternoon. The Portfolio is 25% net long heading into the day.
Broad Market Tone:
- Advance/Decline Line: Higher
- Sector Performance: Mixed
- Volume: Below Average
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- VIX 18.41 +.44%
- ISE Sentiment Index 107.0 +40.79%
- Total Put/Call .82 -9.89%
- NYSE Arms 1.14 -23.09%
Credit Investor Angst:
- North American Investment Grade CDS Index 97.77 bps -.92%
- European Financial Sector CDS Index 171.77 bps +.62%
- Western Europe Sovereign Debt CDS Index 103.77 bps -3.96%
- Emerging Market CDS Index 212.25 bps -.49%
- 2-Year Swap Spread 10.5 +1.0 basis point
- TED Spread 20.25 -.5 basis point
- 3-Month EUR/USD Cross-Currency Basis Swap -24.0 unch.
Economic Gauges:
- 3-Month T-Bill Yield .11% unch.
- Yield Curve 151.0 +2 basis points
- China Import Iron Ore Spot $120.0/Metric Tonne +1.1%
- Citi US Economic Surprise Index 51.70 +3.5 points
- 10-Year TIPS Spread 2.49 +1 basis point
Overseas Futures:
- Nikkei Futures: Indicating +15 open in Japan
- DAX Futures: Indicating +5 open in Germany
Portfolio:
- Slightly Lower: On losses in my Tech/Retail sector longs and emerging markets shorts
- Disclosed Trades: None
- Market Exposure: 25% Net Long
Bloomberg:
- Europe’s Crisis Creeps North as Schneider, Daimler Cut Targets. The European debt crisis is moving north into the region’s corporate engine room. Companies
from Schneider Electric SA (SU) to Daimler AG (DAI) reduced forecasts
for the year, while Sweden’s Sandvik AB said it will cut production.
Pernod-Ricard SA, BASF SE (BAS) and ABB Ltd. (ABBN) cautioned for a
continued slowdown. “The current economic situation is marked by a
growing insecurity and volatility,” Daimler Chief Financial Officer
Bodo Uebber said on a conference call today. Daimler “can’t hold onto
targets that are then not realistic. We have to accept that it is so.” Almost
half of the companies in the Stoxx Europe 600 Index that have reported
earnings this quarter missed estimates for net income as consumers and
governments rein in spending. The effects of the debt crisis that
started in Greece in 2009 have spread to Germany, the region’s largest
economy. Business confidence there fell to the lowest in more than two
and a half years this month as neighbors’ demand for its exports waned. “The
problems of southern Europe are spreading to the core of the
continent,” said Markus Steinbeis, who helps manage about 1 billion
euros ($1.3 billion) at Huber, Reuss & Kollegen Vermoegensverwaltung
GmbH in Munich. “The earnings figures are showing slowing growth trend
in the core. We will see slow growth ahead of us in Europe as a whole.”
- ECB Is Said to Push Bankia Losses as Spain Purges Assets. European authorities are pushing
Bankia group to impose losses on junior debt holders as Spain
purges a banking system clogged with about 180 billion euros
($234 billion) of bad real estate assets, people familiar with
the talks said.
The European Central Bank and European Commission want
investors including holders of preference shares to swap their
securities for new stock to reduce the cost to the taxpayer,
according to two people who asked not to be named because the
discussions are private.
- Santander Profit Plunges on Spain Property Purge, U.K. Banco Santander SA (SAN), Spain’s biggest bank, said
third-quarter profit fell a greater-than-estimated 94 percent after
purging more soured real estate and as earnings fell in the U.K. and in
Brazil, its largest market. Net income dropped to 100 million
euros ($130 million) from 1.8 billion euros a year earlier, the
Santander, Spain-based bank said in a filing to regulators today. That
missed the 1.21 billion-euro median estimate in a Bloomberg survey of 10
analysts.
- WPP(WPP) Cuts Sales Growth Forecast as Clients Slash Spending. WPP Plc (WPP), the largest advertising
company, slashed its full-year sales growth target for the
second time in two months as clients in North America and Europe
cut spending. The stock dropped as much as 5.2 percent. Revenue growth for the year, excluding the effect of
currency fluctuations and acquisitions, will be 2.5 percent to 3
percent, down from an earlier forecast of about 3.5 percent, the
company said in a statement today.
- Goods Orders Point to U.S. Business Spending Slump: Economy. Orders for business equipment such as computers and
communications gear stalled in September, signaling a slowdown in
investment that may curb U.S. economic growth. Bookings for
non-defense capital goods excluding aircraft, considered a proxy for
future spending, were little changed after rising 0.2 percent in August,
a Commerce Department report showed today in Washington. Other data
showed consumer confidence is climbing even as the labor market makes
limited progress. “Businesses are not prepared to commit to
big-ticket investments,” said Nigel Gault, chief U.S. economist at IHS
Global Insight in Lexington, Massachusetts. “The uncertainty and global
slowdown are clear negatives for capital spending. The third quarter was
soft, and we can’t see the fourth quarter being much better.”
- New York Times Co.(NYT) Plunges -17% After Reporting Surprise Loss. “A very disappointing third quarter,” Douglas Arthur, an
analyst with Evercore Partners Inc. (EVR), said in an interview.
“Very weak advertising and higher costs than expected,” said
Arthur, who has rated the stock the equivalent of buy since
August 2010. Times Co. fell 17 percent to $8.86 at 11:40 a.m. in New
York, the biggest intraday drop since April 2009.
- Hamptons Home Prices Fall as Buyers Seek Cheaper Retreats. Home prices in New York’s Hamptons, the Long Island
oceanside retreat for summering Manhattanites, declined in the third
quarter as mortgage rates near record lows focused buyer attention on
cheaper properties. The median price of homes that sold in the
period fell 10 percent from a year earlier to $765,000, according to a
report today by New York appraiser Miller Samuel Inc. and broker
Prudential Douglas Elliman Real Estate. In the Hamptons and North Fork,
the median for luxury properties, defined as the top 10 percent of all
sales, fell 23 percent to $4.23 million. About 63 percent of luxury
deals were for properties under $5 million. “Multimillion-dollar
properties, that’s the brand of the Hamptons,” said Jonathan Miller,
president of Miller Samuel. “But there’s an expansion to that, so its
not as one- dimensional as it was during the peak.”
- Syria Accepts Muslim Holiday Cease-Fire as Violence Rages. The
Syrian army will recognize a
cease-fire for the Eid al-Adha Muslim holiday proposed by the United
Nations and reserves the right to respond to rebel attacks, state
television announced. The cease-fire, proposed by UN Special Envoy
Lakhdar Brahimi, will end on Oct. 29, the state broadcaster said today.
The announcement came as clashes raged near Damascus, the capital, and
in Aleppo, Daraa and Deir Ezzor, claiming the lives of 25 people,
according to Rami Abdel Rahman, head of the opposition Syrian
Observatory for Human Rights. Arabyia
television, citing activists, said the death toll rose to 46.
Wall Street Journal:
- World Trade Volumes Fall for Third Month. The volume of world trade fell for the third straight month in
August, a decline which could make it difficult for many economies
undergoing austerity programs to return to growth. In its
monthly report, the Netherlands Bureau for Economic Policy Analysis,
also known as the CPB, said Thursday that exports from the U.S., Japan
and Latin America declined, and world trade volumes fell by 0.4% as they
did in July, having fallen by 1.3% in June.
CNBC:
- Fitch: July statement points to late 2013 U.S. rating decision. Fitch Ratings on Thursday said it was sticking
to a likely timeline for a late 2013 resolution on its rating for the
United States that was laid out in a July statement. Reuters
contacted Fitch after rumors that the rating agency was set to
downgrade the United States, the world's largest economy, rattled
markets on Thursday. "I
can just refer you to our ... affirmation where we said that it was
unlikely that we were going to resolve the rating or the outlook until
late 2013," said Brian Bertsch, a company spokesman. On July 10, Fitch said: "Absent material adverse shocks, Fitch does not expect to resolve the Negative Outlook until late 2013."
- Get Ready: Everything Is Going to Cost More Next Year. Consumers will have to dig deeper into their pockets next year to pay
for costlier health care, more expensive grocery bills and higher taxes,
an extra drag on the country's already slow-moving economy.
- Why Today's Housing Report Spooked Investors So Much.
- CEO Words of Gloom Cast Shadow Over Earnings Season. An earnings season described even by the most optimistic as muted has
been made even more worrying by the pessimism shown by chief executives
at globally dominant companies.
Die Welt:
- The German parliament and other euro-area legislatures should be empowered to sue the ECB, the Free Democrat Justice Minister in Hesse state Joerg-Uwe Hahn said in an interview.
Nikkei:
- Japan July-Sept. Robot Shipments Fall -18.7%. Shipments fall for fourth-straight quarter, citing Japan Robot Association figures released yesterday. Exports fell -26.2% to 74.5b yen, 5th consecutive decline. Exports to China and Europe dropped.
