Style Underperformer:
Sector Underperformers:
- 1) Oil Service -.70% 2) Restaurants -.70% 3) REITs -.41%
Stocks Falling on Unusual Volume:
- BAS, HEP, BPFH, IRE, CVI, VNR, CLMT, CM, BWP, VNR, BXMT, BIG, MMLP, KMP, SRDX, PAA, SXL, MG, RHP, PBA, PCL, EPD, VMW, MRC, ADS, VNQI, CM, OSTK, MMP, GLP, GMLP, AREX, CVI, PCL, RHP and UCO
Stocks With Unusual Put Option Activity:
- 1) HK 2) OIH 3) EWJ 4) SFD 5) F
Stocks With Most Negative News Mentions:
- 1) HAL 2) BHI 3) SWK 4) DXJ 5) SMG
Charts:
Style Outperformer:
Sector Outperformers:
- 1) Gold & Silver +4.90% 2) Coal +1.98% 3) Networking +1.59%
Stocks Rising on Unusual Volume:
- NVE, EXPR, YY, AVGO, EMC, SNE, RKUS, BTU, FIO, ABX, FB, FSLR and GDX
Stocks With Unusual Call Option Activity:
- 1) CLSN 2) HERO 3) STSI 4) CLWR 5) NEM
Stocks With Most Positive News Mentions:
- 1) CRBL 2) QCOM 3) DO 4) YHOO 5) FSLR
Charts:
Evening Headlines
Bloomberg:
- ECB Targeted as Blockupy Protesters Descend on Frankfurt. Frankfurt,
Germany’s financial capital and the seat of the European Central Bank,
is bracing for as many as 30,000 demonstrators to descend on the city
for four days of protests against European leaders’ handling of the
sovereign-debt crisis. Activists have set up camp on the outskirts
of the trade fair grounds to the west of the city, awaiting the arrival
of busloads of people from all over the country as well as from abroad,
according to Blockupy, an international group that is organizing the
blockades. The biggest action is planned for May 31, when the
demonstrators plan to “visibly disturb the usual business of the ECB as
well as other actors of the crisis regime,” Blockupy said in a statement
on its website.
- EU Warns of Uncertainty If CFTC Won’t Delay Swaps Rule. The European Union is urging the U.S.
to allow time for international talks before it imposes swaps
rules on EU lenders, saying that the current timetable would
lead to “huge legal and operational uncertainty.” The European
Commission wrote to Gary Gensler, chairman of the U.S. Commodity Futures
Trading Commission, urging him to extend a temporary exemption for
overseas banks, which is due to expire on July 12, according to a copy
of the letter obtained by Bloomberg News.
- China Failure to Grow With $1 Trillion Credit Seen as Li Warning. China’s
economy is proving less responsive to credit, escalating pressure on
Premier Li Keqiang to strengthen the role of private enterprise. The
government’s broadest measure of credit rose 58 percent to a record 6.16
trillion yuan ($1 trillion) in January-to-March, when gross domestic
product gained 7.7 percent, compared with 8.1 percent a year earlier.
Each $1 in credit firepower added the equivalent of 17 cents in GDP,
down from 29 cents last year and 83 cents in 2007, when global money
markets began to freeze, according to data compiled by Bloomberg. The
diminishing returns to lending heighten focus on the need for what the
International Monetary Fund said yesterday are “decisive” policy changes
in the world’s second-largest economy. Without a refocus away from
state-approved projects, Li and President Xi Jinping risk overseeing
both a further slowdown in growth and an increase in non-performing
loans. “Less efficient and more highly leveraged borrowers have been
kept afloat, tying up credit that could be used to generate more
growth,” said David Loevinger, former senior coordinator for China
affairs at the U.S. Treasury Department. “To boost growth, China needs
to channel more financing to its private enterprises, which are both
more profitable and less leveraged than their state-owned counterparts.”
State enterprises have seen their return on equity fall by
half in six years, according to CLSA Asia-Pacific Markets in
Hong Kong. The biggest concern from China’s credit surge is the
money going to companies and state-run enterprises whose
performance is deteriorating, Francis Cheung, head of China-Hong
Kong strategy, wrote in a May 9 report.
- China Optimism Declines Among European Companies, Survey Shows. European
companies’ optimism for business prospects in China is declining amid
slowing growth, rising labor costs, regulatory obstacles and intensified
competition, a survey showed. Optimism for future revenue growth among
526 respondents
dropped to a four-year low of 71 percent, while 62 percent
lack confidence or aren’t sure the government has the resolve
to introduce market-driven change, according to a business
confidence survey released today in Beijing. It was conducted
in March by the European Union Chamber of Commerce in China
and Roland Berger Strategy Consultants.
- Asian Stocks Decline as Japanese Exporters Drop on Yen. Asian
stocks retreated, with the regional benchmark index heading for its
first monthly decline in seven months, as commodities fell and the yen
traded near a three-week high. Honda Motor Co. (7267), which gets 46
percent of sales from North America, slid 2.2 percent, on concern a
stronger yen will damp the earnings outlook among Japanese exporters.
BHP Billiton Ltd. (BHP), the world’s biggest mining company and
Australia’s top oil producer, lost 1.3 percent after crude oil and
copper futures dropped. National Australia Bank Ltd., the nation’s
fourth-biggest lender, fell 0.3 percent, heading for an eighth day of
decline, its longest losing streak since November 2010. The MSCI Asia Pacific Index decreased 0.9 percent to 136.77
as of 10:19 a.m. in Tokyo, with all 10 industry groups falling
on the gauge, which is poised to close at the lowest level since
April 19.
- Brazil Raises Rate to 8% as Inflation Threatens Recovery. Brazil’s central bank accelerated the
pace of interest rate increases, as policy makers step up
efforts to slow inflation that forestalled the economy’s rebound
in the first quarter. The bank’s board, led by President Alexandre Tombini, voted
unanimously to raise the benchmark Selic rate 50 basis points to
8.00 percent, matching the forecast of 19 of 57 economists
surveyed by Bloomberg. Thirty-eight analysts expected a second
straight 25 basis-point increase.
- Rubber Slumps to Three-Week Low as Yen’s Rebound Reduces Appeal. Rubber slumped to the lowest level in
more than three weeks, heading for the fourth monthly decline,
as a rebound in Japan’s currency against the dollar reduced the appeal of the yen-based futures.
The contract for delivery in November fell as much as 3.7 percent to
257.6 yen a kilogram ($2,540 a metric ton) on the Tokyo Commodity
Exchange, the lowest level since May 7. The most-active contract traded
at 260.7 yen at 10:14 a.m. and lost
0.8 percent this month.
- Rebar Trades Near Lowest in Eight Months on Overcapacity Concern.
Steel reinforcement-bar futures traded near the lowest level in more
than eight months on concern that overcapacity at Chinese mills means
supply will exceed demand. Rebar for October delivery on the Shanghai
Futures Exchange fell to as low as 3,422 yuan a ($558) a metric ton,
the lowest for a most-active contract since Sept. 10. It traded at 3,436
at
9:58 a.m. local time. Futures have lost 4.6 percent in May and
are set for a fourth monthly decline.
- Blankfein Leads Bank CEO Pay With $26 Million Deemed as Overpaid. Bankers at Goldman Sachs Group Inc. had a tumultuous 2012. The
firm
cut 900 jobs, promoted the fewest executives to the exalted post of
partner in more than a decade and slashed the portion of revenue set
aside for compensation to 38 percent from 42 percent a year earlier. For
the man at the very top of Goldman Sachs’s pay pyramid, Chief Executive
Officer Lloyd Blankfein, 2012 was his finest year since the boom times
of 2007. Blankfein, 58, was awarded $26 million for his work last year,
lifting him to No. 1 in the Bloomberg Markets ranking of the best-paid
CEOs at North America’s 20 largest financial companies by customer
deposits. John Stumpf, who led Wells Fargo & Co. to a record profit
of $18.9 billion, ran a distant second, at $19.3 million, Bloomberg
Markets magazine will report in its July issue. The pay of the 20 chiefs increased an average of 7.7 percent for 2012 compared with a year earlier,
according to data compiled by Bloomberg. The tally is based on
salaries, stock, bonuses and long-term incentive pay awarded to the CEOs
for 2012. “All of them are being overpaid,” says Eleanor Bloxham, CEO of Value Alliance Co., a board advisory firm in Westerville, Ohio. “The bank boards still don’t have a good handle on how they should be compensating
their executives.” Bloxham says directors lean too
much on share performance and instead should look at how CEOs manage
risk, including capital ratios that measure financial strength.
- Volcker Cautions Federal Reserve May ‘Fall Short’. Former Federal Reserve Chairman Paul Volcker said today the
central bank will probably “fall short” by being asked to do too much. “It’s
fashionable to talk about a dual mandate, that policy should somehow be
directed toward two objectives, of price stability and full
employment,” Volcker told the Economic Club of New York. “Fashionable or
not, I find that mandate both operationally confusing and ultimately
illusory.” “Asked to do too much, for instance to accommodate misguided fiscal
policies, to deal with structural imbalances, to square continuously the
hypothetical circles of stability, growth and full employment, then it
will inevitably fall short,” Volcker said. Those efforts cause it to
lose “sight of its basic responsibility for price stability, a matter
that is within the range of its influence.” “The Federal Reserve, any central bank, should not be asked to do too
much to undertake responsibilities that it cannot responsibly meet with
its appropriately limited powers,” Volcker said. He said a central
bank’s basic responsibility is for a “stable currency.” “Credibility
is an enormous asset,” Volcker said. “Once earned, it must not be
frittered away by yielding to the notion that a little inflation right
now is a good a thing, a good thing to release animal spirits and to pep
up investment.” “The implicit assumption behind that siren call
must be that the inflation rate can be manipulated to reach economic
objectives,” according to Volcker. “Up today, maybe a little more
tomorrow and then pulled back on command. Good luck in that. All
experience demonstrates that inflation, when fairly and deliberately
started, is hard to control and reverse.”
Wall Street Journal:
- Mexico Housing Bust Bruises Investors, Buyers. Hardly anyone turns up nowadays at a Homex sales center for low-income homes in this dusty town north of Mexico City. On
a recent Saturday, a banner promising "well-being" flapped in the wind
near a sign that read "a new life awaits you." Even the lone
saleswoman on duty, Carolayn León, says she no longer believes in her
employer after several missed paychecks. She isn't the only one
who has lost faith. Home buyers and investors are turning their backs on
Mexico's low-income housing darlings, bringing a government-fueled boom
that lasted more than a decade to a screeching halt. Scores of new
homes in far-flung communities sit empty, while banks have canceled
credit lines to some of the country's biggest housing companies.
- Blackstone(BX) Weighs Bigger SAC Withdrawal. SAC
Capital's largest outside investor, Blackstone Group, is planning to
withdraw close to $400 million from the embattled hedge-fund firm, or
potentially twice as much as was expected earlier this month.
- Currencies Cave to Commodity Dive. Aussie Dollar, Others Start to Tumble as Investors Bet on Sustained Price Declines for Raw Materials. Currencies of the world's biggest commodity exporters are plumbing fresh
lows, the latest sign that investors are betting on a sustained decline
in prices of oil, iron ore, copper and other raw materials.
Fox News:
- Tea Party groups file lawsuit over IRS targeting. A Washington advocacy group filed a lawsuit on Wednesday against the IRS
and top Obama administration officials on behalf of 25 Tea
Party-related groups, marking the biggest lawsuit to date over the tax
agency's practice of targeting conservatives for additional scrutiny.
MarketWatch.com:
CNBC:
- China's Grab of US Hogs Stokes Interest on Hill. China's
largest acquisition to date of a U.S. company, Smithfield Foods, raised
eyebrows on Wednesday among market watchers who question China's
interest in taking possession of one of America's largest food
producers.
Zero Hedge:
Business Insider:
New York Times:
- China’s Food Play Extends Its Reach, Already Mighty. If you dined on tilapia recently, chances are it came from China. And
that artificial vanilla you just used to make cookies? It, too, may have
made the same long journey to your kitchen in the United States.
A growing amount of food commonly consumed by Americans — ranging from
canned tuna and mandarin oranges to fresh mushrooms and apple juice — is
now being imported from China. By the end of last year, the United
States imported 4.1 billion pounds of food products from China,
according to the Agriculture Department.
The Blaze:
Reuters:
- Moody's downgrades Alcoa(AA), sees headwinds for primary metals. Moody's
Investors Service downgraded aluminum producer Alcoa Inc. on Wednesday,
citing weak aluminum prices and a tough market for the company's
primary metals business. Moody's cut Alcoa's senior unsecured debt
ratings to Ba1
from Baa3, and assigned a corporate family rating of Ba1. It
said the firm's rating outlook is stable.
- Buffett pays $5.6 bln for Vegas utility, bulks up in West. Berkshire's MidAmerican Energy Holdings Co said on Wednesday
it will buy NV Energy for $23.75 per share, a 23 percent premium
to NV's Wednesday closing price. NV Energy shares rose to $23.90
in after-hours trading on Wednesday.
Telegraph:
- France must reform or the euro will die. Yes, there were sighs of relief on Wednesday as the European Commission
stepped back from hitting eurozone countries with fines for their failure to
meet targets to cut public spending. Behind the cover of easing up on austerity, the commission flexed new European
Union powers to enforce economic reform and France is in its sights.
Yonhap News Agency:
- South Korea's Hyun Says Japan's Economic Policies Fragile. South Korean Finance Minister Hyun Oh Seok described policies being promoted by Japanese Prime Minister Shinzo Abe as "a fragile sand castle," citing Hyun in a Q&A session at an OECD meeting in Paris. Hyun says quantitative easing without improvement in economic fundamentals doesn't support sustainable growth. Says Japan's easing brings adverse effects to region, including more exchange rate volatility.
Xinhua:
- U.S.
to Collect Anti-Subsidy Duty on China Shrimp. The U.S. will collect
anti-subsidy duty of 5.76% on imports of frozen shrimp from China,
citing a preliminary decision announced by the U.S. Dept. of Commerce.
21st Century Business Herald:
- Beijing to Take Measures to Limit Home Prices. China's Beijing will likely cap home prices on a "larger scale" in 2H.
Time-Weekly:
- China Railway Corp. Wants Debts Waived. China Railway Corp. officials have been reaching out to the State Council and asking to have its liabilities waived, citing a person close to the company. The company has total liabilities of 2.84t yuan by the end of March, according to its bond prospectus.
Evening Recommendations
SunTrust Robinson:
- Rated (BMY) Buy, target $55.
- Rated (LLY) Buy, target $63.
- Rated (PFE) Reduce, target $27.
Night Trading
- Asian equity indices are -2.0% to -.50% on average.
- Asia Ex-Japan Investment Grade CDS Index 112.50 +5.5 basis points.
- Asia Pacific Sovereign CDS Index 94.50 +3.75 basis points.
- NASDAQ 100 futures +.01%.
Morning Preview Links
Earnings of Note
Company/Estimate
Economic Releases
8:30 am EST
- 1Q GDP is estimated to rise +2.5% versus a prior estimate of a +2.5% gain.
- 1Q Personal Consumption is estimated to rise +3.3% versus a prior estimate of a +3.2% gain.
- 1Q GDP Price Index is estimated to rise +1.2% versus a prior estimate of a +1.2% gain.
- 1Q Core PCE is estimated to rise +1.2% versus a prior estimate of a +1.2% gain.
- Initial Jobless Claims are estimated at 340K versus 340K the prior week.
- Pending Home Sales for April are estimated to rise +1.5% versus a +1.5% gain in March.
- Continuing Claims are estimated to rise to 2955K versus 2912K prior.
10:00 am EST
- Pending Home Sales for April are estimated to rise +1.5% versus a +1.5% gain in March.
11:00 am EST
- Bloomberg consensus estimates call for a weekly crude oil inventory decline of -500,000
barrels versus a -338,000 barrel decline the prior week. Gasoline
inventories are estimated to fall by -500,000 barrels versus a +3,015,000 barrel gain the prior week. Distillate inventories are estimated to fall by -450,000 barrels versus a -1,052,000 barrel decline the prior week. Finally, Refinery Utilization is expected to rise by +.3% versus a -.7% decline prior.
Upcoming Splits
Other Potential Market Movers
- The 7Y T-Note auction, Japan CPI report, China Manufacturing PMI report, weekly Bloomberg Consumer Comfort Index, weekly EIA natural gas inventory report and the (FLEX) analyst day could also impact trading today.
BOTTOM LINE: Asian indices are lower, weighed down by technology and commodity shares in the region. I expect US stocks to open mixed and weaken into the afternoon, finishing modestly lower. The Portfolio is 50% net long heading into the day.
Broad Market Tone:
- Advance/Decline Line: Lower
- Sector Performance: Most Sectors Declining
- Market Leading Stocks: Underperforming
Equity Investor Angst:
- ISE Sentiment Index 98.0 +36.11%
- Total Put/Call .82 -14.58%
Credit Investor Angst:
- North American Investment Grade CDS Index 76.65 +1.07%
- European Financial Sector CDS Index 142.98 +4.49%
- Western Europe Sovereign Debt CDS Index 82.0 +1.13%
- Emerging Market CDS Index 267.18 +1.71%
- 2-Year Swap Spread 16.25 -1.25 bps
- 3-Month EUR/USD Cross-Currency Basis Swap -14.5 -.25 bp
Economic Gauges:
- 3-Month T-Bill Yield .04% unch.
- China Import Iron Ore Spot $112.90/Metric Tonne -4.16%
- Citi US Economic Surprise Index -15.50 -1.2 points
- 10-Year TIPS Spread 2.21 -6 bps
Overseas Futures:
- Nikkei Futures: Indicating -306 open in Japan
- DAX Futures: Indicating +21 open in Germany
Portfolio:
- Slightly Lower: On losses in my medical/biotech and retail sector longs
- Market Exposure: 50% Net Long
Bloomberg:
- ECB Warns Financial Weakness Could Break Best Lull in Two Years. The European Central Bank said
weakness in the euro-area economy and the fragility of the
region’s banks risk ending what it describes as the calmest
period in financial markets since 2011. “The main message is that
financial stability has improved since the last issue,” ECB Vice
President Vitor Constancio said today in Frankfurt as he presented the
ECB’s twice-yearly Financial Stability Review. “But the situation remains fragile.
The year 2012 was not good at all for banks.” “Particularly vulnerable are banks that are confronted
with a significant deterioration of asset quality with high and
rising non-performing loan levels,” the ECB said in the report.
“Continued and prompt progress in proactively tackling bank
balance sheet problems is required.”
- German Unemployment Increased Four Times Forecast in May. German unemployment rose more than four times as much as economists
estimated in May as the euro area’s sovereign debt crisis and a long
winter took their toll on Europe’s largest economy. The number
of people out of work climbed a seasonally adjusted 21,000 to 2.96
million, the Nuremberg-based Federal Labor Agency said today. That’s the
fourth straight monthly gain. Economists predicted an increase of 5,000, according to the median of 35 estimates in a Bloomberg News survey.
- Hollande Says EU Can’t Dictate French Economy Policy, Monde Says. President Francois Hollande said the
European Commission isn’t in a position to decree French
economic policy, Le Monde reported. The commission isn’t there to
“dictate what we have to do,” Hollande was quoted as saying by the
newspaper. “We have to respect our European commitments on deficit
reduction,” he
said, according to the report. “As for structural reform, it’s
up to us and us alone to decide what path to take to obtain the
objective.”
- European Stocks Fall on Concern Fed Will Pare Stimulus.
European stocks fell, after the Stoxx Europe 600 Index rallied the most
in a month, on concern that the U.S. Federal Reserve will reduce debt
purchases as the world’s biggest economy strengthens. PSA Peugeot
Citroen declined 4.2 percent following a
French newspaper report that Europe’s second-biggest automaker may sell
new shares to raise cash. Evraz Plc fell to a record low after Stoxx
Ltd. said it will remove the commodity producer from its benchmark Stoxx
600 next month. Hennes & Mauritz AB dropped 2.5 percent as Goldman
Sachs Group Inc. recommended investors sell the shares. The Stoxx 600 retreated 1.9 percent to 302.5 at the close of trading.
- Latin America Disappoints After Squandering Commodity Boom. Latin America is disappointing investors, economists and businesses
with slower-than-forecast growth as waning commodity prices and strong
currencies hit nations that failed to diversify and become more
competitive. The five biggest investment-grade markets in the
region -- magnets for foreign capital as rich countries stalled
--expanded below projections or show signs of weakness. Mexico’s and
Brazil’s gross domestic product missed estimates in a Bloomberg survey.
Economists polled by Brazil’s central bank cut the country’s 2013
outlook this week for the second time in seven days, anticipating the
worst three-year period in a decade.
- Lumber Futures Fall Most in 17 Months as Output Rebounds. Lumber futures fell the most in 17 months on speculation that North American mills from Texas to Alberta are boosting output.
- Copper Declines on German Jobs Data, IMF's China Forecast. Copper futures fell for the third
time in four sessions after German unemployment rose more than
expected and the International Monetary Fund cut its forecast
for economic growth in China, the world’s top metal consumer.
- Rosengren Says Significant Fed Accommodation Still Needed.
Federal Reserve Bank of Boston President Eric Rosengren said the Fed
should press on with record stimulus to speed economic growth, reduce
7.5 percent unemployment and boost inflation running below 2 percent. “While
we have seen some improvement in labor market conditions, significant
accommodation remains appropriate at this time,” Rosengren said today in
remarks prepared for a speech in Minneapolis. “Core inflation remains
at the very low end of recent experience, and the unemployment rate is
close to
the cyclical peaks of the past two recessions.”
- Technology Puts Reach Five-Year Low. The cost of options hedging
against losses in U.S. technology shares fell to an almost five-year
low. Puts with an exercise price 10% below the Technology Select Sector
SPDR Fund cost 6.45 points more than calls betting on a 10% gain,
according to three-month data compiled by Bloomberg. The price
relationship known as skew slid to 5.19 on May 22, the lowest level
since October 2008.
Wall Street Journal:
- OPEC Axes Production Monitoring Committee.
OPEC has decided to ax a key committee that monitored its members'
compliance with oil production targets and made recommendations on
output policy, people familiar with the matter told The Wall Street
Journal Wednesday.
Fox News:
- UN gets new info on alleged chemical weapons use in Syria. Britain said Thursday it has sent a letter to Secretary-General Ban
Ki-moon with new information on three further incidents of alleged
chemical weapons use by the Syrian government. Britain's U.N. Ambassador Mark Lyall Grant said his government has
continued to provide new information to the secretary-general and the
head of the U.N. team Ban appointed to investigate alleged chemical
weapons attacks in Syria.
- House Republicans challenge Holder testimony on reporter surveillance. Top Republicans on the House Judiciary Committee openly challenged
Attorney General Eric Holder on Wednesday over his testimony two weeks
ago in which he claimed to be unaware of any "potential prosecution" of
the press, despite knowing about an investigation that targeted a Fox
News reporter.
MarketWatch:
CNBC:
Zero Hedge:
Business Insider:
New York Times:
- Smithfield(SFD) to Be Sold to Chinese Meat Processor. Shuanghui
International of China agreed on Wednesday to buy the American meat
processor Smithfield Foods for about $4.7 billion, in one of the biggest
moves by a Chinese company into the United States to date. It will likely draw close government scrutiny over Chinese food
standards, especially amid a number of incidents like a recent scare
over bird flu. Though Smithfield has argued that the deal is meant to
sell American pork outside of the country and not import Chinese
products, regulators are likely to ensure that the company does not
lower its quality standards.
Shuanghui, also known as Shineway, is China’s largest pork producer
and is owned in part by an investment firm run by Goldman Sachs(GS).
- Google(GOOG) Overhauls Gmail to Take On E-Mail Overload.
CBS:
Reuters:
- Volcker warns on limits of U.S. Fed's easy money. Former Federal Reserve Chairman
Paul Volcker on Wednesday waded into the debate over when to
reduce today's ultra-easy U.S. monetary policies, arguing that the benefits of bond-buying are "limited and diminishing" and warning that central banks are too often late in removing
stimulus.
- Brazil economic growth disappoints again. Brazil's economic growth fell
short of forecasts once again in the first quarter as President
Dilma Rousseff's numerous stimulus packages failed to aid manufacturers while consumers, frightened by rising inflation,
grew more conservative. Even a record corn and soy harvest and a rebound in
investment were not enough to avoid disappointing gross domestic
product growth of just 0.6 percent compared with the fourth
quarter, according to government data released on Wednesday. Analysts expected 0.9 percent growth.
- Brazil will not tolerate high inflation -Finmin Mantega.
- Luxury spending drives Michael Kors(KORS) profit. Upscale accessories maker Michael Kors
Holdings Ltd reported a better-than-expected quarterly
profit as shoppers spend more on luxury goods, and the company
said it would double the number of its stores in Europe, where
its sales are booming. The company, formed and owned by fashion designer Michael
Kors, has grown at a blistering pace since it went public in
2011, underlining shoppers' appetite for luxury items even in a
tough economy.
Telegraph:
Die Welt:
-
Draghi Loses Support in ECB Executive Board. ECB
Executive Board members Joerg Asmussen and Yves Mersch oppose ABS
purchases, citing central bank officials. Bundesbank President Jens
Weidmann also against ABS-purchase program. Mersch is against any
further use of non-standard measures.
Bild:
- EU's Ottinger Says Europe Needs a Revamp. European Energy
Commissioner Guenther Oettinger is concerned about the economic
situation within the European Union, citing Oettinger at an event in
Brussels. Oettinger says Brussels hasn't fully realized how bad the
situation is, he said. Says especially France isn't prepared; needs a
pension reform, longer working life time, less govt spending. Says is
concerned about countries like Bulgaria, Romania, Italy that are hardly
governable. Says Germany is about to lose part of its competitiveness
through minimum wage, women quota, childcare subsidy, its no to
fracking. Says Germans are hypocritical, import Russian gas with no
concern for environment, but don't want fracking at home, they should at
least test it, he said.
TVB:
- Hong Kong Govt Won't Be Worried If Home Prices Fall 20%. Recent
signs showing property market stabilizing is short term, and the govt
wouldn't be concerned if prices fell 20%, citing govt officials.
Interest rates will definitely climb in the future, dragging down
property prices, the official said. The govt doesn't expect huge amount
of negative assets cases like in 1998 and 2003, should property prices
drop as much as 40% in the long term, the report said.
Style Underperformer:
Sector Underperformers:
- 1) Homebuilders -3.40% 2) REITs -3.01% 3) Steel -2.41%
Stocks Falling on Unusual Volume:
- SKM, ERF, CLMT, TAYC, IBN, KO, LGCY, GWR, TRN, ASCA, AEC, IRC, PCN, PTY, PHK, JMI, PHT, MRC, LPLA, UTG, MITT, PDT, GOF, CHS, KMM, TSLA, CYBX, ACWX, EQM, EFC, RNP, RQI, WPC, PCI, CLNY, O, CCI, AOL, NNN, HAS, CNQR, DOLE, PCL, ENOC, EPR, N, PHK, WPC, SNH, FAF, MPW and SBRA
Stocks With Unusual Put Option Activity:
- 1) HL 2) HYG 3) DVY 4) OIH 5) IYR
Stocks With Most Negative News Mentions:
- 1) MXIM 2) CMA 3) CQP 4) NSC 5) X
Charts:
