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European Stocks Advance as Tandberg Rallies; Asian Shares Drop
By Sarah Jones
Oct. 1 (Bloomberg) -- European stocks gained after the International Monetary Fund increased its forecast for global growth and Cisco Systems Inc. agreed to buy Tandberg ASA. Asian shares retreated.
Tandberg, the world’s biggest videoconferencing-equipment maker, jumped 12 percent after agreeing to be bought by Cisco for about $3 billion. Munich Re climbed 2 percent after the world’s biggest reinsurer announced the resumption of its share- buyback program.
Europe’s Dow Jones Stoxx 600 Index added 0.5 percent to 243.74 at 8:20 a.m. in London as the IMF raised its forecast for global growth next year to 3.1 percent from 2.5 percent as more than $2 trillion in stimulus packages and demand in Asia pull the world economy out of its worst recession since World War II.
The Stoxx 600 surged 18 percent in the past three months, the biggest quarterly gain since 1999, as the European Central Bank kept interest rates at a record low and the French and German economies unexpectedly exited recessions. The rebound has sent price-earnings valuations on the index to the highest levels since 2003.
The MSCI Asia Pacific Index fell 1.1 percent today as the Bank of Japan’s Tankan survey showed companies plan to deepen investment cuts. Markets in Hong Kong and China were closed for holidays. Futures on the Standard & Poor’s 500 Index were little changed before reports on U.S. manufacturing and consumer spending that may add to evidence the worst recession since the 1930s is easing.
Greenspan
Former Federal Reserve Chairman Alan Greenspan yesterday said the U.S. will have to both tighten credit and raise taxes as the world’s largest economy recovers.
“The presumption that we’re going to be able to resolve this without significant increases in taxes is unrealistic,” Greenspan said in a Bloomberg Television interview.
The economy will grow at a 3 percent to 4 percent annual pace in the next six months before slowing in 2010, Greenspan predicted. Growth will be aided by a surge in the stock market and inventory restocking by companies. Share prices are likely to “flatten out, even though earnings are doing very well.”
Tandberg rallied 12 percent to 154.5 kroner as Cisco, the world’s largest maker of networking equipment, agreed to buy the Norwegian company for 17.2 billion kroner ($2.96 billion) to expand its video-conferencing products. Cisco will pay 153.50 kroner a share in cash, 11 percent more than Tandberg’s closing price yesterday.
Munich Re Rises
Munich Re advanced 2 percent to 111.18 euros. The reinsurer said it will repurchase shares with a volume of as much as 1 billion euros ($1.5 billion) by the time the company holds its 2010 annual general meeting.
Michelin & Cie. fell 1.4 percent to 52.87 euros. The Wall Street Journal reported that Jean-Dominique Senard, chief financial officer of the world’s second-largest tiremaker, said the economic recovery is shaky and may soon fade. The newspaper cited an interview.
France Telecom SA declined 1.1 percent to 18 euros after Citigroup Inc. lowered its recommendation to “sell” from “hold,” saying the company may suffer from fibre-communication regulation and a new mobile-phone operator in its home market.
Reports today may show U.S. manufacturing expanded last month at the fastest pace in more than three years and consumer spending in August grew the most since 2003. The Institute for Supply Management’s factory gauge rose to 54 in September from 52.9 the month before, according to a Bloomberg News survey of economists. Fifty is the dividing line between expansion and contraction.
To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net. Last Updated: October 1, 2009 03:22 EDT
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 become salted fish
keepnosecrets ( Date: 01-Oct-2009 15:40) Posted:
Aiya, your Zhou Yu shorted 20,000 lots of this counter, so if it goes up, he really will become a a fish in the boat. (Yu zai zhou li mei you shui, ahh).
risktaker ( Date: 01-Oct-2009 14:48) Posted:
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No wonder, he ask u dun touch cautus, so he also advise u to touch boobs lah
TuaPekGong9413 ( Date: 01-Oct-2009 15:10) Posted:
| singtel to sti rescue liao. my ang mo fren only touch boobs |
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Alemak, your angmo fren got the midas touch or not, if have, ask him/her to touch Midas n give it the midas touch
TuaPekGong9413 ( Date: 01-Oct-2009 15:02) Posted:
my angmo fren advise me not to touch catus....say mart many catus now.... |
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Aiyoyo, Tuapekgong u now dun phua kor pure, quickly po pi mkt lah.
TuaPekGong9413 ( Date: 01-Oct-2009 14:47) Posted:
| if to9 US lai sai agian for fear of october then tmr sti no eyes to see liao |
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Aiyah, Tuapekgong ka ki bo eng phua kor pure, wher got time to po pi mkt.
niuyear ( Date: 01-Oct-2009 14:34) Posted:
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Hi TuaPekgong
how come you never 'bo pi' the stock market.
TuaPekGong9413 ( Date: 01-Oct-2009 14:15) Posted:
| mart is slowing downtrend. looking a the buying/selling trend, more volumes are dump as compared to buying. players seems to be slowing selling out so as not to cause panic....better be in safe mode now....be cautious when playing with the hope of skali going up... |
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hahaha.... if run out of cow's milk, zhuge liang n zhou ye have to breastfeed them with human's milk.
niuyear ( Date: 01-Oct-2009 14:27) Posted:
hahaha, i can see that zhuge liang bribing the analysts and media by offering them cow's milk he just milked from that 2 cows, hahahah........
As i said, in stock market, price goes up will come down and vice versa,so, price actions by BBx (be it conspiration with analysts or media or within their own insider trading) , it is nothing new to people and we all can just see with half an eye without you having to tell us who is doing what at what price and what price is going to be breached etc.......and most of the time, the 'price' didnt seem to be correct. LOL
Ths 'Zhu Ge' for making Midas such an intersting stock to watch... Cheers
risktaker ( Date: 01-Oct-2009 13:01) Posted:
| do u believed everything has already pre-arrange ? "news, media, analyst" they are told to say something and published something when the call is made.
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Fed Promises Easy Money for an Extended Period
by Claus Vogt 09-30-09
Every few weeks the world’s most powerful and influential central bankers — those in charge of the world’s number one reserve currency, the U.S. dollar — come together in what’s called the Federal Open Market Committee (FOMC).
They discuss the economy, interest rates, financial markets and whatever else they deem important. Then they decide to set the Federal Funds Rate at a level they think is appropriate.
And last week was their week. So today I want to analyze what their decisions mean for the stock market and for you as an investor.
The Fed Statement Reassures
A Very Lax Monetary Policy …
After each FOMC meeting, the Fed releases a statement. And the one for September 23, 2009, is very telling in my opinion. Here’s its most important part:
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| The FOMC meets regularly to decide where to set the Federal Funds Rate. |
“The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”
As you can see, the Fed is promising a continuation of its extremely lax monetary policy “for an extended period.” So all the recent media talk about a soon-to-begin exit strategy or a normalization of monetary policy was obviously premature. The Fed is reassuring us that there will be easy money for as far as the eye can see.
Why?
Two reasons come to mind:
First, the Fed is still very concerned about the economy … the employment situation is dire … and a double-dip recession is a real possibility
Second, and more important, is that they know how precarious the banking situation still is. They know that the bad debt problems have not been solved … that most banks would go bankrupt if they had to implement mark-to-market rules … and that the banking system is still on life support.
This Is Important News
For the Stock Market
Since the Fed is confronted with two major problems — a shaky economy and an unstable banking system — it’s not worrying about a possible stock market bubble in the making.
Why is this so important?
Just look at the charts below. The stock market has rallied some 60 percent since the March low. But earnings are still very depressed. Hence the classic version of the P/E ratio — using twelve months trailing GAAP earnings — shot to the stratosphere!
Source: www.decisionpoint.com
Twelve-month trailing earnings as of the first quarter 2009 were a mere $6.86 for the S&P 500 making for a P/E ratio of 154. According to Standard and Poor’s, these earnings are estimated to rise to $7.51 in the second quarter, and $7.61 in the third quarter. Then they’re expected to jump to $39.35 in the fourth quarter and $43.58 in the first quarter 2010. Based on this last figure the P/E ratio will decline to 24.
Historically the normal range for this very P/E ratio — based on 12-month trailing GAAP earnings — has been between 10 (undervalued) and 20 (overvalued). Hence even if the corporate sector will see the estimated jump in earnings, the stock market is still very expensive.
Classic stock market valuation metrics show that this is a highly overvalued market. And overvalued markets can stay overvalued for a long time and even become more overvalued — as long as the Fed does not take away the proverbial punch bowl.
This means one of two things …
We’re Witnessing the Next Bubble, Or
Earnings Have to Increase Dramatically!
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| Fed chief Bernankes inflationary stance could be the fuel that ignites the next stock market bubble. |
Right now I can’t rule out either one. I do, however, lean towards the first. And in reading the Fed’s FOMC statement one thing becomes obvious: If we’re on our way to a new stock market bubble the Fed will not prick it any time soon.
The September 23 statement that I cited earlier is as clear as you can expect from the Fed. Much clearer than anything Greenspan said during his long reign. His famous “irrational exuberance” speech, which was never followed by any action, is a perfect example.
Bernanke is much different …
From the very beginning of his career at the Fed he made it known that he’s a first class inflationist, and he strongly believes prosperity can be achieved by printing money. Now the Bernanke Fed is clearly reiterating this inflationary stance. By doing so the Fed is rubberstamping the current stock market rally and apparently not worrying about a possible bubble!
There is an old Wall Street saying: “Don’t fight the Fed.” I think it’s wise to heed it in today’s environment.
Best wishes,
Claus
kellychang ( Date: 01-Oct-2009 11:04) Posted:
haha...kidding...well...i came here also just wish to share share... but when u guys so bullish that moment...then , i say so much i also useless... now i just wish to share....do u think SG current economic with GDP-4-5% then can have a index 3000? i am quite doubt about it... well, same scenario apply to US... please dun shoot me again ohh...i scared... i am just share share what i thinking...
AK_Francis ( Date: 01-Oct-2009 10:59) Posted:
| Ha ha, AK sincer apology, wat I meant, if one uncertain, dun throw out money for anything, safe n steady plus own judgement still d best, as wat 2Y for, as u d love one will live well without hassle. Cheers again |
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| Daryl Guppy: Secret escape from the panda bear |
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| Written by Daryl Guppy |
| Saturday, 05 September 2009 15:00 |
ONE SWALLOW DOESN'T make a summer and many believe that a few days of rebound in the Shanghai market doesn’t drive away the bearish mood. There is no question that the fall below the long-term trendline is particularly significant. It changes the nature of the trend in the market and the nature of the trend behaviour. The long-term trendline will now act as a formidable resistance to future rises in the trend. The shallow slope of the long-term trendline suggests a slower rate of a future trend rise for the Shanghai market. This is a good outcome because it will develop a more stable and sustainable uptrend. Fundamental analysts use arbitrary measures to distinguish between a retracement and a bear market. The measures of 10% for a technical correction and 20% for a bear market are convenient, but misleading ways to gauge market behaviour. They do not take into account the behaviour and development of trends. In an environment where the Dow Jones can rise or fall routinely by 3.5% or more a day, it makes little sense to define a technical correction based on a 10% figure. The characteristics of a bear market are related to the behaviour of the trend and not to a particular figure. This difference is very important when we consider the Shanghai Composite Index. A bear market is preceded by strong and clear chart patterns which give early warnings of a major change in the trend. The most common is the head-and-shoulder pattern. The rounding-top pattern is also a relievable leading signal of trend change. Both these chart patterns developed over several months. The head-and- shoulder pattern in the Shanghai Composite Index started in June 2007 and was confirmed six months later in January 2008. When we look at the Shanghai Composite Index behaviour in recent weeks or months, we cannot identify one of these bear-market patterns. There is no rounding-top pattern. There is no head-and-shoulder pattern. These patterns forecast a significant and prolonged change in the trend. Without these patterns, the significance of the recent index retreat and trend change is analysed differently. Further analysis indicates the market is showing the opportunity to apply Strategy 8 from the Chinese 36 Strategies. This is a Secret Escape Through Chen Cang. Analysts are focused on the bear market development, or distracted by the idea of a bubble collapse. They ignore the developing Relative Strength Index (RSI) divergence pattern. The rally rebound in the last several days has confirmed this RSI divergence. This points the way to the secret escape from the bear market. Divergence occurs when two trendlines move in opposite directions during the same time period. Analysis starts with the Shanghai Composite Index chart. The first trendline is drawn between the low of Aug 20 and the low of Sept 1. This trend line slopes downwards. The next step is to consider the RSI indicator display. These index lows are compared to the low points on the RSI indicator for the same dates. These two RSI lows are joined with a trendline. This trendline moves upwards and confirms the RSI divergence pattern. This is a powerful and reliable trend reversal pattern. This pattern strongly suggests this market will develop a recovery uptrend. The RSI divergence pattern has one problem — it is not very good for understanding the time frame for the market recovery. When the divergence pattern develops, it does not mean the market will instantly recover and change the trend direction. The RSI divergence pattern warns that the current trend has weakened and a new trend is developing. This may be preceded by a period of consolidation and then develop a new uptrend. The consolidation area is easily identified on the Shanghai Composite Index chart. There is a strong resistance level near 3,000. This is the upper edge of the consolidation area. The lower edge is at 2,600. There is a high probability the market will move in a sideways trading band for several weeks before developing a breakout above 3,000. A market consolidation between 2,600 and 3,000 will provide short-term rally trading opportunities. This indicates investors are accumulating stocks and getting ready for the development of the next section of the longterm uptrend in the Shanghai market. This has been a savage sell-off but, the RSI divergence pattern shows the market can make a secret escape from the bear. The pattern of chart behaviour suggests this is not a bear market, despite the degree of retracement.  |
tanzq83 ( Date: 01-Oct-2009 10:03) Posted:
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chill.. i set up the particular thread not just for you, so dont take it too personal :).
too much speculations at that time without reasons, people just hitting ridiculous numbers that any children can also hit brainlessly.
a lot of things happened in the market recently and it kind of signals that it's time to pull back quite a bit in the next 1-2months.
I dont think another rally will come in for the 3rd quarter financial reports (just as we see during march and july, because people are factoring all the stimulus and optimism in the current market), if in the event that the companies fail to meet their forecast, then likely a major pull-back for the counter will come, if the companies just meet their forecast ~ i dont see much hike in the shareprice (because it's expected from there).
i also feel that china market (SSE) also gave some indications to what will happen in the next few months (and the investor sentiments). Surprisely, the SSE had down quite a bit to 2700region after edging above 3000pts last few weeks. The index had being pretty flat even with the influx of IPO ~ interest seems to wane off and I think this is a point to indicate that investors may be very cautious now as they pull back to look for indicators for global improvements.
personal opinion: hands off the market now if possible, correction around the corner in ~ 1-2months time. going to be more volatile, sentiment biased towards market downside.
my 2-cent worth.. :)
kellychang ( Date: 30-Sep-2009 23:21) Posted:
well...when i said STI 2200 then nobody believe....
well....u guys even open a thread...said if my msn down then go there to play around...
say STI 3000 , what n what....
ok, let see what going to happen.....
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China Manufacturing Grows for Seventh Straight Month (Update1)
By Bloomberg News
Oct. 1 (Bloomberg) -- China’s manufacturing expanded for a seventh straight month in September on stimulus spending and this year’s record growth in new loans.
The Purchasing Managers’ Index rose to a seasonally adjusted 54.3 from 54.0 in August, the Federation of Logistics and Purchasing said today in an e-mailed statement in Beijing. The latest number was lower than the median estimate of 55 in a Bloomberg News survey of 13 economists. A reading above 50 indicates an expansion.
China, which is marking 60 years of Communist Party rule today, has pledged to maintain stimulus policies to create jobs, maintain social stability and strengthen the recovery of the world’s fastest-growing major economy. A manufacturing index released by HSBC Holdings Plc yesterday also showed an expansion in September as a 4 trillion yuan ($586 billion) stimulus package countered a slump in exports.
“China’s manufacturing is likely to keep climbing steadily as investment, production and retail sales all rebound further and exports bottom out,” said Lu Zhengwei, an economist at Industrial Bank Co. in Shanghai. Lu estimates China’s economy may grow 9 percent this quarter, up from 7.9 percent in the previous three months.
Today’s manufacturing figure compares with a record-low 38.8 in November, when recessions in the U.S., Europe and Japan sent export orders plunging and Premier Wen Jiabao’s stimulus package was yet to kick in. China’s economic growth will keep strengthening for the rest of 2009, according to a Bloomberg News survey of economists in August.
Surging Auto Sales
China’s industrial output rose the most in a year in August as passenger-car sales almost doubled on tax cuts and government subsidies. Local truck-maker Anhui Jianghuai Automobile Co. said this week that it plans a venture with Caterpillar Inc. and Navistar International Corp. to boost production and tap demand in the world’s fastest-growing major vehicle market.
Industrial overcapacity and a 10-month slump in exports are drags on the nation’s recovery.
China’s State Council, or cabinet, announced on Sept. 29 a ban on building aluminum smelters and coking projects for three years and a temporary halt on new cement projects. It also said the steel industry shouldn’t expand, without specifying a period.
The manufacturing index, released by the logistics federation and the Beijing-based National Bureau of Statistics, is based on replies to questionnaires sent to purchasing executives at more than 730 companies in 20 industries. It began in January 2005.
--Li Yanping. Editors: Paul Panckhurst, Russell Ward.
To contact the Bloomberg News staff for this story: Li Yanping in Beijing at yli16@bloomberg.net Last Updated: September 30, 2009 21:06 EDT
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Below is my long-term chart analysis for sharing and exchange pointers.
My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA.
If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by intentionally rating it as "bad post", this is not cursing but Buddhism beliefs tat intentional bad deeds will accumulate for yourself and possibly your next generation, "bad" karma for your "bad" deeds.
If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR.
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If break and close above 0.76 (see chart below: upper down-sloping resistance line)will likely confirm the bullish flag continuation pattern, especially if on high vol.
richtan ( Date: 01-Oct-2009 00:01) Posted:
Below is my chart analysis for sharing and exchange pointers.
My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA.
If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by intentionally rating it as "bad post", this is not cursing but Buddhism beliefs tat intentional bad deeds will accumulate for yourself and possibly your next generation, "bad" karma for your "bad" deeds.
If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR.
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"Trade Summary" at this point in time shows extremely heavy buying-up, but of course, nothing is guaranteed, may change,
so dyodd n BOSAYOR:
| WEIGHTED AVG PRICE : 0.7306 |
LAST DONE PRICE : 0.740 |
| SPREAD/PRICE RATIO : 0.0068 |
AVG TRADE SIZE : 62.264 |
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Below is my long-term chart analysis for sharing and exchange pointers.
My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA.
If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by intentionally rating it as "bad post", this is not cursing but Buddhism beliefs tat intentional bad deeds will accumulate for yourself and possibly your next generation, "bad" karma for your "bad" deeds.
If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR.
star888 ( Date: 01-Oct-2009 00:06) Posted:
I believe this counter is a gem. Sometimes you can know how irrational people is. Awarded billion dollars contract, people throw. Cash call ie issue warrant, they chase like hell. |
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Below is my chart analysis for sharing and exchange pointers.
My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA.
If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by intentionally rating it as "bad post", this is not cursing but Buddhism beliefs tat intentional bad deeds will accumulate for yourself and possibly your next generation, "bad" karma for your "bad" deeds.
If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR.
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Bad Post
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Below is my chart analysis for sharing and exchange pointers.
My TA chart is posted to share n exchange pointers with those TA practitioner whom believes in TA.
If u are a TA detractor, plse just ignore n refrain from peeping at my chart posting n start making unconstructive comments and plse do not be so childish or lunatic as to abuse the rating system by intentionally rating it as "bad post", this is not cursing but Buddhism beliefs tat intentional bad deeds will accumulate for yourself and possibly your next generation, "bad" karma for your "bad" deeds.
If u think it is a bad post, then be constructive and kindly post your TA for sharing. This is only my view n I may be right or wrong, so dyodd and SOBAYOR.
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Fed Promises Easy Money for an Extended Period
by Claus Vogt 09-30-09
Every few weeks the world’s most powerful and influential central bankers — those in charge of the world’s number one reserve currency, the U.S. dollar — come together in what’s called the Federal Open Market Committee (FOMC).
They discuss the economy, interest rates, financial markets and whatever else they deem important. Then they decide to set the Federal Funds Rate at a level they think is appropriate.
And last week was their week. So today I want to analyze what their decisions mean for the stock market and for you as an investor.
The Fed Statement Reassures
A Very Lax Monetary Policy …
After each FOMC meeting, the Fed releases a statement. And the one for September 23, 2009, is very telling in my opinion. Here’s its most important part:
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| The FOMC meets regularly to decide where to set the Federal Funds Rate. |
“The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for an extended period.”
As you can see, the Fed is promising a continuation of its extremely lax monetary policy “for an extended period.” So all the recent media talk about a soon-to-begin exit strategy or a normalization of monetary policy was obviously premature. The Fed is reassuring us that there will be easy money for as far as the eye can see.
Why?
Two reasons come to mind:
First, the Fed is still very concerned about the economy … the employment situation is dire … and a double-dip recession is a real possibility
Second, and more important, is that they know how precarious the banking situation still is. They know that the bad debt problems have not been solved … that most banks would go bankrupt if they had to implement mark-to-market rules … and that the banking system is still on life support.
This Is Important News
For the Stock Market
Since the Fed is confronted with two major problems — a shaky economy and an unstable banking system — it’s not worrying about a possible stock market bubble in the making.
Why is this so important?
Just look at the charts below. The stock market has rallied some 60 percent since the March low. But earnings are still very depressed. Hence the classic version of the P/E ratio — using twelve months trailing GAAP earnings — shot to the stratosphere!
Source: www.decisionpoint.com
Twelve-month trailing earnings as of the first quarter 2009 were a mere $6.86 for the S&P 500 making for a P/E ratio of 154. According to Standard and Poor’s, these earnings are estimated to rise to $7.51 in the second quarter, and $7.61 in the third quarter. Then they’re expected to jump to $39.35 in the fourth quarter and $43.58 in the first quarter 2010. Based on this last figure the P/E ratio will decline to 24.
Historically the normal range for this very P/E ratio — based on 12-month trailing GAAP earnings — has been between 10 (undervalued) and 20 (overvalued). Hence even if the corporate sector will see the estimated jump in earnings, the stock market is still very expensive.
Classic stock market valuation metrics show that this is a highly overvalued market. And overvalued markets can stay overvalued for a long time and even become more overvalued — as long as the Fed does not take away the proverbial punch bowl.
This means one of two things …
We’re Witnessing the Next Bubble, Or
Earnings Have to Increase Dramatically!
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| Fed chief Bernankes inflationary stance could be the fuel that ignites the next stock market bubble. |
Right now I can’t rule out either one. I do, however, lean towards the first. And in reading the Fed’s FOMC statement one thing becomes obvious: If we’re on our way to a new stock market bubble the Fed will not prick it any time soon.
The September 23 statement that I cited earlier is as clear as you can expect from the Fed. Much clearer than anything Greenspan said during his long reign. His famous “irrational exuberance” speech, which was never followed by any action, is a perfect example.
Bernanke is much different …
From the very beginning of his career at the Fed he made it known that he’s a first class inflationist, and he strongly believes prosperity can be achieved by printing money. Now the Bernanke Fed is clearly reiterating this inflationary stance. By doing so the Fed is rubberstamping the current stock market rally and apparently not worrying about a possible bubble!
There is an old Wall Street saying: “Don’t fight the Fed.” I think it’s wise to heed it in today’s environment.
Best wishes,
Claus
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Dyodd - Do your own due diligence (ie homework)
BOSAYOR - Buy Or Sell At Your Own Risk
sugizoi4u ( Date: 30-Sep-2009 22:07) Posted:
Hi richtan...thanks for all the charts...but what does Dyodd n BOSAYOR means?
Paiseh....newbie here... |
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U.S. Stock-Index Futures Climb; S&P 500 Set for Quarterly Gain
By Elizabeth Stanton
Sept. 30 (Bloomberg) -- U.S. stock futures rose, signaling the market may extend its biggest quarterly rally in a decade, as the government said the economy shrank less than estimated in April through June and earnings at Nike Inc. beat estimates.
Nike, the largest athletic-shoe maker, jumped 6.8 percent after reporting higher profit on cost reductions and improving pricing. Alcoa Inc. climbed 1.7 percent and National Oilwell Varco Inc. jumped 1.4 percent as oil and metals rose. The Standard & Poor’s 500 Index was poised to extend its 15 percent quarterly advance after the Commerce Department said gross domestic product contracted at the slowest pace in a year.
Futures on the S&P 500 expiring in December added 0.4 percent to 1,059.2 as of 8:50 a.m. in New York. Dow Jones Industrial Average futures rose 0.4 percent to 9,711 and Nasdaq- 100 Index futures increased 0.3 percent to 1,720.75.
The S&P 500’s advance since the end of June is its steepest quarterly gain since 1998. The rally has sent price-earnings valuations in the index this month to the highest levels since 2004. The measure has rebounded 57 percent from a 12-year low in March. Alcoa will be the first company in the Dow average to release third-quarter earnings next week, set for Oct. 7.
Analysts expect profits in the S&P 500 to drop 22 percent on average in the third quarter before rebounding 63 percent in the final three months of the year, according to estimates compiled by Bloomberg.
The International Monetary Fund today cut its projection for global writedowns on loans and investments by 15 percent to $3.4 trillion, citing improvements in credit markets and initial signs of economic growth.
Nike Results
Nike rallied 6.8 percent to $64.17 in early New York trading as net income advanced to $1.04 a share in the three months ended Aug. 31 from $1.03 a share in the year-earlier period. Profit beat analysts’ estimates by 7 cents. Goldman Sachs Group Inc. lifted its recommendation on Nike shares to “buy” from “neutral.”
Alcoa climbed 1.7 percent to $13.54. The company will turn around its negative cash flow caused by falling aluminum prices by the end of the year, the Sueddeutsche Zeitung reported, citing an interview with Chief Executive Officer Klaus Kleinfeld. Separately, the metal’s price rose in London.
Exxon Mobil Corp. added 0.4 percent to $69.35 as crude oil rose above $67 a barrel in New York. Exxon, the largest U.S. energy company, sold stakes in an oil block and a gas area in Indonesia to a unit of Malaysia’s Petroliam Nasional Bhd.
Micron Technology Inc., the biggest U.S. producer of computer-memory chips, reported a fourth-quarter net loss of 10 cents a share, compared with a loss of 45 cents a year ago. Micron shares added 0.7 percent to $8.46.
Quarterly Rally
All 10 of the main industry groups in the S&P 500 advanced in the third quarter, led by a 26 percent rally in financial shares and 22 percent gains in industrial and commodity producers.
Gannett Co., the nation’s largest newspaper publisher, posted the steepest advance in the index, more than tripling in the quarter. Hartford Financial Services Group Inc., Wynn Resorts Ltd. and Tenet Healthcare Corp. more than doubled.
The gains came amid speculation the economy was returning to growth following the worst recession in seven decades. Home prices stabilized, consumer confidence strengthened as job losses abated and the Institute for Supply Management said manufacturing activity ended an 18-month contraction in August.
‘Over Processed’
The performance of the U.S. economy is probably more sluggish than reflected in stock markets, risking a correction in equities, Nobel Prize-winning economist Michael Spence said.
U.S. stock-market investors have “over processed” the stabilization of growth in the world’s largest economy, Spence said in an interview in Kuala Lumpur yesterday. The U.S. economy isn’t likely to experience a “double-dip” slowdown even as that remains a risk, said the professor emeritus of management in the Graduate School of Business at Stanford University.
A report today showed mortgage applications in the U.S. fell last week from a four-month high, led by a decline in purchases. The Mortgage Bankers Association’s index of applications to buy a home or refinance a loan dropped 2.8 percent in the week ended Sept. 25.
To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net.
Last Updated: September 30, 2009 08:52 EDT
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Dyodd n BOSAYOR hor
Hulumas ( Date: 30-Sep-2009 20:12) Posted:
I start short selling then....
richtan ( Date: 30-Sep-2009 17:57) Posted:
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Last week very high vol.
Today is T + 5.
Those no money to pick up, all mati. |
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