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Market participants have become conditioned to expect that anything that stops being in the news is no longer a problem. At the moment we have Russia declaring that the presence of a large number of US warships in the Black Sea is a provocation that Russia is not prepared to let stand: that's as close as you can get to saying "Piss off or we start sinking you".
The recognition of South Osettia by Russia is a counterpoint to the recognition (by the US, the UK and most of NATO) of Kosovo following the Kosovar's breakaway earlier this year. If nothing else it has been entertaining watching Chevron-Oil-Tanker Rice try and fluster her way around the idea that the US thinks that South Ossettians have no right to self-determination. Kosovar separatists good, South Ossettian separatists bad. Why is that, Ms Oil-Tanker?
Anyhow - let's not get too bogged down in things that aren't on the news. Five carriers on station within striking distance of Iran? Well, it's not in the news, so it's not important. But you better believe it's critical to know what colour pant-suit Killary Klinton was going to wear to the "Democratic" Party convention.
Economic News
Initial Jobless claims fell to 425k, which was in line with consensus; meanwhile the GDP number - at growth of 3.3% - was significantly higher than expected (the market had expected 2.7%). 3.1% of the 3.3% percentage change in GDP came from a claimed improvement in net exports. In other words, this number is election-season fiction and will be revised away over the next twelve months.
The Chain Deflator for Personal Consumption Expenditure rose by 1.2% - faster than the estimated 1.1%, and also faster than nominal income growth.
Fed Open Market Operations
The Fed's Open Market Operations desk performed 3 repurchase operations:
- a 1-day repurchase for $8bn, with $4.715bn in Treasury-backed collateral at a weighted average rate of 2.035%;
- a 7-day repurchase of $17bn, $12.35bn of which was in Treasury-backed collateral at a weighted average rate of 2.045%; and
- a 14-day repurchase totalling $ 7.000 billion, with $1.923 billion in Treasury-backed collateral, undertaken at a weighted average rate of 2.050%.
Headline Indices
The Dow Jones Industrial Average advanced +212.67 points (1.85%) to 11715.18 points. The index high for the day was set at the close, while the low of 11499.79 was set at the open. The Dow was within four points of 11700 at noon - so the last four hours of the session were pretty pointless and directionless.
The total volume traded in the Dow was again feeble at 574.79m units. Within the index, 29 issues rose, with aggregate volume of 564.44m units; 1 Dow component (Coca Cola) fell, with total volume trade in KO of 10.36m units.
The S&P500 Index advanced +19.02 points (1.48%) to 1300.68 points. Total volume traded in the index was 2870.51m units. Within the index, 422 issues rose, with aggregate volume of 2432.62m units; 68 issues fell, with aggregate volume of 415.66m units.
Contributing to the advance were a range of mortgage related firms that would have been dead long ago if the US was not a socialist state (although Tiffany & Co has not to my knowledge been the recipient of Federal Government largesse... perhaps they don't donate enough to political bribe coffers) -
- MBIA Inc. (MBI) +4.17 (34.8%) to $16.15 on volume of 49.05m shares;
- Fannie Mae (FNM) +1.47 (22.7%) to $7.95 on volume of 125.76m shares;
- MGIC Investment (MTG) +0.94 (13.4%) to $7.97 on volume of 8.06m shares;
- Federal Home Loan Mtg. (FRE) +0.53 (11.2%) to $5.28 on volume of 128.48m shares; and
- Tiffany & Co. (TIF) +4.24 (10.7%) to $43.85 on volume of 8.37m shares.
The Nasdaq Composite advanced +29.18 points (1.22%) to 2411.64 points and the Nasdaq100 advanced +14.82 points (0.78%) to 1915.12 points. total volume traded in the Nasdaq100 was 704.81m units. Within the index, 85 issues rose, with aggregate volume of 587.51m units; 13 issues fell, with aggregate volume of 117.3m units.
The major gainers in the index:
- UAL (UAUA) +1.12 (11.3%) to $11 on volume of 31.27m shares;
- Amylin Pharmaceuticals (AMLN) +1.4 (6.8%) to $21.88 on volume of 10.4m shares;
- Level 3 Communications (LVLT) +0.2 (6.1%) to $3.49 on volume of 25.03m shares;
- Wynn Resorts (WYNN) +4.02 (4.4%) to $96 on volume of 1.26m shares; and
- Discovery Holding Co (DISCA) +0.83 (4.3%) to $20.3 on volume of 2.62m shares.
The CBOE Volatility Index lost 0.34 points (1.72%) to 19.42 points while the CBOE Nasdaq100 Volatility Index lost 0.16 points (0.69%) to 23.18 points.
A Total of 3459 issues traded today on the NYSE; today's total volume was 3.79 billion shares. A total of 2639 counters posted gains for the day, with aggregate volume of 3.08 billion shares trading to the upside. Exerting downwards pressure on the index were the 729 losers, which accounted for a total volume of 660 million shares. 36 stocks made new 1-year highs on the NYSE, while 46 shares plumbed new 52-week depths.
Over on the Nasdaq 2986 tickers traded today; total Nasdaq volume was 1.56 billion shares. A total of 2076 stocks posted gains for the day, with aggregate volume of 1.27 billion shares trading to the upside. The red zone of the Nasdaq exchange was populated with 768 losers, which accounted for a total volume of just 270 million shares. 59 Nasdaq-listed stocks hit new 52-week highs, while 79 shares dipped to new 1-year lows.
| Major Market Statistics | |||
| Index | Close | Gain(Loss) | % |
| Dow Jones Industrial Average | 11715.18 | +212.67 | 1.85% |
| S&P500 Index | 1300.68 | +19.02 | 1.48% |
| Nasdaq Composite | 2411.64 | +29.18 | 1.22% |
| Nasdaq100 | 1915.12 | +14.82 | 0.78% |
| CBOE Volatility Index | 19.42 | -0.34 | -1.72% |
| CBOE Nasdaq100 Volatility Index | 23.18 | -0.16 | -0.69% |
Dow Darlings
- AIG (AIG) +1.51 (7.5%) to $21.51 on volume of 39.1m units
- Bank Of America (BAC) +1.78 (6%) to $31.43 on volume of 61.6m units
- Citigroup (C) +0.96 (5.3%) to $19.08 on volume of 79.8m units
- JPMorganChase (JPM) +1.74 (4.7%) to $38.88 on volume of 34.5m units
- American Express (AXP) +1.57 (4%) to $40.39 on volume of 12.7m units
Dow Dud
- Coca-Cola (KO) -0.67 (1.2%) to $53.12 on volume of 10.4m units
Most Traded Dow stocks -
- Citigroup (C) +0.96 (5.3%) to $19.08 on volume of 79.8m units
- Bank Of America (BAC) +1.78 (6%) to $31.43 on volume of 61.6m units
- Microsoft (MSFT) +0.38 (1.4%) to $27.94 on volume of 47.8m units
- AIG (AIG) +1.51 (7.5%) to $21.51 on volume of 39.1m units
- JPMorganChase (JPM) +1.74 (4.7%) to $38.88 on volume of 34.5m units
Precious Metals
Precious metals futures advanced as follows -
| Precious Metals Futures | |||
| Index | Close | Gain(Loss) | % |
| Gold | 834.9 | 4.8 | 0.58 |
| Silver | 13.69 | 0.22 | 1.63 |
| Palladium | 293 | 6.5 | 2.27 |
| Platinum | 1482.8 | 42.1 | 2.92 |
The Gold Bugs index (XAU) contains 16 components; the total volume traded in the index was 61.1m units. Within the index, 12 issues rose, with aggregate volume of 37.79m units; 4 issues fell, with aggregate volume of 23.31m units.
Today the index fell by 0.26 points (0.17%) to 151 points. The main decliners (in percentage terms) were -
- Barrick Gold (ABX) -0.48 (1.4%) to $35.02 on volume of 7.76m shares;
- Freeport McMoran (FCX) -0.46 (0.5%) to $90.63 on volume of 6.48m shares;
- GoldCorp (GG) -0.14 (0.4%) to $34.13 on volume of 6.71m shares; and
- Agnico Eagle Mines (AEM) -0.05 (0.1%) to $57.76 on volume of 2.35m shares.
Energy Complex
Energy futures started strong, but reversed hard during the session. Not to worry.
| Energy Futures | |||
| Commodity | Close | Gain(Loss) | % |
| Crude Oil | 115.57 | -2.58 | -2.18 |
| Heating Oil | 3.2098 | -0.0717 | -2.18 |
| Natural Gas | 8.073 | -0.535 | -6.22 |
| Gasoline RBOB | 3.0228 | -0.0444 | -1.45 |
| Ethanol | 2.306 | -0.048 | -2.04 |
The Oil Services index (OSX) contains 15 components; the total volume traded in the index was 67.87m units. Within the index, 2 issues rose, with aggregate volume of 5.02m units; 13 issues fell, with aggregate volume of 62.85m units.
Today the index fell by 3.7 points (1.22%) to 299.66 points. The main decliners (in percentage terms) were -
- Nabors Industries (NBR) -1.12 (3%) to $36.04 on volume of 5.96m shares;
- Halliburton (HAL) -1.17 (2.6%) to $44.51 on volume of 15.57m shares;
- Rowan Co (RDC) -0.8 (2.1%) to $37.7 on volume of 2.35m shares;
- Schlumberger (SLB) -1.84 (1.9%) to $96.68 on volume of 6.7m shares; and
- Weatherford International (WFT) -0.71 (1.8%) to $38.44 on volume of 6.2m shares.
Bellwethers
The nine-stock group that makes up the Rant bellwethers advanced on average by 5.1%, spurred on (as has been the case in recent sessions) by massive gains in the new Socialist Future of the Mortgage Market. The fallout occurred as follows:
- General Electric (GE) +0.61 (2.16%) to $28.83 on volume of 34.36m units.
- Citigroup (C) +0.96 (5.3%) to $19.08 on volume of 79.82m units.
- Wal-Mart (WMT) +0.59 (1%) to $59.88 on volume of 12.04m units.
- IBM (IBM) +1.20 (0.97%) to $124.58 on volume of 5.35m units.
- Intel (INTC) +0.18 (0.77%) to $23.59 on volume of 29.6m units.
- Cisco Systems (CSCO) +0.29 (1.19%) to $24.66 on volume of 28.27m units.
- Google (GOOG) +5.20 (1.11%) to $473.78 on volume of 3.01m units.
- Fannie Mae (FNM) +1.47 (22.69%) to $7.95 on volume of 125.77m units.
- Freddie Mac (FRE) +0.53 (11.16%) to $5.28 on volume of 128.51m units.
Other Indices of Interest...
The Banks index (BKX) contains 24 components; the total volume traded in the index was 433.68m units. Within the index, all 24 issues rosepushing the index to a gain of 2.76 points (4.37%) to 65.98 points. Contributing to the advance were stocks which are insolvent, and would be permitted to die if they were not cheek by jowl with half the irretrievably-corrupted US Congress.
- Wachovia (WB) +1.44 (9.9%) to $15.99 on volume of 54.19m shares;
- Washington Mutual (WM) +0.34 (9.6%) to $3.87 on volume of 51.78m shares;
- New M&I Corporation (MI) +0.98 (6.9%) to $15.24 on volume of 5.36m shares;
- Bank Of America (BAC) +1.78 (6%) to $31.43 on volume of 61.56m shares; and
- Keycorp (KEY) +0.64 (5.8%) to $11.71 on volume of 7.24m shares.
The Semiconductor index (SOX) contains 18 components; the total volume traded in the index was 147.01m units. Within the index, 17 issues rose, with aggregate volume of 130.52m units; 1 stock fell, with aggregate volume of 16.49m units.
Today the index rose by 4.01 points (1.12%) to 362.82 points. Contributing to the advance were -
- Infineon Tech (IFX) +0.32 (3.8%) to $8.75 on volume of 1.59m shares;
- Advanced Micro Devices (AMD) +0.18 (3%) to $6.25 on volume of 11.32m shares;
- ST Microelectronic (STM) +0.32 (2.4%) to $13.4 on volume of 1.73m shares;
- Sandisk (SNDK) +0.34 (2.3%) to $15.17 on volume of 5.07m shares; and
- Marvell Technology (MRVL) +0.32 (2.2%) to $14.76 on volume of 21.85m shares.
The ChildKiller ("Defence") index (DFX) contains 17 components; the total volume traded in the index was 57.39m units. Within the index, 16 issues rose, with aggregate volume of 56.88m units; 1 issues fell, with aggregate volume of 0.51m units.
Today the index rose by 7.28 points (1.96%) to 378.05 points. Contributing to the advance were -
- Gencorp (GY) +0.37 (5%) to $7.84 on volume of 0.3m shares;
- Lockheed Martin (LMT) +4.11 (3.6%) to $119.59 on volume of 3.49m shares;
- Teledyne Tech (TDY) +2.13 (3.5%) to $63.5 on volume of 0.22m shares;
- Boeing (BA) +1.82 (2.8%) to $66.34 on volume of 4.43m shares; and
- United Technologies (UTX) +1.67 (2.6%) to $66.72 on volume of 3.49m shares.
Currency Futures
Currency futures performed as follows -
| Currency Futures | |||
| Index | Close | Gain(Loss) | % |
| U.S. Dollar Index | 77.29 | 0.095 | 0.12 |
| Euro FX | 1.4689 | -0.0006 | -0.04 |
| Swiss Franc | 0.9098 | -0.0008 | -0.09 |
| Australian Dollar | 0.86 | 0.0047 | 0.55 |
| Canadian Dollar | 0.9506 | -0.0033 | -0.35 |
| Japanese Yen | 0.9134 | 0.0004 | 0.04 |
| New Zealand Dollar | 0.6995 | 0.0006 | 0.09 |
