Interdum stultus opportuna loquitur...

Monday, November 10, 2008

USRant: Late Bounce Saves Face...

Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.

As further evidence of the Sovietisation of the US, the Fed gave the middle finger to requests for disclosure regarding the types of collateral they have been accepting since September 16th.

In a rare display of actual journalism, Bloomberg requested some information on exactly where $2 trillion was spent/distributed, and the Fed's response was "go take a flying f#ck at a rolling doughnut, you peons". (Note - that may not be the precise form of words used in the Fed response, but it is a perfect reflection of their underlying contempt for transparency when it comes to anybody who wants to bogart their shell-game).

According to Bloomberg:

The Federal Reserve is refusing to identify the recipients of almost $2 trillion of emergency loans from American taxpayers or the troubled assets the central bank is accepting as collateral.
(emphasis not in original)

Notice that number, dear Reader? $2 TRILLION. With a T, and an R, and then some other letters that spell 'illion'.

Now, cast your mind back, far far into the deepest recesses of Rantstory (which is like 'history', but much more aggressively-worded). You'll have to recall things that were Ranted more than a month ago.

Too hard, what with all the brainy wisdom that oozes through the internets tubes? OK... I'll remind you (as usual, I won't correct the many typos in the quote)...

From OzRant: Back Up The Truck... (September 30th, 2008)

...The Tycoon's Whores in the US are undertaking a little bit of political-campaign theatre in order to wring as many posturing-points as possible out of this event. In the end tthey will do what they're paid to do - drop to their collective knees and administer the trillion-dollar blowjob that Wall Street is demanding - which will give the world financial system the equivalent of gonorrhoea crossed with Ebola, and which will have an eventual price tag of $5-6trillion.
That's the 'bullshit gap' for this bill. The political class is not willing to give any hint to the polity that the bill will be that high, though. I'm sure you all now recall the similar underquotes given for other little projects... the Iraq War was going to be a short affair that paid for itself (Perle, Wolfowitz), or would cost $50-70 bill (Rumsfeld in response to Summers) or would cost $200 bill (Summers, just before being fired for saying so).

There is an error in there, too - it was not Lawrence Summers who got marched, it was Larry Lindsay. But the point rests.

Anyway... my point being, we are about six weeks into this 'bailout' malarkey, and taxpayers are already on the hook for $2 trill at least. And if the Fed doesn't want Bloomberg to know where the money's gone, then you can bet it has been plonked in the most toxic sludge imaginable. After all, from the point of view of the US kleptocracy, Bloomberg are 'safe hands'... the only safer hands are CNBC and Faux News.

In other news, Kirk Kerkorian's investment in GM (purchased at prices above $20, and as high as $32) fell to $3.36 a share... and today - with GM shares at a 63-year low - Deutsche Bank told clients that maybe the stock is a SELL.

Deutsche Bank gets the Horse's Ass award for actually being slower on the downgrade than even those gutless charlatans at Moody's and S&P. I hope their clientss sue the living beJeebus out of them (after all, anybody who read this blog from 2005 onwards, knewthat GM was a carcase).

As an aside, JPMorganChase is also a carcase, but it will be protected a little while longer. Citigroup is the next major US bank which is likely to cark it.

Economic News

Nothing - if you don't count yet another $40 billion for AIG (bringing their total bailout to a little under three times the initial $85 billion guesstimate).

Fed Open Market Operations

The Fed's Open Market Operations desk performed 2 repurchase operations:

  • a 28 Day repurchase totalling $ 20bn,
  • a 2 Days reverse repurchase totalling $ 15bn, all in Treasury-backed collateral.
Recently the Fed has ostensibly been performing liquidity drains in the repo market, but frankly they have been shovelling cash out the door at a rate of knots (at least $2 trillion in six weeks). Thus the repo market is a very very poor reflection of monetary policy settings.
Headline Indices

The Dow Jones Industrial Average lost 73.27 points (0.82%) to 8870.54 points. The index high for the day was 9159.58, while the low was 8760.46 - set just 22 minutes before the end of the session. So there was a 110-point bounce in the final 20 minutes - yet more evidence that the market has not yet found a bottom.

The low for the day coincided with 1600 on the Nasdaq Comp, and a very  determined defence of 905-ish on the S&P. Now who would be using loads of other people's money to defend a critical price level on the world's largest-cap stock index???

The Dow Jones Industrial Average index (DJI) contains 30 components; the total volume traded in the index was 1.03bn shares. 11 Dow components rose, and advancing volume was 375.56m units; 19 issues fell, with aggregate declining volume of 652.69m units.

The main decliners (in percentage terms) were -

  • General Motors (GM) -1.00 (22.9%) to $3.36 on volume of 85.5m shares;
  • Disney Corp (DIS) -1.28 (5.5%) to $22.08 on volume of 16.21m shares;
  • American Express (AXP) -1.33 (5.3%) to $23.98 on volume of 11.66m shares;
  • Citigroup (C) -0.61 (5.2%) to $11.21 on volume of 88.62m shares; and
  • Bank Of America (BAC) -1.01 (4.9%) to $19.48 on volume of 78.4m shares.

The S&P500 Index lost 11.78 points (1.27%) to 919.21 points. Total volume traded in the index was 3.55bn units. Within the index, 112 issues rose and 377 issues fell. Advancing volume was 862.07m units and declining volume totalled 2649.41m units.

The main decliners (in percentage terms) were -

  • American CapitalLtd. (ACAS) -5.9 (42.8%) to $7.87 on volume of 18.73m shares;
  • Genl Growth Properties (GGP) -0.7 (33.8%) to $1.37 on volume of 16.95m shares;
  • Unisys Corp. (UIS) -0.3 (33%) to $0.61 on volume of 71.97m shares;
  • Developers Diversified Rlty (DDR) -2.37 (24.6%) to $7.25 on volume of 5.42m shares; and
  • General Motors (GM) -1 (22.9%) to $3.36 on volume of 85.5m shares.

The Nasdaq Composite lost 30.66 points (1.86%) to 1616.74 points and the Nasdaq100 lost 20.62 points (1.62%) to 1251.00 points..

The Nasdaq100 index (NDX) contains 100 components; the total volume traded in the index was only 719.24m units. Within the index, 22 issues rose, with advancing volume totalling 124.17m shares; 76 issues fell, and declining volume was 595.07m units.

The main decliners (in percentage terms) were -

  • DISH Network (DISH) -2.28 (14.7%) to $13.24 on volume of 4.81m shares;
  • Lamar Advertising (LAMR) -1.95 (12.6%) to $13.58 on volume of 1.31m shares;
  • SanDisk (SNDK) -0.9 (9%) to $9.08 on volume of 5.96m shares;
  • Liberty Media (LINTA) -0.33 (7.2%) to $4.24 on volume of 3.76m shares; and
  • Virgin Media (VMED) -0.4 (6.6%) to $5.7 on volume of 2.6m shares.

Volatility

The CBOE Volatility Index advanced +3.88 points (6.92%) to 59.98 points and the CBOE Nasdaq100 Volatility Index advanced +3.30 points (5.98%) to 58.44 points..

Breadth and Internals

A total of 3606 issues traded today on the NYSE; today's total volume was 4.6bn shares. A total of 1155 stocks posted gains for the day, and volume in advancing issues totalled 1.49bn shares. Exerting downwards pressure on the index were 2372 losers, which accounted for a total declining volume of 3.08bn shares. 5 stocks made new 1-year highs on the NYSE, while 192 shares plumbed new 52-week depths.

On the Nasdaq 2949 tickers traded today; total Nasdaq volume was 1.67bn shares. A total of 857 stocks posted gains for the day, with aggregate volume of 370m shares changing hands in the day's winners. The red zone of the Nasdaq exchange comprised 1985 losers, and total declining volume was 1.29bn shares. 8 Nasdaq-listed stocks hit new 52-week highs, while 219 shares dipped to new 1-year lows.

Major Market Statistics
Index Close Gain(Loss) %
Dow Jones Industrial Average 8870.54 -73.27 -0.82%
S&P500 Index 919.21 -11.78 -1.27%
Nasdaq Composite 1616.74 -30.66 -1.86%
Nasdaq100 1251.00 -20.62 -1.62%
CBOE Volatility Index 59.98 +3.88 6.92%
CBOE Nasdaq100 Volatility Index 58.44 +3.30 5.98%


Dow Darlings

  • Alcoa (AA) +0.59 (5.3%) to $11.78 on volume of 21.4m units
  • McDonalds (MCD) +1.01 (1.8%) to $56.48 on volume of 8.8m units
  • AT&T (T) +0.47 (1.7%) to $27.47 on volume of 24.2m units
  • Verizon (VZ) +0.44 (1.5%) to $30.49 on volume of 14.5m units
  • Wal-Mart (WMT) +0.79 (1.5%) to $55.18 on volume of 18m units

Dow Duds:

  • General Motors (GM) -1 (22.9%) to $3.36 on volume of 85.5m units
  • Disney Corp (DIS) -1.28 (5.5%) to $22.08 on volume of 16.2m units
  • American Express (AXP) -1.33 (5.3%) to $23.98 on volume of 11.7m units
  • Citigroup (C) -0.61 (5.2%) to $11.21 on volume of 88.6m units
  • Bank Of America (BAC) -1.01 (4.9%) to $19.48 on volume of 78.4m units

Most Traded Dow stocks:

  • Citigroup (C) --0.61 (5.2%) to $11.21 on volume of 88.6m units
  • General Motors (GM) --1 (22.9%) to $3.36 on volume of 85.5m units
  • General Electric (GE) --0.41 (2.2%) to $18.45 on volume of 80.2m units
  • Bank Of America (BAC) --1.01 (4.9%) to $19.48 on volume of 78.4m units
  • Microsoft (MSFT) --0.2 (0.9%) to $21.3 on volume of 65.2m units
Precious Metals

Precious metals futures advanced as follows -

Precious Metals Futures
Index Close Gain(Loss) %
Gold 746.4 12.2 1.66
Silver 10.215 0.252 2.53
Palladium 223.7 -0.3 -0.13
Platinum 864.9 12.9 1.51

The Gold Bugs index (XAU) contains 16 components; the total volume traded in the index was 97.97m units. Within the index, 15 issues rose, with aggregate volume of 89.8m units; 1 issue fell, with aggregate volume of 8.17m units.

Today the index rose by 3.92 points (4.6%) to 89.08 points. Contributing to the advance were -

  • Silver Stand Resources (SSRI) +1.19 (13.1%) to $10.3 on volume of 1.4m shares;
  • Kinroos Gold (KGC) +1.02 (8.1%) to $13.6 on volume of 9.19m shares;
  • Agnico Eagle Mines (AEM) +2.14 (6.6%) to $34.49 on volume of 3.31m shares;
  • Newmnt Mining (NEM) +1.45 (5.6%) to $27.47 on volume of 6.06m shares; and
  • RandGold Resources (GOLD) +1.51 (4.9%) to $32.37 on volume of 0.64m shares.
Energy Complex

Energy futures performed satisfactorily -

Energy Futures
Commodity Close Gain(Loss) %
Crude Oil 62.28 1.24 2.03
Heating Oil 2.0029 0.0245 1.24
Natural Gas 7.22 0.463 6.85
Gasoline RBOB 1.3596 0.0101 0.75
Ethanol 1.737 0.015 0.87

The Oil Services index (OSX) contains 15 components; the total volume traded in the index was 84.11m units. Within the index, 6 issues rose, with aggregate volume of 28.34m units; 9 issues fell, with aggregate volume of 55.76m units.

Today the index fell by 0.84 points (0.57%) to 147.29 points. The main decliners (in percentage terms) were -

  • Cameron International (CAM) -1.06 (4.5%) to $22.76 on volume of 3.58m shares;
  • Baker Hughes (BHI) -0.84 (2.5%) to $33.39 on volume of 4.03m shares;
  • Oceaneering International (OII) -0.55 (1.9%) to $27.74 on volume of 0.59m shares;
  • Tidewater (TDW) -0.81 (1.9%) to $41.85 on volume of 0.74m shares; and
  • Smith International (SII) -0.53 (1.7%) to $31.52 on volume of 3.23m shares.
Currency Futures

Currency futures are beginning to annoy me. I have decreed that  the Euro is to rise (and it did, and quite handsomely, last week) - but it is being obstinate in refusing to keep hold of gains.

Currency Futures
Index Close Gain(Loss) %
U.S. Dollar Index 86.57 0.12 0.14
Euro FX 1.274 0.0011 0.09
Swiss Franc 0.849 -0.0011 -0.13
Soybeans 948 27 2.93
Australian Dollar 0.6672 -0.0048 -0.71
Canadian Dollar 0.8361 -0.0048 -0.57
Japanese Yen 1.024 0.004 0.39
New Zealand Dollar 0.5813 -0.0063 -1.07

Bellwethers

The nine-stock group that makes up the Rant bellwethers declined on average by 1.6%. The fallout occurred as follows:

  • General Electric (GE) -0.41 (2.17%) to $18.45 on volume of 80.22m units.
  • Citigroup (C) -0.61 (5.16%) to $11.21 on volume of 88.62m units.
  • Wal-Mart (WMT) +0.79 (1.45%) to $55.18 on volume of 18.02m units.
  • IBM (IBM) -2.4 (2.78%) to $83.87 on volume of 9.54m units.
  • Intel (INTC) -0.28 (1.91%) to $14.35 on volume of 51.2m units.
  • Cisco Systems (CSCO) -0.01 (0.06%) to $17.57 on volume of 46.28m units.
  • Google (GOOG) -12.36 (3.73%) to $318.78 on volume of 8.01m units.
  • Fannie Mae (FNM) -0.02 (2.7%) to $0.72 on volume of 15.13m units.
  • Freddie Mac (FRE) +0.02 (2.33%) to $0.88 on volume of 8.47m units.
Other Indices of Interest...

The Banks index (BKX) contains 24 components; the total volume traded in the index was 449.95m units. Within the index, 3 issues rose, with aggregate volume of 32.75m units; 19 issues fell, with aggregate volume of 380.52m units.

Today the index fell by 1.56 points (2.9%) to 52.16 points. The main decliners (in percentage terms) were -

  • Huntington Bancshares (HBAN) -0.69 (7.3%) to $8.79 on volume of 4.6m shares;
  • Fifth Third Bancorp (FITB) -0.62 (5.8%) to $10.07 on volume of 5.48m shares;
  • Capital One Financial (COF) -2 (5.8%) to $32.56 on volume of 6.69m shares;
  • Citigroup Inc (C) -0.61 (5.2%) to $11.21 on volume of 88.62m shares; and
  • New M&I Corporation (MI) -0.84 (5.1%) to $15.78 on volume of 2.48m shares.

The Semiconductor index (SOX) contains 18 components; the total volume traded in the index was 168.94m units. Within the index, 0 issues rose, with aggregate volume of 0m units; 18 issues fell, with aggregate volume of 168.94m units.

Today the index fell by 8.71 points (3.9%) to 214.48 points. The main decliners (in percentage terms) were -

  • Micron Technology (MU) -0.49 (10.9%) to $3.99 on volume of 14.9m shares;
  • Sandisk (SNDK) -0.9 (9%) to $9.08 on volume of 5.96m shares;
  • Teradyne (TER) -0.41 (8.2%) to $4.6 on volume of 2.55m shares;
  • Infineon Tech (IFX) -0.22 (6.4%) to $3.24 on volume of 0.8m shares; and
  • Novellus Systems (NVLS) -0.84 (5.9%) to $13.36 on volume of 1.59m shares.

The ChildKiller ("Defence") index (DFX) contains 17 components; the total volume traded in the index was 107.48m units. Within the index, 3 issues rose, with aggregate volume of 11.23m units; 13 issues fell, with aggregate volume of 96.2m units.

Today the index fell by 3.19 points (1.22%) to 258.26 points. The main decliners (in percentage terms) were -

  • Gencorp (GY) -0.37 (9.8%) to $3.42 on volume of 0.42m shares;
  • Embraer Empresa (ERJ) -0.84 (4.9%) to $16.32 on volume of 0.98m shares;
  • General Electric (GE) -0.41 (2.2%) to $18.45 on volume of 80.22m shares;
  • Lockheed Martin (LMT) -1.24 (1.6%) to $77.51 on volume of 2.57m shares; and
  • Esterline Tech (ESL) -0.45 (1.3%) to $33.5 on volume of 0.26m shares.