Dubai Shaken, VIX Roars, Stocks Sink

  • November 27, 2009
  • David Goodboy

Word of Dubai potentially defaulting on massive debt sent tremors throughout the world’s markets. U.S. Index Futures sold off dramatically in the pre-open then spent the most of the shortened session crawling higher. The VIX roared to life after hitting recent yearly lows, spiking over 20% on the session indicating the nervousness has spread to America. The DJIA closed down -154.48 to 10309.92, the tech heavy Nasdaq dropped -37.61 to 2138.44 and the broad based S&P 500 fell -19.14 to 1091.49.

MGM Mirage
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PowerRating): Fell 4.09% or 45 cents to $10.56/share after its partner, Dubai World, asked creditors for a standstill agreement until the default situation is worked out.

ING Group
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PowerRating): Collapsed 19.87% or $2.44 to $9.84/share after offering to sell billions in shares to repay state aid ahead of schedule.

Freeport McMoRan Copper
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PowerRating): Dropped 3.64% or $3.18 to $84.14/share as the entire commodity complex fell on Dubai’s woes.

Midsouth Bancorp
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PowerRating): Slipped 4.62% or 62 cents to $12.80/share upon stating it will sell shares to fund acquisitions.

Oil fell $1.91 to $76.00, gold dropped $13.10 to $1176.00 and the fear index VIX spiked 20.80% to 24.74.

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Market Snapshot

Dow

 -154.48 10309.92

NASDAQ

 -37.61 2138.44

S&P 500

 -19.14 1091.49

Economic
News

Existing Home Sales (Oct): Consensus: 5.70M, Prior: 5.57M

GDP – Preliminary (Q3): Consensus: 2.9%, Prior: 3.5%

GDP Deflator – Preliminary (Q3): Consensus: 0.8%, Prior: 0.8%

Case Shiller 20 City Index (Sep): Consensus: -9.05%, Prior: -11.32%

Consumer Confidence (Nov): Consensus: 47.5, Prior: 47.7

FHFA Home Price Index (Sep): Consensus: 0.1%, Prior: -0.3%

Personal Income (Oct): Consensus: 0.2%, Prior: 0.0%

Personal Spending (Oct): Consensus: 0.5%, Prior: -0.5%

PCE Prices (Oct): Consensus: 0.1%, Prior: -0.5%

PCE Prices – Core (Oct): Consensus: 0.1%, Prior: 0.1%

Initial Claims (11/21): Consensus: 500K, Prior: 505K

Continuing Claims (11/14): Consensus: 5560K, Prior: 5611K

Durable Orders (Oct): Consensus: 0.5%, Prior: 1.0%

Durable orders ex Transportation (Oct): Consensus: 0.7%, Prior: 0.9%

Mich Sentiment-Rev (Nov): Consensus: 67.0, Prior: 66.0

New Home Sales (Oct): Consensus: 405K, Prior: 402K

Crude Inventories (11/20): Consensus: NA, Prior: -0.887K