Morning Coffee with TradingMarkets
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Good Morning! |
Goldman Bets Big, Wins Big (Again)…New Chinese Fund Offers Billions to Eager Money Managers…Shareholders Approve Murdock-Dow Jones Deal…Lufthansa Buys Nearly a Fifth of Jet Blue…SIVs Hit the Fan at Citigroup…European Inflation Surges on Food Costs…Asian stocks lower, European stocks lower, Dollar trending higher against the Euro, pound…And the futures are trading lower in the hour before the bell.
The market is going nowhere fast, with neither the buyers nor the sellers
able to impose their will. Still water runs deep, and still markets can be a
dangerous trap for impatient traders. Nevertheless, deal-making continues for
Dow Jones and Jet Blue, banks continue to bail out or write down their subprime
problems, and inflation is increasingly a concern worldwide at the same time
that U.S. and European central banks are working to ease credit.
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TradingMarkets 5 Business Stories You Need to Know |
How Goldman Cashed in on Mortgage Bust –Wall Street Journal
Goldman’s trading savvy on display again as firm bet big against securities backed by home loans. Winning wager by small cadre of Goldman traders resulted in major windfall for the company.
Billions In Search of Management – CBS Marketwatch
Managers in Europe, US are lining up to be a part of massive new Chinese sovereign-wealth fund. $200 billion China Investment Corporation is setting aside undisclosed amount for overseas investment.
Citi and the Seven SIVs – Wall Street Journal
Citigroup rushes to the rescue of seven SIVs or structured investment vehicles to the tune of $58 billion. Company’s ability to sustain dividend increasingly in question.
Murdoch to Dow Jones: “Set A Higher Bar” – Wall Street Journal
Shareholdes vote to approve purchase by media mogul Rupert Murdoch. Murdoch says Dow Jones must be “pre-eminent source of financial information” in the world.
Holiday Sales Softer than Expected –All Headline News
19% rise fails to impress analysts, who point to weakness in holiday sales growth as the lowest since 2002. Consumers continue to insist on bargains, promotions from retailers.
For more stories as they happen, go to our Breaking News section.
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TradingMarkets 7 Stocks You Need to Know for Today |
Here are 7 stocks for traders for today from TradingMarkets.com:
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Leap Wireless
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PowerRating) beat earnings on Thursday afternoon, announcing -$0.09 EPS versus -$0.15 EPS. -
Novell
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PowerRating) also beat earnings, reporting $0.06 EPS over $0.04 EPS. -
Quiksilver
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PowerRating) missed earnings on Thursday, with $0.51 EPS versus $0.52 EPS. -
CDC Corporation
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PowerRating) reported record revenues for the third quarter, software sales, selective acquisitions credited for gains. -
Amtech Systems
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PowerRating) dropped more than 25% on Thursday after announcing Q1 projections which did not meet analyst expectations. - Countrywide Financial
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PowerRating) fell more than 5% on Thursday after announcing that foreclosures doubled in November and late payments continue to rise. - Dow Chemical
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PowerRating) jumped 7% Thursday after announcing plans to allow Kuwait to buy half of Dow’s plastics division for $9.5 billion.
For a list of today’s highest PowerRating stocks, click here.
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TradingMarkets 5 Top PowerRatings Stocks for Today |
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Company
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Symbol | PowerRatings |
| Questcor Pharmaceuticals | QSC | 10 |
| Stanley | SXE | 9 |
| Donaldson Company | DCI | 8 |
| Graham Corporation | GHM | 8 |
| Horizon Lines | HRZ | 8 |
| View More Stocks |
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TradingMarkets Tracking the Wizards |
BlackRock’s Fink to Clients: Start Adding Risk – Financial News Online
Much of fallout from credit crunch already priced into market says BlackRock chief, Larry Fink. Says abundance of fear means the market’s turn to upside is likely to be “very violent” when it occurs.
Amaranth Boys Shut Down at Moore Capital – New York Times
The curtain falls on the second act of a group of former Amaranth traders as losses lead to closing of Canadian hedge fund. “Risk-reward parameters” not met, said spokesman for Moore Capital Management.
Uncertainty Means a Big 2008 for Hedge Funds, Says Man –FINalternatives
Man Investments annual report on hedge fund industry suggests that confusion and uncertainty about the economy in 2008 will mean more opportunities for profit for hedge funds, especially event-driven funds.
View Portfolios of Prominent Investors
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TradingMarkets Playbook |
The market is about as close to “neutral” as we can imagine: the S&P 500 is trading at its 200-day moving average, the VIX is trading at its 5- and 10-day moving averages. The largely sideways action truly represents a “no man’s land” here in the final day of the week.
A lower open seems almost guaranteed due to the softness in the futures an hour or so before the open. And it looks like that open will be at a level that leaves the markets unchanged for the month. But as we’ve been saying for the past few days, patience and waiting to see what bias develops, is the best strategy for traders.
Yesterday, buyers pushed the market up from its intraday lows. The day before sellers dragged the market down from intraday highs. Sooner or later, one side or the other will overplay its hand and the response to that surge in buying or selling will tell us what we need to know about which side truly has control of this market.
David Penn is Senior Editor at TradingMarkets.com.
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