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» InformedTrades.com Evening Market Wrapup: All the Data that Matters for 11.21.08 |
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Nov 21, 2008 - by David Waring
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Video Technical Overview:
Good overview of today's market action as well as levels to watch going forward from Brian Shannon over at Alphatrends.net.
Fundamental Overview:
Bloomberg: U.S. Stocks Rally as Obama Picks Tim Geithner to Head Treasury - The S&P 500, surged 6.3 percent to 800.03, the Dow Jones Industrial Average rose 494.13 points, or 6.5 percent, to 8,046.42, while the Nasdaq Composite Index added 5.2 percent to 1,384.35 after President-elect Barack Obama picked New York Federal Reserve Bank chief Timothy Geithner to head the Treasury.
More Top Stories:
Bloomberg: Geithner Chosen to Be Treasury Secretary; Summers to Serve in White House
Bloomberg: Citigroup May Get Rescued by U.S. Government as Stock Drops, Investors Say
CNNMoney: Bank stocks lose ground again
Mark to Market Debate Rages On
Bloomberg: Dollar Posts Weekly Gain as Stock Plunge Spurs Haven Demand - The dollar traded at $1.2582 per euro at 4:17 p.m. in New York, gaining 0.2 percent from $1.2605 on Nov. 20 and the yen was at 95.94 versus the dollar, up 1.2 percent from 97.14 as a plunge in global stocks increased demand for the safety of U.S. government debt.
CNNMoney: Oil settles below $50 again - Light, sweet crude for January delivery fell 51 cents to close at $49.93 a barrel, as volatile stock prices raised concerns about waning global energy demand.
Marketwatch: Gold futures surge, briefly topping $800 an ounce - Gold for December delivery rallied $43.10, or 5.8%, to end at $791.80 an ounce, as wary investors returned to the safety of the precious metal.
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» Term of the Day: Berkshire Hathaway |
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Nov 21, 2008 - by David Waring
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Warren Buffett's company which Wikipedia defines as:
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A conglomerate holding company headquartered in Omaha, Nebraska, U.S., that oversees and manages a number of subsidiary companies. Berkshire Hathaway's core business is insurance, including property and casualty insurance, reinsurance and specialty nonstandard insurance. The Company averaged an annual return in excess of 21% to its shareholders for the last 42 years while employing large amounts of capital and minimal debt.
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Berkshire has been in the news recently because the stock has fallen about 40% since September and the Credit Default Swaps (which basically are like insurance against a default by the company) have risen dramatically in price. Jeff Matthews from Jeff Mathews is not Making This Up sums it up nicely with the following:
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Specifically, the Berkshire 5-year CDS began the month of September at about 100, climbed to just over 250 a week ago, and cruised to 481.7 yesterday, according to our Bloomberg. (This means somebody was paying $481,700 annually to insure against a default on $10 million of debt for five years.)
Why does this matter?
Well, credit defaults swaps have been an excellent early warning indicator of trouble at nearly every financial company that now no longer exists in their previous forms. And the reason is quite simple: companies doing business with highly leveraged financials can buy credit default swaps in those financials in order to hedge the risk of a collapse.
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While this is certainly concerning, history has shown that betting against Buffet will put one on the fast track to the poorhouse.
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» InformedTrades.com Morning Preview: All the Data That Matters for 11.21.08 |
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Nov 21, 2008 - by David Waring
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CNNMoney: Stock rebound seen on Citi talk - At 8 a.m. ET, Dow Jones industrial average, Standard & Poor's 500 and Nasdaq 100 futures were all significantly higher, indicating that markets may follow the lead of the Asian markets, which rebounded Friday after a report said financial giant Citigroup is considering putting itself on the block.
More Top Stories:
Bloomberg: Citigroup Board Said to Meet to Discuss Bank's Options After Stock Plunges
Bloomberg: Obama Transition Team Said to Weigh Prepackaged Bankruptcy for Automakers
CNNMoney: Gas prices sink below $2
Reuters: Central bankers wary of deflation
Marketwatch: Oil Futures briefly recapture $50 as stock markets rise - Oil futures traded as high as $50.65 a barrel in electronic action Friday, as the oil market responded to big gains in worldwide stock markets and U.S. stock futures.
Marketwatch: High-yield currencies in demand as stock futures rise - Of the major crosses, the dollar rose 1% to 95.07 yen while the euro rose 1.1% to $1.2590. The Canadian dollar, the British pound and the Australian dollar rose between 1.5% and 2.4% against the greenback, after gains in worldwide stocks after a report that Citigroup may sell itself.
Reuters: Gold climbs 2 pct on weak dollar, stronger oil - Gold <XAU=> rose to a session-high of $760 an ounce and was at $757.90 an ounce by 1105 GMT, versus $745.10 an ounce late in New York on Thursday as the dollar weakened against the euro and oil prices climbed higher, while platinum rallied more than 6 percent in erratic trade.
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0 Replies | 31 Views | Go to Discussion Page
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» InformedTrades.com Evening Market Wrapup: All the Data that Matters for 11.20.08 |
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Nov 20, 2008 - by David Waring
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Video Technical Overview:
Good overview of today's action as well as levels to watch going forward from Brian Shannon over at Alphatrends.net.
Fundamental Overview
Bloomberg: U.S. Stocks Plunge, Sending S&P to Lowest Level Since 1997 - The S&P 500 slid 6.7 percent to 752.44, under the low of 776.76 reached during the bear market in 2002, The Dow Jones Industrial Average sank 444.99 points, or 5.6 percent, to 7,552.29 and the Nasdaq Composite decreased 5.1 percent to 1,316.12 after economic reports depicted a deepening recession and lawmakers postponed a vote on a plan to salvage the auto industry.
More Top Stories:
Bloomberg: Fannie, Freddie Will Suspend Foreclosures Through Jan. 9 to Help Borrowers
Bloomberg:VIX Surges to a Record Close as Options Traders Bet on Citigroup Losses
CNNMoney: Auto bailout: Not now, maybe later
CNNMoney: Big banks get crushed
Marketwatch: Saudi prince's buy doesn't help Citi; shares down 26%
Marketwatch: High-yielding currencies under pressure - Sterling dropped 0.9% to $1.4815, and the Australian dollar lost 3.6% to 61.30 cents as investors fretted about declining stock markets and an unraveling world economy.
CNNMoney: Oil sinks below $50 - On the final day of trading for the December contract, U.S. crude futures fell $4 to settle at $49.62 a barrel as growing concern about the economy pointed to weak demand for energy. The price marked the lowest level in three-and-a-half years.
Marketwatch: Gold rises as weak economy spurs safety buying - Gold for December delivery rose $12.70, or 1.7%, to end at $748.70 an ounce, as gloomy economic news and falling crude-oil prices stepped up investors' interest in safe-haven buying.
Chart of the Day:
I am going with a monthly chart of the S&P 500 Index today where as you can see we have taken out the lows from 02. It seems however that although there are not many talking about it there is one last line of defense here which is the long term rising trendline going all the way back to 1982.
S&P Monthly
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