Market Action
- US: Dow: 12675.75 (-0.26%), S&P 500: 1314.65 (-0.10%), NASDAQ: 2786.64 (0.09%)
- Europe: CAC: 3321.50 (-0.22%), DAX: 6404.39 (-0.19%), FTSE: 5728.55 (-0.22%).
- Asia:China: 2319.12 (0.99%),Hong Kong: 20110.37 (0.83%),India: 5127.35 (1.61%),Japan: 8785.33 (0.22%)
- Metals: Gold: 1665.30 (0.05%), Silver: 31.96 (-0.03%), Copper: 3.81 (0.09%)
- Energy: Crude Oil: 99.15 (0.20%), Natural Gas: 2.56 (0.08%)
- Commodities: Corn: 6.30, Soya Bean: 12.20, Wheat: 6.34
- Currency: EUR/USD: 1.3032 (0.1417%), GBP/USD: 1.5622 (0.3496%), USD/JPY: 77.6875 (0.8624%)
- 10 year US Treasury: 2.062% (0.009)
Market News Update
S&P 500 ends five day rally: The Dow and broad S&P 500 fell modestly on Tuesday as dragging debt talks inGreece and mixed earnings reports weighed on sentiment. The Dow Jones Industrial Average fell 33.1 points, or 0.26%, to 12676, the S&P 500 dipped 1.4 points, or 0.1%, to 1315 and the NASDAQ Composite rose 2.5 points, or 0.09%, to 2787.
Euro slides: Renewed worries overGreece pushed the euro below $1.30, but the common currency recovered as investors clung to the hope that a resolution will be reached before the country defaults.
http://www.reuters.com/article/2012/01/24/us-markets-forex-idUSTRE7AC15W20120124
Oil slips on revived eurozone debt concerns: Oil prices fell on Tuesday on revived concerns about the euro zone’s debt problems and their potential to slow the global economy, but tensions between Iran and the West helped limit losses. http://online.wsj.com/article/SB10001424052970203718504577180734079835976.html?mod=WSJ_Markets_MIDDLTopStories
IMF cuts global growth forecast: The global economy is slowing this year, the International Monetary Fund said Tuesday, cutting its forecasts for growth and warning of a deeper downturn if Europe doesn’t take stronger action to stem its debt crisis. http://www.foxbusiness.com/economy/2012/01/24/imf-slices-its-global-economic-growth-forecast/
Company News Update
- Apple Inc. (AAPL) reported record quarterly sales and profit, as holiday purchases of the new iPhone helped the company steer clear of the consumer spending slump that has hurt rival technology companies.
- Yahoo (YHOO) posted fourth-quarter results after the bell Tuesday that beat Wall Street’s expectations, earning 25 cents an adjusted share on revenue of $1.32 billion. Wall Street was looking for earnings of 24 cents a share on sales of $1.19 billion.
- Travelers Cos. (TRV) led losses in the Dow today after fourth- quarter profit fell 31 percent on lower investment income and a smaller benefit reserve.
- McDonald’s Corp. (MCD) slid as the restaurant chain said foreign-currency fluctuations will cut 2012 profit.
- Johnson & Johnson’s (JNJ) fourth-quarter profit of $1.13 per share, excluding items, on sales of $16.3 billion topped analysts’ expectations of $1.09 on $16.27 billion.
- Verizon Communications (VZ) posted adjusted fourth-quarter earnings of 52 cents per share on revenue of $28.4 billion. Analysts anticipated the telecommunications company would earn 53 cents on $28.39 billion in sales.
- DuPont’s (DD) quarterly revenue missed analysts’ expectations because of a drop in demand for solar and electronic materials, but strong agriculture sales and higher prices helped earnings beat estimates.
- Zions Bancorporation (ZION) had the biggest loss in the S&P 500 as the Salt Lake City-based bank was cut to “hold” from “buy” at Stifel Nicolaus & Co. after yesterday reporting earnings-per-share that missed the average analyst estimate by 23 percent.
- Bank of America Corp (BAC) is wading into the fast-growing business of offering consumers targeted online discounts. The second-largest U.S. bank on Wednesday will start testing a new service that will allow customers to rack up savings from retailers based on their previous spending patterns.
- AMR Corp. (AMR), the bankrupt parent of American Airlines, will thin out its leadership ranks to “redesign American’s management structure,” Chief Executive Tom Horton said on Tuesday.
Hedge Fund News Update
- After a frustrating year, hedge-fund investors are turning their backs on smaller funds specializing in niches like currency markets. In the final months of 2011, hedge-fund investors withdrew from smaller hedge funds, which are more likely to be currency specialists, and plowed money into bigger funds that invest across many markets.
- A New Yorkhedge fund known for pressuring companies to split has bought Marathon Petroleum stock, sparking talk that Marathonmight do just that.
Jana Partners has reported it bought 19.7 million shares, making it Marathon Petroleum’s largest shareholder with a 5.5 percent stake. - As International Monetary Fund chief Christine Lagarde delivers a blistering warning to European leaders, analysts say that hedge funds are trying to tip countries such asGreece into default.
- Rotoblock Corp., a publicly-owned California-based corporation investing in emerging technology opportunities inChina, has appointed veteran Hedge Fund manager Andrew S. Schneider as Chief Executive Officer.
- The U.K. Financial Services Authority may set bonus rules specifically for hedge fund and private equity managers as it works to implement European Union regulations.
- Hedge fund manager Eric Sprott is set to roll out new mutual and hedge funds that invest in core Canadian stocks and in a balanced portfolio.
- AlphaMetrix, founder of the AlphaMetrix Global Marketplace (AGM), the world’s leading secure, online marketplace for researching, tracking and analyzing information about alternative investment funds, today announced the listing of the first dedicated residential mortgage-backed security (RMBS) fund.
- ALTIN AG, the Swiss fund of hedge funds (FoHFs) with more than $185m in market capitalization as at end 2011, has added four new funds to its portfolios and increased its allocations to macro strategies, but reduced its exposures to long/short, event-driven and credit strategies.
- The name of Invesco Perpetual Select Trust’s hedge fund share portfolio will change to balanced risk shares in early February.
