Every afternoon ValueWalk provides an update on global market levels, economic news, and hedge fund news. Market Action
- US: Dow: 13252.76 (0.44%), S&P 500: 1402.60 (0.60%), NASDAQ: 3056.37 (0.51%)
- Europe: CAC: 3580.21 (0.44%), DAX: 7144.45 (0.91%), FTSE: 5940.72 (-0.09%).
- Asia-Pacific:Australia: 4277.80 (-0.22%),China: 2373.77 (-0.74%),Hong Kong: 21353.53 (0.21%),India: 5380.50 (-1.53%),Japan: 10123.28 (0.72%).
- Metals: Gold: 1659.50 (1.01%), Silver: 32.73 (1.69%), Copper: 3.90 (1.29%)
- Energy: Crude Oil: 105.11 (0.30%), Natural Gas: 2.28 (-0.22%)
- Commodities: Corn: 6.69 (1.56%), Soya Bean: 13.69 (1.39%), Wheat: 6.64 (3.26%)
- Currency: EUR/USD: 1.3082 (0.02%), GBP/USD: 1.5712 (-0.28%), USD/JPY: 83.5000 (-0.08%)
- 10 year US Treasury: 2.279% (0.011)
Market News Update
S&P 500 ends above 1400 for the first time since financial crisis: Buoyed by better than expected economic news,U.S. stocks advanced, sending the S&P 500 above the 1400-mark. The Dow Jones Industrial Average rose 0.44%, to 13253, the S&P 500 gained 0.6%, to 1403 and the NASDAQ Composite climbed 0.51%, to 3056. Financial and industrial stocks performed strongly today. http://www.valuewalk.com/2012/03/stock-market-rallies-sp-500-inx-now-above-1400/
IMF approves $36.7 billion Greek loan: As part of a broader international rescue package, IMF approved a 28 billion-euro ($36.6 billion) loan for Greece, of which 1.65 billion euros would be immediately disbursed. Greece completed the world’s largest sovereign-debt restructuring after agreeing to a 3.2 billion euros in additional spending cuts this year.
Whole-sale prices in U.S. increase: Labor Department figures showed that wholesale prices in the U.S. climbed in February by the most in five months. The producer price index rose 0.4 percent in February following a 0.1 percent increase the prior month, reflecting a jump in energy costs.
Gold rises 1 percent: Reversing a near 2 percent fall on Wednesday, gold today bounced back and settled above the $1600 level. Spot gold prices rose 0.96 percent to $1,658.01 an ounce, having lost nearly 4 percent so far this week.
Dollar retreats after strong rally: After enjoying a strong run in recent days, the dollar retreated against other major currencies, as market participants took a breather. The greenback trading lower was largely a case of market consolidation following big gains and was not triggered by any specific news.
Company News Update
- EBay Inc. (EBAY) declined 2.2 percent to $36.79 after it was downgraded to neutral from outperform at Credit Suisse Group AG.
- Children’s book publisher, Scholastic Corp. (SCHL), jumped 14 percent after it reported better than expected revenue on account of strong sales of its Hunger Games book series.
- CSX Corp. (CSX), the biggest eastern- U.S. railroad, rose 8 percent after it said that it expects to post record quarterly profits.
- Healthy same-store sales growth helped discount retailer Ross Stores (ROST) report fiscal fourth-quarter results in line with analysts’ expectations. The stock closed lower.
- Citing pricing pressures and unexpected margin weakness in its raw materials business, Nucor Corp. (NUE), the largestU.S. steelmaker by market value, forecast first-quarter profit that missed analysts’ estimates. The stock fell 1 percent
- In an effort to help finance its acquisition of HSBC’s U.S.credit card business, Capital One Financial (COF) announced a $1.25 billion common stock offering on Wednesday, which saw the stock surge 2.5 percent.
- Demandware’s (DWRE) soared more than 50% in its NYSE debut despite concerns over long-term profitability.
- Clothing retailer Guess Inc. (GES) tumbled 10 percent after the company announced a fall in fourth quarter profit and also gave disappointing outlooks for the current quarter and fiscal year.
- The world’s largest maker of elevators and air conditioners, United Technologies Corp (UTX.N), has disclosed plans to sell three units to raise about $3 billion in cash to fund the acquisition of Goodrich Corp (GR.N).
Hedge Fund News Update
- Third Point Founder and Chief Executive Dan Loeb wrote in a letter to Yahoo (YHOO) that the activist hedge fund will launch a campaign within the next week to install its own hand-picked directors on Yahoo Inc’s board. Third Point is one of Yahoo’s largest institutional shareholders. http://www.valuewalk.com/2012/03/dan-loeb-releases-letter-to-yahoo-warning-of-proxy-war-this-week/
- In a regulatory filing, Sears Holdings Corp. (SHLD) has disclosed that Edward Lampert’s ESL InvestmentsInc, which owns 62 percent of Sears’ stock, had tried to ease vendors’ concerns by taking on some of the risk the vendors would face if Sears were to file for bankruptcy.
- Hedge-fund billionaire Steve Cohen emerged as the front-runner to purchase the Los Angeles Dodgers, and has planned to hire former St. Louis Cardinals manager Tony La Russa for a key front-office position.
- According to Francisco Arcilla, head of funds of hedge funds at French group Axa Investment Managers, investors in middle-east are increasingly looking to make fund of hedge fund investments.
- UShedge fund BlueMountain has taken over French bank Credit Agricole’s (ACA:PAR) structured credit market-making business that ceased operations three years ago.
- Myriad Opportunities Master Fund Ltd., founded by the former Asia head of Highbridge Capital Management LLC, Carl Huttenlocher, has raised $900 million by March 1.
- Brummer & Partners,Sweden’s largest hedge fund manager has announced the launch of its private equity venture in thePhilippines.
- Former Asiahead of hedge fund firm Lone Pine Capital, Eashwar Krishnan, and Tanvir Ghani, former head of capital introduction for Asia-Pacific at Goldman Sachs Group Inc have set up long/short equities hedge fund Tybourne Capital Management inHong Kong and are aiming to raise $1 billion in the fund.
- Optimized Portfolio Management (OPM), the Swedish fund of hedge funds specialist has launched its first single strategy Ucits fund, OPM Efficient Global Equity Allocation (EGEA) fund.