Mid-Day Market Action
- US: Dow: 11893.56 (0.59%), S&P 500: 1218.62 (0.56%), Nasdaq: 2542.45 (-0.13%)
- Europe: CAC: 2998.73 (0.76%), DAX: 5730.62 (0.98%), FTSE: 5400.85 (0.63%).
- Asia:Australia: 4142.30 (-1.2 %),China: 2180.90 (-2.18%),Hong Kong: 18026.84 (-1.82%),India: 4746.35 (-0.35%),Japan: 8377.37 (-1.69%),Korea: 1819.11 (-2.12%),Singapore: 2635.25 (-1.41%),
- Metals: Gold: 1573.80 (-0.83%), Silver: 28.98 (0.14%), Copper: 3.28 (-0.03%)
- Energy: Crude Oil: 94.15 (-0.84%), Natural Gas: 3.13 (-0.16%)
- Agriculture: Corn: 5.81 (-0.04%), Soya Bean: 11.08 (0.68%), Wheat: 5.84 (0.56%).
- Currency: EUR/USD: 1.3007 (0.21%), GBP/USD: 1.5493 (0.18%), USD/JPY: 77.86 (-0.24%)
- 10 year US Treasury: 1.908% (0.005)
Market News Update
Michael Zimmerman’s Prentice Capital is having a strong year
Prentice Capital was up 15.3% net last month, bringing its year-to-date gain to 49.4% net. Prentice touted its ability to preserve capital during market downturns like the first quarter of this year and the fourth quarter of 2018. Q3 2020 hedge fund letters, conferences and more Background of Prentice Capital The fund utilizes a low Read More
- US markets rise on strong economic data: US markets rose on Thursday on the back of data that showed first time claims for jobless benefits fell to a 3-year low, raising hopes for an improving labor market.
- Jobless Claims at 3-year low: New claims for jobless benefits dropped to a 3-year low last week, showing signs that a weak U.S. economy is gradually improving. Initial claims for state unemployment benefits dropped 19,000 to a seasonally adjusted 366,000, and are at the lowest level since May 2008. http://www.reuters.com/article/2011/12/15/us-economy-idUSTRE7BE12S20111215
- Spain’ borrowing costs fall: Strong demand for Spanish medium and long-term bonds on Thursday, an outcome ofMadrid’s cost cutting exercise, helped ease concerns that it was the euro zone’s weakest link.
- Euro rebounds after breaching key level: The euro rebounded after breaching the key psychological level of $1.30, after International Monetary Fund chief Christine Lagarde said the organization would seek aid from countries outside the euro zone to help with the region’s debt crisis. http://online.wsj.com/article/SB10001424052970204026804577100300248438914.html?mod=WSJ_Markets_LEFTTopStories
- US Industrial output drops: For the first time in seven months, US industrial output dropped in November. Production in the U.S. industrial sector eased 0.2% last month.
Company News Update
- FedEx (FDX) reported a 76% surge in second quarter profits, owing to strong demand and high prices in ground shipping.
- Morgan Stanley (MS.N) has announced that it will cut 1600 jobs in a bid to control costs. The job cuts will come across all staff levels and geographic areas,
- Google (GOOG) unveiled its facial recognition tool “Find My Face”, for its Google+ social network.
- Nokia Corp. will re-enter theUS smartphone business with an entry level model priced at $50. It will be powered by the Windows software and sold by T-Mobile USA.
- Covidien Plc. (COV.N) will spin-off its pharmaceutical business into a stand-alone public company. Covidien is among the top 10US generic drug manufacturers.
- Chip tool makers, Lam Research (LRCX) and Novellus Systems (NVLS), announced a $3.3 billion merger, driven by significant synergies between their areas of equipment expertise
Hedge Fund News Update
- Michael Platt, the founder of the $30 billion hedge fund BlueCrest Capital Management LLP, said most of the banks inEurope are insolvent and the situation will worsen in 2012 as the region’s debt crisis accelerates.
- Falling gold prices and gold mining stocks is negatively affecting the performance of several hedge fund managers, including John Paulson and David Einhorn.
- New Yorkhedge fund firm Fir Tree Partners has launched a new hedge fund and has raised $96 million starting December 1, according to a Securities and Exchange Commission filing made public on Wednesday.
- Former Moore Capital trader, Tim Leslie’s eight year old firm James Caird Asset Management will liquidate the $1.6 billion fund that suffered from massive losses this year.
Henry Swieca’s $500 million hedge fund Talpion Fund Management LP will return money to outside investors