Market Action
- US: Dow: 12734.63 (-0.18%), S&P 500: 1318.43 (-0.58%), NASDAQ: 2805.28 (-0.46%)
- Europe: CAC: 3363.23 (1.51%), DAX: 6539.85 (1.80%), FTSE: 5795.20 (1.25%).
- Asia:China: 2319.12 (0.00%),Hong Kong: 20439.14 (1.61%),India: 5158.30 (0.60%),Japan: 8849.47 (-0.39%)
- Metals: Gold: 1720.40 (-0.36%), Silver: 33.44 (-0.90%), Copper: 3.89 (-0.29%)
- Energy: Crude Oil: 99.93 (0.23%), Natural Gas: 2.60 (-0.12%)
- Commodities: Corn: 6.35 (0%), Soya Bean: 12.23 (0%), Wheat: 6.54 (0%)
- Currency: EUR/USD: 1.3104 (-0.0326%), GBP/USD: 1.5693 (0.0197%), USD/JPY: 77.4420 (-0.0084%)
- 10 year US Treasury: 1.931% (-0.063)
Market News Update
Wall-Street stumbles: A rally sparked by the Federal Reserve’s low-rate pledge stalled out on Thursday, with the markets sliding modestly into the red after mixed corporate earnings reports, lackluster economic data and deadlocked Greek debt talks curbed traders’ buying appetite. The Dow Jones Industrial Average fell 22.3 points, or 0.18%, to 12735, the S&P 500 slipped 7.6 points, or 0.57%, to 1318 and the NASDAQ Composite slumped 13 points, or 0.46%, to 2805. http://money.cnn.com/2012/01/26/markets/markets_newyork/index.htm?iid=HP_LN
New home sales fall in December: New single-family home sales unexpectedly fell in December for the first time in four months and the median home price dropped, dampening some of the hopes the housing sector will boost the economy this year.
http://money.cnn.com/2012/01/26/real_estate/new_home_sales/index.htm
First time jobless claims in US increase: Claims forU.S. jobless benefits rose last week, displaying the usual volatility around holidays that has masked an improvement in the labor market.
Foreclosures made up 20% of third quarter sales: Sales of homes in foreclosure comprised 20% of allU.S. residential sales during the third quarter, according to RealtyTrac.
http://www.cnbc.com/id/46146636
Durable goods orders in US climb: New orders for U.S. manufactured goods rose more than expected in December on strong demand for aircraft, while a rebound in a gauge of business spending plans suggested investment closed the year on the upswing. Durable goods orders climbed 3.0 percent after rising an upwardly revised 4.3 percent in November, the Commerce Department said on Thursday. http://www.bloomberg.com/news/2012-01-26/durable-goods-orders-in-u-s-climb-3-stronger-than-economists-estimated.html
Company News Update
- Starbucks (SBUX) reported quarterly earnings and revenue that beat Wall Street’s forecasts on Thursday and raised its full-year guidance although its outlook remains below analysts’ expectations. After the earnings announcement, the company’s shares fell 2 percent in extended-hours trading.
- Caterpillar (CAT) reported a 58 percent rise in quarterly earnings on Thursday that blew away Wall Street expectations and it projected strong growth for 2012 despite global economic uncertainly. Investors reacted positively to the report, with Caterpillar shares trading sharply higher Thursday.
- AT&T (T) posted a $6.7 billion quarterly loss due to a hefty break-up fee for its failed T-Mobile USA merger and other charges on top of costly subsidies for smartphones such as Apple’s popular iPhone. Its shares fell about 1 percent after the news.
- 3M (MMM) reported higher-than-expected quarterly earnings on Thursday as demand from industrial and transport markets offset weak sales to makers of consumer electronics.
- E*Trade (ETFC) was the worst performing stock in the S&P 500, after the company posted an unexpected fourth-quarter loss.
- Disappointing results from SanDisk (SNDK) also weighed on both the S&P 500 and the NASDAQ.
- Netflix (NFLX) was the biggest winner on the S&P 500 and the NASDAQ, with shares surging more than 20%.
- JCPenney (JCP) and LSI (LSI) were also big gainers among the S&P 500, after the companies delivered upbeat forecasts for the first quarter of 2012.
Hedge Fund News Update
- Unigestion hedge fund chief and former Man Investment senior portfolio manager Philippe Gougenheim plans to launch his new firm’s first hedge fund, Glasnost fund, this summer.
- New quantitative research shows that emerging managers in hedge funds regularly break with conventional wisdom about performance. According to the study, hedge funds’ return distributions are not normal twice as often as those of long-only funds. On the whole, returns are higher and draw downs are lower across indices. Individual funds’ return distributions can differ from normal at least 25% of the time.
- Danny Kuo and Todd Newman, two of seven men accused of taking part in a “criminal club” of hedge fund traders and analysts who swapped illegal secrets involving Dell Inc. (DELL), were allowed to remain free on bond.
- Samir Barai, the founder of now-defunct Barai Capital Management, was barred by an order issued Wednesday by the Securities and Exchange Commission from “association with any broker, dealer, investment adviser, municipal securities dealer or transfer agent.”
- Cayman Island based hedge fund Trinity Fund Administration (Cayman) Ltd. is expanding its global network with the opening of a new office in New York City.
- AlphaMetrix LLC, founder and operator of the AlphaMetrix Global Marketplace (AGM), the leading secure online marketplace for private investments, announced the kickoff of its annual AlphaMetrix Summit for the hedge fund, commodity trading advisor and private equity community.
- Hedge funds that loaded up on Greek bonds in the last month, betting on a quick gain, are now scrambling to sell those holdings, fearful that European policy makers will force them to take a deep and binding haircut on the debt, according to a report in the New York Times.
