- US: Dow: 13194.10 (0.12%), S&P 500: 1394.28 (-0.12%), NASDAQ: 3040.73 (0.03%)
- Europe: CAC: 3564.51 (0.40%), DAX: 7079.42 (1.18%), FTSE: 5945.43 (-0.18%).
- Asia-Pacific:Australia: 4287.20 (0.90%),China: 2391.23 (-2.70%),Hong Kong: 21307.89 (-0.15%),India: 5463.90 (0.63%),Japan: 10050.52 (1.51%).
- Metals: Gold: 1644.00 (-2.96%), Silver: 32.16 (-4.23%), Copper: 3.83 (-1.64%)
- Energy: Crude Oil: 105.56 (-1.08%), Natural Gas: 2.28 (-0.83%)
- Commodities: Corn: 6.58 (-0.49%), Soya Bean: 13.50 (0.11%), Wheat: 6.43 (-0.81%)
- Currency: EUR/USD: 1.3030 (-0.02%), GBP/USD: 1.5671 (-0.03%), USD/JPY: 83.6600 (-0.08%)
- 10 year US Treasury: 2.269% (0.142)
Q2 Letter: Baupost won big in Q2 with PG&E, eBay, Liberty Global
Seth Klarman's Baupost recorded "strong" gains for the second quarter, although precise numbers were not included in the July 23 letter to investors, which was reviewed by ValueWalk. Klarman said that during the first quarter, they were "substantial purchasers of securities," while during the second, they were "significant net sellers" due to the strong rally. Read More
Market News Update
S&P 500 breaks five day rising streak: After rallying to the highest level since June 2008, the Standard & Poor’s 500 Index fell today as investors found little reason to extend a rally. The Dow Jones Industrial Average rose 0.12% to 13194, the S&P 500 dipped 0.12%, to 1394 and the NASDAQ Composite edged higher by 0.03%, to 3041.
Gold slumps 3 percent: Gold futures fell to the lowest level in eight weeks as investors shed the precious metal a day after the Federal Reserve upgraded itsU.S. economic outlook. April-delivery gold fell $51.30, or 3%, to settle at $1,642.90 a troy ounce the New York Mercantile Exchange.
Treasury yields rise: Ten year yields rose to the highest level in four months after hopes of the central bank buying more debt under a third round of quantitative easing faded. The benchmark 10-year yield jumped 14 basis points to 2.27 percent, the highest level since Oct. 31.
Oil declines: Oil settled under $106 afterU.S. crude oil inventories rose by 1.75 million barrels, surpassing forecasts. Crude oil for April delivery declined $1.28, or 1.2 percent, to $105.43 a barrel on the New York Mercantile Exchange.
Dollar strengthens: Rising Treasury yields drove the dollar to a fresh 11-month high against the yen on Wednesday. The dollar jumped 1 percent to 83.73 yen at5 p.m. inNew York trading. Against the euro, the greenback touched a new one-month high and climbed 0.4 percent to $1.3032 per euro.
Company News Update
- Shares of both Citibank Inc. (C) and Metlife Inc. (MET) fell sharply after the Fed said the banks would likely need to raise more capital in the event of a economic downturn.
- JPMorgan Chase & Co. (JPM) increased its dividend and announced that it would buy back stock, which saw its shares surge.
- Apple Inc. (AAPL) ended higher for the sixth consecutive day following positive comments from analysts.
- LHC Group Inc (LHCG) shares were up 10 percent at $20.19, a six-month high, in afternoon trading following reports that private equity firm TPG Capital LP is considering making an offer for the provider of home health and hospice services.
- Cliffs Natural Resources Inc. (CLF), the largestU.S. iron-ore producer, more than doubled its dividend, which saw the shares rise 6.8 percent to $69.30.
- The largest U.S.gold producer, Newmont Mining Corp. (NEM), slipped 1.5 percent to $54.02.
- After its successfully completing its initial public offering in December, social-gaming company Zynga Inc. (ZNGA), is planning a secondary offering of $400 million.
- Clinton Group Inc, which along with its affiliates owns about 2.4 percent of Jakks Pacific Inc’s (JAKK), has asked the toy maker’s board to run an auction to sell the company.
- KeyCorp (KEY) has finalized the buy-back of up to $344 million of its common stock and is evaluating a plan to increase its quarterly dividend.
- Citing a stronger than expected recovery in the hard-disk-drive market, LSI (LSI) increased its first-quarter revenue outlook and provided an upbeat earnings view.
- As part of a cost-cutting initiative, cigarette and tobacco producer, Reynolds American (RAI) said it would cut itsU.S. work force by about 10% by the end of 2014.
Hedge Fund News Update
- Dan Loeb, whose fund Third Point Avenue owns a significant stake in Yahoo, wrote in his fourth quarter letter to investors that Yahoo! Inc. (YHOO) may be valued too cheaply by the market.
- Monarch Alternative Capital won a $45.5 million legal claim against a unit of Dubai World for defaulting on a loan. Monarch last year suedDubai’s Drydocks World in aLondon court.
- Windsor-based financial services software provider SS&C Technologies Holdings Inc. (SSNC) will buy hedge-fund administrator GlobeOp Financial Services SA (GO/) for 572 million pounds ($897 million), trumping an earlier offer from U.S. private-equity firm TPG.
- John Kinnucan, the founder of Broadband Research LLC, has pleaded not guilty to federal charges of passing inside tips to hedge fund clients about SanDisk Corp. (SNDK), OmniVision Technologies Inc. (OVTI) and other companies.
- Vinik Asset Management LP, started by former Fidelity Investments hedge fund manager Jeffrey Vinik, has hired industry veteran David Iben. Iben is chief investment officer at Nuveen Investments Los Angeles-based affiliate, Tradewinds, and will join in June.
- After facing client redemption requests, TPG-Axon Capital Management LP, the hedge fund led by Dinakar Singh is liquidating London-based the Montrica Global Opportunities Fund.
- In its maiden offering, New York-based Quippa Capital Advisors, founded by former Goldman Sachs derivatives specialist, David Mike, will launch a global macro fund later in the second quarter.
- Managing director and co-head of hedge fund foreign exchange sales for Europe, the Middle Eastand Africaat Nomura, Louis Curran, who was based in London, has left the bank.
- Level Global, a hedge fund facing insider trading charges, has been sued by its insurer, XL Group, for providing wrong information when the parties signed an insurance policy.