Every afternoon ValueWalk provides an update on global market levels, economic news, and hedge fund news.
* US: Dow: 12929.59 (-1.00%), S&P 500: 1382.20 (-1.14%), NASDAQ: 3047.08 (-1.08%)
Lee Ainslie's Maverick Capital had a difficult third quarter, although many hedge funds did. The quarter ended with the S&P 500's worst month since the beginning of the COVID pandemic. Q3 2021 hedge fund letters, conferences and more Maverick fund returns Maverick USA was down 11.6% for the third quarter, bringing its year-to-date return to Read More
* Europe: CAC: 3319.81 (0.00%), DAX: 6775.26 (0.00%), FTSE: 5723.67 (0.00%).
* Asia-Pacific: Australia: 4319.80 (0.00%), China: 2285.78 (-0.91%), Hong Kong: 20593.00 (0.00%), India: 5234.40 (-1.66%), Japan: 9546.26 (-1.49%).
* Metals: Gold: 1643.90 (0.85%), Silver: 31.52 (-0.65%), Copper: 3.72 (-1.99%)
* Energy: Crude Oil: 102.46 (-0.82%), Natural Gas: 2.11 (0.86%)
* Commodities: Corn: 6.49 (-1.41%), Soya Bean: 14.31 (-0.21%), Wheat: 6.43 (0.70%)
* Currency: EUR/USD: 1.3108 (0.08%), GBP/USD: 1.5899 (0.14%), USD/JPY: 81.4600 (-0.22%)
* 10 year US Treasury: 2.044% (-0.137)
Market and Economy News Update
U.S. markets fall: Markets ended the day in the red for the fourth-straight session, after Friday’s disappointing jobs report raised concerns over the strength of recovery in the economy. The Dow Jones Industrial Average (INDEXDJX:.DJI), the S&P 500 (INDEXSP:.INX) and the NASDAQ (INDEXNASDAQ:.IXIC) closed around a percent lower. Dow ended below the psychological level of 13,000 for the first time in a month.
Oil at seven-week low: Ahead of negotiations between Iran and world powers over Tehran’s disputed nuclear program, oil prices fell on Monday and settled under the $103 mark. Crude-oil futures for May delivery fell 0.8 percent to $102.46 a barrel on the New York Mercantile Exchange. Brent oil for May settlement dropped 0.6 percent on the London- based ICE Futures Europe exchange.
Treasury yield falls to one-month low: Following a sharp drop on Friday, treasury 10-year note yield fell 2 basis points to 2.03 percent, their lowest level in a month, as investors sought refuge in U.S. debt amid concern of slowdown in the global recovery.
Company News Update
* Banking stocks were among the biggest losers on Monday, with Bank of America Corp (NYSE:BAC) down 3.3 percent, Citigroup Inc. (NYSE:C) losing 2.4 percent and JPMorgan Chase & Co. (NYSE:JPM) closing a percent lower.
* Alcoa (NYSE:AA) will report after the closing bell on Tuesday and analysts are predicting a 14.5 percent drop in earnings for the materials sector. Shares of Alcoa dropped 0.3 percent.
* Major media companies were under intense pressure after Citigroup downgraded its ratings on CBS Corporation (NYSE:CBS), Discovery Communications Inc. (NASDAQ:DISCA), The Walt Disney Company (NYES:DIS) and News Corp (NASDAQ:NWSA) to “neutral” from “buy.”
* AT&T Inc. (NYSE:T) fell 1 percent after the company yesterday said that it was yet to reach a deal with its union on a new contract after the old one expired. The Communications Workers of America is working on a new deal with AT&T.
* Sherwin-Williams Company (NYSE:SHW), the largest U.S. paint retailer, closed a percent higher after reporting first-quarter earnings that exceeded analysts’ estimates.
* MetroPCS Communications Inc. (NYSE:PCS) fell 3.7 percent after the Texas-based pay-as-you-go wireless carrier was cut to “neutral” from “outperform” at Macquarie Group Ltd.
* New Orleans-based oil producer, McMoRan Exploration Co (NYSE:MMR), slumped 3.2 percent after reporting complications at the Davy Jones No. 1 well in the Gulf of Mexico.
* Great Wolf Resorts, Inc. (NASDAQ:WOLF) soared 13 percent after the water-parks operator received a $7 a share takeover offer from KSL Capital Partners LLC, topping Apollo Global Management LLC’s (NYSDE:APO) offer of $6.75 a share.
* Facebook Inc. has agreed to buy the photo-sharing company Instagram for about $1 billion in cash and stock.
Hedge Fund News Update
* According to hedge fund industry adviser Hennessee Group, the Hennessee Hedge Fund Index was up 0.6 percent in March, which was less than the 3.1 percent and 2 percent gains posted by the Standard & Poor’s 500 and Dow Jones Industrial Average, respectively.
* Data from the Commodity Futures Trading Commission showed hedge fund managers reduced bullish bets on commodities in the week ended April 3. This was the second consecutive week when bullish bets were reduced, and money managers decreased net-long positions across 18 U.S. futures and options by 2.8 percent.
* In comparison to developed markets, hedge funds managers believe it easier to profit from bond and currency bets in emerging economies like India, China and Brazil because of the more predictable monetary policy stance there, according to a report by Reuters.
* Hedge funds in South Korea are struggling to attract investors because of the strict regulations imposed by the government there. Retail investors have limited access to domestic hedge funds, and local institutional investors are still reluctant to put their money into the home-grown funds, which were created late last year, and have short track records.
* The Wall Street Journal reported Dallas-based packaged-ice maker, Reddy Ice Holdings Inc, is preparing to file for Chapter 11 bankruptcy protection and plans to hand ownership to Centerbridge Partners, a hedge fund that holds the company’s debt.
* Nasdaq-listed iGate Corporation (NASDAQ:IGTE) said it accepted minority shareholders’ offer of 520 rupees per share to delist its Indian unit Patni Computer Systems Limited (ADR) (NYSE:PTI), after it received the offer from Elliot Management, the hedge fund that holds maximum non-promoter shares of the company.
* New York-based hedge fund, Tiger Global Management, headed by billionaire investor Charles Coleman, has put $8m (£5m) into iROKO Partners, an Anglo-Nigerian company distributing Nigerian films worldwide, according to British newspaper The Telegraph. The Nigerian film industry has grown at about 18pc a year and produced about 2,000 new films in 2010.