The performances of the stock markets are mixed on Monday based on data showing that Japanese economic growth is experiencing slowdown, and the United States government posted a 33% decline in its budget deficit over the past ten months that ended July compared the same period a year ago.
The Obama Administration projected that the federal deficit will decline to $759 billion, the lowest gap over the past five years due to improvement in revenue, increased tax collections, and repayments by Fannie Mae / Federal National Mortgage Association (OTCBB:FNMA) and Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) to the Treasury Department.
Odey Asset Management's Special Situations Fund was down 3.2% in March, compared to its benchmark, the MSCI World USD Index, which was up 3.3%. Through the end of March, the fund is up 8.7%, beating the benchmark's return of 4.9%. Q1 2021 hedge fund letters, conferences and more Odey's Special Situations Fund deploys arbitrage and Read More
Dean Maki, economist at Barclays PLC (NYSE:BCS) (LON:BARC) opined the improvement in the federal budget deficit over the past year is the fastest on record because of rising revenues and declining outlays. He said, “Revenues are increasing because of income growth, a rising stock market, and higher tax rates, while outlays are shrinking because of budget cuts and lower unemployment.”
Market observers also believe that investors are still waiting for the report on American retail sales, which will be available tomorrow. The Dow Jones Industrial Average and the S&P 500 declined while the NASDAQ gained on Monday. Joe Castigan, director at equity research firm Bryn Mawr commented, “growth is frustratingly low offset off set by discount rates that are unnaturally low.” According to Castigan, the markets will stay locked with low volume as long as the situation remains as it is until September.
- Dow Jones Industrial Average (DJIA)- 15,419 (-5.68)
- S&P 500- 1,689 (-1.94)
- NASDAQ- 3,669 (+9.84)
- Russell 2000- 1,053 (+4.64)
- EURO STOXX 50 Price EUR- 2,826 (+0.05%)
- FTSE 100 Index- 6,574 (-0.04%)
- Deutsche Borse AG German Stock Index DAX- 8,359 (+0.25%)
Asia Pacific Markets
- Nikkei 225- 13,519 (-0.70%)
- Hong Kong Hang Seng Index- 22,271 (+2.13%)
- Shanghai Shenzhen CSI 300 Index- 2,352 (+2.92%)
Stocks In Focus
BlackBerry Ltd (BBRY)
The stock price of BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) increased more than 11% to as high as $10 per share in New York after the Canadian smartphone manufacturer revealed that it is exploring strategic alternatives to enhance value and accelerate the deployment of BlackBerry 10. Some analysts in the technology industry believe that Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT) might be interested in the patents and security services solutions of BlackBerry.
Tesla Motors Inc (TSLA)
Tesla Motors Inc (NASDAQ:TSLA) declined by nearly 4% to around $147 per share after a Barron’s article warned about the electric car manufacturer’s potential bubble trouble. Elon Musk is expected to reveal further details regarding the Hyperloop transportation system this afternoon 1:30 PST.
SYSCO Corporation (SYY)
The stock value of SYSCO Corporation (NYSE:SYY) declined by nearly 6% to around $32.99 per share. The stock retreated the most in the S&P 500 after reporting financial results that is lower than the expectations of Wall Street analysts on weak restaurant traffic. The company posted $283 million profit or $0.47 earnings per share on $11.6 billion revenue compared with the consensus estimate of $0.54 earnings per share on $11.59 billion revenue.
Perion Network Ltd (PERI)
Perion Network Ltd (NASDAQ:PERI) declined more than 14% to as low as $10.12 per share despite outperforming the consensus estimate of Wall Street analysts. The company generated $0.26 earnings per share on $24.4 million revenue. Analysts expect the company to post $0 EPS.