Trader Talk
- Thursday, 24 May 2012 6:13 PM ETBy: Bob Pisani
Facebook suddenly spikes at the close on a surge in volume, ending above $33. Yesterday (Wednesday) it's up almost exactly $1, today it's up almost exactly $1.
Bloomberg via Getty ImagesLooks like suddenly FB [FB Loading... ()
] has acquired a friend of the court, doesn't it? Who could that be? I'll make this simple: the best way for Morgan Stanley to get out of this mess is for them to get the stock back above $38. If it gets above that, they can say to this army of unhappy clients: "See? It's three weeks later, and the stock is $38.50 — what is your problem, Mr. Smith?"
Problems? This is causing 99 different problems for them.
- Thursday, 24 May 2012 9:36 AM ETBy: Bob Pisani
The China and European Purchasing Managers Index (PMI) numbers were all below expectations. China's flash PMI (unofficial) came in at 48.7, showing contraction for the seventh straight month.
Bloomberg | Getty ImagesSide panels for Geely Automobile Holdings Ltd. Emgrand 7 series automobile are placed on a rack at the company's factory in Cixi, Zhejiang Province, China.The euro zone composite PMI, which combines services and manufacturing indexes in the euro zone, fell to 45.9, the lowest reading since June 2009.
So why are we up? Well, German gross domestic product
![[cnbc explains]](http://media.cnbc.com/i/CNBC/Sections/News_And_Analysis/_News/_CNBC_EXPLAINS/_IMAGES/CNBC_explains_icon1.gif)
was up 0.5 percent in the first quarter. - Wednesday, 23 May 2012 3:52 PM ETBy: Bob Pisani
US stocks rallied off their midday lows as the leaders of Italy and France (Mr. Monti and Mr. Hollande, respectively) said they favor eurobonds as a "possible solution" to the funding needs for the pro-growth strategy they are both promoting.
EyesWideOpen | Getty ImagesThey both agreed on the need for decisions by the "official" EU meeting in June.
This is good and bad news.
- Wednesday, 23 May 2012 9:24 AM ETBy: Bob Pisani
Hopes are fading for some large-scale announcement from the European Union summit.
German officials said the meeting was "a steppingstone to the June meeting."
German Chancellor Angela Merkel has already said no to Eurobonds. The Dutch and the Finns are supporting her. But we are heading in that direction: There will likely be some agreement on starting a "roadmap" to Eurobonds.
- Tuesday, 22 May 2012 5:53 PM ETBy: Bob Pisani
Another day of "crisis tennis." I know you're all obsessed with Facebook [FB Loading... ()
], but pay more attention to Europe.
Crisis tennis is this: every day we go back and forth between the two extremes: 1) the worry about the failure to do something about the excessive debt in the world, and 2) the desire to get the world's central banks—and sovereign governments—to keep stimulus spending going.The markets have been rallying in the past day and a half on hopes that China and Europe would find some magic bullet to spur global growth.
That is a fragile hope, as we saw late in the day.
- Tuesday, 22 May 2012 3:42 PM ETBy: Bob Pisani
What next? The Illuminati and the Rosicrucians caused the Facebook decline?
Bloomberg via Getty ImagesMy heavens, who didn't conspire to deceive the public on Facebook [FB Loading... ()
]? First it was Nasdaq messing up the open. Then it was Morgan Stanley for not supporting the price, and upping the shares. Then, it was high frequency traders. Now it's Morgan Stanley's technology analyst, who cut his revenue estimates on Facebook during the road show. (See: SEC Needs to Investigate Facebook Estimate Cut, Says Henry Blodget)
- Tuesday, 22 May 2012 9:30 AM ETBy: Bob Pisani
OK, this is embarrassing. Facebook at $32.70 in pre-open trading is embarrassing. Down 15 percent in two days is embarrassing on an initial public offering this big.
Source: Facebook.comA lot of traders are pissed off at Morgan Stanley [MS Loading... ()
]. Yesterday, it looked like Morgan Stanley provided some half-hearted support at $35 and $33 early in the day, then just stepped aside, letting everyone who wanted to get out, get out. - Monday, 21 May 2012 6:17 PM ETBy: Bob Pisani
Why did we rally going into the close?
Photo: Oliver P. Quilla for CNBC.comNYSE traderI'm tempted to say: don't ask me, I've been a Facebook [FB Loading... ()
] Fool all day. That's all I've talked about. Okay, that's not helpful. So here is what I see:
1) rally on oversold conditions, particularly in energy and materials. and
2) get set for a real food-fight in Europe: the EU "informal" leadership summit that is starting Wednesday is going to be a bruiser. The growth guys are winning.
The Italians, the French, the Spaniards, the Portugese...they all smell blood.
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