The S&P 500 is on track for its best weekly gain since July, but if history is any indication, those gains may evaporate on Monday.» Read More
The company that redfined package shipping and brought over-night delivery to the masses.
Reports Q3 earnings Thursday 3/20 at approx. 745a ET. Conference call at 830a ET.
THE sportings good apparel company. Sells shoes, clothes, lifestyle and then some.
Reports Q1 earnings Tuesday 3/19 at approx. 415p. Conference call at 5p.
As we all know, the Visa IPO priced last night at $44 per share, above its range of $37 - $42 per share, raising $17.9 billion, and beating the previous record held by the AT&T Wireless IPO back in 2000, which raised $1 billion.
Visa is currently bidding between $61.20 - $61.21 per share and traders are trying to narrow that range - first we were hearing from between $52 - $57 from the NYSE, and now we are hearing slightly over the $60 level as demand continues to increase.
MORGAN STANLEY (MS)
Last of the big investment banks to report earnings this week. Larger than Lehman, smaller than Goldman.
Reports Q1 earnings Wednesday 3/19 at about 730a ET. Conference call at 11a ET.
The Fed has:
1) Reduced the growth forecast, and increased the inflation forecast
2) Talked less on credit problems
The tougher talk on inflation has helped the dollar, and the fact that there were two dissenting votes are making the Fed look much more balanced in their concern over growth and inflation. This is being greeted as good news by the markets because traders feel a little more confident that the Fed is addressing the liquidity crises given the events over the weekend.
Also note that the market is net long going into a quadruple witching expiration. There are a lot of trapped shorts here that is adding to the rally.
Watch the VISA IPO after the close. Should price in the range of $37-$43, talk that demand is strong, may open up $3-$5.
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The Federal Reserve announced a 75 basis point cut to its Fed Funds Target today, bringing the rate down to 2.25%, its lowest level since January 2005. The Fed has now cut the rate by 3.0% since it began easing in September of last year. How does 300 basis points over 180 days compare to past easing periods?
When the news of Bear Stearns increased credit concerns arose on Friday, the Financial stocks took a beating, adding to their woes from the past few months. Sunday's news of the JP Morgan Chase's $2/share buyout of Bear drove prices down further. Now with Lehman and Goldman reporting better than expected earnings the financials are up significantly.
As of 11:00 am EST, many of the banks have rallied back, paring losses from Friday and Monday. As the beneficiary of what many are calling the "deal of the century", JP Morgan has had the best gain. Even Bear has gained some ground on speculation that they may be able to get a better deal. Here is how some of these stocks have changed over the past three days and where they stand relative to last Thursday's close.
Chart updated as of close: XLF , up 8.4% today, had its best percentage gain in eight years.
Bear Stearns has lost almost 84% in its market cap since Friday's close and Bear Stearns is down over 97% from its closing high of $171.51 hit on 1/12/07. From its high in January of 2007, Bear Stearns has lost more than $19 billion in market cap.
MF Global has lost almost 66% in its market cap since Friday's close and MF Global has lost 80% from its high of $31.53 set on 10/29/07.
MF Global went public on 7/18/07.
Lehman Brothers has lost over 19% in its market cap since Friday's close and Lehman is down 63% from its closing high of $85.80 hit on 2/2/07.
GOLDMAN SACHS (GS)
Are they the smartest guys in investment banking? Many would argue yes. Mergers & acquisitions advice, asset management, market making, and a reputation for astute market calls for both clients and in trading its own capital.
Reports Q1 earnings Tuesday 3/18 at approx. 830a. Conference call at 11a.
Despite oil and gold at record levels, prices have retreated across the board, and almost all commodities were in the negative today.
The Reuters CRB Index closed down almost 5% on Monday for its sharpest decline in almost 40 years. The RJ CRB tracks prices of 19 commodity futures, including oil, gas, natural gas, heating oil, gold, aluminum, nickel, silver, copper, wheat, cotton, soybeans, sugar, frozen orange juice, cocoa, corn, coffee, live cattle and lean hogs.