"How many developers does it take to change a light bulb? None. That's a hardware problem."
-- Tip Your Waiter – Siri will be Here All Week (and on the iPad) – Don’t Worry, As You’ll See Below, Apple Will Let You Use Your Credit Card.
Market Musings From CNBC’s Numbers Guru Robert Hum (@HumOnTheMarkets)
- Losses accelerate into close as stocks end session at lows of day
- Reversal of fortunes: despite rising 95 points at the open, the Dow ends with a 143-point decline
- Major averages have poorest start of any week this year
- Crude oil settles at an 8-month low, extends weakness in evening session as it clings to $81 level
Bonus Monday Musing
So much for that promising open this morning. Instead, the major averages had the poorest start of any week this year. At the close: Dow Industrials down 1.14%, S&P 500 down 1.26%, Nasdaq Comp. down 1.70%.
Can stocks climb out of that deep hole by the end of this week? If the recent trend continues, maybe not.
The markets haven’t done too well lately when they start the week on such a poor note. Of the last 6 times the S&P 500 has been down 1% or more on the first trading day of the week, it has finished that week in the red all but once.
S&P 500 Monday Return Full Week Return
31-Oct-11 -2.47% -2.48%
21-Nov-11 -1.86% -4.69%
12-Dec-11 -1.49% -2.83%
19-Dec-11 -1.17% +3.74%
9-Apr-12 -1.14% -1.99%
14-May-12 -1.11% -4.30%
11-Jun-12 -1.26% ???
The Word on the Street
NO BLOCKBUSTER AT APPLE DEVELOPERS CONFERENCE; STOCK SKIDS/CNBC.com: “Razor-thin Macbook Pro with eye-popping high definition; a new mobile operating system; more languages for Siri. Those were some of the takeaways from the opening day at Apple's highly anticipated developers conference. But Wall Street's greeting: "Ho-hum." Before the conference opened Monday, Apple stock broke through its 50-day moving average level of $582.79 a share, but later fell below it. It closed down $9.15 a share or 1.58 percent."
APPLE’S STASH OF CREDIT CARD NUMBERS IS ITS SECRET WEAPON/NY Times – Nick Bilton: “That little iPhone in your pocket is perfectly positioned to become a clone of the credit cards in your wallet or purse. And Apple can thank the music purchases on the iPod if and when it pulls this off. … Though the truly startling number Mr. Cook shared — and note that he spelled it out to the developers — is that Apple now has 400 million active accounts in iTunes with credit cards. That means that all of Apple’s iOS devices are linked to those credit cards, too.”
WHY MARKETS NO LONGER RALLY ON EUROPEAN BAILOUTS/Reuters: “So much for the relief rally. After bouncing overnight on news that Europe had stitched together a $125 billion rescue for Spain's banks, gains for global stocks and the euro fizzled.”
FOREIGN PURCHASES OF U.S. HOMES RISE STRONGLY/WSJ: Nick Timiraos: “A survey released Monday showed that the six-year slide in U.S. housing prices, coupled with the rising value of some foreign currencies and continued instability in Europe, is fueling a property-buying binge in the U.S. by wealthy foreigners. Nationwide, international buyers spent $82.5 billion on residential real estate in the 12-month period that ended in March, according to the National Association of Realtors. That was up by 24% from the $66.4 billion spent in the same period that ended March 2011 and accounted for nearly 8.9% of the $928 billion spent on residential real estate during that span.”
NETJETS TO BUY UP TO $9.6 BILLION IN AIRCRAFT FROM CESSNA, BOMBARDIER/WSJ – Jon Ostrower: “NetJets Inc. said it plans to buy up to 425 aircraft from Cessna Aircraft Co. and Bombardier Inc. worth up to $9.6 billion, in the largest ever purchase of private planes.”
FAMILY NET WORTH DROPS TO LEVEL OF EARLY ’90S, FED SAYS/NY Times: Binyamin Appelbaum: “The recent financial crisis left the median American family in 2010 with no more wealth than in the early 1990s, erasing almost two decades of accumulated prosperity, the Federal Reserve said on Monday. The median family, richer than half of the nation’s families and poorer than the other half, had a net worth of $77,300 in 2010, down from $126,400 in 2007, the Fed said. The crash of housing prices explained three-quarters of the loss.”
AMID DRUMBEAT OF BAD NEWS, INVESTORS BET AGAINST FACEBOOK/NY Times – Michael De La Merced: “Judging by Facebook's short-interest levels, a good number of investors seem to be betting that the social network’s shares will struggle for some time. As of May 31, the company’s short interest amounted to 34 million shares, according to the Nasdaq stock market. Given its average daily trading volume of 108.3 million shares, Facebook has a fairly high short-interest ratio. It’s yet another sign of investor dissatisfaction with the company, nearly a month after its glitch-filled debut.”
FOR NOBEL WINNERS, A SMALLER CASH PRIZE/NY Times – Catherine Rampell: “Even the prestigious Nobel Prize is not immune to global economic struggles. The Nobel Foundation announced Monday that it is reducing the size of its prizes by 20 percent, to about $1.1 million from $1.4 million (8 million Swedish kronor from 10 million Swedish kronor). The decision to make the first nominal cut in the prize since 1963 is a result of recent financial difficulties.”
730am et May, NFIB
830am et May, Import Prices
1300pm et 3-Yr Note Auction
1400pm et May Federal Budget
Before the bell:
FactSet (11a cc), Michael Kors (8a cc)
After the bell:
Casey's General (1030a Wed cc)
Christopher Whalen, Tangent Capital Partners Sr Managing Director (715a)
Donald Trump, Trump Organization Chairman (730a)
Daniel Akerson, General Motors CEO (815a)
Dan Quayle, Ceberus (830a)
Ben Quayle, AZ Congressman (830a)
Howard Schultz, Starbucks CEO (840a)
Alan Miller, Universal Health Services CEO (1000a)
Gov Bill Hasian, R-TN (1120a)
T. Boone Pickens, BP Capital Founder (1230p)
Nansen Saleri, Quantum Reservoir Impact CEO (1230p)
John Hofmeister, Citizens for Affordable Energy CEO (1230p)
Jeffrey Harte, Sandler O'Neill Principal (100p)
Tom Bradley, TD Ameritrade President (200p)
Jim Rogers, Rogers Holdings Chairman (310p)
Steven Spinner, United Natural Foods CEO (500p)
Jim Rogers, Rogers Holdings Chairman (700p)
Follow Tom Rotunno on Twitter: @tomrotunno
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