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Net Net: Promoting innovation and managing change

Last Call: The Dow Has a Case of the Mondays

NYSE trader
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Brian, Chotchkie's Waiter: So can I get you gentlemen something more to drink? Or maybe something to nibble on? Some Pizza Shooters, Shrimp Poppers, or Extreme Fajitas?
Peter Gibbons: Just coffee.
Brian, Chotchkie's Waiter: Okay. Sounds like a case of the Mondays.

- “Office Space”

- Below, the Dow’s “Case of the Mondays” continues.

Market Musings With CNBC Market Guru Robert Hum

  • Rough Monday for stocks as major averages slide over 1 percent
  • Monday blues: Dow has been down 8 of last 9 Mondays, 4 of which were triple-digit declines
  • Dow Transports down 5 percent over last 4 days, worst 4-day losing streak this year
  • S&P 500 briefly loses June gains, trying to avoid 3rd consecutive month of losses
  • Precious metals rise: gold, silver have best day in 3 weeks

The Word on the Street Tonight

CHINESE IN TALKS TO FUND US HOMES/WSJ – Dinny McMahon & Robbie Whelan: “Lennar Corp. , one of the U.S.'s largest home builders, is in talks with the China Development Bank for approximately $1.7 billion in capital to jump-start two long-delayed San Francisco projects that would transform two former naval bases into large-scale housing developments, according to people familiar with the discussions”

FACEBOOK COO SHERYL SANDBERG JOINS BOARD OF DIRECTORS/CNBC- Cadie Thompson: “Facebook's chief operating officer Sheryl Sandberg is joining the social network's board of directors, the company announced Monday. Sandberg, who is in charge of Facebook's business operations, has worked as COO since 2008. "Sheryl has been my partner in running Facebook and has been central to our growth and success over the years," said CEO Mark Zuckerberg said in a press statement. "Her understanding of our mission and long-term opportunity, and her experience both at Facebook and on public company boards makes her a natural fit for our board."

MICROSOFT BUYS INTERNET STARTUP YAMMER FOR $1.2 BILLION/AP- “Microsoft is paying $1.2 billion to buy Yammer, an Internet startup that has built a social network similar to Facebook  for the business world. The deal announced Monday comes nearly two weeks after word of Microsoft's negotiations with Yammer leaked out in published reports. The acquisition represents Microsoft's latest attempt to adapt to a major shift in the technology industry, one that is fueling demand for more Internet services and social networking tools. That shift is threatening to weaken Microsoft's position as the world's largest software maker.”

CREDIT SUISSE PUSHES AHEAD WITH CUTBACKS/WSJ – Anita Greil and Dana Cimilluca: “Credit Suisse Group AG is moving ahead with its plan to cut around 3,500 jobs as it is set to shed up to 30% of senior jobs at its European investment-banking department, people close to the bank said Monday. Last year, Switzerland's second-largest bank disclosed plans to cut as much as 7% of its workforce. At the end of March, the bank said 2,000 of these jobs had already been eliminated."

MOODY'S CUTS RATINGS ON 28 SPANISH BANKS/WSJ – Nathalie Tadena: “Moody's Investors Service lowered its long-term ratings on 28 Spanish banks by one to four notches, pointing to the reduced credit-worthiness of Spain and expectations that the banks' exposure to commercial real estate will likely cause higher losses. Spanish bank stocks tumbled Monday on speculation about the downgrades. Earlier Monday, Spain formally requested European Union aid to help finance the cleanup of its banking industry.”

SEAGATE TO BE ADDED TO S&P 500; PROGRESS ENERGY TO BE REMOVED/NASDAQ – Ben Fox Rubin: "Seagate Technology Inc. will replace Progress Energy Inc. in the S&P 500 index after the close of trading on Friday, due to Duke Energy Corp.'s planned acquisition of Progress. Shares of Seagate jumped 4.7% after hours to $24.36 as the stock will be added to a major U.S. indexes. As of Monday's close, the stock was up 42% so far this year."

GAS PRICES ARE A SILVER LINING FOR WOBBLY ECONOMY/CNBC – Patti Domm: “Falling gasoline prices are one silver lining for an economy that is, at best, chugging along. … “I would say if it wasn’t for falling gas prices, there might be more talk that the slowdown is more concerning than it looks,” said Credit Suisse economist Jonathan Basile. “That’s keeping some of the other concerns at bay.”

BIG USERS BET ON MORE OIL PRICE FALLS/FT – Javier Blas & Gregory Meyer: “Airlines, trucking companies and other big energy consumers are betting on further oil price falls, with many reluctant to lock in at current levels amid fears prices could plunge if the global economy weakens further.”

KINDLE FIRE 2 MAY HIT AS SOON AS JULY/CNET – David Carnoy: “A credible source has told CNET that Amazon will unveil a second-generation Kindle Fire this summer and that it's targeting July 31 for a launch event. While we can't confirm the date, there's been plenty of chatter about new Kindles coming soon. Most recently, DigiTimes, which has been pretty spotty on the rumor front, reported that Amazon was "considering launching" a new $199 7-inch tablet with a higher resolution 1,280 by 800-pixel display "at the beginning of the third quarter."

Economic Data

900am et         Apr S&P/Case Shiller HPI 

1000am et       Jun Consumer Confidence

1000am et       Jun Richmond Fed Mfg Survey        

1300pm et       2-Yr Note Auction


Before the bell:

Robbins & Myers 

After the bell:

H&R Block

Key Guests

Michael Crofton, Philadelphia Trust Company CEO (500a)

Joe Kaeser, Siemens AG CFO (615a)

David Cordani, Cigna CEO (630a)

Keith Wandell, Harley-Davidson CEO (650a)

Rep. Eric Cantor, R-VA (700a)

Steve Schwarzman, Blackstone Group CEO (700a)

Austan Goolsbee, University of Chicago (700a)

Donald Trump, Trump Organization Chairman (730a)

Jim Atchison, SeaWorld Parks CEO (740a)

Bob Doll, BlackRock Chief Equity Strategist (800a)

Jeff Rosenberg, BlackRock Chief Investment Strategist for Fixed Income (800a)

Ronald Williams, Fmr Aetna CEO (800a)

Mark Bertolini, Aetna CEO (800a)

Michael McCallister, Humana CEO (830a)

Fred Hassan, Warburg Pincus Partner (840a)

David Blitzer, S&P Managing Director (915a)

Joshua March, Conversocial CEO (1000a)

Gina Raimondo, Office of the Rhode Island General Treasurer (1000a)

Katherine Losse, Facebook employee author (1100a)

Drew Brees, New Orlean Saints Quarterback (220p)

Beezer Molten, Half-Moon Outfitters Founder (250p)

Madelyn Alfano, Maria's Italian Kitchen Owner (250p)

Mark Pincus, Zynga Game Networks Founder (310p)

Rep Edward Markey, D-MA (410p)

Follow Tom Rotunno on Twitter: @tomrotunno

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