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Conference calls are often impacted by market trends, geopolitical conditions, news coming from conferences and economic releases.
(By Philip Holmes) We enter the second week of October anxiously awaiting King Henry's heroic rescue of the global banking system, as the Dow breaks 10K on the downside and Icelanders knit warm sweaters for a cold winter. Also, two stories broke over the weekend that shed light on how bad the problem is, and how it got that way. First, in the stock market, which looked perilously close to crashing for much of the trading day, investors found some nerve in the latter part of the afternoon, but not before the Dow dropped 800 points and broke downward through the magical 10K mark. As it happened, the Dow "only" lost 369.88, or 3.58%, on the day, to finish at 9,955.50. The Standard & Poor's 500 index lost 42.34, for 1,056.89, while the Nasdaq composite index shed 84.43 to end the trading day at1,862.96. Of course the bailout passed, and King Henry now has his $700 billion. But it would have been interesting to see the impact of a 60 Minutes piece that ran this past weekend, had it instead run a week earlier. Maybe the flood of angry emails to Congress, which had tapered off in the days preceding the vote, would have resumed apace. In the piece, Steve Kroft examines the treacherous role that credit default swaps played in the demise of Lehman and Bear, and indeed the wider crisis now to be held in check, the world hopes, by King Henry. One gem worth keeping: derivatives broker-cum-law professor Frank Partnoy discussing how no one knows just how big the market for CDS is. Says Partnoy, "There's this voluntary survey that claims that the market is in the range of 50 to 60 or so trillion dollars. It's sort of alarming that, in a market that big, we don't even know how big it is to within, say, $10 trillion." Yikes. Another weekend piece, this one in the NY Times, calls attention to another end of the real estate market that will crash hard in the months to come. The piece chronicles how private equity firms bought up apartment complexes in poor parts of New York City, using fanciful projections of rising rental revenue to justify paying high prices, and often re-financing the properties for much more than the numbers say they're actually worth. Just like bubble market homeowners, the private equity sharks often did cash-out refinancings, in the process lining their pockets and sticking investors with mortgages that are proving to be worth twice as much as the properties collateralizing them. As with the rest of the commercial RE market, look out below. We'll end on an appropriately somber note. Blogger Mike Shedlock alerts us to the crisis facing Iceland, a country that until recently had been hailed as a 21st century success story. After all, tiny Iceland has led the way in the development of green energy technology, amidst other successes. But as Mish tells us, the party is now over: "Iceland is on the brink of collapse. Inflation and interest rates are raging upwards. The krona, Iceland's currency, is in freefall and is rated just above those of Zimbabwe and Turkmenistan." Iceland is an extreme example of the broader crisis facing Europe. A crisis that is testing the modern European model of integrated economies that lack the political integration and federalized economic structure to keep unity disciplined in times of crisis.
The Investrend Earnings Calendar features Acuity Brands (NYSE: AYI), expected at $1.08; Alcoa (NYSE: AA), expected at $0.57; Safeway (NYSE: SWY), expected at $0.47; Team Inc. (NASDAQ: TISI), expected at $0.24.
The Investrend Economics Calendar lists Fed Chairman Bernanke speaks at NABE Conference, Weekly Chain Store Sales (8:55 a.m.), FOMC Minutes released (2 p.m.), Consumer Credit for August (3 p.m.).
The Investrend Events Calendar showcases ALLI, CRIS, DKAM, EXM, GIVN, ESEA at Maxim Group Growth Conf; GPR, PQ, EPM, PXD, NGAS, EVEP, GMXR, CPE at Independent Petroleum Association of America - OGIS San Francisco Conf; MDRX, MGRM, RIGL, OSIR, ATHN at JMP Securities LLC Healthcare Focus Conf; OII, KBR at Johnson & Rice Energy Infrastructure Conf; POWR at MAXIM GROUP Growth Stock Conf; TRIB, SNIC, INXI, MDAS, AMSG, SGMO at William Blair & Company Small-Cap Growth Stock Conf.
The Investrend Money Index is an indicator of the depth of market direction or indirection. While not always including the same stocks, the NYSE/NASDAQ 50 Most Actives indicate the direction in which the mass of money is flowing. Last session's trading showed three advancers versus 47 decliners. Advancers were led by Dendreon Corp (NASDAQ: DNDN) up 33.27%. Decliners followed Natl City Cp (NYSE: NCC) down 27.07%, Ual Corp New (NASDAQ: UAUA) down 17.39%, Nvidia Corp (NASDAQ: NVDA) down 13.07%, Level 3 Comm Inc (NASDAQ: LVLT) down 11.06%, Ford Motor Co (NYSE: F) down 8.89%, Motorola Inc (NYSE: MOT) down 8.63%, Chesapeake Energy Cp (NYSE: CHK) down 8.37%, Companhia Vale Ads (NYSE: RIO) down 8.31%, Halliburton Co (NYSE: HAL) down 8.06%, Sprint Nxtel Cp (NYSE: S) down 7.37%, Time Warner Inc (NYSE: TWX) down 7.34%, E M C Cp (NYSE: EMC) down 7.25%, Wachovia Cp (NYSE: WB) down 6.92%, Ishares Tr Ftse Indx (NYSE: FXI) down 6.88%, Petroleo Brasileiro (NYSE: PBR) down 6.86%, Amgen (NASDAQ: AMGN) down 6.64%, E*Trade Finl Corp (NASDAQ: ETFC) down 6.56%, Bk Of America Cp (NYSE: BAC) down 6.55%, Oracle Corp (NASDAQ: ORCL) down 6.06%.
Vote in the Investrend Poll Question of the Day at Investrend Information (http://www.investrendinformation.com).
Investrend Website of the Day: http://www.youtube.com/watch?v=oWqHlcAmBeA
Quote of the Day: "When the missionaries came to Africa they had the Bible and we had the land. They said, 'Let us pray.' We closed our eyes. When we opened them, we had the Bible and they had the land." Bishop Desmond Tutu
Today is: Frappe Day.
Happy Birthday: John Marston, Niels Bohr, Andy Devine, June Allyson, Desmond Tutu, Joy Behar, Jose Cardenal, Oliver North, John Mellencamp, Vladimir Putin, Yo-Yo Ma, Simon Cowell, Toni Braxton, Taylor Hicks.
Today in History: George III of Great Britain issued British Royal Proclamation of 1763, closing aboriginal lands in North America north and west of Alleghenies to white settlements. The Granite Railway (first chartered railway in the U.S.) began operations in 1826. The Helsinki Stock Exchange saw its first transaction in 1912. American Bandstand debuted in 1952 on a local Philadelphia station. Beat poet Allen Ginsberg read his poem "Howl" for the first time at a poetry reading in San Francisco in 1955. The U.S. manned space-flight project was renamed Project Mercury in 1958. The U.S.S.R. probe Luna 3 transmitted first ever photographs of the far side of the Moon in 1959. Cats opened in 1982 on Broadway and ran for nearly 18 years before closing on September 10, 2000.
[FirstAlert" was created by Gayle Essary, founder of Investrend Communications, Inc., parent of Investrend Information (http://www.investrendinformation.com). The opinions expressed in FirstAlert" do not necessarily reflect the opinions of Investrend.]
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