Thread: Market News

08:34 am : S&P futures vs fair value: +16.00. Nasdaq futures vs fair value: +4.00. A positive start is expected, although futures give up a large portion of their gains. Target (TGT) reported a 3% same-store decline in September, which was worse than the expected decline of 0.8%. In addition, Target said its third quarter earnings may fall short of the median analyst estimate due to weak retail growth and higher net write-offs in its credit card segment. The global coordinated central bank cut this morning came as credit markets remained extremely tight and overseas markets tumbled -- Japan's Nikkei fell 9.4% and Hong Kong's Hang Seng declined 8.2%. Interbank lending in dollars, known as Libor, climbed across all terms, with the overnight rate spiking to 5.38% from 3.94%, indicating that banks remain very reluctant to lend to each other. Prior to the rate cut, Britain announced a plan to bailout its banking system, which included a pledge for $87 billion in direct support for eight major banks, according to the New York Times. In European trading, France's CAC 40 is down 0.3%, Germany's Dax is 1.1% and London's FTSE is up 0.4%. This is a large improvement to pre-rate cut levels, when the they were down around 5%.

09:00 am : S&P futures vs fair value: -11.50. Nasdaq futures vs fair value: -29.00. Stock futures give up their gains and now point to a lower start as European markets fall. The Ted Spread -- the difference between what banks pay for three month loans (3-month Libor) and what the U.S. government pays (3-month T-bills) -- is up 44 basis points to 4.00%, which is a sign that market unease remains high. September same-store retail sales have been mostly disappointing. Saks (SKS) reported a 10.9% drop, compared to the expected decline of 5.5%. JCPenney (JCP) saw a 12.4% decline in sales, which was worse than the expected decline of 9.4%. JCPenney also lowered its third quarter earnings guidance well below expectations. Kohl's posted a 5.5% drop in same store sales, although that was slightly better than the expected decline of 5.8%. However, Kohl's said its third quarter earnings will be at the low end of its previous guidance, which is below the consensus estimate. American Eagle (AEO) met expectations with a 6.0% decline in same-store sales, but lowered its third quarter earnings guidance below the consensus estimate.

Bloody day ahead.

Futures now pointing down strongly, even with the rate cut.

I don't know if we'll end the day lower, but it sure looks like it will start lower.

Could be another roller coaster day.

Wed 9:18am ET- Briefing.com
S&P futures vs fair value: -30.00. Nasdaq futures vs fair value: -53.80.

(rate cut didn't seem to do anything in Europe. Now we'll see how the U.S. markets react).

Baby Rally today, maybe a good sell-off this afternoon from those who need to lick their wounds???????

Honestly, If you need cash now, I hope you're in today, but mark my words, interest rate cates can't keep coming!

I think it was a purely psychological move to show us they're "doing something".

IMF predicts world economy will stall sharply in 2008, with US slipping into recession

Came out this morning, has a lot to do with current decline.

http://biz.yahoo.com/ap/081008/world...c_outlook.html

With all that recent foreign United States bashing, they certainly need us for their own wealth!

Originally Posted by peterson82

With all that recent foreign United States bashing, they certainly need us for their own wealth!

They're upset because they've attached themselves to our currency, market, consumer market .....and toxic waste investment vehicles. So they bash.

But it's not that they need us, they just can't help but get affected by us. Even though the EU is now the largest market overall, that's a bit of a misnomer since that's like saying ASEAN is the fastest growing. On an individual counry basis, the U.S. is the big bear/bull, both militarily and in GDP.

We are the biggest economy, we got economic mononucleosis. We directly or indirectly touch almost everything, and us sneezing and coughing is going to spread.

Originally Posted by Frixxxx

Baby Rally today, maybe a good sell-off this afternoon from those who need to lick their wounds???????

Honestly, If you need cash now, I hope you're in today, but mark my words, interest rate cates can't keep coming!

I hate it when I'm right...geesh........

Dow9,258.10-189.01-2.00%

Nasdaq1,740.33-14.55-0.83%

S&P 500984.94-11.29-1.13%

10 Yr Bond(%)3.7130%+0.2070

08:30 am : S&P futures vs fair value: +7.60. Nasdaq futures vs fair value: +3.30. Stock futures continue to point to a rebound. Central banks in Asia cut key interest rates in a move to help stimulate global growth. South Korea, Hong Kong, and Taiwan participated in the action, according to Financial Times. Just yesterday a coordinated rate cut was made by several central banks in the West. IBM (IBM) preannounced third quarter earnings of $2.05 per share, which exceeds the consensus of $2.02 per share. The company expects revenue of $25.3 billion, which is shy of Wall Street's $26.5 billion top line estimate. IBM remains confident it will earn at least $8.75 per share for the year, but analysts are expecting a penny more. Jobless claims for the week ending October 4 came in at 478,000, which is down 20,000 from the week before and slightly more than the 475,000 claims that were expected. Continuing claims were up to 3.66 million from 3.60 million. They were expected to total 3.61 million.