The US equity markets are slightly lower in early action, with European stocks finding some broad-based pressure as eased Greek default concerns are being replaced by recession worries in the region after a gauge of services and manufacturing activity unexpectedly fell into contraction territory. The uneasy eurozone sentiment is overshadowing a relatively upbeat report on Chinese manufacturing activity, which helped Asian stocks overcome early losses and finish mostly higher. Treasuries are mostly higher in early action amid the declines in stocks and following a decrease … [Read more...]

    by Larry Levin    While some things change, most things stay the same.  The sun came up this morning; Democrats and Republicans still hate each other; central bankers are still printing money with reckless abandon; Oprah Winfrey is still rich; the stock market made new highs on ridiculously low volume; and Greece was saved...again.  The only thing that is different is the date on the calendar, which makes today Fat Tuesday. What isn't on the list above because it hasn't happened yet (this time around) is the other part of the Greek bailout saga that never … [Read more...]

  Investors returned from the long holiday weekend to news that Greek and European officials agreed to a deal to gain approval for a new round of bailout aid. However, uncertainty surrounding the troubled nation’s ability to get on a sustainable fiscal path tempered the enthusiasm, and stocks finished mixed and near the flatline. Meanwhile, news from the equity front was heavy, as Dow component Wal-Mart Stores disappointed the Street with its 4Q results, fellow Dow member Kraft Foods met earnings expectations but fell short on revenues, while Dow member Home Depot bested forecasts … [Read more...]

    by Larry Levin    An analyst at Nomura Securities, Bob Janjuah, has released a scathing note of the state of economic affairs to his clients: Monetary Anarchy. Since much of it is things I have touched on in the past, I have only reproduced a portion of the entire note. 2 – I am staggered at how easily the concepts of Democracy and the Rule of Law - two of the pillars of the modern world - have been brushed aside in the interests of political expediency. This is not just a eurozone phenomenon but of course the removal of elected governments and the … [Read more...]

The US equity markets are tilted modestly to the upside in early action as the Street comes back from a three-day holiday weekend. Lukewarm trading for stocks comes amid some mixed US earnings news as well as muted responses to debt-laden Greece finally gaining approval for another round of bailout funds, in the form of a 130 billion euro installment, and China’s weekend announcement that it will cut its banking reserve ratio requirement for a second time since December. Treasuries are lower in morning trading amid the modest gains for stocks and as there are no major US economic reports due … [Read more...]

  US equities were mostly higher on increasing confidence that a Greek bailout will be approved. Investors were encouraged by yesterday’s news that the ECB will exchange its Greek debt, which is a sign the ECB is confident that a near-term default will be avoided though a bailout. Jean-Claude Juncker, the head of the group of the eurozone finance ministers that will ultimately decide on the bailout, is confident that a decision will be reached on Monday. Global equities moved higher on the news, most substantially in European markets, while safer assets like the US dollar and … [Read more...]

by Larry Levin    As they say on the street "It's all good, YO!"  and I say the same: "It's all good!"  What exactly is so perfect?  The indices are rising and AAPL especially is up, so that's all that matters.  In fact, some estimates claim that 90% of the recent USSA equity rally was due to AAPL alone.  What's that; AAPL is carrying most of the entire world’s equity gains ????  Phheeeeew,  No worries there son.  Seriously though – this sort of scenario has ALWAYS worked out well…and I don’t mean on the “business end” on the spear.In other news, there is no...I … [Read more...]

The US equity markets are moving higher in early action ahead of a holiday weekend, extending yesterday’s US data-fueled gains, as optimism is resurfacing that debt-laden Greece will gain approval for the next installment of eurozone bailout aid as early as next week. Treasuries are lower on the gains in stocks and following a report that showed US consumer prices rose roughly inline with expectations. The US Index of Leading Economic Indicators is slated to be released later this morning. In US earnings news, Applied Materials Inc posted results that topped the Street’s expectations and … [Read more...]