MBIA Comments, MasterCard Lift Stocks
Jan 31, 4:49 PM EST |
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| U.S. stocks rallied after comments from MBIA management soothed nervous investors. MBIA asserted that it has adequate or access to capital if needed. |
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| U.S. stocks rebounded from morning losses after unemployment claims rose at the end of the last review. Stocks made about turn in the afternoon, MasterCard reported sharply higher earnings and the bond insurer MBIA in a earnings conference call asserted that it has adequate capital to retain its AAA rating. Hedge fund Pershing Square has asserted that the company may not have capital to fund its future losses. MBIA estimated $3 billion of future losses, half of what Pershing has estimated. |
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U.S. Stocks Rebound, MasterCard Surges
Jan 31, 3:18 PM EST |
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| Jobless claims rose at the end of the last review period. MasterCard fourth quarter earnings rose to $2.26 from 30 cents. |
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| U.S. stocks recovered from the morning losses. MasterCard reported fourth quarter earnings of $1.37 per share on a revenue rise of 27.8% to $1.07 billion. Gross dollar volume in the quarter rose 15.2%. The strength in the consumer spending helped market to reverse the earlier decline. MBIA reported large loss on the account of more write-down in credit derivatives. Jobless claims rose at the end of the last review period. |
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Tokyo Stocks Recover, Subprime Losses Rise
Jan 31, 9:10 AM EST |
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| Tokyo stocks recovered from the morning losses after a string of earnings reports. However, estimates of losses at five largest banks were raised. |
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| Stocks in Japan recovered from a morning loss of 1.4% to close up 1.85% or 247.44 to 13,592.47. The Topix Index gained 2% or 26.20 to close at 1,346.31. Banks in Japan are likely to report larger than estimated sub-prime losses according to local news. The estimate of losses for 2007 are running as high as 500 billion yen from the five largest banks. December csh earnigs for wages declined 1.9% and for contract employees rose 0.3%. |
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Fed Action Driven Rally Falters, Gold Up
Jan 30, 6:20 PM EST |
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| The Fed lowered the rate by 0.5%, a second rate cut in nine days, in the hope to contain the decline in economic vigor. |
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| The Federal Reserve lowered short term rates by 0.5% to 3.0% and cited substantial downside risks to the economy. The Fed has lowered rates by 1.25% in nine days to calm domestic and international markets. The Fed action may prove inflationary in the medium term and force the Fed to change the course if the economy does not slowdown in the months ahead. Stocks rallied after the Fed decision, but lost neary 1.6% gains in index at close. |
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Fed Lowers Interest Rate by 0.5%
Jan 30, 2:43 PM EST |
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| The Federal Open Market Committee decided today to lower its target for the federal funds rate 50 basis points to 3%. |
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| Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets. |
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U.S. Stocks Struggle, Rate Decision Ahead
Jan 30, 9:58 AM EST |
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| More sub-prime losses at UBS and BNP dampened the mood in European tradig and at the U.S. opening. UPS, Yahoo, and Kraft Foods declined. |
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| U.S. stocks edged lower ahead of Fed rate decision in the afternoon and more sub-prime losses. UBS reported $14 billion write-down realted to loan losses, $4 billion higher than estimated, turning profit for the year into a loss. BNP reported smaller, but not previously announced loss. UPS reported a loss on one-time contribution to a pension plan and Yahoo fell 10% on the continued weakness in the search related business. |
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U.S. Averages Close Higher, Yahoo Drops
Jan 29, 7:38 AM EST |
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| U.S. stocks edged higher in anticipation for a rate cut for the second day. Stocks in Japan, Hong Kong, and Europe climbed on similar hopes. |
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| U.S. stocks edged higher for the second day in a row in anticipation of additional rate cut tomorrow. The U.S. House of Representatives passed $146 billion economic stimulus package and sent to senators to review it. 3M, Valero, and Zimmer Holdings rise on earnings. EMC and VMware decline on earnings. European markets closed higher led by miners, financials, and tech companies. Countrywide Financial reported a loss of 79 cents per share. Fourth quarter profit at Yahoo dropped 23%. |
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Countrywide Loss, VMware Plunges
Jan 29, 12:33 PM EST |
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| U.S. stocks edged higher but traded in a narrow range ahead of the rate decision from the Fed. VMware plunged 32% on revenue shortfall. |
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| U.S. stocks traded in a narrow range ahead of the rate decision from the Fed. IMF lowered its outlook for global grwoth forecast on the expected economic slowdown in Japan, U.S., and select European nations. U.S. durable goods orders rose 5.2% in December. Countrywide reported a loss of 79 cents per share, sharply lower than its estimate of a profit between 25 cents and 75 cents. American Express earnings declined 9.9% on higher loan loss reserves. |
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IMF Lowers Global Growth Rates
Jan 29, 11:51 AM EST |
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| IMF quarterly economic outlook lowered world economic grwoth rate to cool led by a slowdown in the U.S. Emerging markets are expected to be resilient. |
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| The International Monetary Fund lowered its global economic growth target in 2008 to 4.1% from 4.4% estimated earlier in October of last year. IMF estimated that world economies rose at 4.9% in 2007. The IMF estimate may prove to be too rosy if the U.S. economy slows down at a faster pace as unemployment rate picks up. U.S. economic growth is lowered to 1.5% from 2.2%. |
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Tokyo Rises 3%, Leads Asian Rally
Jan 29, 8:16 AM EST |
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| Stocks in Asia rose on the expectations that the U.S. will cut interest rate at the end of the two-day meeting. Shipping, banks, and exporters surged. |
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| Tokyo stocks rallied on the back of higher closing in the U.S. stocks and firmer trading this morning in Europe. Expectations of an additonal U.S. rate cut were building in Tokyo. Separately, India left its rates unchanged. Statistics office in Japan released December monthly household income and expenditure data. Monthly income fell 1.8% and expenditures rose 2.2% in real terms. December unemployment fell to 3.8%. |
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