Markets closed up on Wall Street today: Dow +0.78 percent S&P +1.11 percent Nasdaq +1.53 percent Oil +0.15 percent Gold +0.37 percent On the commodities front Oil ( NYSE:USO ) climbed to $100.86 a barrel Gold ( NYSE:GLD ) climbing to $1,661.70 an ounce while Silver ( NYSE:SLV ) rose 1.16 percent to settle at $30.49 (Related: World Bank Cuts Global Growth Forecasts ) Today’s markets were up because: 1) Europe: The International Monetary Fund (IMF) is seeking to boost its war chest by $500 billion. IMF Managing Director Christine Lagarde said yesterday that her staff are studying options for more than doubling the size of the fund’s lending capacity in order to better insulate the global economy against Europe’s debt crisis after identifying the potential for a $1 trillion global financing gap in the next two years. Greek government officials also resumed talks with the group representing private sector investors and banks today. Institute of International Finance director Charles Dallara, who represents the private sector in negotiations, said that final terms could be reached within days, ensuring that private holders of Greek bonds accept a writedown that cuts Greece’s debt load by more than a quarter. 2) Housing: Investors were encouraged by a housing report today, which claims “builder confidence” in the market for newly built, single-family homes to have climbed four points in January. The NAHB/Wells Fargo Housing Market Index , or HMI, also rose to 25 points. 3) Goldman: Despite reporting fourth-quarter revenue well below expectations, Goldman Sachs shares shot up almost 7 percent today after the firm reported earnings that beat forecasts and CEO Lloyd Blankfein said in a statement that he is seeing “encouraging” signs of improvement in the market and economy. Goldman’s results come just one day after Citigroup missed earnings estimates and Wells Fargo met expectations with its fourth-quarter report. Bank of America and Morgan Stanley will report on Thursday. [ Editor’s note: the above is a cross post that originally appeared on Wall St. Cheat Sheet . ]
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Market Recap: Stocks up on Housing, Goldman Sachs
Markets closed down on Wall Street today: Elizabeth Harrow of Schaefer’s Investment Research reports: The major market indexes spent the day mired in red ink, as disappointing economic developments from around the globe effectively killed Wall Street’s appetite for risk. Beijing got the bad-news ball rolling with a weaker-than-forecast report on manufacturing activity, as sluggish demand from the U.S. and Europe took its toll on the Chinese economy. Meanwhile, over in the euro zone, traders were spooked by remarkably weak demand for a German bond auction. The news here at home wasn’t any more encouraging, as the day’s slate of economic reports included an uptick in weekly jobless claims, as well as a decline in durable goods orders. This barrage of disappointing news sent stocks lower right out of the gate, and the bears remained in control throughout the pre-holiday session. The Dow Jones Industrial Average (DJIA – 11,257.55) settled squarely at its session low, giving up 236.2 points, or 2.1 percent, by the time the dust cleared. As a result, the Dow closed below its 80-day moving average for the first time since Oct. 20, and breached the 11,300 level for the first time since Oct. 7. All 30 blue chips ended lower, led by Bank of America’s (BAC) 4.3 percent loss. The S&P 500 Index (SPX – 1,161.79) also ended at its intraday nadir, dropping 26.3 points, or 2.2 percent, to notch its own lowest close since Oct. 7. The Nasdaq Composite (COMP – 2,460.08) fared even worse, shedding 61.2 points, or 2.4 percent, to finish south of 2,500 for the first time since Oct. 7. Like its peers, the COMP ended squarely at its low point of the day. Equities: Boston Scientific (BSX) scored an early regulatory nod, analysts at Macquarie weighed in on Goldman Sachs (GS), perfect World (PWRD) was pummeled by post-earnings price-target cuts, Barclays Capital trimmed its full-year earnings estimates for Big Lots (BIG), The Boston Beer Company (SAM) emerged as apotential contrarian play among brewers, and today’s Quote of the Day comes from Michael Heenan, 48. Thanks to a wishy-washy stock market and uncertainty about the economy, parents are pulling cash out of college-savings plans for the first time since the fall of 2008, according to Financial Research Corp. However, while some parents might feel guilt, Heenan said his decision to halt annual contributions was a no-brainer, stating: “One time I opened a statement, looked at the number, and thought, ‘Well, to hell with that.’ [ Editor's note: the above is a cross post that originally appeared on Schaefer's Investment Research . ]
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Market Recap: Dow, S&P, and Nasdaq Take a Hit
On Monday, banking giant Goldman Sachs announced it is staying long on gold. Due to low real interest rates, slower U.S. economic growth, and rising debt, the bank has also raised its gold forecast for 2012. “We expect gold prices to continue to climb in 2011 given the current low level of U.S. real interest rates. Further, with our U.S. economics team now forecasting slower U.S. economic growth in 2011 and 2012, we expect U.S. real interest rates to remain lower for longer, supporting higher gold prices through 2012,” the Goldman report states. The bank also said that the ongoing debt crisis in the eurozone is “skewing the balance of risks to higher gold prices.” Ben Bernanke has already pledged to keep interest rates at all-time lows for at least mid-2013. Furthermore, the Federal Reserve recently slashed its economic growth projections for 2012. Fed officials now expect the U.S. economy to grow by 2.5 percent-2.9 percent next year, down from previous projections of 3.3 percent-3.7 percent made in June. What strategy is the Goldman Sachs employing to take advantage of the current economic situation? “With expiration approaching, we are rolling our outstanding long Dec-11 COMEX gold trade recommendation, entered on October 11, 2010 with an initial value of $1,364.2/toz and a current gain of $423.9/toz, into a long Dec-12 COMEX gold future position with a reference price of $1,800.5/toz,” said Goldman. In English: Goldman was bullish on gold for 2011, and continues to be bullish on gold for 2012. (Related: Gold and Thanksgiving ) The report also gives a short-term price forecast. For gold, the bank increased its forecasts: Three-month forecast ▲ 7.0 percent to $1,760 a troy ounce [the standard measurement used for precious metals] from $1,645/oz Six-month forecast ▲ 5.8 percent to $1,830/oz from $1,730/oz 12-month forecast ▲ 3.8 percent to $1,930/oz from $1,860/oz. Credit Suisse has also said that gold may climb over $1,800 in the coming days due to negative real interest rates as the key driver. However, with the Fed’s low interest rate pledge, negative real interest rates are likely to remain for a number of years. That being said, many expect gold prices to climb above $2,000 per ounce. Dr. Walter de Wet, the Head of Commodity Research at Standard Bank in London, expects gold to hit $2,200 at the end of the first quarter next year. He believes more quantitative easing is on the way for Europe and the U.S., and does not see the Fed stopping its expanding balance sheet for another three or four years. Standard Bank predicts that $500 billion of QE3 will add $200 to the gold price early next year. In the middle of Goldman’s report is a very telling sentence that aligns the interests of Goldman Sachs and Standard Bank. “Given our U.S. economists’ cautious economic outlook and the significant downside risks associated with the European turmoil, additional Fed easing might well be needed ,” the report reads (emphasis added). While the fundamental reasons for precious metals remain strong, Goldman going long on gold may also be a bet on QE3. [ Editors note: portions of the above are from a cross post that originally appeared on Wall St. Cheat Sheet . ]
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Did Goldman Sachs’ Recent Gold Forecast Predict the Fed Will Print More Money?
Markets closed down on Wall Street today: Dow -0.51 percent S&P -0.63 percent Nasdaq -0.44 percent Oil +0.44 percent Gold -0.41 percent. On the commodities front: Oil ( NYSE:USO ) climbed to $94.48 a barrel. Gold ( NYSE:GLD ) fell to $1,757.90 an ounce Silver ( NYSE:SLV ) fell 1.04 percent to settle at $34.14. (Related: G-20 Urges EU to End Crisis, Threat to Global Economy ) Today’s markets were down because: 1) G-20: Global stocks moved downward today after the Group of 20 nations failed to agree on increasing the resources of the International Monetary Fund , a move that European governments had hoped would allow them to tap more foreign aid to help in crisis-fighting efforts. 2) Jobs: Though U.S. employment rose less than expected in October, when coupled with upward revisions to prior months’ job gains, it was enough to affect a drop in the unemployment rate, which last month reached a six-month low of 9.0 percent. Today’s Labor Department report suggests that the economy is gaining momentum, and that there is underlying strength in the labor market. However, Europe’s debt crisis still threatens to derail the recovery, riling global financial markets and pushing consumer confidence to recessionary levels. Furthermore, the U.S. Federal Reserve on Wednesday raised its projections for unemployment in 2012. 3) Banks: Following a tumble in European lenders, American banks slumped. Even as the indexes slowly recovered after a sharp drop early in the day, banks stayed lower. Bank of America ( NYSE:BAC ) saw its share price fall more than 6 percent after disclosing that it would convert debt into more equity. Citigroup ( NYSE:C ), Goldman Sachs ( NYSE:GS ), Credit Suisse ( NYSE:CS ), and Morgan Stanley ( NYSE:MS ) also fell. [ Editor's note: the above is a cross post of an article that originally appeared on Wall St. Cheat Sheet ]
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Market Recap: Dow Jones Industrial Average Just Below 12,000 Before Big Greek Vote
At WSJ : So the fondest Washington hopes for a grand debt-limit deal have broken down over taxes. House Speaker John Boehner said late Saturday that he couldn’t move ahead with a $4 trillion deal because President Obama was insisting on a $1 trillion tax increase, and the White House quickly denounced House Republicans for scuttling debt reduction and preventing “the very wealthiest and special interests from paying their fair share.” How dare Republicans not agree to break their campaign promises and raise taxes when the jobless rate is 9.2% and President Obama’s economic recovery is in jeopardy? We think Mr. Boehner is making the sensible choice. No one wants to reform the tax code more than we do, but passing a $1 trillion tax increase first on the promise of tax reform later is a political trap. If the President were really sincere about reform and a willingness to keep the top tax rate at or below 35%, he’d negotiate that at the same time he does a debt deal. Mr. Boehner will have a hard enough time getting any debt-limit increase through the House, much less one that raises tax rates. Keep in mind that Mr. Obama has already signed the largest tax increase since 1993. While everyone focuses on the Bush tax rates that expire after 2012, other tax increases are already set to hit the economy thanks to the 2010 Affordable Care Act. As a refresher, here’s a non-exhaustive list of ObamaCare’s tax increases … Continue reading . The New York Times wants folks to believe otherwise, calling for “additional sources of revenue,” but that’s a laugh, after 28 months and trillions later: RELATED : From James Pethokoukis, ” Goldman Sachs: Debt default is ‘extremely unlikely’ .”
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Taxes Upon Taxes Upon…
Infamous White Supremacist and former Ku Klux Klan leader David Duke didn’t hold anything back during his interview on Thursday with Russia Today’s Thom Hartmann. As Raw Replay reports , Duke’s statements were outrageously anti-Semitic and will surely be seen by most as offensive. Below, find some snippets from his appearance: “I think the fact is that both Democrats and Republicans are very afraid of the Jewish extremists, the Zionists, because the Zionists have incredible amounts of media power.” “They’ve got the most powerful lobby in Washington, which is AIPAC, of course. And they’ve got enormous financial power. I mean, they control the Federal Reserve.” Then, he continues, attacking the Jewish state and claiming that “extremists” control nearly all of the globe’s powerful financial and informational outlets : “Israel is truly a terrorist state. Israel has even attacked America with terrorism. “The Jewish extremists who control the Jewish people also control these critical aspects of power. I call it the Jewish matrix of power. They control massive international finance, like the IMF, like the Federal Reserve, like a lot of the international banking, like Goldman Sachs… they also control the media.” Watch his comments for yourself, below: Last year, Duke posted the following video on YouTube, in which he claimed that the Jews had a “secret role” in slavery (this particular video is dubbed “Part 1,” as there’s no shortage of Duke-produced content targeting the Jews: There’s plenty more of this sort of rhetoric released by Duke regularly. Now, just take a moment and imagine a Duke-led American White House…what do you see?
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White Supremacist David Duke Calls Jews ‘Extremists,‘ Says Israel is ’Terrorist State’
In gearing up support for 2012, President Obama has called in former Goldman Sachs CEO and ex-New Jersey Governor Jon Corzine to win back support for the President from leaders in the banking industry. New York Post: “The beleaguered president has recruited former Goldman Sachs head honcho Jon Corzine to shore up re-election funds from the banking industry, which is furious over Obama’s financial regulations. Corzine, the former governor of New Jersey who was blasted out of office by Republican Chris Christie in 2009, has attended secret meetings with the president and has been working on Obama’s 2012 campaign for months, The Post has learned. The Democrat, who now leads Manhattan-based brokerage MF Global, has been tasked with scraping up the very little banking-industry support Obama can still get.” President Obama campaigned heavily for Corzine’s failed 2009 gubernatorial reelection bid. Corzine was first elected to U.S. Senator for New Jersey in 2000, following his 1999 exit from investment banking giant Goldman Sachs after a power struggle with future Treasury Secretary Hank Paulson. Corzine made an instant $400 million when Goldman Sachs went public in 1999. The President has been criticized by Republicans during his first term for what some saw as an attempt by the Oval Office to ” Demagogue” and “Demonize ” Wall Street. But Obama has been courting Wall Street of late , including attending a $35,800-a-plate fundraising dinner in New York City in late June hosted by a committee of bankers, private equity executives and hedge fund managers. Corzine hosted a similar event for Obama at the former Governor’s home this past April. The New York Post eludes that Corzine’s support could be motivated by the former governor’s desire to get back into the national political dialogue: “Success could resuscitate his political career with a top post — such as treasury secretary or a key ambassadorship — if there is a second Obama term” Current Treasury Secretary Timothy F. Geithner has allegedly told White House officials that he is considering exiting his post after President Obama and Congress come to an agreement on the nation’s debt limit.
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Obama Recruits Former Goldman CEO and Ex-NJ Gov Corzine to Win Back Wall Street
**Written by Doug Powers Did anybody really think the collapse of the Chicago Climate Exchange’s emissions credits trading would stop the effort to force a market for it? Not when they have more of our money with which to bring something similar back to life : (CNSNews.com) – The Department of Agriculture (USDA) announced that it has awarded $17.4 million for pilot projects that will begin exploring how to establish a market for greenhouse gas (GHG) credits, a key component of a cap and trade system, to help reduce carbon and other emissions that apparently contribute to global warming. Agriculture Secretary Tom Vilsack said the projects were the “foundational work” for establishing an American carbon market. “This is really sort of foundational work that’s being done,” Vilsack told reporters on a conference call on Wednesday. The administration is determined to force a demand, much like the CEO of Government Motors wants to artificially create a market for hybrid vehicles — and can afford to do so thanks to taxpayer money. The last time carbon trading was tried in the US, the resulting ups, downs and ultimate flat-lining resembled a graph that could very well represent Anthony Weiner’s political career: The search continues to find a way for Al Gore’s Generation Investment Management, Goldman Sachs and the rest to clean up, all on your dime (and then some). These things are almost entirely hinged upon who’s power in Washington (the above graph collapse coincides almost perfectly with the 2010 election results), so that’s yet another thing to keep in mind when choosing candidate(s) to support during the 2012 election season. **Written by Doug Powers Twitter @ThePowersThatBe
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Obama Admin. Spending over $17 Million Exploring Market for Carbon Credits
To: All Staff From: Ahmed Zakir, VP of PR, Al Qaeda Re: Human Shields/Women I thought we had covered this during last year’s retreat at Six Flags, but I guess some of you didn’t “get the memo,” so here it is again (forgive the pun—we all grieve in our own way). To clarify once and for all, when it comes to the use of human shields, our official company policy says YES, you can use them, but please, NO women. The interns will be delivering a supplement to the employee handbook—add it to yours (I already three-hole-punched them—you’re welcome). As I’m sure you’re all aware, a story was circulating that our outgoing president decided to use his wife (number four or six—I always got them confused) as a human shield. Look, I wasn’t there (as far as you know), and while that certainly sounds like O-Lad, even the “Blight House” (is this funny?—somebody tweet it and see if the Madrasah kids pick up on it) denies the story. Unfortunately, that hasn’t kept my phone from ringing. Christiane Amanpour’s office has left three messages, and somehow Rachel Maddow got my cell number! (Is there something hot about her, or it is just me?) People, this is exactly what I DON’T need. I’m still shorthanded since Kamar left for that gig at Goldman Sachs, and thanks to this week’s little stunt at The Compound, my assistant is now chatting up 72 virgins. (For those of you who knew Jamal, you know that was the ONLY way he was going to see any action—what a dweeb!) But seriously, it’s not like I have a lot of spare time–the Facebook page won’t update itself! So while none of you have used a woman as a human shield—even your wife—I know you’ve all thought about it. Trust me, some days it would take a lot less than a hail of M4 gunfire from Navy Seals for me to say goodbye to my Sirah (like when she runs the vacuum during “Mob Wives,” am I right? LMAO!). But even though I haven’t sacrificed her life to save mine (yet…kidding!), she can’t keep from flapping her lips about this! At least I think she’s flapping her lips—I can’t be sure as, I haven’t seen anything below her eyelids since our wedding day. Anyway, I hope this clears up any questions you may have had. If you really have to use a human shield, try to use one another—that’s what we’re here for! On a lighter note, our Cinco de Mayo party is still on (sponsored by Patron-shhh…I won’t tell Allah if you won’t!), so be sure to stop by El Sombrero after work tonight. Just go down past Abdul’s flock of goats, turn left, and it’s the 3rd cave on the left (with the neon sombrero—duh!). Holy Ole’! Ahmed
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Al-Qaeda memo re: women as human shields
