Buzz Bits: Dow, Nasdaq Drop Down
Your daily Buzz & Banter highlights...
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Earnings Report - MV News
- McAfee (MFE) reported 4Q EPS of $0.36 vs $0.34 cons on revs of $305.21 mln vs $290.73 mln cons.
- Broadcom (BRCM) reported 4Q EPS of $0.31 (in-line) on revs of $923.5 mln vs $910.5 mln cons.
Bell Buzz - Todd Harrison - 3:38 PM
- Is it any wonder that mortgages taste a bit tart?
- Did I just hear an echo of "can't get 'em down?" I mean, given the news today, you gotta figure that Hoofy is happy with a flat close...one that has the BKX pinning the all-important BKX 119 level to boot.
- I'm not pressing or guessing---you know know where my bias lies (metals and, at the right price, energy). And baring a sneeze from China or India (which could lead to the phantom), I remain of the view that there are alotta ways to win with this "stuff."
- The good news today? No, not the 10% ripper in Goldenstar (GSS). It's that the "behind the scenes thing" that's been absorbing my mindshare is about to move into the rear-view. Which is nice.
- Whatever happened to Alanis anyway?
- So...whataya think of the slightly altered state of Minyanville.com?
- Chico is the man? Nah, not when it comes to retail. In that space, Television's JeffMacke® rules the roost. And, for all ye who wanna do that "webcam" thing with him on Fast Money, we'll offer a free MV tee to any Minyan wearing MV garb on the air.
- Hoppin', poppin', stoppin' like a rabbit into the close. Fare ye well, Minyans, and stay lucid. The decisions you make in the next few minutes will dictate the risk profile you wake up with in the ayem. May peace be with you.
Position in gss, metals
Subprime Mortgage Meltdown: Bullish for Gold - Lance Lewis - 11:05 AM
What are the real implications of these subprime dominoes continuing to fall? It all leads to one thing: a Fed that not only has its hands tied with regard to growing inflationary pressures but a Fed that will also eventually be forced to pump in even more liquidity into the system.
My favorite analogy is that the US financial system is like a shark. it must keep swimming in liquidity in order to breathe. If it stops, it dies.
The Fed's solution to all financial problems is to paper over them by increasing the availability of credit, and the market knows it. That's why gold is up over $3 this morning. See the chart here.
I've been wondering what the catalyst would be for gold to break out and finally get going with a little more urgency to the upside. Well, I think we may have just found it... See the chart.
Positions in gold shares, GDX calls
Delayed Reaction - Rod David - 9:34 AM
Bulls had one big thing going for them coming into today's session, and that was barely avoiding a close under prior highs yesterday. But the entire recovery leg responsible for that success is now on the verge of being rejected, since S&Ps trended down all night and attacked yesterday afternoon's low.
There were a couple of non-big bullish factors yesterday, such as accumulative internals - nothing so relevant that it can't be negated by a quick drop under yesterday's lows. A probe of yesterday's lows wouldn't be enough to reverse the trend down, not without also maintaining the break through the first hour.
More economic data is due at 10:00am ET (Wholesale Trade), and post-open reports tend either to accelerate or to reverse initial trending. Meanwhile, MACD & RSI are trying to diverge positively. If buyers can absorb this, then they would deserve a new rally leg. Sellers have already absorbed everything that's been thrown at them.
I'm down in FL at the World Money Show, at the Gaylord Palms - Jon Doctor J Najarian - 8:32 AM
Bank of England Leaves Rates at 5.25 Percent – No surprises this time, as the BOE left its key interest rate unchanged at 5.25 percent. Some had thought that stronger than expected car & retail sales might force the bank to reign in spending, but that was not the case.
Aetna (AET) 4Q Profits Top $434 Million – The health care benefits provider said that its 4Q net income rose to $434.1 million from $416.3 million a year ago, following membership growth and premium and fee rate increases.
HSBC Says US Debts Cost $10.5 Billion – I guess that's why we call them "sub prime lenders," but it seemed to come as a surprise to Europe's biggest bank. The bad debts were nearly 20% above analysts' average forecasts, due to problems in its U.S. mortgage book.
Tribune (TRB) Net Jumps 78 Percent – Thanks in part to heavy election-related adverts, TRB reported Tribune net income of $239.1 million, or 99 cents a share, up from $ 134.4 million, or 43 cents a share, in the year-earlier period. Shares were lifting slightly in the pre market.
Positions in TRB, AFFX
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