Buzz Bits: Dow, Nasdaq Take a Tumble
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Earnings Report - MV News
- American International (AIG) reports 1Q EPS of $1.68 vs. $1.55 cons on revs of $30.64 bln cons.
Bell Buzz - Todd Harrison - 3:57 PM
- The tea leaves set us up, Coops De Ville eyeballed the sell stops (before, rather than after the fact) and experience prepped us for a close on the lows. So, that's that...now the fun begins.
- Welcome to the First Dip, USA, which is "healthy, necessary and a matter of time." With the dip schtick good and thick, bulls and bears alike are buying into this.
- Hey, who can blame them as it's worked for so darn long! I'll simply remind ye faithful to define your risk so, when one of these dips stick, it won't put you out of business.
- And watch that carry trade, along with the commodities (under CRB 310). IF (big if) the dollar starts to get jiggy with it, Jada Pinkett will be looking for bids across asset classes.
- Who's hungry? (hand raised)
- Nice feel, Mr. Weldon. While over-trading is the quickest way to excuse yourself from a bull market, those who listened have plenty of dry powder to deploy into their favorite metal names.
- I'm sorry, I couldn't help myself as we ready to move into our new digs. Besides, it's an investment, right? At least that's how I've rationalized the latest critters to join our clan.
- Sigh--deep breath, Minyans, as we bring another session in for a landing. 20% of the week left and we'll see you on the front end of the freak. Have a mindful night and remember, your net worth and self-worth are two different thangs.
(reduced but looking to rebuild) positions in metal shares
Around the Horn - Jeff Macke - 11:56 AM
Greetings from New Jersey where I needed a long, hot, shower after sifting through the sewage that was April's Same Store Sale results. Curiously, my increasingly capable man-servant, Farley, seemed quite at home with the numbers. Other things I'm watching...
- Tough headline this morning for JetBlu (JBLU) founder David Neeleman who was pushed out of the CEO job and into a full-time chairmanship, with the charge to work on strategic planning. Mr. Neeleman is a frequent guest of Fast Money and as always struck me as a genuinely stand-up business leader. There's no shame in the move, from where I'm sitting. If JetBlu is smart they'll be making sure David stays fully engaged in his new role.
- Activision (ATVI) has announced a series of product updates for the Guitar Hero franchise. First up: Rock Songs from the 80's! Not for the first time, Guy Adami and I are wondering if the game isn't targeting us directly.
- Of the 31 companies in this month's Retail Round-Up, only seven came in at or above analyst estimates for April with a full 24 missing outright. Just because the misses were expected (which is why the shorts are going largely hungry) doesn't mean the results were good.
Shopping for Shanghai Puts - Sally Limantour - 9:49 AM
The Financial Times has stories today on China's relentless stock market and Goldman Sachs is warning that China stocks may face a correction as earnings cannot justify a rally. In addition, the Bank of Japan Governor is warning that low interest rates in Japan could invite "inefficient allocation of capital including real estate and the yen carry trade."
China's stock market is now worth more than 70% of GDP - well below US/UK levels of 150%, but well above its 2001 level of 15%.
The powers that be in China were having a fit when the index was at 3000. I can only imagine the meetings they are having now.
The dollar continues to correct to the upside and even with UK raising rates overnight, the BP is down. Keep your eyes on this.
Gold is at an important level - will it hold that 670 area?
Something feels decidedly different today. I read today that billions of dollars from endowments at colleges, universities, etc. still have not yet found their way into the market. While this may be true it does remind me of the giddy bulls in 1999-2000 when every guy in the diner was saying, "the money from the baby boomers has to go somewhere!"
Stops are your friend.
Tuna Salad - Jeffrey Cooper - 9:31 AM
STFL upgraded Mastercard (MA) to hold from sell. Uh... after a quick 30 points. Is that like Jack in Five Easy Pieces? "Hold the tuna salad, hold it between your legs."
On another note on the dance card---is this morning's slippage the third Cha what went MIA yesterday? If so trade below yesterday's initial blip down after the FED should be the true directional bias for the day. See the chart here.
Some names on my dance card today:
Positions in MNST, EQIX
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