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Market Recap: Abu Dhabi Citi Rescue Boosts Markets

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Abu Dhabi Investment Authority pumped $7.5 bln into Citigroup. Bulls regained a bit of confidence. Stocks finished up.

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Petrodollars boosted sentiment in U.S. stocks. The Dow Industrials added 215 points or 1.69% to 12958, the S&P 500 added 21 points, or 1.19% to 1428, and the Nasdaq Composite added 39 points, or 1.57% to 2580.

Citigroup (C) receiving a $7.5 bln investment from the Abu Dhabi Investment Authority (ADIA) helped stocks rally today. The move by ADIA helped Citi rebound from a two-month decline of -37%. Acting CEO Win Bischoff stated the investment helped provide efficient capital in addition to allowing Citi to pursue attractive opportunities. Yet many professors at the 'Ville had their own interpretations. Professor Macke noted on the Buzz he didn't believe that Citi or the Spider Financial (XLF) had bottomed. At one point Citi even fell into negative territory, hitting a new 52-week low as Professor Tatro mentioned the cash infusion alone would not save the markets. Citi shares nonetheless closed up on the day, adding 1.74% with other financials following with similar performances. Bear Stearns (BSC) added 4.8%, Lehman Brothers (LEH) added 4.25%, and Morgan Stanley (MS) added 3.8%. For more on Citi's deal, read Professor Bloudek's Citigroup: The Real Deal.

In other parts, Activision (ATVI) caused a stir in the markets. The company raised its outlook due to popular video game sales and raised its outlook for the quarter to $0.70 EPS versus previous analyst estimates of $0.56. Professor Macke noted "In a hard tape, all you can hope to do on the investment side is be long companies with the fundamentals intact. I feel pretty good about ATVI in that regard." Read his column The Return To Disney.

In economic data, consumer confidence was released coming in at 87.3, the lowest since the aftermath of Hurricane Katrina. The S&P/Case Shiller Index was also released, showing home prices falling 4.5% in the three months ending through September versus the same period a year before. For more insight, read Professor Depew's Five Things You Need To Know.

In commodities, crude oil fell 3.28 to 94.42. Copper lost 5.80 points to 299.25. Silver lost 0.34 to 14.68, and Gold lost 12.50 to 821.20. See Professor Depew's Special Update: Mr. T Gold Indicator Forms Rare Double Sell Signal.


For more summaries, click on Minyanville's Buzz Bits.

Earnings Review

Analog Devices (ADI) reported $0.39 EPS vs. $0.39 cons on revs $648.47 mln vs. $692.08 mln cons.

Central Garden (CENT) reported -$0.02 EPS vs. $0.03 cons on revs $401 mln vs. $400.80 mln cons.

Dress Barn (DBRN) reported $0.30 EPS vs. $0.32 cons on revs $363.7 mln vs. $370.31 mln cons.

Marvell (MRVL) reported $0.14 EPS vs. $0.08 cons on revs $758.2 mln vs. $71.59 mln cons.

Idea Flow

Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: C, ATVI, UTHR, SGP, CSCO, MSFT, OSIP, FRE preferred, SPY, QQQQ, WFR, gold

Some bearish trade or investment ideas: C, POT, AAPL, FTI, MAN, DECK, FMD, T, MBI, ABK, ADVNB

Hope you had a great day. Have a great night.
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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