Market Recap: Abu Dhabi Citi Rescue Boosts Markets
Abu Dhabi Investment Authority pumped $7.5 bln into Citigroup. Bulls regained a bit of confidence. Stocks finished up.
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.
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.
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.
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