Minyanville's Before The Bell: Citigroup Surprise, The Trillion Dollar Company!
Citi CEO quits and the company announces $55 bln in subprime exposure. Petrochina's market cap reaches $1 trln dollars! Futures are lower before the opening.
Citigroup (C) CEO Chuck Prince finally succumbed to pressure and resigned over the weekend, making him the second major Wall Street CEO to resign in less than a week. Citigroup, the largest U.S. bank by assets, announced Former Treasury Secretary Robert Rubin will become chairman, and Win Bischoff will be interim CEO. The bank also stated it will maintain its dividend while announcing a total subprime exposure of $55 bln with a potential $5-7 bln in further write-downs. Read Toddo's The Haunted House.
From the Bull Pen: Financial bulls may look to bellwether stock Goldman Sachs (GS) for a snapback trade with stops below GS $210, which is both the 50- and 200-day moving average.
From the Bear Cave: Those looking for a financial short may look to Morgan Stanley (MS), which broke a triple bottom at $60 (using that level as defined risk).
A PetroChina Surge
Shares of PetroChina (PTR) debuted on the Shanghai Stock Exchange and almost tripled in value. Bloomberg reports PetroChina shares rose from 16.7 yuan to 43.96 yuan giving the company a market value of $1 trln, surpassing Exxon Mobil (XOM). Toddo notes the valuation makes the company larger than the entire Russian stock market! Read Professor Jeffrey Cooper's articles Like A Bull In A China Market and Just Another Brick In The Wall Of Worry.
From the Bull Pen: Chinese bulls consider the iShares FTSE Xinhua China 25 ETF (FXI). Consider 199, a break of near-term support, as a stop.
From the Bear Cave: Those who believe that energy may have gotten ahead of itself can look at Exxon Mobil as a short with a stop above $90, a triple bottom break.
Click on Minyanville's Stocks to Watch for more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng -5.01%, Nikkei -1.50%, Sensex -1.93%, Shanghai -2.48% and Taiwan +0.38%.
A glance towards Europe finds the CAC -0.79%, DAX -0.58%, FTSE -1.27%, ATX -1.34%, Swiss Mkt. -0.40% and Stockholm -0.29%.
As of 8:00 AM EST, S&P futures are trading -13.80 points and Nasdaq futures are lower by -16.50 points.
A Look At Commodities
Commodities are lower this morning with crude down -1.38 to 94.56. Gold is down -2.7 to 805.8. Silver is up +0.021 to 14.62 and copper is lower by -1.550 to 330.95.
On the Radar
Here's a preview of events for today:
10:00 ISM Services: 54.0 consensus.
Before: AIMC, BKC, CAPA, CSAR, CAH, ETR, GVHR, IGLD, KEI, KBALB, LMS, MVL, MCY, MFLX, NUS, NS, SYY, TTI, WCG
After: ATVI, ASCA, APC, BRS, CRL, CCRT, DNB, XCO, FST, HLEX, HLS, KND, NTY, QGEN, QMAR, RADN, RSCR, WINS, SIE, SGY, JAVA, SYKE, TNS, UDR, WRNC, WMS
Click here for Minyanville's full Trading Radar.
Happy Monday, Minyans! Good luck!
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