Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Market Recap: Fannie, MBIA, Stocks Shake Off The Bad News

By

Stocks shook off bad news from Fannie Mae and MBIA. Investors focused on strong labor data. Dow gains almost 200 points.

PrintPRINT
Stocks climbed amid more bearish news from the financial sectors. The Dow Industrials added +196 points, or +1.48% to 13444, the S&P 500 added +22 points, or +1.52% to 1485, and the Nasdaq Composite added +46 points or +1.78% to 2666.

Stocks fought off news from the financial sector. Last night after the closing bell Fannie Mae (FNM) said it planned to cut its dividend to 35 cents per share from 50 cents while raising $7 bln through a sale of preferred stock. The company also said in its sales pitch to investors that it was expecting more credit losses from bad loans in 2008 and that its mortgage investment portfolio fell approximately 1% in November compared to the prior month's return. Nonetheless, investors took the news in positive stride as the stock gained +2.70%.

Around midday, financials overcame another struggle as Moody's released a statement saying it viewed a capital shortfall at MBIA (MBI) as "somewhat likely." MBIA shares plunged to a new low, closing -16%, yet financials overcame the battle. Lehman Brothers (LEH) added +0.67%, Morgan Stanley (MS) added +0.20%, and Goldman Sachs (GS) added +1.41%. Bear Stearns (BSC) was the lone significant laggard, closing -1.08%. Professor Mish Shedlock first mentioned MBIA in his article last week Will Ambac And MBIA Survive? Also read Toddo's Answers I Really Wanna Know as he asks "Can the tape rally in the face of the credit crunch?"

In economic data, the Labor Department reported a gain of 6.3% while unit labor costs fell more than expected. The rise in worker productivity was the most since 2003.
ISM Services index fell to 54.1 from 55.8 the prior month. The figure was the lowest level since March; however readings above 50 signal growth. Factory Orders rose in October by 0.5%, reflecting a jump in commodity costs that is contributing to a slowdown in growth. The increase was lead by a 1.3% rise in shipments of non-durable goods. Also ADP figures helped give stocks a lift this morning as well. Companies nationwide added 189,000 jobs, almost three times the consensus estimate. October numbers were also revised up to 119k from 106k. Get more insight into these numbers in Professor Depew's Five Things You Need To Know.

In commodities, crude oil fell -1.03 to 87.29 a barrel. Gold futures fell -3.9 to 803.70 as well as Silver, down -0.005 to 14.46. Copper gained +2.0 to 304.00.


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

Earnings Review:

Casey's General (CASY) reports $0.55 EPS vs. $0.46 cons on revs $1.189 bln vs. $1.194 bln cons.

G-III Apparel (GIII) reports $1.41 EPS vs. $1.39 cons on revs $271.20 mln vs. $276.10 mln cons.

Greif Brothers (GEF) reports $1.05 EPS vs. $0.97 cons on revs $882.30 mln vs. $940.66 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: CSIQ, ESLR, NBIX, MOS, CF, CIEN, HLIT, ARRS, CSCO, VZ, CHNR, CDS, MA, SIGM, PCLN, FCL, BTU, YHOO, ITRI, SPX, CME, AAPL, MA, FCSX

Some bearish trade or investment ideas: AMZN, CMCSA, VMW, UTHR, DNA, WYE

Hope you all had a great day. Join us for the Rollin' Bones tomorrow. 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.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE