Buzz Bits: Dow and Nasdaq End Mixed
Your daily Buzz & Banter highlights.
They Call It... - Todd Harrison - 2:46 p.m.
Contra-Hour arrives in full force as the Nazz flips the crimson switch and Boo's crew chases bids. Here's what I'm watching, other than YOU, Fokker:
- Beta and the Semis: I had Research in Motion (RIMM) on my radar earlier as it was acting laggy but failed to get it on the Buzz. Be that as it may, the Red SOX, coupled with the late afternoon action warrants a nose scrunch.
- Breadth: NYSE internals are still bullish at 3:2 positive. The four-letter freaks, for their part, are flatter than a sat on hat.
- The financials, in particular Lehman (LEH), Morgan (MS) and JP Morgan (JPM), which all seem to have sellers in the wings.
- Levels: S&P 1380 remains a big level on a closing basis and will help shape psychology into Turnaround Tuesday. Ditto Baidu (BIDU) $300 (which, so you know, I'm picking at vs. my earlier sales while the stock had a $3-handle)
- Gotta hop as I'm all-of-a-sudden slammy. Hit 'em hard and hit 'em straight, Minyans--the risk profile you go home with is the same one you'll awake with.
Position in LEH, BIDU
Microsoft/Yahoo Update - Sean Udall - 1:06 p.m.
Editor's note: We asked Professor Udall if he had any updated thoughts regarding this morning's news that Yahoo (YHOO) was insisting that Microsoft (MSFT) raise its takeover offer. Click here to see his original thoughts.
I'm thinking YHOO is playing a dangerous game. It seems that many pundits don't think MSFT could lower its bid in a hostile situation.
Why not? Microsoft could lower the bid to say... $28 or so and ask for a vote. Most shareholders know where the stock would go if the merger vote didn't pass. As I said before the MSFT offer of $31 is solid and frankly came at a time when YHOO really needed a lift.
After all, where would YHOO have traded (with no bid), before Bear Stearns (BSC) week after its last quarter and tech analysts downgrading stocks everyday.
Position in MSFT
Ag Update - Sally Limantour - 12:49 p.m.
With four consecutive higher closes, the soybean market has tacked on close to $1.760 per bushel since the washout lows on April 1.
Commitments of Traders Report ending April 1st did show funds as big sellers. The commercials, "strong hands," were net buyers.
While I respect and follow COT reports, I only use these numbers in conjunction with many other indicators. I lost way too much money trading off this info in my early days. Like an expensive college tuition times 20.
Today the CME is changing the way it calculates the closing prices on grains and soybeans. Not exactly sure why, but the nearby contracts will settle at the midpoint of the closing range, while the deferred contracts will settle based on spread relationships in the pit.
Meanwhile, food and biofuels have led to big gains for a couple of agricultural superpowers.
Syngenta (SYT) has said its first quarter sales gained 20 percent. It has reported growth in profits for five straight years.
The other giant, Monsanto (MON) reported record net sales of close to £2 billion for the first quarter. This is up 45 percent over the previous year.
Hugh Grant (not the actor), Chairman of Monsanto said: "The performance of our seeds and traits business has us on track for another exceptional year and well positioned to support our five-year strategic growth plan."
Position in MON, SYT
A Critical Juncture for 2's... - Bennet Sedacca - 12:25 p.m.
The 2 year note has been in a rather defined, and steep, down trend since the credit crunch began.
Click to enlarge
Note in the graph below that we're coming up against this trend line and top of the channel in a bit of a short term pennant.
A break above there may signal a change to concern about inflation, not deflation.
And one thing the housing market doesn't have is higher rates.
But short-term it could put a bid under stocks.
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