Before The Bell: Subprime Rescue Plan; Nokia's Assault
President Bush will unveil the Subprime Rescue Plan. Nokia is making moves to recapture the lead in making mobile handsets.
Morning Perspective: Subprime Rescue Plan
Bloomberg reports President Bush is set to unveil a plan that will temporarily freeze rates on some subprime mortgages to help struggling homeowners avoid foreclosures. The plan, which was created by the Treasury Department in conjunction with leaders of the mortgage industry, will seek to bring relief to certain homeowners that took out hybrid loans in the last year. Of the borrowers with subprime adjustable-rate mortgages, analysts estimate more than 30% are behind on their payments. Professor Kevin Depew addressed the Subprime Rescue Plan in yesterday's Five Things You Need To Know.
From the Bull Pen: A rescue plan aimed at borrowers may indirectly be a rescue plan for homebuilders. Toddo mentioned on the Buzz his vehicle of choice: Pulte Homes (PHM). Those bullish may set near-term sell-stops below recent lows ($9.80).
From the Bear Cave: Bears who believe the bond insurers suffer an inevitable fate may press the downside in MBIA (MBI) with a buy-stop above $30.
FT reports Nokia (NOK) is making moves to recapture the lead as the world's largest mobile handset maker. The company, which fell to fourth place, lost the lead in the US to Motorola (MOT) in 2004. In the third quarter of this year, however, Nokia increased its share of the global mobile market to 39%. The company aims to regain the leadership position by tailoring handsets to the needs of the big four U.S. mobile operators: AT&T (T), Verizon (VZ), Sprint Nextel (S), and T-Mobile. Professor Udall mentioned some of these plays in Revisiting 21 Bullish Predictions For Tech.
From the Bull Pen: Those bullish Nokia may place near-term sell-stops below $38 (uptrend from the August low). A tertiary play may include Cisco (CSCO) sell stops below $26.82.
From the Bear Cave: Those believing Nokia's will succeed may see a bearish play in Motorola (MOT). Buy-stops may be placed above recent highs at $16.30. Also Professor Quint Tatro has recently been bearish on AT&T; buy-stops may be placed above recent highs ($38.76)
Click on Minyanville's Stocks To Watch for more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng +0.73%, Nikkei +1.70%, Sensex +0.29%, Taiwan +0.20% and Shanghai -0.15%.
Looking towards European bourses, we find the CAC +0.57%, DAX +0.62%, FTSE +0.55%, ATX +0.60%, Swiss Mkt. +0.08% and Stockholm +1.10%.
A Look At Commodities
Crude oil is up this morning 1.26 to 89.58. Gold is higher 1.40 to 809.00. Silver is up 0.03 to 14.50, and copper is down -1.8 to 300.20.
As of 8:45 AM, S&P futures are lower by 0.70 points, and Nasdaq futures are higher by 3.25 points.
On the Radar
8:30 Initial Claims
Click here for the full trading radar.
Thirsty Thursday! Join us with the Rollin' Bones later tonight! Good luck!
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