Stocks break losing streak
Apple and Baidu lift the Nasdaq. The Chinese premier wants to boost economic activity. Facebook sinks below its IPO price.
Stocks rallied Monday, rebounding from their worst weekly performance of 2012, after China said it would take steps to boost economic growth.
Shares of Facebook (FB), which made a shaky public debut on Friday, sank 11% Monday to $34.03, less than their IPO price of $38. Still, the Nasdaq ($COMPX) climbed 68 points, or 2.5%, to 2,847, as Apple (AAPL) and Baidu (BIDU) added more then 5%, helping the index double the Dow's pace.
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The number of rising stocks outpaced losers 4-to-1 on the New York Stock Exchange and nearly 3 to 1 on the Nasdaq. Technology, capital goods and basic materials shares were leading the gains, with most of the 10 S&P 500 large-cap sectors in positive territory.
Premier Wen Jiabao said over the weekend that he wants to see more measures taken to stimulate economic growth in China. China last week carried out some small measures, with expectations of more down the line, to stimulate domestic consumption after several lackluster economic reports, including weak retail sales and tepid import growth.
"What happens in China has a disproportionate effect on what happens elsewhere," said Telly Zachariades, partner at Valence.
Without providing details of the measures he has in mind, Wen said, "The relationship between maintaining growth, adjusting economic structures and managing inflation must be properly handled," according to the Xinhua News Agency. "We should continue to implement a proactive fiscal policy and a prudent monetary policy while giving more priority to maintaining growth."
Over the weekend at Camp David, Md., Group of Eight summit leaders expressed to German Chancellor Angela Merkel their desire to see more effort put into bolstering eurozone economic growth, though their urging did not result in any firm commitments or plans.
Leaders from the top economies said in a statement that their goal is to "promote growth and jobs." This was a departure from the view in favor of eurozone-wide austerity measures targeting burgeoning budget deficits.
Toward the end of the summit, President Barack Obama said, "We agreed upon the importance of a strong and cohesive eurozone and affirmed our interest in Greece staying in the eurozone while respecting its commitments."
German Chancellor Angela Merkel, French President Francois Hollande and U.S. President Barack Obama together signed a statement at the summit outlining steps to promote growth alongside austerity measures to combat the eurozone debt crisis, but how to accomplish this has been a subject of much disagreement in Europe.
On Wednesday, European Union leaders will meet in Brussels to try to reach a compromise on this matter. While Hollande urges the acceptance of debt supported by the more powerful eurozone countries like Germany to fund growth in the weaker ones, such as Greece, Germany continues to argue against issuing bonds. Germany says that with eurobonds, such debt-laden countries would lose their motivation to clean up their fiscal problems while jeopardizing borrowing costs in the stronger countries.
London's FTSE closed up 0.7%, and the DAX in Germany finished up 1%.
In corporate news, Facebook shares didn't gain as much as many investors had hoped on Friday, closing fractionally higher in the social network's debut as a public company. The shares reversed course Monday.
"When you look at the Facebook IPO, it may have some serious proving to do to see if they can make money from the millions if not billions of users," said Zachariades.
The CEO of Nasdaq (NDAQ) on Sunday acknowledged technology problems related to Facebook's listing on Friday, The Wall Street Journal reported. Nasdaq came under fire after trading in Facebook shares was delayed by 30 minutes on Friday.
JMP Securities analyst David Trone has downgraded the five major U.S. banks, citing concerns about the fallout of the European debt crisis, the upcoming expiration of Bush-era tax cuts and U.S. deficit issues. Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM) and Morgan Stanley (MS) had their ratings cut.
Barclays (BCS) said Monday that it is planning to sell its $6.1 billion stake in BlackRock (BLK). Barclays holds a 19.6% stake in the asset-management company. Barclays' shares rose 3.8% to $11.58, while BlackRock shares dropped 2.4% to $167.73.
Yahoo (YHOO) reached a deal to sell up to half of its stake in Alibaba back to the Chinese e-commerce company for about $7.1 billion. The two companies announced the deal late Sunday. If Alibaba purchases half of the stake for $7.1 billion, it will pay at least $6.3 billion in cash and up to $800 million worth of newly issued Alibaba preferred stock, the companies said. Yahoo shares added 1% to $15.58.
Lowe's (LOW) reported first-quarter earnings of $527 million, or 43 cents a share, beating the 42-cent estimate of analysts. But same-store sales rose 2.6%, less than expected. The stock lost 10% at $25.60.
The July crude oil contract rose $1.06 at $92.86 a barrel. June gold futures lost $3.20 at $1,588.40 an ounce.
Thank you to all who have become followers on Twitter!
Just a quick follow up to my FB posts from last week. There was a story posted Saturday about FB forcing a picture of a child with a birth defect to be removed from the mothers FB page. This is just the type of action that can and will land FB in the dog house. A bunch of spoiled little rich kids want to censor the content on toy.
As a pubicly held comapny this is not acceptable; and very possibly illegal from the standpoint of discrimination. Hopefully the loving mother of this child will take legal action and all of you FB users will make your voices heard to correct this.
Who is banned next-People of color-The Elderly-Those of certain sexual orientation?
Will Barry make sure that his equal rights for all includes those with birth defects and instruct the AG to file suit on behalf of all children with birth defects?
Irvin Goldman, who oversaw risks in the JPMorgan Chase & Co. (JPM) unit that suffered more than $2 billion in trading losses, was fired by another Wall Street firm in 2007 for money-losing bets that prompted a regulatory sanction at the firm, Cantor Fitzgerald LP, three people with direct knowledge of the matter said.
Again..... with our lack of punishment, and refusal to discipline these holier than thous has only emboldened them to continue on doing what they did that got us in trouble in the first place. So prepare yourselves for another meltdown coming in the not so distant future.....
"China's premier plans to take steps boost economic growth"
Maybe they will drop their labor rate to $50 a month? Cheapen up their product? Eliminate all EPA requirements? Have their gov subsidize their manufacturing? Wait...they're doing all this now! At some point the laws of supply and demand will kick in. China can take whatever measures they want but if they don't have a willing buyer for their goods...then "rots of ruck"...
"A new survey shows economists are growing slightly more optimistic about recovery in the job and housing markets but expect other pillars of the economy to remain weak."
Well here comes he "Hype & Hope". Just another made up survey to give the impression all is well. I would like to know the details of this survey but of course The Street Staff would never publish that...too much work! Who are these "economists"? Probably the same ones who have missed the boat on every other prediction they've made. My recommendation, is to just stop producing surveys as they are nothing more than manipulated lies and serve no purpose other than to give the appearance that all is well in the economy when the reality it is not and that's the TRUTH!!
"Group of 8 pledge their support for Greece" Yes, let's go ahead and pour more money into that cess pool of corruption and waste. Unbelievable. And don't think this is out of the kindness of their hearts to save the people of Greece. They owe over a trillion, and all that bailout money (Read: borrowed future taxpayer money) is going to the bondholders. Who are the bondholders? The banks who were dumb enough to lend Greece the money to begin with.
Just another case of intentional mistakes, made by banksters to profit from our future wealth. Scumbags, the whole lot of them who profit off of this farce.
"Wall Street rebounds on China stimulus hopes"
Central Economic Planning - didn't the Soviet Union try that?
I guess history has to repeat itself for us to learn, again, again, again>
Merkel under all kinds of pressure from the G8 to borrow and spend a bunch to prop up the eurozone. She's holding strong for now and Germany is holding the trump card - if they drop out of EU, the whole thing will fall apart in a matter of months. According to most reports, Obama didn't offer much in the way of ideas or leadership and spent most of the conference "listening and absorbing information". Perhaps he was busy on his Blackberry, lining up campaign donations...
Zuckerberg got married the day after his IPO?? Hope he ponied up some cash to get a rock solid pre-nup drawn up. He's holding 503 million shares of FB, so now he's worth about $20 billion. Let's see, a $1.3 trillion federal budget deficit comes out to about $3.5 billion in deficit spending per day. Hey, maybe Zuckerberg could donate everything he's now worth so the federal gov can operate at the break-even point for the next 6 days...
WYNN has taking a beating in the last couple weeks, could be ripe for a bounce...
"NO" individual donations of more then $10.
"NO" corporate donations of more then $100.
"NO" lobbyists closer then 50 miles outside "beltway."
"NO" Dinners over $50 bucks per plate....
Yeah.....I think that will take care of "term limits."
The First Amendment was mandated by the states to protect political speech. The colonists wanted the freedom they didn’t have in England to speak freely about what political leaders were doing. They also wanted to be free to write about what they believed were wrong-headed policies without fear of reprisals. In addition, they insisted on the freedom to “petition the government for a redress of grievances.”
The First Amendment was a freedom breakthrough, but you would never know that if you were a student in one North Carolina classroom.
A student stood firm in his beliefs about President Obama and challenged his teacher on the claim that Mitt Romney was a bully in high school. The student pointed out that President Obama admitted shoving a girl to the ground in his book Dreams from My Father. The teacher screamed the following in disapproval: “Stop, no, because there is no comparison. [Romney is] running for president. Obama is the president.” It’s obvious that the the teacher is an Obama zombie.
The teacher then goes into intimidation mode by telling the student that it is wrong to “disrespect the president of the United States in this classroom.” He points out that what President Obama wrote in his own book is not being disrespectful; it’s being factual. He could have also pointed out that the President was a drug user.
The teacher then tells the student – wrongly – that it is a criminal offense to say bad things about a president. “Do you realize that people were arrested for saying things bad about Bush? Do you realize you are not supposed to slander the president?”
Referencing the First Amendment, the student, obviously knowing more than his teacher, tells her that any suppression of his opinions would be a violation of the First Amendment.
I suspect that these types of incidents are common all across the United States. We are fortunate that not all students are brainwashed. There may still be hope for America.
There is a YouTube video that was shot by a friend of the bullied student. You can view it here (sound only):
The G-8 summit did very little to provide solutions to the EU crisis . While all agreed that they needed to support growth & jobs, the leaders offered nothing in planning or commitments. This is a sharp departure from the focus on austerity measures, which the EU must do if it wants to keep the Euro, ( a waste IMO). Germany isn't going to foot the bill for the 'dead beats' and Hollande is leading the pack for this. Socialism doesn't work for a successful financial system. And in China- I can say I've seen with my own eyes that our poor in America would be 'kings' over there. That's how bad it is !
Think about it- are you liberal with your money or conservative with your money ? You'll find the successful ones are conservative !
Wow, this morning, Wall Street is hoping that China have a strong affect on how stocks will perform. Later today or some time this week, some one in China will break wind and blow away any hopes for a strong recovery here in the USA.
How about instead of waiting for some miracle cure for the economy to come from Asia or Europe or any other place, we just build up our own economy and get our economic strength from our own efforts? In the news, they say that buy America is getting stronger because more Americans are buying American made produces. Like to know where these products are being sold though because I am still not seeing very many "Made in the USA" tags on anythign here. We have everything we need to help boost the economy through our own efforts, all that remains is having the guts to make it happen; and it starts with our government believing in American craftsmanship.
"China's premier plans to take steps boost economic growth. G8 leaders pledge their support for Greece. European stocks climb."
The polictical leaders who are screwing up the world economy, think they are going to fix it with the same plan that screwed it up in the first place.
Welcome aboard China.
Interesting. Think that the government has 'crossed' some lines. Arizona is particularly pissed off. Their governor and a well-known and respected sheriff are about to blow the lid off for libs. The economy is getting much worse. Look, it is that it may be beyond discussion. We have no 'leaders'. We cannot even vet them properly as seen, now. Our country is in very sad shape. As one gentleman put it to me yesterday...we cannot surive another 4 years of O'Bama. This is getting very bad, people.
Let it seep in slowly
Read and learn
This tells the story, why Bush was so bad at the end of his term.
Some people aren't aware of all of this. Don't just skim over this, please read it slowly and let it sink in. If in doubt, check it out.
The day the democrats took over was not January 22nd 2009, it was actually January 3, 2007... the day the Democrats took over the House of Representatives and the Senate, at the very start of the 110th Congress.
The Democrat Party controlled a majority in both chambers for the first time since the end of the 103rd Congress in 1995.
For those who are listening to the liberals propagating the fallacy that everything is "Bush's Fault", think about this:
January 3rd, 2007 was the day the Democrats took over the Senate and the Congress.
At the time:
The DOW Jones closed at 12,621.77
The GDP for the previous quarter was 3.5%
The Unemployment rate was 4.6%
George Bush's Economic policies SET A RECORD of 52 STRAIGHT MONTHS of JOB GROWTH
Remember the day...
January 3rd, 2007 was the day that Barney Frank took over the House Financial Services Committee and Chris Dodd took over the Senate Banking Committee. The economic meltdown that happened 15 months later was in what part of the economy?
BANKING AND FINANCIAL SERVICES!
Unemployment... to this CRISIS by (among MANY other things) dumping 5-6 TRILLION Dollars of toxic loans on the economy from YOUR Fannie Mae and Freddie Mac FIASCOES!
Bush asked Congress 17 TIMES to stop Fannie & Freddie - starting in 2001 because it was financially risky for the US economy.
And who took the THIRD highest pay-off from Fannie Mae AND Freddie Mac? OBAMA
And who fought against reform of Fannie and Freddie?
OBAMA and the Democrat Congress.
So when someone tries to blame Bush..REMEMBER JANUARY 3rd, 2007.... THE DAY THE DEMOCRATS TOOK OVER!
Budgets do not come from the White House. They come from Congress, and the party that controlled Congress since January 2007 is the Democrat Party.
Furthermore, the Democrats controlled the budget process for 2008 & 2009 as well as 2010 & 2011.
In that first year, they had to contend with George Bush, which caused them to compromise on spending, when Bush somewhat belatedly got tough on spending increases.
For 2009 though, Nancy Pelosi & Harry Reid by
passed George Bush entirely, passing continuing resolutions to keep government running until Barack Obama could take office. At that time, they passed a massive omnibus spending bill to complete the 2009 budgets.
And where was Barack Obama during this time? He was a member of that very Congress that passed all of these massive spending bills, and he signed the omnibus bill as President to complete 2009.
If the Democrats inherited any deficit, it was the 2007 deficit, the last of the Republican budgets. That deficit was the lowest in five years, and the fourth straight decline in deficit spending. After that, Democrats in Congress took control of spending, and that includes Barack Obama, who voted for the budgets.
If Obama inherited anything, he inherited it from himself. In a nutshell, what Obama is saying is "I inherited a deficit that I voted for and then I voted to expand that deficit four-fold since January 20th."
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[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
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