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Breaking News | Real-time commentary on the market, with links to key sources.

Market Currents - Real Time Wall Street Breakfast - Top Stories
Friday, October 10 2008
Earliest at Top
Today's Market Currents »
  • 5:40 PM "Failure to rally here is important to both acknowledge and understand." [Charles Kirk] COMMENT!
  • 4:48 PM Crude oil -6.6% to 80.90. Gold +1% to 895.60. COMMENT!
  • 4:45 PM Volatility Index: The VIX ended the day up 6.03, to 69.95. COMMENT!
  • 4:31 PM Verizon (VZ) dropped a bomb today on companies who send out text alerts: a new fee of 3 cents per outgoing text message, effective Nov. 1. COMMENT!
  • 4:30 PM Sector weaknesses at close: Silver (SLV) -17.99%. Energy (IYE) -15.48%. Gold miners (GDX) -13.85%.   COMMENT!
  • 4:27 PM Sector strengths at close: Financial (XLF) +7.96%. Regional banks (RKH) +7.33%. Real estate (IYR) +6.98%.  COMMENT!
  • 4:21 PM A dilly of a Dow day: Today's range went from a low of 7882 to a high of 8901 - a 1,019-point yoyo. COMMENT!
  • 4:09 PM The markets hit new highs for the day in the half-hour before close, but couldn't hold on. At close, Dow -1.49% to 8451.19. S&P -1.17% to 899.25. Nasdaq +0.27% to 1649.51. COMMENT!
  • 3:30 PM Dow (+0.61%) and Nasdaq (+0.75) break through into the green. Will it hold? COMMENT!
  • 3:30 PM Outspoken Connecticut Senator Chris Dodd has been out front denouncing the "companies that form the foundation of our financial markets" for "their insatiable appetite for risk." Some think he should be grilled on Countrywide's downfall. COMMENT!
  • 3:12 PM Starting the last hour of a wild week, markets hold their breath well off the lows. Dow -4.25%. S&P -5.31%. Nasdaq -4.09%. COMMENT!
  • 3:03 PM Author John Steele Gordon answers "How could the richest and most productive economy the world has ever known have a financial system so prone to periodic (every 20 years) and catastrophic break down?" COMMENT!
  • 2:55 PM Crude oil -8.45% to 79.27. Gold -4.52% to 843.20. COMMENT!
  • 2:29 PM "We've seen this movie before. One must hold one's breath at the moment and hope that this is a different movie." - analyst Richard Bove on the Street's rejection of its insistence on its health. COMMENT!
  • 2:17 PM Markets look to be rising off a recent low: Dow -4.29%. S&P -5.04%. Nasdaq -4.32%. COMMENT!
  • 2:12 PM Lehman CDS auction sets final price of 8.625 cents, lower than expected. See details. COMMENT!
  • 2:02 PM Buy Hungary 'like hell', KBC says, after its central bank rolled out a financial sector rescue package Friday. (Six Hungarian Stocks To Consider) COMMENT!
  • 1:44 PM Former Fed Chairman Paul Volcker: We have the tools to manage the crisis. Now we need the leadership to use them. COMMENT!
  • 1:17 PM VOX: What G7/8 leaders can do to solve the global credit crisis COMMENT!
  • 1:09 PM Sector weaknesses: Energy (IYE) -16.07%. Silver (SLV) -8.28%. Gold miners (GDX) -8.1%. Healthcare (IHF) -7.81%. Biotech (IBB) -7.18%. COMMENT!
  • 1:06 PM Sector strengths: Regional banks (KRE) +3.84%. Agribusiness (MOO) +0.92%. Financial (XLF) +0.7%. COMMENT!
  • 12:48 PM Ford (F) echoes GM in reassuring employees, stockholders and markets that it would not consider bankruptcy, saying it has enough liquidity to survive. [CNBC] COMMENT!
  • 12:48 PM Nokia (NOK), despite a 35% drop over the last three months, is still overpriced, WestLB analyst Thomas Langer says. The Street's 2009 EPS forecasts are too high, as he sees zero unit sales growth in 2009. COMMENT!
  • 12:46 PM Bloomberg reports that NYSE and Nasdaq may file a proposal for a limited short-selling ban with the SEC as soon as today. Under the plan, a stock that closes down more than 20 percent would be protected from short sellers for the following three days, sources said. [FOTW] COMMENT!
  • 12:25 PM "It is finally dawning — on the European central bankers at least — that although inflation rates remain high, the deflationary forces associated with the deleveraging process which is now in train, means that deflation has the potential to become the chief policy concern in pretty quick order." COMMENT!
  • 12:25 PM European markets closed heavily down today, reflecting concerns about global recession. FTSE -8.48%. DAX -8.05%. CAC -7.73%. The DJ Stoxx 600 Index had its worst week on record. COMMENT!
  • 12:09 PM The British Bankers Assn. is reporting that it is beginning to see an increase in interbank lending following government moves in that country. [CNBC] COMMENT!
  • 12:08 PM At midday, the early market bounce is history as stocks cascade down: Dow -4.07% (to 8230). S&P -4.33%. Nasdaq -3.49%. COMMENT!
  • 12:02 PM George Soros: There is a safe way to securitize home loans. COMMENT!
  • 11:45 AM General Motors (GM) may announce productions cuts and plant closures as soon as next week. [AP] COMMENT!
  • 11:45 AM Defense-industry executives are worried the costs of massive rescue plans will be taken in part out of the Pentagon's budget. "It's unrealistic to think there won't be some measure of impact," Boeing (BA) CEO Jim McNerney says. COMMENT!
  • 11:42 AM Dow leaders: GM +4.83%, BAC +3.11%, JPM +1.74%. COMMENT!
  • 11:40 AM Dow laggards: XOM -11.76%, CVX -9.89%, AA -6.5%. COMMENT!
  • 11:23 AM "Shellshocked. That is probably the best way to describe market psychology right now, as defined by Dictionary.com - stunned, distressed or exhausted from a prolonged trauma or an unexpected difficulty." - RBC Capital Markets COMMENT!
  • 11:01 AM September retail sales (ex auto) fell 2.4% from August - the biggest drop since MasterCard SpendingPulse started tracking spending in 2003. "The jitters around what’s happening to the financial market has certainly caused a pull back in spending," it says. COMMENT!
  • 10:49 AM Greenspan: U.S. housing recovery will begin in 1H 2009. COMMENT!
  • 10:39 AM The severe downturn is rapidly destroying global wealth: U.S. stocks shed $872B in market value on Thursday, $2.5T over the last seven trading sessions, and $8.4T since all-time highs exactly one year ago. COMMENT!
  • 10:38 AM Jefferies analyst Art Hogan: Market will hit bottom today (video). COMMENT!
  • 10:36 AM Initial Lehman CDS auction sets value at $0.0975 on the dollar. Final values to be released at 2 PM. (Bloomberg) COMMENT!
  • 10:25 AM Oil bounced from earlier losses but is still much cheaper than yesterday, -5.5% to $81.94 (low: $78.61). Gold +1.58% to $900.40. COMMENT!
  • 10:24 AM The Dow briefly strode into positive territory, currently -0.6% to 8,514. S&P -0.8% to 902. Nasdaq -0.2% to 1,641. COMMENT!
  • 10:22 AM Sector ETF weakness: Energy– IYE -11.7%. Solar– TAN -4%. Silver– SLV -4.3%. Gasoline– UGA -4.2%. Oil Services– OIH -4.8%. Utilities– XLU -3.6%. COMMENT!
  • 10:21 AM Sector ETF strength; Regional Banks– KRE +7%. Financials– XLF +3.7%. Agribusiness– MOO +3.3%. Regional Banks– RKH +3.9%. Retailers– XRT +2.5%. COMMENT!
  • 10:20 AM How forced liquidations of executives' stock are contributing to the selloff. COMMENT!
  • 9:54 AM Malcolm Maiden raises the possibility of a global trading halt "to give the markets time to catch their breath, and regulators time to frame their next moves." Michael Eisenberg pushes Bank of Israel governor Stanley Fischer to do it now. COMMENT!
  • 9:45 AM Averages are still very red, but that is one whale of a pop from the early plunge. Dow -1.4% to 8,458. S&P -1.5% to 896. Nasdaq -0.84% to 1,631. COMMENT!
  • 9:43 AM Despite Thursday's poor close, Miller Tabak's Marc Pado says we're "finally at the point where the short-term downside risk is minimal. While the upside might take time to develop, recession, earnings and a credit crisis are discounted." COMMENT!
  • 9:42 AM After breaching 60 for the first time ever yesterday, CBOE's volatility index, VIX, peaks above 70. Currently +9.7% to 70.14. COMMENT!
  • 9:40 AM Dow didn't stay below 8,000 for long, currently -4.91% to 8,158. S&P -5.16% to 863. Nasdaq -3.73% to 1,589. COMMENT!
  • 9:39 AM Brazil trading halted as 10% fall triggers circuit breaker. (Bloomberg) COMMENT!
  • 9:37 AM Ouch. Dow drops below 8,000 - currently -8.08% to 7,886. S&P -8.05% to 837. Nasdaq -5.9% to 1,548. COMMENT!
  • 9:35 AM "For GM (GM) and Ford (F) to fail, some pretty catastrophic things have to happen," KeyBanc's Brett Hoselton says. "Then again, things are pretty bad now." A GM spokesman admits 'unprecedented challenges' but says "bankruptcy is not an option." COMMENT!
  • 9:31 AM Slight bounce into the open: Dow -3.8% to 8,251. S&P -3.71% to 875.50. Nasdaq -2.83% to 1,599. COMMENT!
  • 9:28 AM The U.S. Trade Deficit fell to $59.1B in August from $61.3B in July - vs. $59.1B consensus. Exports fell by $3.4B to $168.1B, while imports dropped by $5.5B to $229.4B. COMMENT!
  • 9:25 AM Import Prices fell 3% in September vs. August - the largest one-month decline in five years - and slightly more than the -2.8% consensus. Despite the 5.5% Aug.-Sept. drop, the largest two-month decline since at least 1988, prices are still 14.5% higher Y/Y. COMMENT!
  • 9:20 AM Overnight Libor fell sharply to 2.47% from 5.09% (!). Three-month Libor rose slightly to 4.82% from 4.75%. COMMENT!
  • 9:18 AM Corn -5.65% to $4.135. Wheat -3.8% to $5.8175. Soybeans -4.7% to $9.34. COMMENT!
  • 9:17 AM Crude -7.75% to $798.80 (below $80!). Gold +9% to $912.20. Copper -10.6%. COMMENT!
  • 9:16 AM Futures indicate more pain. Dow -4.68% to 8,197. S&P -5% to 866.50. Nasdaq -2.89%. COMMENT!
  • 9:05 AM Next moves: The U.S. government is considering two dramatic steps to turn around, or at least slow, the damage: Guaranteeing billions of dollars in bank debt and temporarily insuring all U.S. bank deposits. COMMENT!
  • 8:50 AM Total direct borrowing from the Fed's expanded discount window soars to more than $430B, from $410B a week ago. Total average daily borrowing climbs to $420B from $368B. COMMENT!
  • 8:35 AM Other side of the coin: Morgan Stanley (MS) has become a critical test case. If it pulls through, it would represent an important milestone in the search for a bottom. COMMENT!
  • 8:21 AM Analyst Richard Bove says the pressures on Morgan Stanley (MS) are enormous, as witnessed by the Street's rejection of its insistence on its health. Cuts target to $19 from $44. COMMENT!
  • 8:07 AM Despite the likelihood of immediate paper losses, Mitsubishi UFJ (MTU) says it plans to forge ahead with its $9B/21% stake in Morgan Stanley (MS), and expects the deal to close Tuesday. Investors remain unimpressed: -3.8% premarket after falling 28.9% Thursday. COMMENT!
  • 7:52 AM Apple's (AAPL) next-Tuesday event appears to focus on its Macbook line. If Apple unveils low-priced MacBooks, as expected, it could give depressed shares a jolt. COMMENT!
  • 7:35 AM Europe continues to struggle. London -7.3%. Paris -7.7%. Frankfurt -8.1%. COMMENT!
  • 7:27 AM Asia closing numbers: Nikkei -9.6% to 8,276. Hang Seng -7.2% to 14,797. Shanghai -3.6% to 2001. BSE -7.1% to 10,528. COMMENT!
  • 7:20 AM Futures trend higher after GE (GE) earnings calm frayed nerves. Dow -1.79% to 8,444. S&P -2.08% to 893. Nasdaq -0.59%. COMMENT!
  • 7:15 AM Infosys Technologies (INFY): FQ2 EPS of $0.56 beats by $0.01. Revenue of $1.22B (+19%) in-line. Says its liquidity position is strong. [PR] COMMENT!
  • 7:00 AM GE: "We have taken a number of steps to protect investors from the downside risk in financial services, and we have ways to mitigate potential disruptions in infrastructure and media markets, but the environment remains challenging." COMMENT!
  • 6:50 AM GE (GE): "While GE Capital is not immune from the current environment, we continued to outperform our financial services peers... GE Capital is on track to earn over $9B for the year." COMMENT!
  • 6:35 AM GE (GE): Q3 EPS of $0.45 in-line. Revenue of $47.23B vs. $47.34B. Maintains dividend at $1.24. [PR] COMMENT!
  • 6:29 AM Host Hotels (HST): Q3 FFO of $0.31 beats by $0.03. Revenue of $1.17B in line. [PR] COMMENT!
  • 6:13 AM Fitch says European "mezzanine debt defaults are likely to rise as the financial crisis continues to take its toll on economic growth. This will reveal paltry recoveries, illustrating how poorly mezzanine was structured before the onset of the credit crunch." COMMENT!
  • 5:58 AM After initial strength on Europe's open, futures have moved back down close to their lows. Dow -3.45% to 8,300. S&P -3.89% to 877. Nasdaq -2.48%. COMMENT!
  • 5:50 AM The ECB lent $93.88B in overnight funds, satisfying all bids. The volume was much lower than Thursday's $116.15B. COMMENT!
  • 5:35 AM "Central bankers need not have bothered cutting their base interest rates because, in the most part, it will not feed through to lower rates for businesses and households who want to lend [sic] from banks." - Irish economist Dermot O'Leary COMMENT!
  • 5:20 AM The Bank of Japan's outlook - that Japan will return to a path of sustainable growth - remains intact, but "the possibility that it might do so later than expected should be borne in mind," it says in minutes (.pdf) released today. (ETF: EWJ) COMMENT!
  • 5:08 AM Despite its bearish outlook on oil demand, IEA says China oil import demand - widely expected to slow on domestic buildup - may be surprisingly strong as lower prices take the edge off the government's move to stop subsidizing imports. (ETF: USO) COMMENT!
  • 4:51 AM IEA warns worldwide oil demand growth is set drop to 15-year lows, and to remain anemic through 2009. Global consumption will rise by just 0.5% (400K barrels/day, down from 640K) this year, and by just 0.8% in 2009. (ETF: USO) COMMENT!
  • 4:32 AM "It's not a meltdown, it's an evaporation," KR Choksey says of Asia's Friday sell-off. "Forget whatever you used to know about financial markets, as this week has rewritten the rule book." COMMENT!
  • 4:16 AM Japan's Nikkei 225, down 9.6%, finishes the week a chilling 24% lower. Australian markets fell 8.3% Friday, down 16% for the week. In Thailand, a 10% drop triggered a 'circuit breaker' halt in trading for only the second time ever. (ETFs: EWJ, EWA, THD) COMMENT!
  • 4:02 AM European markets gap down on the open, as expected. London -6.3%. Paris -7.8%. Frankfurt -8.1%. COMMENT!
  • 3:44 AM Asian markets get slammed: Nikkei -9.6%. Hang Seng -9.2%. Shanghai -3.6%. BSE -9.0%. COMMENT!
  • 12:05 AM Notable earnings before Friday's open: GE, HST, PGR COMMENT!
  • 12:00 AM Friday's economic calendar:
    8:30 Import/Export Prices
    8:30 International Trade
    2:00 PM Treasury Budget COMMENT!