Jan 31, 2008 4:49 PM EST
U.S. stocks rebounded from morning losses after unemployment claims rose at the end of the last review. Stocks made about turn in the afternoon, MasterCard reported sharply higher earnings and the bond insurer MBIA in a earnings conference call asserted that it has adequate capital to retain its AAA rating. Hedge fund Pershing Square has asserted that the company may not have capital to fund its future losses. MBIA estimated $3 billion of future losses, half of what Pershing has estimated.
Jan 31, 2008 3:18 PM EST
U.S. stocks recovered from the morning losses. MasterCard reported fourth quarter earnings of $1.37 per share on a revenue rise of 27.8% to $1.07 billion. Gross dollar volume in the quarter rose 15.2%. The strength in the consumer spending helped market to reverse the earlier decline. MBIA reported large loss on the account of more write-down in credit derivatives. Jobless claims rose at the end of the last review period.
Jan 31, 2008 9:10 AM EST
Stocks in Japan recovered from a morning loss of 1.4% to close up 1.85% or 247.44 to 13,592.47. The Topix Index gained 2% or 26.20 to close at 1,346.31. Banks in Japan are likely to report larger than estimated sub-prime losses according to local news. The estimate of losses for 2007 are running as high as 500 billion yen from the five largest banks. December csh earnigs for wages declined 1.9% and for contract employees rose 0.3%.
Jan 30, 2008 6:20 PM EST
The Federal Reserve lowered short term rates by 0.5% to 3.0% and cited substantial downside risks to the economy. The Fed has lowered rates by 1.25% in nine days to calm domestic and international markets. The Fed action may prove inflationary in the medium term and force the Fed to change the course if the economy does not slowdown in the months ahead. Stocks rallied after the Fed decision, but lost neary 1.6% gains in index at close.
Jan 30, 2008 2:43 PM EST
Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.
Jan 30, 2008 9:58 AM EST
U.S. stocks edged lower ahead of Fed rate decision in the afternoon and more sub-prime losses. UBS reported $14 billion write-down realted to loan losses, $4 billion higher than estimated, turning profit for the year into a loss. BNP reported smaller, but not previously announced loss. UPS reported a loss on one-time contribution to a pension plan and Yahoo fell 10% on the continued weakness in the search related business.
Jan 29, 2008 7:38 AM EST
U.S. stocks edged higher for the second day in a row in anticipation of additional rate cut tomorrow. The U.S. House of Representatives passed $146 billion economic stimulus package and sent to senators to review it. 3M, Valero, and Zimmer Holdings rise on earnings. EMC and VMware decline on earnings. European markets closed higher led by miners, financials, and tech companies. Countrywide Financial reported a loss of 79 cents per share. Fourth quarter profit at Yahoo dropped 23%.
Jan 29, 2008 12:33 PM EST
U.S. stocks traded in a narrow range ahead of the rate decision from the Fed. IMF lowered its outlook for global grwoth forecast on the expected economic slowdown in Japan, U.S., and select European nations. U.S. durable goods orders rose 5.2% in December. Countrywide reported a loss of 79 cents per share, sharply lower than its estimate of a profit between 25 cents and 75 cents. American Express earnings declined 9.9% on higher loan loss reserves.
Jan 29, 2008 11:51 AM EST
The International Monetary Fund lowered its global economic growth target in 2008 to 4.1% from 4.4% estimated earlier in October of last year. IMF estimated that world economies rose at 4.9% in 2007. The IMF estimate may prove to be too rosy if the U.S. economy slows down at a faster pace as unemployment rate picks up. U.S. economic growth is lowered to 1.5% from 2.2%.
Jan 29, 2008 8:16 AM EST
Tokyo stocks rallied on the back of higher closing in the U.S. stocks and firmer trading this morning in Europe. Expectations of an additonal U.S. rate cut were building in Tokyo. Separately, India left its rates unchanged. Statistics office in Japan released December monthly household income and expenditure data. Monthly income fell 1.8% and expenditures rose 2.2% in real terms. December unemployment fell to 3.8%.