Daily Archives: October 14, 2008

Earnings On Deck: Only Nine Companies Will Matter

MapsAnalysts assume third quarter earnings for the companies in the S&P 500 will be bad. But, looking at the number which is the average of all firms in the index is misleading. The market will be watching the numbers for and forecasts from nine companies. They are likley to drive the stock indexes up or down more than numbers from almost any other firms. They are, in essence, all that counts in determining how badly the recession is taking a toll on American business.

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Posted on: October 14, 2008 – 5:16 am in Uncategorized, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Paulson’s New Plan: The Good Guys Get Gored (JPM)(MS)(GS)(C)

TreasuryOne size fits all. That is the reasoning behind Treasury’s plan to invest money in a number of large banks by purchasing preferred shares.

Jamie Dimon of JP Morgan (JPM) and Lloyd Blankfein of Goldman Sachs (GS) have to feel that they have been sacrificed on Henry Paulson’s bank bailout altar. Healthy financial companies are being told that they must take on the burden of new debt, whether they want it or not. Whether they need it or not.

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Posted on: October 14, 2008 – 4:37 am in Banking, , , ,

Media Digest 10/14/2008 Reuters, WSJ, NYTimes, FT, Bloomberg

NewspaperAccording to Reuters, the Treasury will make $250 billion directly into banks. Ciitgroup (C) and JPMorgan (JPM) would get $26 billion each. Merrill Lynch (MER) and Bank of America (BAC) would each get $12.5 billion.

Reuters reports that auto companies could return to Congress for help.

Reuters said Bernanke commented that the US plan should help revive credit markets.

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Posted on: October 14, 2008 – 2:52 am in Press Digest, , , , , , , , , , , , , , , ,

Asia Markets 10/14/2008 Furious Rally

ChinaMarkets in Asia were up sharply.

The Nikkei rose 14.3% to 9,456. Mitsubishi UFJ was up 14%. Toyota (TM) rose 15.5%. Honda (HMC) rose 17.8%.

The Hang Seng moved up 4.4% to 17,028. CNOOC rose 15.4%.

The Shanghai Composite dropped 2.7% to 2,017.

In Europe, at the open, the Dax was up 3.5% to 5,241. The FTSE was up 1.9% to 4,334. The CAC40 rose 2.1% to 3,604.

Data from Reuters.

Douglas A. McIntyre

Posted on: October 14, 2008 – 2:14 am in Uncategorized, ,