24/7 Wall St. » TI

Fitch Joins E.U. Downgrade Waves (EWK, IRE, EIRL, IRL, EWI, TI, EWP, STD)

Administrator — Fri, 27 Jan 2012 18:30:03 +0000

Fitch has joined in on the European sovereign credit rating downgrades. First it was S&P, but we might argue that this should have mostly been factored in already. Is it a secret that the economies in Europe have been slowing and have more exposure these days? Fitch is cutting six Eurozone sovereign ratings (on Rating Watch Negative since 16 December 2011) as follows (with ETFs and major ADRs indicated):

Belgium LT IDR downgraded to ‘AA’ from ‘AA+’; Negative Outlook; ST IDR affirmed at ‘F1+’: iShares MSCI Belgium Index Fund (NYSE: EWK) is still up 0.4% at $11.33; 52-week range $10.23 to $15.65.

Ireland LT IDR affirmed at ‘BBB+’; Negative Outlook; ST IDR affirmed at ‘F2′: Bank of Ireland (NYSE: IRE) down 1.6% at $6.15; 52-week range of $3.99 to $27.00 (adjusted for reverse split). MSCI Ireland Capped Investable (NYSE: EIRL) is down 1.5% at $20.17; 52-week range is $16.78 to $23.80. The Irish Investment Fund, Inc. (NYSE: IRL) is still up almost 1% at $7.22 and its 52-week range is $6.49 to $8.77.

Italy LT IDR downgraded to ‘A-’ from ‘A+’; Negative Outlook; ST IDR downgraded to ‘F2′ from ‘F1′: iShares MSCI Italy Index Fund (NYSE: EWI) is down 0.8% at $12.92; 52-week range is $10.88 to $20.15. Telecom Italia S.P.A. (NYSE: TI) is flat at $10.33 an dthe 52-week range is $9.74 to $16.04.

Spain LT IDR downgraded ‘A’ from ‘AA-’; Negative Outlook; ST IDR downgraded to ‘F1′ from ‘F1+’: iShares MSCI Spain Index Fund (NYSE: EWP) is still up 0.4% at $31.44 against a 52-week range of $28.53 to $45.99. Banco Santander, S.A. (NYSE: STD) is still up 0.7% at $8.16 against a 52-week range of $6.77 to $12.72.

Two more downgrades were issued:

Cyprus LT IDR downgraded to ‘BBB-’ from ‘BBB’; Negative Outlook; ST IDR affirmed at ‘F3′
Slovenia LT IDR downgraded to ‘A’ from ‘AA-’; Negative Outlook; ST IDR downgraded to ‘F1′ from ‘F1+’

Should this have really been a surprise? If so, these would be performing far worse.

JON C. OGG

Filed under: 24/7 Wall St. Wire, ADR, Economy, Emerging Markets, ETF, International Markets, Mutual Funds Tagged: EIRL, EWI, EWK, EWP, IRE, IRL, STD, TI

European ADRs Surging on Global Central Bank Action (ALU, MT, BHP, STD, IRE, CS, UBS, DB, FTE, PHG, ERIC, NOK, NBG, SI, TI)

Administrator — Wed, 30 Nov 2011 14:03:50 +0000

The action out of China’s virtual easing by lowering reserve requirements was already a boost to global markets, but the coordinated central bank efforts of the U.S., Canada, Europe, Switzerland, and the U.K. to preserve global liquidity is creating a boom for stocks today at the expense of the U.S. dollar.

Alcatel-Lucent (NYSE: ALU) is up only 1.25% at $1.60 and shares are flat in local trading in Paris. Arcelor Mittal (NYSE: MT) is up 10% at $18.26 and BHP Billiton Ltd. (NYSE: BHP) is up 6.5% at $74.21.

Banco Santander, S.A. (NYSE: STD) is up 5.6% at $7.56 and the stock is up 4% in local trading in Madrid. The Bank of Ireland (NYSE: IRE) is now up 8.6% at $4.92 and shares are up 7% in local trading in Dublin. National Bank of Greece SA (NYSE: NBG) is up 4.9% at $2.55 in New York but shares are up almost 3% in local trading in Athens.

Credit Suisse Group (NYSE: CS) is up 7% at $24.03 and UBS AG (NYSE: UBS) is up 6.1% at $12.18. Deutsche Bank AG (NYSE: DB) is up 7.9% at $38.36 and shares are up 6.6% in local trading in Frankfurt.

France Telecom (NYSE: FTE) is up 4.3% at $17.01 and shares are up 3.4% in local trading in Paris. Koninklijke Philips Electronics NV (NYSE: PHG) is up 4.6% at $20.00 in New York trading. LM Ericsson Telephone Co. (NASDAQ: ERIC) is up 5.5% at $10.37; Nokia Corporation (NYSE: NOK) is up 4.2% at $5.73. Funny, Nokia’s problems are not really tied to “liquidity” issues or other uncertainties. Siemens AG (NYSE: SI) is up 5.9% at $101.54 in New York and shares are up 4.1% in local trading in Frankfurt.

Telecom Italia SpA (NYSE: TI) is up 5.6% at $11.32 in New York and shares are up 4% in local trading in Milan.

JON C. OGG

Filed under: ADR, International Markets, Pre-Market Activity, Trading Alert Tagged: ALU, BHP, CS, DB, ERIC, FTE, IRE, MT, NBG, NOK, PHG, SI, STD, TI, UBS

European ADRs Dragging Down U.S. Trading (ALU, MT, BHP, STD, IRE, CS, UBS, DB, FTE, PHG, ERIC, NOK, NBG, SI, TI)

Administrator — Tue, 15 Nov 2011 12:44:11 +0000

The Eurozone growth rate of 0.2% in the third quarter may have met expectations but this is just one more example that growth is so low already that getting out of the debt hole is going to be no easy task. As a result, we have another day of Euro-led selling and almost every major European name that has a New York ADR tied to its is trading lower.

Alcatel-Lucent (NYSE: ALU) is down another 2.5% at $1.92 and shares are down 2.6% in local trading in Paris.

Arcelor Mittal (NYSE: MT) is down 3.3% at $18.36 and BHP Billiton Ltd. (NYSE: BHP) is down 1.5% at $74.85.

Banco Santander, S.A. (NYSE: STD) is down almost 2% at $7.47 and the stock is down 2% in local trading in Madrid.

The Bank of Ireland (NYSE: IRE) is down 2.1% at $4.70 and shares are down 2.3% in local trading in Dublin.

Credit Suisse Group (NYSE: CS) is down 3.6% at $23.32 and UBS AG (NYSE: UBS) is down over 2.5% at $11.60.

Deutsche Bank AG (NYSE: DB) is down 2.2% at $37.68 and shares are down 2.6% in Frankfurt.

France Telecom (NYSE: FTE) has not traded in New York but shares are indicated under $17.00 after a $17.10 close on Monday; shares are down 1% in Paris.

Koninklijke Philips Electronics NV (NYSE: PHG) is down 3.1% at $18.86 in New York trading.

LM Ericsson Telephone Co. (NASDAQ: ERIC) is down 1.8% at $9.99; Nokia Corporation (NYSE: NOK) is indicated down almost 2% at $6.42.

National Bank of Greece SA (NYSE: NBG) is down 5.5% at $0.52 in New York but shares are down 8.5% in local trading in Athens.

Siemens AG (NYSE: SI) is down 1.2% in New York and shares are down 1.7% in local trading in Frankfurt.

Telecom Italia SpA (NYSE: TI) is down almost 3% at $11.55 in New York and shares are down almost 3.1% in local trading in Milan.

JON C. OGG

Filed under: ADR, International Markets, Pre-Market Activity, Trading Alert Tagged: ALU, BHP, CS, DB, ERIC, FTE, IRE, MT, NBG, NOK, PHG, SI, STD, TI, UBS

European ADRs Follow Italy Much Lower, Wrecking U.S. Market Gains (E, LUX, TI, ALU, MT, BHP, STD, IRE, CS, UBS, DB, FTE, PHG, ERIC, NOK, NBG, SI, EWI)

Administrator — Wed, 09 Nov 2011 12:32:30 +0000

Well, it used to be Greece taking us down daily, but now it is the much larger concern of Italy. The markets were supposed to be cheering that Silvio Berlusconi was going to step down but then suddenly the fears of who would or could replace him and the uncertainty have set in. Now Italy’s ten-year yield is not just above 5% and 6%, but above 7%. Unlike Greece just being a flea on a dog, Italy is even larger than a dog’s tail and it is frankly too big to just get a bailout.

Eni SpA (NYSE: E) is down over 4% around $42.30 and shares are down 3% in Milan. Luxottica Group SpA (NYSE: LUX) has not traded and we do not yet have Ney Work indications, but shares were down 3.1% in Milan. Telecom Italia SpA (NYSE: TI) is indicated down around 7% in New York at $11.30 but shares are down 4.5% in local trading in Milan.

Elsewhere in Europe….

Alcatel-Lucent (NYSE: ALU) is down around $1.98 (ouch, 52-week low) after a $2.16 close in New York, and shares are down almost 4% in local trading in Paris.

Arcelor Mittal (NYSE: MT) is down over 8% at $19.03 and BHP Billiton Ltd. (NYSE: BHP) is down 4.5% at $76.47 in New York trading in the early pre-markets.

Banco Santander, S.A. (NYSE: STD) is down 7% at $7.50 in active early New York trading but the stock is down more than 3% in local trading in Madrid.

The Bank of Ireland (NYSE: IRE) is down 1.4% at $5.17 in New York and shares are down 2.2% in local trading in Dublin.

Credit Suisse Group (NYSE: CS) is down 7.1% at $24.77 and UBS AG (NYSE: UBS) is down 6.1% at $11.97 in early New York pre-market trading.

Deutsche Bank AG (NYSE: DB) is down over 9% at $36.80 in New York and shares are down about 5% in Frankfurt.

France Telecom (NYSE: FTE) has not traded in New York yet but its shares are down 2% in local trading in Paris.

Koninklijke Philips Electronics NV (NYSE: PHG) is indicated down around $19.65 after a $20.86 close in New York for a loss of close to 6%.

LM Ericsson Telephone Co. (NASDAQ: ERIC) is indicated down 5% around $10.15; Nokia Corporation (NYSE: NOK) is down 4.7% at $6.50.

National Bank of Greece SA (NYSE: NBG) is indicated flat to down a couple cents after a $0.59 close in New York but shares are down 4.1% in local trading in Athens.

Siemens AG (NYSE: SI) is down 4.5% at $98.56 in New York trading and shares are down 1.6% in local trading in Frankfurt.

iShares MSCI Italy Index (NYSE: EWI) is trading down 5.2% at $12.87.

Another rough day is being brought on by the woes of the nanny and endless welfare nations in Europe. S&P futures are down over 2% with well over two hours until the market opens.

JON C. OGG

Filed under: ADR, Economy, International Markets, Pre-Market Activity, Trading Alert Tagged: ALU, BHP, CS, DB, E, ERIC, EWI, FTE, IRE, LUX, MT, NBG, NOK, PHG, SI, STD, TI, UBS

European ADRs Leading The Charge Higher (ALU, MT, BHP, STD, IRE, CS, UBS, DB, FTE, PHG, ERIC, NOK, NBG, SI, TI, EWI, EWQ, EWG)

Administrator — Thu, 27 Oct 2011 12:01:02 +0000

Greece and the rest of the PIIGS were hurting us for so long that it seems hard to believe that the Europeans are setting a 50% haircut for the Greek sovereign debt and that they have agreed to a $1.4 trillion (1 trillion Euro) Euro-zone rescue package. The news is causing a major rally in the stock markets with the German DAX up over 4% and the French CAC up 5%. The FTSE in England is up 2.6% and the Greek stock market (there actually is one) is up over 6.5%. European ADRs are leading the markets higher this Thursday… Much higher.

Alcatel-Lucent (NYSE: ALU) is up over 2.5% at $2.80 and shares are up 5.1% in local trading in Paris.

Arcelor Mittal (NYSE: MT) is up almost 7% at $20.95 and BHP Billiton Ltd. (NYSE: BHP) is up 5.1% at $82.07.

Banco Santander, S.A. (NYSE: STD) is up 5.6% at $8.87 and the stock was up 6.1% in local trading in Madrid.

The Bank of Ireland (NYSE: IRE) is up 6.2% at $6.17 and shares are up 7% in local trading in Dublin.

Credit Suisse Group (NYSE: CS) is flying with shares up 9.6% at $30.67 and UBS AG (NYSE: UBS) is up 7.8% at $13.65.

Deutsche Bank AG (NYSE: DB) is up a whopping 14% at $46.00 and shares are up 15% in Frankfurt.

France Telecom (NYSE: FTE) is up 1.5% at $18.58 in New York and shares are up 1.5% in Paris as well.

Koninklijke Philips Electronics NV (NYSE: PHG) is up about 6% at $22.23.

LM Ericsson Telephone Co. (NASDAQ: ERIC) is up 5.6% at $10.83; Nokia Corporation (NYSE: NOK) is up 5.3% at $7.13.

National Bank of Greece SA (NYSE: NBG) is up 15.6% at $0.545 in New York but shares are up 12.2% in local trading in Athens.

Siemens AG (NYSE: SI) is up 3.1% at $108.58 in New York and shares are up 3% in local trading in Frankfurt.

Telecom Italia SpA (NYSE: TI) has not yet traded in New York but shares have a pre-trade indication of $13.20 versus a $12.73 close in New York; shares are up 4% in local trading in Milan.

iShares MSCI Italy Index (NYSE: EWI) is up 1.8% at $14.05. iShares MSCI France Index (NYSE: EWQ) is up 4.4% at $22.45 and iShares MSCI Germany Index (NYSE: EWG) is up 4.4% at $22.12.

JON C. OGG

Filed under: ADR, International Markets, Pre-Market Activity, Trading Alert Tagged: ALU, BHP, CS, DB, ERIC, EWG, EWI, EWQ, FTE, IRE, MT, NBG, NOK, PHG, SI, STD, TI, UBS

Top Analyst Upgrades & Downgrades (ARMH, CFN, COP, EIX, GIS, GS, PDLI, SAP, SFD, S, SYK, TEF, TI, TSN, VLO)

Administrator — Tue, 11 Oct 2011 12:14:04 +0000

These are some of this Tuesday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.

ARM Holdings plc (NASDAQ: ARMH) Raised to Buy at Citigroup.
CareFusion Corporation (NYSE: CFN) Raised to Buy at BofA/ML.
ConocoPhillips (NYSE: COP) Cut to Underperform at Macquarie.
Edison International (NYSE: EIX) Added to US Focus List at Credit Suisse.
General Mills, Inc. (NYSE: GIS) Added to Conviction Buy List at Goldman Sachs.
Goldman Sachs Group Inc. (NYSE: GS) estimates cut to expect a loss by Citigroup.
PDL BioPharma, Inc. (NASDAQ: PDLI) Cut to Sector Perform at RBC.
SAP AG (NYSE: SAP) Started as Buy at Citigroup.
Smithfield Foods Inc. (NYSE: SFD) Raised to Buy at BofA/ML.
Sprint Nextel Corporation (NYSE: S) Cut to Hold at Argus; Removed from U.S. Focus List at Credit Suisse.
Stryker Corporation (NYSE: SYK) Raised to Buy at BofA/ML.
Telefonica, S.A. (NYSE: TEF) Cut to Neutral at Goldman Sachs.
Telecom Italia SpA (NYSE: TI) Cut to Sell at Goldman Sachs.
Tyson Foods Inc. (NYSE: TSN) Raised to Buy at BofA/ML.
Valero Energy Corporation (NYSE: VLO) Raised to Overweight at Barclays.

JON C. OGG

Filed under: Analyst Calls Tagged: ARMH, CFN, COP, EIX, GIS, GS, PDLI, S, SAP, SFD, SYK, TEF, TI, TSN, VLO

European ADRs Leading U.S. Stocks Lower (ALU, MT, BHP, STD, CS, DB, FTE, PHG, NOK, SI, TI, UBS)

Administrator — Tue, 04 Oct 2011 12:02:54 +0000

It feels like Groundhog day in Europe. Greece fears are escalating and European markets are sharply lower. The Europeans are just unwilling or are unable to deal with their woes in a timely manner. DJIA futures are down about 100 points again. These are the ADRs of mostly European companies which have traded this morning and leading the markets lower with the FTSE down 3.1%, the DAX down 3.7% and the CAC down 3.2% are as follows:

Alcatel-Lucent (NYSE: ALU) is indicated down 4% at $2.32 but shares are down about 7% in local trading in Paris.

Arcelor Mittal (NYSE: MT) is down “only” 1.1% at $15.33 and BHP Billiton Ltd. (NYSE: BHP) is down 2% at $63.10 this morning.

Banco Santander, S.A. (NYSE: STD) is down almost 1% at $7.61, but shares are down 3% in local trading in Madrid.

Credit Suisse Group (NYSE: CS) is down 2% at $23.73.

Deutsche Bank AG (NYSE: DB) is down 3.4% at $31.70; shares are down about 6% in Frankfurt.

France Telecom (NYSE: FTE) is down only $0.02 at $15.78 in New York; shares are down almost 1.3% in local trading in Paris.

Koninklijke Philips Electronics NV (NYSE: PHG) has not yet traded, but shares are indicated down around $16.70 versus a $17.26 close.

Nokia Corporation (NYSE: NOK) is down 3.3% at $5.26.

Siemens AG (NYSE: SI) is down 1.5% at $85.60, but shares are down 2.9% in local trading in Frankfurt.

Telecom Italia SpA (NYSE: TI) is actually indicated higher this morning but there has been no New York pre-market trading with about two hours until the open. Shares are up 0.9% in local trading in Milan.

UBS AG (NYSE: UBS) is up almost 2.5% at $10.83, but shares are down 0.8% in local markets.

It is going to be another bad day for emerging markets and all we can say there is that we noted the details of the chart deaths taking place in BRIC and emerging markets.

JON C. OGG

Filed under: ADR, International Markets, Trading Alert Tagged: ALU, BHP, CS, DB, FTE, MT, NOK, PHG, SI, STD, TI, UBS

Greek Failure, European ADRs Leading Sell-Off (ALU, MT, BHP, STD, CS, DB, FTE, NOK, ERIC, NBG, SI, TI, UBS)

Administrator — Mon, 03 Oct 2011 11:49:39 +0000

European stocks are leading the markets this morning and the direction is lower. Greece projected that 2012 deficits will be above plan and the nation has effectively admitted that it will not meet deficit reduction targets. This is raising new fears all over again that Greece will not be eligible to receive its previously agreed to bailout funds. It is not all bad news though as some shares are still trading higher in places you might not expect. These are the ADRs of mostly European companies which have traded this morning and are leading the markets lower:

Alcatel-Lucent (NYSE: ALU) is indicated down over 6% at $2.65 but shares are down almost 9% in local trading in Paris.

Arcelor Mittal (NYSE: MT) is down “only” 1.5% at $15.68 and BHP Billiton Ltd. (NYSE: BHP) is down “only” 0.7% at $65.98 this morning.

Banco Santander, S.A. (NYSE: STD) in Spain is indicated down marginally at $8.02 versus a close of $8.04 in New York although we would note that perhaps that is not the right level because shares are down almost 3% in local trading in Madrid.

Credit Suisse Group (NYSE: CS) is down 3.2% at $25.40.

Deutsche Bank AG (NYSE: DB) is down 1% at $34.24; shares are down 2.5% in Frankfurt.

France Telecom (NYSE: FTE) is down 2.2% at $16.00 in New York; shares are down almost 2% in local trading in Paris.

Nokia Corporation (NYSE: NOK) is actually bucking the trend and shares are up 1.8% at $5.76 and LM Ericsson Telephone Co. (NASDAQ: ERIC) is down only 0.5% at $9.50.

National Bank of Greece SA (NYSE: NBG), stuck right in the middle of the woes of the PIIGS is down 5.1% at $0.74 and that matches its 52-week low and multi-year low.

Siemens AG (NYSE: SI) is down 0.5% at $89.33 on thin volume, but shares are down 1.75% in local trading in Frankfurt.

Telecom Italia SpA (NYSE: TI) is actually not down with the PIIGS this morning. Shares are up 0.1% in local trading in Milan.

UBS AG (NYSE: UBS) is down almost 2% at $11.22; shares are down 2.75% % in local markets.

The CAC in Paris is down 2.4% and the DAX in Frankfurt is down 2.6%; S&P futures are now indicated down only $3.50 and the DJIA futures are now indicated down only about 35 points.

JON C. OGG

Filed under: ADR, Banking, Bankruptcy, International Markets, Pre-Market Activity, Trading Alert Tagged: ALU, BHP, CS, DB, ERIC, FTE, MT, NBG, NOK, SI, STD, TI, UBS

European ADRs Leading The Surge For U.S. Equities (ALU, MT, BHP, DB, FTE, PHG, NOK, NBG, SI, TI, UBS)

Administrator — Mon, 26 Sep 2011 11:51:15 +0000

Friday’s bounce in the U.S. is continuing based on the fact that there was no significant negative news or negative developments over the weekend. On the day we were down last week it was many of the key ADRs leading the U.S. lower. Today most of those ADRs are leading the charge higher.

We have shown the New York trading indications as well as the trading indication on the local markets for these to adjust for off-clock similar trading the prior day and for currencies.

Alcatel-Lucent (NYSE: ALU) is indicated up 3% at $3.00 but no real ADR volume yet; shares are up 3.2% in local markets.

Arcelor Mittal (NYSE: MT) +4% at $15.96.

BHP Billiton Ltd. (NYSE: BHP) +1.4% at $68.68. Shares up 0.6% in U.K. (although Australia based).

Deutsche Bank AG (NYSE: DB) +8.6% at $34.03; shares are up down 9.6% in local markets.

France Telecom (NYSE: FTE) up 27% at $16.11; shares up 3.5% in local markets.

Koninklijke Philips Electronics NV (NYSE: PHG) shares are indicated up 4% but no volume yet.

Nokia Corporation (NYSE: NOK) up 4.5% at $5.48.

National Bank of Greece SA (NYSE: NBG) is actually down 1% at $0.79, a sign that the det rating downgrade on Friday might not have been as one-off as everyone hoped.

Siemens AG (NYSE: SI) up 3.6% at $91.39. Shares are up 3% in local trading.

Telecom Italia SpA (NYSE: TI) shares are indicated up 2% at $10.52 but no volume; shares are up 3% in local markets.

UBS AG (NYSE: UBS) is up 3.5% at $11.64; shares are up 4% in local markets.

JON C. OGG

Filed under: ADR, Pre-Market Activity, Trading Alert Tagged: ALU, BHP, DB, FTE, MT, NBG, NOK, PHG, SI, TI, UBS

10 European ADRs Leading Sell-Off (MT, BHP, DB, FTE, PHG, ERIC, NOK, NBG, SI, TI, UBS)

Administrator — Thu, 22 Sep 2011 11:50:45 +0000

Today’s selling is actually based on weak Chinese manufacturing data rather than any direct E.U. woes. We have focused on mostly European ADRs this morning for the big movers and shakers, or movers and quakers, because they are still trading overseas at this point on the clock. Greece has agreed to more immediate austerity measures although central bank warnings are not adding much great support this morning as well. These are the ADRs of mostly European companies which have traded this morning and are leading the markets lower:

Arcelor Mittal (NYSE: MT) -6% at $15.48… Shares down 6.8% in local markets.

BHP Billiton Ltd. (NYSE: BHP) -5.2% at $68.23… Shares down 7% in U.K. (although Australia based).

Deutsche Bank AG (NYSE: DB) -2.8% at $30.38… Shares down 5.6% in local markets.

France Telecom (NYSE: FTE) -4% at $15.28… Shares down 4.4% in local markets.

Koninklijke Philips Electronics NV (NYSE: PHG) -4.3% at $16.85.

LM Ericsson Telephone Co. (NASDAQ: ERIC) -4% at $9.68 and Nokia Corporation (NYSE: NOK) -4.5% at $5.32.

National Bank of Greece SA (NYSE: NBG) -6.45% at $0.87.

Siemens AG (NYSE: SI) -3.4% at $88.90… Shares down 4.7% in local markets.

Telecom Italia SpA (NYSE: TI) -4.7% at $10.01… … Shares down 5% in local markets.

UBS AG (NYSE: UBS) -2.5% at $10.70… Shares down 5.6% in local markets.

iShares FTSE China 25 Index Fund (NYSE: FXI) is the ETF which tracks China, where the negative manufacturing news acted as the blood-letting instrument today. The ETF is indicated down 3.8% at $32.38.

JON C. OGG

Filed under: ADR, International Markets, Pre-Market Activity, Trading Alert Tagged: BHP, DB, ERIC, FTE, MT, NBG, NOK, PHG, SI, TI, UBS