Published: Tuesday September 21, 2010 MYT 7:58:00 AM
Expert Economic panel says US recession over
WASHINGTON: The longest recession the U.S. has endured since the Great Depression ended in June 2009, a group that dates the beginning and end of recessions declared Monday.
The National Bureau of Economic Research, a panel of academic economists based in Cambridge, Massachusetts, said the recession lasted 18 months. It started in December 2007 and ended in June 2009. Previously the longest post World War II downturns were those in 1973-1975 and in 1981-1982. Both of those lasted 16 months.
Let's not time the market!
Dear Investors,
Of late, we see the equity market of being very unpredictable. Mixed news that we receive from various sources tend to have it behaved as such. One week it goes up and another week it slides down. But then again that's what equity market is. The ups and downs of the market are what some investors look for. Some of the best market like Hong Kong market tends to be more volatile than any others but it attracts some of the best monies there.
Now as you know, Unit Trust invests in stock market buying shares and stocks via various stock exchanges locally as well as overseas. Not one single stock but 80-90 types of stocks in a single fund. The risks are lower but if the market crashes the performance of unit trust is also affected. But there's one cure to this that is to continue investing intermittently e.g for EPF investment - to continue investing every 3 months to beat the volatility of the market and same goes to cash investment. It's always wise to add your lump sum investment with some "Direct Debit" or DDI every month (min RM100) due to the same reason. The continuous investment in turn will let you accumulate more units (more units during downturn) and have lower unit cost of your investment so that any time when the market goes up above your unit cost - you can lock your investment for PROFIT. But before that happens I appeal that your duty is to stay invested and continue investing for long term (5 yrs or more).
All the best!
Of late, we see the equity market of being very unpredictable. Mixed news that we receive from various sources tend to have it behaved as such. One week it goes up and another week it slides down. But then again that's what equity market is. The ups and downs of the market are what some investors look for. Some of the best market like Hong Kong market tends to be more volatile than any others but it attracts some of the best monies there.
Now as you know, Unit Trust invests in stock market buying shares and stocks via various stock exchanges locally as well as overseas. Not one single stock but 80-90 types of stocks in a single fund. The risks are lower but if the market crashes the performance of unit trust is also affected. But there's one cure to this that is to continue investing intermittently e.g for EPF investment - to continue investing every 3 months to beat the volatility of the market and same goes to cash investment. It's always wise to add your lump sum investment with some "Direct Debit" or DDI every month (min RM100) due to the same reason. The continuous investment in turn will let you accumulate more units (more units during downturn) and have lower unit cost of your investment so that any time when the market goes up above your unit cost - you can lock your investment for PROFIT. But before that happens I appeal that your duty is to stay invested and continue investing for long term (5 yrs or more).
All the best!
Don't panic!
Jeannine Aversa, AP Economics Writer, On Monday June 7, 2010, 9:29 pm
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke said Monday he is hopeful the economy will gain traction and not fall back into a "double dip" recession.
"My best guess is we will have a continued recovery, but it won't feel terrific," Bernanke said.
That's because economic growth won't be robust enough to quickly drive down the unemployment rate, now at 9.7 percent, he said in remarks to the Woodrow Wilson International Center for Scholars, a nonpartisan research group.
The economy grew at a 3 percent pace in the first quarter of this year. That's good growth during normal times. But coming out of such a deep recession, the economy must grow much more strongly to make a dent in the jobless rate.
Fears have grown that the recovery could be derailed if Europe's debt crisis turns into a broader financial contagion, crimping lending in the United States and around the globe. The situation has spooked investors, sending Wall Street into fits of panic.
Bernanke said the Fed is monitoring the European crisis carefully, and he believes European leaders are taking the right steps to deal with the problems.
Asked when the Fed will start raising interest rates, Bernanke quipped "in the future."
The Fed has pledged to hold rates at record lows to nurture the recovery. A growing number of economists now believe the Fed won't start to boost rates until next year given the European crisis and high unemployment.
Bernanke didn't offer new clues about when the Fed would reverse course and start to tighten credit. However, he did say the Fed won't be able to wait until the jobs market is fully healed before it pushed rates up.
The Fed chief's remarks came during a question and answer session Monday night sponsored by the Woodrow Wilson "International Center for Scholars. Reporter Sam Donaldson, who is affiliated with the group, asked most of the questions. A few came from the audience.
Observing the economy, Bernanke said the news so far is "pretty good." Both consumers and companies are spending sufficiently to keep the recovery moving forward. The private sector, he said, is "picking up the baton" as government stimulus, which mainly powered the recovery in its earliest stage, starts to fade.
WASHINGTON (AP) -- Federal Reserve Chairman Ben Bernanke said Monday he is hopeful the economy will gain traction and not fall back into a "double dip" recession.
"My best guess is we will have a continued recovery, but it won't feel terrific," Bernanke said.
That's because economic growth won't be robust enough to quickly drive down the unemployment rate, now at 9.7 percent, he said in remarks to the Woodrow Wilson International Center for Scholars, a nonpartisan research group.
The economy grew at a 3 percent pace in the first quarter of this year. That's good growth during normal times. But coming out of such a deep recession, the economy must grow much more strongly to make a dent in the jobless rate.
Fears have grown that the recovery could be derailed if Europe's debt crisis turns into a broader financial contagion, crimping lending in the United States and around the globe. The situation has spooked investors, sending Wall Street into fits of panic.
Bernanke said the Fed is monitoring the European crisis carefully, and he believes European leaders are taking the right steps to deal with the problems.
Asked when the Fed will start raising interest rates, Bernanke quipped "in the future."
The Fed has pledged to hold rates at record lows to nurture the recovery. A growing number of economists now believe the Fed won't start to boost rates until next year given the European crisis and high unemployment.
Bernanke didn't offer new clues about when the Fed would reverse course and start to tighten credit. However, he did say the Fed won't be able to wait until the jobs market is fully healed before it pushed rates up.
The Fed chief's remarks came during a question and answer session Monday night sponsored by the Woodrow Wilson "International Center for Scholars. Reporter Sam Donaldson, who is affiliated with the group, asked most of the questions. A few came from the audience.
Observing the economy, Bernanke said the news so far is "pretty good." Both consumers and companies are spending sufficiently to keep the recovery moving forward. The private sector, he said, is "picking up the baton" as government stimulus, which mainly powered the recovery in its earliest stage, starts to fade.
Stocks jumped why are you still worried..
Stocks Jump ... So Why Are You Still So Worried?
Posted May 27, 2010 11:45am EDT by Aaron Task in Investing
Related: ^DJI, ^GSPC, EEM, FXI, CLF, XLF, AGO
Stocks surged around the world Thursday, with the Dow up about 200 points in recent trading. Big gains beat the alternative, but are providing cold comfort to investors whipsawed by the recent volatility.
"It's scary because there's no liquidity in the market. There's no volume," says James Altucher, managing director of Formula Capital. "Program trading is still manipulating the markets at the open and the close. It's a scary environment to be a short-term trader."
Um...James, if the traders are scared, how do you think the rest of us feel?
Clearly there is plenty to be frightened about these days, including (but not limited to), the following:
A potential collapse of the Euro zone, which would crush European banks and trigger another global "contagion", ala 2008. (For more on why the euro matters, see: No Escape From Europe's Rubble)
Fear of a global slowdown as China tries to cool off its red-hot economy.
Fear the U.S. economy is built on a house of cards, and that the problems in the banking system were merely transferred to the public's (i.e. taxpayers') balance sheet from the banks, which are (still) being manipulated.
Rising geopolitical tension on the Korean Peninsula, as well as civil unrest in Thailand, Greece and Jamaica, among others.
An environmental catastrophe in the Gulf of Mexico; even if BP's "Top Kill" effort proves 100% successful, the Deepwater Horizon disaster will impact the region -- the source of roughly one-third of U.S. seafood -- for decades.
As you'll see in the accompanying video and subsequent segments, Altucher's answer to the above is fairly simple: Yes it's scary, but we've been through worse and there are opportunities for investors who are able to conquer their fears.
Posted May 27, 2010 11:45am EDT by Aaron Task in Investing
Related: ^DJI, ^GSPC, EEM, FXI, CLF, XLF, AGO
Stocks surged around the world Thursday, with the Dow up about 200 points in recent trading. Big gains beat the alternative, but are providing cold comfort to investors whipsawed by the recent volatility.
"It's scary because there's no liquidity in the market. There's no volume," says James Altucher, managing director of Formula Capital. "Program trading is still manipulating the markets at the open and the close. It's a scary environment to be a short-term trader."
Um...James, if the traders are scared, how do you think the rest of us feel?
Clearly there is plenty to be frightened about these days, including (but not limited to), the following:
A potential collapse of the Euro zone, which would crush European banks and trigger another global "contagion", ala 2008. (For more on why the euro matters, see: No Escape From Europe's Rubble)
Fear of a global slowdown as China tries to cool off its red-hot economy.
Fear the U.S. economy is built on a house of cards, and that the problems in the banking system were merely transferred to the public's (i.e. taxpayers') balance sheet from the banks, which are (still) being manipulated.
Rising geopolitical tension on the Korean Peninsula, as well as civil unrest in Thailand, Greece and Jamaica, among others.
An environmental catastrophe in the Gulf of Mexico; even if BP's "Top Kill" effort proves 100% successful, the Deepwater Horizon disaster will impact the region -- the source of roughly one-third of U.S. seafood -- for decades.
As you'll see in the accompanying video and subsequent segments, Altucher's answer to the above is fairly simple: Yes it's scary, but we've been through worse and there are opportunities for investors who are able to conquer their fears.
Stay calm! don't press the panick button..
Dow dips below 10,000, then bounces back
Stocks plunge early, then bounce back; Dow finishes above 10,000, but debt worries persist
Buzz up! 6 Print
Topics:Stocks
Specialist Michael Pistillo, left, and traders work on the floor of the New York Stock Exchange Tuesday, May 25, 2010. (AP Photo/Richard Drew)
Tim Paradis and Stevenson Jacobs, AP Business Writers, On Tuesday May 25, 2010, 6:24 pm EDT
NEW YORK (AP) -- The Dow Jones industrials plunged below 10,000 to their lowest level of the year Tuesday before a late-day rebound that erased most of the losses if not lingering worries about Europe's debt crisis.
The Dow dropped more than 250 points after the opening bell and stayed under 10,000 most of the day, then charged back to finish down only 22 when signals from Washington suggested that banks would not be forced to sell their lucrative derivatives units as part of financial reform. The Standard & Poor's 500 index even managed a slight gain.
Stocks plunge early, then bounce back; Dow finishes above 10,000, but debt worries persist
Buzz up! 6 Print
Topics:Stocks
Specialist Michael Pistillo, left, and traders work on the floor of the New York Stock Exchange Tuesday, May 25, 2010. (AP Photo/Richard Drew)
Tim Paradis and Stevenson Jacobs, AP Business Writers, On Tuesday May 25, 2010, 6:24 pm EDT
NEW YORK (AP) -- The Dow Jones industrials plunged below 10,000 to their lowest level of the year Tuesday before a late-day rebound that erased most of the losses if not lingering worries about Europe's debt crisis.
The Dow dropped more than 250 points after the opening bell and stayed under 10,000 most of the day, then charged back to finish down only 22 when signals from Washington suggested that banks would not be forced to sell their lucrative derivatives units as part of financial reform. The Standard & Poor's 500 index even managed a slight gain.
global market UP again Europe debt crisis being solved
Published: Tuesday May 11, 2010 MYT 7:40:00 AM
Updated: Tuesday May 11, 2010 MYT 7:45:34 AM
US, global stocks surge on US$1tril plan to ease European debt crunch
NEW YORK: Stocks rocketed to their biggest gain in a year and bond prices fell Monday after a nearly US$1 trillion plan to contain Europe's debt crisis reassured investors.
The Dow Jones industrial average rose about 405 points to its biggest advance since March 2009. Broader U.S. indexes outpaced the Dow's 3.9 percent rise.
Gains in several European markets topped 9 percent.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.54 percent from 3.43 percent late Friday.
The drop in demand for safety holdings like Treasurys signaled that investors are less afraid that Europe's debt problems will endanger a global recovery.
The European Union and the International Monetary Fund agreed to create a nearly $1 trillion rescue fund to support European nations burdened by heavy debt.
Updated: Tuesday May 11, 2010 MYT 7:45:34 AM
US, global stocks surge on US$1tril plan to ease European debt crunch
NEW YORK: Stocks rocketed to their biggest gain in a year and bond prices fell Monday after a nearly US$1 trillion plan to contain Europe's debt crisis reassured investors.
The Dow Jones industrial average rose about 405 points to its biggest advance since March 2009. Broader U.S. indexes outpaced the Dow's 3.9 percent rise.
Gains in several European markets topped 9 percent.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.54 percent from 3.43 percent late Friday.
The drop in demand for safety holdings like Treasurys signaled that investors are less afraid that Europe's debt problems will endanger a global recovery.
The European Union and the International Monetary Fund agreed to create a nearly $1 trillion rescue fund to support European nations burdened by heavy debt.
10% economic expansion highest in 10yrs
More than 10% economic expansion in first quarter for the first time in 10 years
By WONG SAI WAN
saiwan@thestar.com.my
KUALA LUMPUR: The country’s economy is likely to register growth of more than 10% in the first three months of the year – an achievement not seen in the last 10 years.
The latest economic indicators show a positive trend. Exports in March grew by 36.4% beating the market forecast of 22.4%. Imports rose by 45.3% (forecasts were around 30%).
The London-based Financial Times says: “Given Malaysia’s high exposure to trade, the numbers bode well for first quarter gross domestic product growth”.
Analysts from major banks, local and international, put the first three months’ growth at between 9.8% and 12% and they expect the trend to continue for the second quarter making it a “very good first half of the year for Malaysia.”
As a result, the analysts are also revising upwards their estimates for Malaysia’s GDP growth forecast for the year. Banks are now forecasting the annual GDP to grow by between 8% and 11% as compared to Bank Negara’s earlier estimate of between 4.5% and 5%.
“Given the recent developments in both domestic and external conditions, we are confident our 2010 forecast of 8% should be achievable,” said Ambank group chief economist Manokaran Mottain in his Economic update released here yesterday.
He also noted that besides the surge in exports, there was a marked improvement in private sector spending, especially by households. Big ticket items such as cars have seen increased sales.
According to the Malaysian Automotive Association, auto sales surged 25% year-on-year in March to 56,139 units, up from 44,896 in the same month last year.
HSBC Global Research economist Robert Prior-Wandesforde in his report entitled “From bust to boom - double-digit GDP growth in Singapore and Malaysia?” noted that the recovery of the economy came three months faster than expected.
While the Financial Times said, “Malaysia is roaring out of recession even faster than expected”.
The country’s key economic ind
By WONG SAI WAN
saiwan@thestar.com.my
KUALA LUMPUR: The country’s economy is likely to register growth of more than 10% in the first three months of the year – an achievement not seen in the last 10 years.
The latest economic indicators show a positive trend. Exports in March grew by 36.4% beating the market forecast of 22.4%. Imports rose by 45.3% (forecasts were around 30%).
The London-based Financial Times says: “Given Malaysia’s high exposure to trade, the numbers bode well for first quarter gross domestic product growth”.
Analysts from major banks, local and international, put the first three months’ growth at between 9.8% and 12% and they expect the trend to continue for the second quarter making it a “very good first half of the year for Malaysia.”
As a result, the analysts are also revising upwards their estimates for Malaysia’s GDP growth forecast for the year. Banks are now forecasting the annual GDP to grow by between 8% and 11% as compared to Bank Negara’s earlier estimate of between 4.5% and 5%.
“Given the recent developments in both domestic and external conditions, we are confident our 2010 forecast of 8% should be achievable,” said Ambank group chief economist Manokaran Mottain in his Economic update released here yesterday.
He also noted that besides the surge in exports, there was a marked improvement in private sector spending, especially by households. Big ticket items such as cars have seen increased sales.
According to the Malaysian Automotive Association, auto sales surged 25% year-on-year in March to 56,139 units, up from 44,896 in the same month last year.
HSBC Global Research economist Robert Prior-Wandesforde in his report entitled “From bust to boom - double-digit GDP growth in Singapore and Malaysia?” noted that the recovery of the economy came three months faster than expected.
While the Financial Times said, “Malaysia is roaring out of recession even faster than expected”.
The country’s key economic ind
Wall Street jumped on Monday!
Tim Paradis, AP Business Writer, On Monday May 3, 2010, 5:59 pm EDT
NEW YORK (AP) -- Investors sent stocks soaring Monday after getting a boost of confidence from the latest economic reports and Warren Buffett's defense of Goldman Sachs.
The Dow Jones industrial average rose 143 points for its biggest gain in two and a half months. The Dow and broader indexes all climbed more than 1 percent.
The market rebounded from a drop Friday after a string of welcome news eased some of the concerns that have been dogging investors. Economic reports signaled that consumer spending and manufacturing are strengthening
NEW YORK (AP) -- Investors sent stocks soaring Monday after getting a boost of confidence from the latest economic reports and Warren Buffett's defense of Goldman Sachs.
The Dow Jones industrial average rose 143 points for its biggest gain in two and a half months. The Dow and broader indexes all climbed more than 1 percent.
The market rebounded from a drop Friday after a string of welcome news eased some of the concerns that have been dogging investors. Economic reports signaled that consumer spending and manufacturing are strengthening
Corporate earning improves as economy improves
Jordan Robertson, AP Technology Writer, On Tuesday April 13, 2010, 6:43 pm EDT
SAN FRANCISCO (AP) -- Intel Corp. said Tuesday its net income in the first quarter nearly quadrupled over last year and reflected an overall bump in spending on technology by companies. The results sent Intel shares higher.
Among other things, Intel got a lift from sales of new chips for computer servers -- the kind of purchase that many companies delayed in the recession. And Intel's chief financial officer, Stacy Smith, said in an interview that demand for processors for higher-end laptops was stronger than expected as corporations upgraded their workers' computers.
SAN FRANCISCO (AP) -- Intel Corp. said Tuesday its net income in the first quarter nearly quadrupled over last year and reflected an overall bump in spending on technology by companies. The results sent Intel shares higher.
Among other things, Intel got a lift from sales of new chips for computer servers -- the kind of purchase that many companies delayed in the recession. And Intel's chief financial officer, Stacy Smith, said in an interview that demand for processors for higher-end laptops was stronger than expected as corporations upgraded their workers' computers.
Stock market upbeat after consumers spend
HONG KONG (AP) -- Global stock markets advanced Tuesday after a report showing U.S. consumers continued to spend last month buoyed optimism about growth in the world's largest economy.
The dollar was little changed against the yen and the euro, and oil prices hovered above $82 a barrel.
Helping sentiment were overnight gains in the U.S., where Wall Street was boosted by news that consumer spending rose for a fifth straight month in February. Spending by households is by far the biggest source of economic activity in the U.S. and drives Asian export demand. The 0.3 percent rise added to hopes consumers are regaining confidence.
As trading started in Europe, Britain's FTSE 100 added 0.1 percent, Germany's DAX rose 0.3 percent and France's CAC-40 was up 0.1 percent. Wall Street was poised for a modestly stronger open as U.S. futures gained.
In Asia, Japan's Nikkei 225 stock average rose 110.67 points, or 1 percent, to 11,097.14, and South Korea's Kospi was up 8.20 points, or 0.5 percent, at 1,700.19. Hong Kong's Hang Seng index rose 137.36, or 0.7 percent, to 21,374.79.
The dollar was little changed against the yen and the euro, and oil prices hovered above $82 a barrel.
Helping sentiment were overnight gains in the U.S., where Wall Street was boosted by news that consumer spending rose for a fifth straight month in February. Spending by households is by far the biggest source of economic activity in the U.S. and drives Asian export demand. The 0.3 percent rise added to hopes consumers are regaining confidence.
As trading started in Europe, Britain's FTSE 100 added 0.1 percent, Germany's DAX rose 0.3 percent and France's CAC-40 was up 0.1 percent. Wall Street was poised for a modestly stronger open as U.S. futures gained.
In Asia, Japan's Nikkei 225 stock average rose 110.67 points, or 1 percent, to 11,097.14, and South Korea's Kospi was up 8.20 points, or 0.5 percent, at 1,700.19. Hong Kong's Hang Seng index rose 137.36, or 0.7 percent, to 21,374.79.
Market continue to advance on sustained PROFITABILITY!
NEW YORK (AP) -- A rally in financial stocks Thursday helped the market extend its grind higher to a third day.
The Standard & Poor's 500 index cleared an important hurdle watched by traders when it closed just above its January peak to set a new 17-month high. That could bring some hesitant buyers into the market.
Financial shares rose after Citigroup Inc. CEO Vikram Pandit said the bank was on a path toward "sustained profitability" as it sells off risky assets. The bank has been the hardest hit by the financial crisis so the upbeat assessment helped boost expectations about the economy. The stock rose 5.6 percent.
The Standard & Poor's 500 index cleared an important hurdle watched by traders when it closed just above its January peak to set a new 17-month high. That could bring some hesitant buyers into the market.
Financial shares rose after Citigroup Inc. CEO Vikram Pandit said the bank was on a path toward "sustained profitability" as it sells off risky assets. The bank has been the hardest hit by the financial crisis so the upbeat assessment helped boost expectations about the economy. The stock rose 5.6 percent.
Exit strategy to mark better days to come
Fed hikes discount rate, says loose policy to stay
Topics:Economy, Government & Policy
The U.S. Federal Reserve Building is pictured in Washington, January 26, 2010. REUTERS/Jason Reed
On Thursday February 18, 2010, 10:13 pm
By Emily Kaiser
WASHINGTON (Reuters) - The Federal Reserve raised its emergency lending rate for the first time since the financial crisis, lifting the dollar and hitting bonds as markets brushed off Fed assurances it was not a prelude to a rise in the main policy rate.
The Fed cast its decision to raise the discount rate it charges banks by 25 basis points to 0.75 percent as a response to improved market conditions that allowed it to scale back emergency aid for financial institutions.
It took pains to distinguish its efforts to foster market liquidity from monetary policy and to draw the distinction between the discount rate and its main federal funds rate, which remains near zero to help a fragile U.S. economic recovery. Fed officials also insisted the move that takes effect on Friday was not a sign that a policy tightening was forthcoming.
"They do not signal any change in the outlook for monetary policy and are not expected to lead to tighter financial conditions for households and businesses," Fed Governor Elizabeth Duke said in an address, echoing the Fed statement.
Topics:Economy, Government & Policy
The U.S. Federal Reserve Building is pictured in Washington, January 26, 2010. REUTERS/Jason Reed
On Thursday February 18, 2010, 10:13 pm
By Emily Kaiser
WASHINGTON (Reuters) - The Federal Reserve raised its emergency lending rate for the first time since the financial crisis, lifting the dollar and hitting bonds as markets brushed off Fed assurances it was not a prelude to a rise in the main policy rate.
The Fed cast its decision to raise the discount rate it charges banks by 25 basis points to 0.75 percent as a response to improved market conditions that allowed it to scale back emergency aid for financial institutions.
It took pains to distinguish its efforts to foster market liquidity from monetary policy and to draw the distinction between the discount rate and its main federal funds rate, which remains near zero to help a fragile U.S. economic recovery. Fed officials also insisted the move that takes effect on Friday was not a sign that a policy tightening was forthcoming.
"They do not signal any change in the outlook for monetary policy and are not expected to lead to tighter financial conditions for households and businesses," Fed Governor Elizabeth Duke said in an address, echoing the Fed statement.
Global market soars!!
Great News for Global Equity market!
Stephen Bernard, AP Business Writer, On Tuesday February 16, 2010, 5:49 pm EST
NEW YORK (AP) -- Signs that the economy is indeed strengthening gave investors a surge of optimism and sent stocks sharply higher.
The Dow Jones industrials soared almost 170 points Tuesday on upbeat earnings reports and corporate deals. Investors who have been anxious in recent weeks about economic problems overseas were able to put aside their concerns for the time being. They focused instead on the domestic economy.
The dollar fell as investors felt less of a need to stash their money in safer investments. Oil, gold and other commodities joined stocks as the beneficiaries of the market's renewed confidence. And the stocks of energy and materials producers were among the day's big winners.
European markets also rose following new plans by European Union leaders to push Greece to get its budget under control. European officials gave Greece one month to prove it can cut its deficits. Debt problems in European countries including Greece, Portugal and Spain have been a major factor behind weakness in global stock markets in recent weeks.
A strong earnings report from Barclays, a major European bank, also gave the market some relief. European banks have been slower to recover than their U.S. counterparts, and investors saw the bounceback at Barclays as an encouraging sign.
In the U.S., Kraft Foods Inc. and apparel retailer Abercrombie & Fitch reported earnings that beat expectations, while drugmaker Merck & Co. said profits jumped after the company bought its longtime partner Schering-Plough Corp.
Earnings reports over the past month have mostly come in better than expected, but problems in the global economy have overshadowed that good news and pushed the market lower.
"Earnings have been good, but pushed to the back seat," behind Europe's problems, said Alan B. Lancz, president of Alan B. Lancz & Associates in Toledo, Ohio. The strong reports Tuesday "superseded some of these worries."
Meanwhile a bold acquisition move by the nation's largest mall owner raised hopes that businesses are feeling more confident about the economy.
Simon Property Group has offered to acquire its ailing rival, General Growth Properties, for $10 billion. General Growth, the No. 2 mall operator, filed for bankruptcy protection last year.
The Dow rose 169.67, or 1.7 percent, to 10,268.81. The Standard & Poor's 500 index rose 19.36, or 1.8 percent, to 1,094.87, while the Nasdaq composite index rose 30.66, or 1.4 percent, to 2,214.19.
About five stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 4.2 billion shares, down from 4.5 billion Friday.
In other deal news, JPMorgan Chase & Co. said it was buying RBS Sempra Commodities' global oil, global metals and European power and gas assets in a deal worth about $1.7 billion. The move nearly doubles JPMorgan's corporate client base for commodities.
Economic reports throughout the holiday-shortened week will also provide insight into the economy. Market were closed Monday for President's Day.
A report on manufacturing in the New York area was stronger than expected. The Empire State manufacturing index rose to 24.91 this month, compared with a forecast of 18, according to economists polled by Thomson Reuters. The index was 15.92 last month.
Reports on housing starts, jobless claims and inflation are due out later this week.
Merck rose 74 cents, or 2 percent, to $37.66. In addition to its earnings results Merck also announced details of the combined company's restructuring plans, the first phase of which expected to bring annual savings of up to $3 billion in 2012.
Barclays' New York-listed shares jumped $2.35, or 13 percent, to $19.03.
Simon Property rose $2.82 or 3.9 percent to $74.82 after announcing its hostile offer for General Growth. General Growth's best known centers include the Glendale Galleria in Southern California and the South Street Seaport in Manhattan.
Simon Property's bold move "sends a signal that the economy might be doing better," said Giri Cherukuri, a portfolio manager and head trader at OakBrook Investments in Lisle, Ill. The Simon Property deal is especially positive because it shows mall operators are upbeat about the retail industry and employment.
Among energy companies, Exxon Mobil Corp. rose $1.48, or 2.3 percent, to $66.28. Occidental Petroleum Corp. rose $1.38, or 1.7 percent, to $81.18.
Aluminum producer Alcoa Inc. rose 46 cents, or 3.5 percent, to $13.74. DuPont rose 46 cents, or 1.4 percent, to $32.74.
Bond prices edged higher as concerns about the Greek debt crisis began to wane. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.67 percent from 3.70 percent late Friday.
The dollar fell. Crude oil jumped $2.88 or 4 percent to settle at $77.01 a barrel.
The Russell 2000 index of smaller companies rose 10.12, or 1.7 percent, to 620.84.
Overseas, Britain's FTSE 100 rose 1.5 percent, Germany's DAX index gained 1.7 percent, and France's CAC-40 rose 1.7 percent. Japan's Nikkei stock average rose 0.2 percent.
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Copyright © 2010 The Associated Press. All rights reserved. The information contained in the AP News report may not be published, broadcast, rewritten, or redistributed without the prior written authority of The Associated Press.
Stephen Bernard, AP Business Writer, On Tuesday February 16, 2010, 5:49 pm EST
NEW YORK (AP) -- Signs that the economy is indeed strengthening gave investors a surge of optimism and sent stocks sharply higher.
The Dow Jones industrials soared almost 170 points Tuesday on upbeat earnings reports and corporate deals. Investors who have been anxious in recent weeks about economic problems overseas were able to put aside their concerns for the time being. They focused instead on the domestic economy.
The dollar fell as investors felt less of a need to stash their money in safer investments. Oil, gold and other commodities joined stocks as the beneficiaries of the market's renewed confidence. And the stocks of energy and materials producers were among the day's big winners.
European markets also rose following new plans by European Union leaders to push Greece to get its budget under control. European officials gave Greece one month to prove it can cut its deficits. Debt problems in European countries including Greece, Portugal and Spain have been a major factor behind weakness in global stock markets in recent weeks.
A strong earnings report from Barclays, a major European bank, also gave the market some relief. European banks have been slower to recover than their U.S. counterparts, and investors saw the bounceback at Barclays as an encouraging sign.
In the U.S., Kraft Foods Inc. and apparel retailer Abercrombie & Fitch reported earnings that beat expectations, while drugmaker Merck & Co. said profits jumped after the company bought its longtime partner Schering-Plough Corp.
Earnings reports over the past month have mostly come in better than expected, but problems in the global economy have overshadowed that good news and pushed the market lower.
"Earnings have been good, but pushed to the back seat," behind Europe's problems, said Alan B. Lancz, president of Alan B. Lancz & Associates in Toledo, Ohio. The strong reports Tuesday "superseded some of these worries."
Meanwhile a bold acquisition move by the nation's largest mall owner raised hopes that businesses are feeling more confident about the economy.
Simon Property Group has offered to acquire its ailing rival, General Growth Properties, for $10 billion. General Growth, the No. 2 mall operator, filed for bankruptcy protection last year.
The Dow rose 169.67, or 1.7 percent, to 10,268.81. The Standard & Poor's 500 index rose 19.36, or 1.8 percent, to 1,094.87, while the Nasdaq composite index rose 30.66, or 1.4 percent, to 2,214.19.
About five stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 4.2 billion shares, down from 4.5 billion Friday.
In other deal news, JPMorgan Chase & Co. said it was buying RBS Sempra Commodities' global oil, global metals and European power and gas assets in a deal worth about $1.7 billion. The move nearly doubles JPMorgan's corporate client base for commodities.
Economic reports throughout the holiday-shortened week will also provide insight into the economy. Market were closed Monday for President's Day.
A report on manufacturing in the New York area was stronger than expected. The Empire State manufacturing index rose to 24.91 this month, compared with a forecast of 18, according to economists polled by Thomson Reuters. The index was 15.92 last month.
Reports on housing starts, jobless claims and inflation are due out later this week.
Merck rose 74 cents, or 2 percent, to $37.66. In addition to its earnings results Merck also announced details of the combined company's restructuring plans, the first phase of which expected to bring annual savings of up to $3 billion in 2012.
Barclays' New York-listed shares jumped $2.35, or 13 percent, to $19.03.
Simon Property rose $2.82 or 3.9 percent to $74.82 after announcing its hostile offer for General Growth. General Growth's best known centers include the Glendale Galleria in Southern California and the South Street Seaport in Manhattan.
Simon Property's bold move "sends a signal that the economy might be doing better," said Giri Cherukuri, a portfolio manager and head trader at OakBrook Investments in Lisle, Ill. The Simon Property deal is especially positive because it shows mall operators are upbeat about the retail industry and employment.
Among energy companies, Exxon Mobil Corp. rose $1.48, or 2.3 percent, to $66.28. Occidental Petroleum Corp. rose $1.38, or 1.7 percent, to $81.18.
Aluminum producer Alcoa Inc. rose 46 cents, or 3.5 percent, to $13.74. DuPont rose 46 cents, or 1.4 percent, to $32.74.
Bond prices edged higher as concerns about the Greek debt crisis began to wane. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.67 percent from 3.70 percent late Friday.
The dollar fell. Crude oil jumped $2.88 or 4 percent to settle at $77.01 a barrel.
The Russell 2000 index of smaller companies rose 10.12, or 1.7 percent, to 620.84.
Overseas, Britain's FTSE 100 rose 1.5 percent, Germany's DAX index gained 1.7 percent, and France's CAC-40 rose 1.7 percent. Japan's Nikkei stock average rose 0.2 percent.
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It's only a minor market correction!
The debt problem in Europe is being addressed by EU and recieved well by global stock market. (Pls read on)..
Stocks jump on hopes for Greece debt rescue
Stocks leap on hopes EU will help Greece with debt; Dow jumps 150, moves back above 10,000
AP - Traders Robert Maher, left, and Anthony Alvarino work on the floor of the New York Stock Exchange Tuesday, ...
By Tim Paradis, AP Business Writer , On Tuesday February 9, 2010, 6:09 pm EST
NEW YORK (AP) -- The Dow Jones industrial average jumped back above 10,000 on hope that a resolution was near for Greece's debt crisis.
The Dow rose 150 points Tuesday, a day after closing below 10,000 for the first time in three months. The major indexes all gained more than 1 percent. Treasury prices slid as demand for safer investments fell.
Global markets bounced back on reports that plans are being developed in the European Union to rescue Greece. That raised hopes that policymakers will take bigger steps to contain debt troubles in other weak European economies including Portugal and Spain.
Though Greece's economy is small, that country's yawning budget gaps were undermining faith in the euro, Europe's common currency. Investors also believed that other countries might have trouble raising money in debt markets, which would hamper efforts to get their economies going again.
.
Stocks jump on hopes for Greece debt rescue
Stocks leap on hopes EU will help Greece with debt; Dow jumps 150, moves back above 10,000
AP - Traders Robert Maher, left, and Anthony Alvarino work on the floor of the New York Stock Exchange Tuesday, ...
By Tim Paradis, AP Business Writer , On Tuesday February 9, 2010, 6:09 pm EST
NEW YORK (AP) -- The Dow Jones industrial average jumped back above 10,000 on hope that a resolution was near for Greece's debt crisis.
The Dow rose 150 points Tuesday, a day after closing below 10,000 for the first time in three months. The major indexes all gained more than 1 percent. Treasury prices slid as demand for safer investments fell.
Global markets bounced back on reports that plans are being developed in the European Union to rescue Greece. That raised hopes that policymakers will take bigger steps to contain debt troubles in other weak European economies including Portugal and Spain.
Though Greece's economy is small, that country's yawning budget gaps were undermining faith in the euro, Europe's common currency. Investors also believed that other countries might have trouble raising money in debt markets, which would hamper efforts to get their economies going again.
.
Market is going thru some correction ahead of CNY
Subject: Investors seen locking in profits ahead of festival
Investors seen locking in profits ahead of festival
Malaysian investors are likely to remain cautious in the week running up to the Lunar New Year, after Asian equity markets fell late last week following overnight losses on Wall Street.
Analysts expect investors to continue locking in their profits this week, while volumes will ease due to the cautious sentiment.
Kenanga Investment Bank Bhd research head Yeonzon Yeow said that small/mid-cap stocks were likely to outperform the rest of the stock market, after the substantial sell-down in big-caps.
Analysts also expect global market volatility to continue as investors appear uncertain whether world growth can support the equities market, given the release of bearish economic data last week.
On the home front, stocks that will continue to draw interest this week include Scomi Marine Bhd and KNM Group Bhd. The two companies made major announcements last week.
Scomi Marine said late last Friday that it was selling its entire 29.07 per cent stake in the Singapore-listed CH Offshore Ltd for close to RM350 million.
The disposal will result in net gain of RM63.6 million after accounting for estimated expenses of RM3.4 million.
The stock, which will resume trading today, last traded at 47.5 sen on Thursday.
Meanwhile, KNM gained 6.5 sen to 81.5 sen on Friday, after its founder and other investors said they planned to take the company private.
The Malaysian stock market benchmark was on an uptrend at the start of last week, but began a downward slide on Thursday as weakness on Wall Street weighed on sentiment.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) fell 17.13 points to end at 1,247.9 points on Friday, in line with weak Asian equity markets that took their cue from Wall Street, which fell after news of a rise in US unemployment benefits.
Markets were also affected by concern over the European sovereign debt problems.
However, a late rally on Wall Street last Friday saw US stocks ending slightly higher after a volatile week.
The Dow Jones Industrial Average erased its intra-day losses by ending 10.05 points higher at 10,012.23. The Standard & Poor's 500 Index was 0.29 per cent up at 1,066.19, while the Nasdaq Composite Index was 0.74 per cent higher at 2,141.12.
While the FBM KLCI may slide to 1,220 points, analysts expect the index to find its support level at 1,200 points.
--------------------
Investors seen locking in profits ahead of festival
Malaysian investors are likely to remain cautious in the week running up to the Lunar New Year, after Asian equity markets fell late last week following overnight losses on Wall Street.
Analysts expect investors to continue locking in their profits this week, while volumes will ease due to the cautious sentiment.
Kenanga Investment Bank Bhd research head Yeonzon Yeow said that small/mid-cap stocks were likely to outperform the rest of the stock market, after the substantial sell-down in big-caps.
Analysts also expect global market volatility to continue as investors appear uncertain whether world growth can support the equities market, given the release of bearish economic data last week.
On the home front, stocks that will continue to draw interest this week include Scomi Marine Bhd and KNM Group Bhd. The two companies made major announcements last week.
Scomi Marine said late last Friday that it was selling its entire 29.07 per cent stake in the Singapore-listed CH Offshore Ltd for close to RM350 million.
The disposal will result in net gain of RM63.6 million after accounting for estimated expenses of RM3.4 million.
The stock, which will resume trading today, last traded at 47.5 sen on Thursday.
Meanwhile, KNM gained 6.5 sen to 81.5 sen on Friday, after its founder and other investors said they planned to take the company private.
The Malaysian stock market benchmark was on an uptrend at the start of last week, but began a downward slide on Thursday as weakness on Wall Street weighed on sentiment.
The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) fell 17.13 points to end at 1,247.9 points on Friday, in line with weak Asian equity markets that took their cue from Wall Street, which fell after news of a rise in US unemployment benefits.
Markets were also affected by concern over the European sovereign debt problems.
However, a late rally on Wall Street last Friday saw US stocks ending slightly higher after a volatile week.
The Dow Jones Industrial Average erased its intra-day losses by ending 10.05 points higher at 10,012.23. The Standard & Poor's 500 Index was 0.29 per cent up at 1,066.19, while the Nasdaq Composite Index was 0.74 per cent higher at 2,141.12.
While the FBM KLCI may slide to 1,220 points, analysts expect the index to find its support level at 1,200 points.
--------------------
The next "Bullrun" is in the making
From the 97/98 recession the lowest pt to the peak of bullrun took about 1.5yrs, the recent financial meltdown's lowest pt was in Oct 08. If this trend repeats this time the bullrun will peak sometime this yr or next. So the time is NOW to invest MORE and to stay invested for long term. Best of luck!
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