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

Real Time - Market Currents
 Top Stories - Wall Street Breakfast
Wednesday, October 8 2008
Back to Today's Market Currents »
  • 10:18 PM Mark Cuban explains why, despite having no faith in the markets improving, he's going long right now. Comment!
  • 9:52 PM Shades of Wednesday's U.S. markets, the Thursday morning Nikkei is already heading from red to green for the third time since its open; +0.42%. Comment!
  • 6:46 PM IBM's preliminary Q3 earnings beat analyst expectations and affirmed its full-year profit outlook. Shares after hours +3.83%. Comment!
  • 5:26 PM A look at Google's (GOOG) new beta launch of AdSense for videogames. Comment!
  • 4:52 PM Crude oil -2% to 88.20. Gold +2.7% to 906.50. Comment!
  • 4:03 PM After an up and down day, the markets dove back into the red in the half-hour before close, with consumer stocks and some disappointing retail earnings adding to the general uncertainty. Dow -2.00% to 9258.10. S&P -1.13% to 984.94. Nasdaq -0.83% to 1740.33. Comment!
  • 3:26 PM Alvarion (ALVR) gets a split decision from analysts today: one upgrade, one downgrade. Comment!
  • 2:59 PM Sector strength: Gold miners (GDX) +12.27%. Materials (XLB) +5.75%. Regional banks (RKH) +4.94%. Homebuilders (XHB) +4.81%. Financial (XLF) +4.33%. Comment!
  • 2:55 PM Sector weakness: Insurance (KIE) -3.32%. Base metals (DBB) -2.94%. Heating oil (UHN) -2.37%. Telecom (IYZ) -2.25%. Healthcare (IHF) -0.99%. Comment!
  • 2:05 PM Markets are making their fourth run of the day into the green and approaching the day's highs, for the moment. Dow +1.1%. S&P +1.32. Nasdaq +1.94. Comment!
  • 2:00 PM Of the two new Treasury auctions suddenly added to today's calendar, the first ($10B May 2015 notes) was reportedly 40 basis points cheap. 40. Comment!
  • 1:30 PM Some Toyota (TM) employees will spend two weeks cleaning city parks and fixing fences as Toyota shuts factories, idles workers and offers below-market financing. The moves mirror the Big Three automakers' response to the sickly auto market. Comment!
  • 12:42 PM The Citi (C) / Wachovia (WB / Wells Fargo (WFC) standstill goes on as judge cancels hearing scheduled for 3 pm. [CNBC] Comment!
  • 12:15 PM Bloomberg's Caroline Baum argues misplaced incentives are to blame for setting off the financial crisis. Comment!
  • 12:01 PM In today's high-volume tug of war between bears and bulls, markets at noon are heading back to lows: Dow at 9279, -1.78%. S&P at 981, -1.53%. Nasdaq -0.54% to 1742. Comment!
  • 11:45 AM Yesterday's creepy coincidences. Comment!
  • 11:30 AM Dept. of Energy reports oil supplies climbed 8.12 million barrels to 302.6 million barrels in the week ended Oct. 3.  They had been forecast by analysts to rise 2.2 million barrels. DoE yesterday cut its forecast for 2008 global oil demand by 340,000 barrels. [Bloomberg] Comment!
  • 11:15 AM Boeing (BA) and its machinists union stand firm in their resolve over a strike that began Sept. 6 and has shut down Boeing's jet production. Both sides say the economic crisis has only made them more determined to not back down. Comment!
  • 11:00 AM Monster Worldwide (MNST) pays $174M for the 55% stake it didn't already own in ChinaHR.com Holdings. Monster, the world's largest online job-search website, is angling for users in the world's largest internet market. Comment!
  • 10:48 AM Dow laggards: AA -15.38%, BAC-8.1%, GM -5.42%, C -3.96%, IBM -3.07%. Comment!
  • 10:46 AM Dow leaders: JPM +2.34%, AXP +2.23%, HPQ +1.86%, XOM +1.31%, GE +0.74%. Comment!
  • 10:45 AM Venture capital investments are expected to fall this year for the first time since 2003 as the financial crisis chokes off funding for acquisitions and IPOs. Comment!
  • 10:30 AM Oil -1.85% to 88.39. Gold +3.32% to 911.30. Comment!
  • 10:25 AM Container-shipping companies are cutting routes and capacity as plunging demand pushes rates down to unprofitable, 'unsustainable' levels. The $150B industry could be crippled if prices don't rise soon. Comment!
  • 10:12 AM Pending home resales rose 7.4% in August, the biggest single-month jump since Oct. 2001, boosted by sales of foreclosure homes. That's +8.8% y-o-y. Comment!
  • 9:38 AM Markets already showing volatility. Dow -1.3%. S&P -1.59%. Nasdaq -1.6%. Comment!
  • 9:31 AM Dow is 2.3% lower on the open to 9,240. S&P -2.76% to 968. Nasdaq -2.52% to 1,711. Comment!
  • 9:27 AM Set to open well lower. Dow -2.2% to 9,330. S&P -2.83%. Nasdaq -2.53%. Comment!
  • 8:56 AM Futures unable to keep a grasp on rate-cut gains. Dow -1.08% to 9,436. S&P -1.09% to 995. Nasdaq -1.35%. Comment!
  • 8:40 AM "I guess a shock and awe type move with respect to easing liquidity and improving the current climate was in order. For now it's going to work. The deleveraging process is happening no matter what." - equity strategist Peter Boockvar on Fed-led coordinated rate cut Comment!
  • 8:20 AM The Fed has approached Canadian banks and insurers, asking them to consider acquiring U.S. assets to improve short-term liquidity and help bolster financial institutions coping with more than $500B in losses, sources say. Comment!
  • 8:12 AM Monsanto (MON): FQ4 EPS of -$0.03 beats by $0.10. Revenue of $2.05B (+35.1%) vs. $1.90B. Shares -1.6% pre-market. [PR] Comment!
  • 8:09 AM European markets: London +0.2%. Paris -0.3%. Frankfurt -1.2%. Comment!
  • 8:08 AM Asian markets close heavily down: Nikkei -9.4% to 9,203. Hang Seng -8.2% to 15,432. Shanghai -3.0% to 2,092. BSE -3.1% to 11,328. Comment!
  • 8:00 AM HSBC (HBC) applauds the UK government's rescue plan, but says it has no plans to utilize the recapitalization initiative. HSBC had a tier one capital ratio of 8.8% and a loan to deposit ratio of 90% as at June 30. Comment!
  • 7:47 AM Bill Ackman on the (ending) short ban: "It’s done more to destroy investor confidence than anything else done by the Fed or the SEC." Comment!
  • 7:30 AM It's only 7:30 AM and the range on the Dow futures is already 660 points! (Low: 9,141 - High: 9,805). Currently +1.46% to 9,678. Comment!
  • 7:29 AM The Fed's discount rate also drops by 50 basis points to 1.75%. "The Committee will monitor economic and financial developments carefully and will act as needed to promote sustainable economic growth and price stability." Comment!
  • 7:25 AM The Dow's five-day drop of 13% is its worst since 9/11. The S&P 500's five-day drop of 14.6% is the biggest since Oct. 1987. Based on the orderliness of the decline, traders think it's being led by small investors throwing in the towel. Comment!
  • 7:22 AM Dow futures soar after central banks announced a coordinated 50 BPs rate cut. Dow +0.9% to 9,630. S&P +1.72%. Nasdaq +1.5%. Comment!
  • 7:21 AM In its continued bailout efforts, Russia will inject around $36B into its banking system after the Russian stock market yesterday suffered its worst day of trading ever. (ETF: RSX) Comment!
  • 7:21 AM Central bank joint statement: "Throughout the current financial crisis, central banks have engaged in continuous close consultation and have cooperated in unprecedented joint actions such as the provision of liquidity to reduce strains in financial markets." Comment!
  • 7:16 AM Mortgage applications rose 2.2% from a week ago, MBA says. The average interest rate on 30-year fixed-rate mortgages decreased to 5.99% from 6.07%. Comment!
  • 7:11 AM Japan plans to take a major role in coordinated efforts to stabilize global markets. "It is evident that the economies of the world are coupled. We have no intention to be a bystander." Comment!
  • 7:07 AM Fed cuts key lending rate by 50 BPs to 1.5%. In coordinated effort, ECB and Bank of England each drop their key rates by 0.5%, to 3.75% and 4.5% respectively. (Federal Reserve and other central banks announce reductions in policy interest rates). Comment!
  • 6:59 AM LDK Solar (LDK): Sees Q3 revenue of $530-540M vs. $491M consensus. Wafer shipments of 230-240 MW vs. previous guidance of 210-220 MW. [PR] Comment!
  • 6:34 AM MetLife (MET) plans to sell 75M shares to raise capital after Q3 profits fell as much as 48%. Comment!
  • 6:22 AM Indonesia halts trading on its stock exchange for the first time in eight years after its benchmark index plunged 10%, the largest drop since the Asian financial crisis in 1998. Comment!
  • 6:09 AM Economists predict U.S. pending home sales likely fell 1.3% in August as mortgage rates rose and the credit crunch continued. Official numbers will be released later today. Comment!
  • 6:01 AM Global steelmakers meet in Washington to discuss output cuts before prices fall below the break-even cost of producing steel. (ETF: SLX) Comment!
  • 5:49 AM China might cut interest rates as early as this week after one-year central bank bills issued yesterday experienced their biggest decline this year. Comment!
  • 5:43 AM Alumina (AWC) falls to a ten-year low in Sydney trading after profit drops 52% at Alcoa (AA), its venture partner, on declining aluminum demand. Comment!
  • 5:34 AM HSBC (HBC), Royal Bank of Scotland (RBS) and major U.K. banks face the most debt coming due in over a decade just as borrowing costs are setting record highs. Britain's six largest banks have $95B to refinance by April, triple the amount from last year. Comment!
  • 5:30 AM Spain sets up a €30B ($40.7B) bank bailout fund to help struggling lenders, while EU leaders struggle to agree on common action. Comment!
  • 5:24 AM In an exclusive deal with Research in Motion (RIMM), Vodafone (VOD) will offer a new touch-screen BlackBerry. Called Storm, the handset will go on sale next month in Europe, India, Australia and New Zealand. Pre-market: VOD +1.1%, RIMM -1.9%. Comment!
  • 5:22 AM Tata Consultancy Services to acquire Citigroup's (C) India-based captive business processing outsourcing arm, Citigroup Global Services, for $505M. Comment!
  • 5:11 AM The yen surges to a six-month high against the dollar as stocks slide and investors reduce holdings of higher-yielding assets funded in Japan. Comment!
  • 5:09 AM Hong Kong will cut its base lending rate to 2.5% from 3.5% effective tomorrow. Comment!
  • 5:07 AM According to a Japanese media report, Toyota's (TM) 2008 operating profit is expected to fall 40% from earlier estimates as global auto demand falters and higher commodity prices cut into profit margins. TM -6.2% in Tokyo trading. Comment!
  • 4:59 AM Japan's corporate bankruptcies rose 34% in September, the fastest in 8 years, as Japan's economy faced falling exports and credit-market turmoil. UBS cuts its sales growth estimate for Japanese companies, and forecasts a decline in recurring profit. Comment!
  • 4:58 AM Futures pare earlier losses. Dow -1.82% to 9,366. S&P -2%. Nasdaq -2.15%. Comment!
  • 4:55 AM The Nikkei average plummets 9.4%, its largest one-day drop since the 1987 stock market crash, on growing fears of a global recession. Comment!
  • 4:52 AM Officials from the G-7 nations will meet this weekend to discuss, among other things, how to counter the decline in global stock markets. Comment!
  • 4:38 AM Facing weakening demand, Ford Motor (F) deepens its planned job cuts at its Volvo subsidiary to 6,000 positions globally. Comment!
  • 4:26 AM A lawsuit against Pfizer (PFE) claims the drugmaker tried to cover up unfavorable studies about one of the company's big-selling drugs. Plaintiffs are asking for $4.9B. Comment!
  • 4:17 AM London -7.8%. Paris -8.8%. Frankfurt -8.5%. Europe looks ugly. Comment!
  • 4:17 AM Nearly one in six U.S. homeowners owe more on their mortgage than their house is worth. For those who bought a house in the last five years, a staggering 29% are under water on their mortgages. Comment!
  • 4:10 AM Mitsubishi UFJ Financial Group (MTU) backs up Morgan Stanley (MS): Full-speed ahead with their strategic alliance. [PR] Comment!
  • 4:04 AM The Treasury may re-package toxic debt from the $700B rescue plan to sell to ventures partly owned by private investors and partly by the government. The move would allow taxpayers to share in potential profits. Comment!
  • 3:59 AM Despite a solid beat by Costco (COST) and a UK bank rescue, futures extend their losses. Dow -2.55% to 9,284. S&P -2.78% to 978.50. Nasdaq -2.64%. Comment!
  • 3:15 AM Costco (COST): FQ4 EPS of $0.97 beats by $0.04. Revenue of $23.1B (+12.8%) vs. $22.95B. [PR] Comment!
  • 3:07 AM Futures jump on news of the UK bank rescue. Dow -0.98% to 9,445. S&P -0.87% to 996.50. Nasdaq -0.64%. Comment!
  • 3:01 AM As part of the rescue plan for the U.K.'s banking system, the country's major banks (including LYG, RBS, BCS) and the largest U.K. building society will participate in 'a Government-supported recapitalization scheme.' (Text of the official statement) Comment!
  • 3:00 AM In an unprecedented step to prevent a collapse of the U.K. banking system, the U.K. government will invest £50B ($87B), and BoE unveils a 'Special Liquidity Scheme' which will make up to £200B ($348B) available to banks. Comment!
  • 2:19 AM 30-year Treasury +0.61%. 10-year +0.72%. 5-year +0.4%. 2-year +0.2%. Comment!
  • 2:18 AM Crude -1.81% to $88.43. Gold +1% to $890.80. Comment!
  • 2:17 AM Futures held up until about midnight, then collapsed. Dow -1.9% to 9,352. S&P -2.04% to 985.50. Nasdaq -1.85%. Comment!
  • 2:08 AM Asian markets in freefall on continued credit market fears: Nikkei -9.6%. Hang Seng -5.6%. Shanghai -3.1%. BSE -7.4%. Comment!
  • 12:05 AM Notable earnings before Wednesday's open: COST, MON Comment!
  • 12:00 AM Wednesday's economic calendar:
    5:00 Euro-Zone GDP
    7:00 MBA Mortgage Applications
    7:45 Fed's Plosser speaks on central banking
    10:00 Pending Home Sales
    10:35 EIA Petroleum Status Comment!