Total Investor

Global Market Wrap

US Equities dropped under the weight of a weaker-than-forecast jobs report showing employers added 115,000 payrolls in April, the smallest gain in six months. Hence, the bellwether indices gapped lower out of the opening gate and extended downside into the close on heavier flow as major participants stepped in to liquidate positions. The Dollar Index settled higher for a fourth-straight session, though Gold still held above $1640/oz. June Crude dropped below $100/bbl on narrowing economic growth prospects. The Euro slipped today after Sarkozy was defeated.

European Equities stalled as British, French and German gauges all lost approximately two percent on justified fears that Sarkozy would not be re-elected president of France. Furthermore, a weak US jobs report triggered a sudden sell-off. Materials – Anglo American (2065p, -4.3%) BHP Billiton (1918p, -3.9%), Rio Tinto (3214.5p, -4.4%), Xstrata (1131p, -3.1%) – were hard hit as a stronger Greenback pushed metal prices lower. Banco Santander (€4.68, +2.2%) climbed after Chairman Emilio Botin rejected the need for a “bad bank” to remove toxic assets.

Treasuries roared, sending 10-Year Yields below 1.9 percent after the jobs report showed weak employment growth. The long-end and belly led the charge on curve flattening, ultimately clearing resistance levels.

Energy lagged after Oil & Gas Producers – Chevron ($103.72, -2.1%), ConocoPhillips ($53.17, -2.0%), Exxon Mobil ($84.57, -1.3%) – tracked Crude prices lower. First Solar ($16.94, -6.3%) fell to a record low after the world’s largest maker of thin-film solar panels raised guidance, but reported a $401 million restructuring charge. Metals & Miners – Alcoa ($9.37, -2.2%), Cliffs Resources ($58.27, -3.4%), Freeport ($36.40, – 1.3%), US Steel ($26.74, -3.5%) – caught a bearish lead from London.

AIG ($32.83, -3.9%) dropped after-hours as Treasury began its third offering of stock in the bailed-out insurer. Separately, the group said its quarterly profit more than doubled from a year earlier. In other earnings news, Berkshire Hathaway ($80.94, -0.4%) reported after-market profit that was slightly below estimates. LinkedInc ($117.30, +7.2%) jumped after posting better-than-expected profit and sales. Major Banks – Citi ($31.60, -2.7%), JPMorgan ($41.75, -2.9%) – followed the weak trend.

Global Market Wrap

US Equities finished lower, with the S&P falling below its 1400 level, after a larger than expected slow down in the US services sector offset a drop in U.S. jobless benefits claims. Volume was thin in anticipation of tonight’s official jobs report. Meanwhile, the ECB held its interest rate at 1 per cent, with ECB President Draghi saying the economic outlook was still “subject to downside risk.” The Dollar Index continued to climb, as June Gold Futures slipped to $1634/oz. The Aussie Dollar was last trading at US$1.0266.

European Equities finished mix, with London’s FTSE up 0.10 per cent while the German DAX and the French CAC slipped 0.24 and 0.09 per cent respectively. The STOXX 50 was down 0.1 per cent.Societe Generale  (17.265, -4.24%) posted an unexpected rise in trading revenues while fellow Banks – Credit Agricole (2.34, -4.88%), Unicredit (2.80, -1.41%), UBS (12.44, -3.27%) – also declined. Treasuries were flat, as yields remained under 2 per cent after climbing earlier. Spanish yields fell after Spain’s Treasury sold 2.52 billion euros of debt, exceeding its maximum target. Still, the nation’s debt costs rose to 4.04 per cent, up from 2.62 per cent in March.

Materials declined, as Metals & Miners – Alcoa ($9.58, -1.54%), Cliffs Resources ($60.30, -1.49%), Freeport ($36.87, -3.28%), Newmont Mining ($45.59, -3.21%) – tracked signs of a slow down. Oil & gas producer Apache ($91.96, -3.75%) slipped after 1Q net profit missed expectations. Energy stocks – Alpha Natural Resources ($14.85, – -5.82%) Peabody ($30.21, -1.11%) – lagged as oil futures tumbled over 2 per cent on economic worries.

Financials lagged, led down by Bank of America ($8.00, -1.96%) while fellow Major Banks – Citigroup ($32.48, -0.64%), JPMorgan Chase ($43.01, -0.44%), Wells Fargo ($33.39, -0.54%) – fell with the rest of the index. In earnings news, General Motors ($22.37, -2.44%), beat 1Q expectations even as profits fell 61 per cent. Meanwhile, retailers – Target ($56.55, -2.47%), Costco ($82.24, -2.77%) – posted disappointing same-store sales for the month. Finally, Facebook set a $28 to $35 range for its IPO, and is expected to float later this month.

Global Market Wrap

US Equities fluctuated, with the NASDAQ Composite booking a small gain, while the Dow Jones Industrial Average fell from its highest level since December, 2007. The bellwether indices, however, finished well above opening lows after a leading survey showed corporate America added fewer than-expected jobs last month ahead of the official report on Friday. The Dollar Index climbed for a third due, more so due to risk aversion, leaving June Gold offered as low as $1646/oz. Crude fell as domestic inventories reached a 21-year high. Natural Gas also slipped.

European Equities declined, with Italian and Spanish indices ditching more than two and half percent on abysmal regional employment data, while manufacturing activity contracted for a ninth consecutive month. Year Yields rose 8 basis points to 5.85 percent. Financials – Barclays (213.7p, -5.6%), Crédit Agricole (€3.77, -2.9%), Deutsche Bank (€32.06, -2.5%), UniCredit (€2.84, -5.7%) – subsequently lagged. UBS (CHF 11.75, +3.7%), however, rallied after attracting more funds from clients than expected, despite a 54 percent quarterly profit decline

Treasuries climbed as 10-Year Yields approached the lowest level in three months on a weaker ADP print and as risk markets deteriorated. The long-end and belly outpaced the curve, paring Tuesday’s slippage.

Materials declined, with Metals & Miners – Alcoa ($9.73, -2.4%), Cliffs Resources ($61.21, -1.1%), Freeport ($38.12, -0.9%), Newmont Mining ($47.10, -2.0%) – tracking Euro peers. Coal Producers – Alpha Natural Resources ($15.49, -5.4%), Consol Energy ($33.24, -2.5%), Peabody ($30.55, -3.3%) – tipped as Newcastle coal fell below $100/ton. Walter Energy ($63.92, -3.4%) reported disappointing earnings as demand for coal wanned. The third-largest US coal miner will now delay shipments

Financials lagged as Major Banks – Bank of America ($8.16, -1.8%), Citigroup ($32.70, -2.7%), JPMorgan Chase ($43.20, -1.4%), Wells Fargo ($33.57, -1.5%) – fell amid Euro worries. On the earnings front, Chesapeake Energy ($16.74, -14.6%) fell after unexpectedly posting a quarterly loss on weak natural gas prices. In Media, Comcast ($30.42, -0.6%) and Time Warner ($37.29, -1.7%) both reported earnings that beat estimates, though the latter announced some impairment charges

Global Market Wrap

US Equities advanced, with the Dow Jones Industrial Average closing at its highest level since December, 2007 after a report on the health of the manufacturing industry sliced past estimates ahead of Friday’s jobs report. Furthermore, former Fed Chairman Alan Greenspan said stocks ‘are very cheap’ and offer good value as earnings will likely continue to increase over time. The Dollar Index rose for a second day after Fed’s Plosser and Lacker both said the central bank may tighten ahead of its present order of late 2014. June Gold ended little changed at $1663/oz

European Union markets were closed out of respect for May Day.
British Equities bounced, with the FTSE 100 adding the most in two weeks after economic reports from China to North America exceeded estimates, restoring investor sentiment. Llloyds (33.6p, +8.3%) surged after reporting a pretax profit of £628 million, exceeding the consensus estimate of £422 million. Total impairments fell 36 percent, driven by its Australian and Irish units. Man Group (97.8p, -5.5%), however, slipped after the hedge fund manager said clients redeemed $4.1 billion in the first quarter. BP (441.3p, -0.8%) was little changed after reporting a 19 percent decline in first quarter earnings as asset sales lowered output.

Treasuries skidded, with the complex bearing the brunt of bright data on the economic front and calls from Fed policymakers to raise interest rates. The long-end sagged as the curve steepened amid thin volume.

ConocoPhillips ($56.61, +3.5%) jumped, driving upside in the Energy sector after spinning off refining business Phillips 66 ($32.76). Fellow Oil & Gas Producers – Anadarko ($75.06, +2.5%), Chevron ($108.27, +1.6%), Exxon Mobil ($87.04, +0.8%) – were also well bid June Crude rose above $106/bbl. In acquisition news, two private equity firms said they agreed to acquire Collective Brands ($21.16, +1.9%) for $2 billion.

Sears ($62.05, +15.4%) roared as it released positive guidance, while also confirming that it will spin some of its stores. GM ($23.31, +1.4%) and Ford ($11.23, -0.4%) both booked a single-digit percent decline in April vehicle sales, but were above estimates. Major Banks – Bank of America ($8.31, +2.5%), Citigroup ($33.60, +1.7%), JPMorgan Chase ($42.79, +1.9), Wells Fargo ($34.09, +2.0%) – enjoyed a relief bounce.

Global Market Wrap

US Equities declined, with the S&P 500 ending a four-month advance as a report showed that manufacturing activity in the Chicago area fell to its lowest level since the end of 2009, while Spain officially entered a double-dip recession. Hence, the bellwether indices gapped lower from the open, but did not deteriorate significantly throughout the session as bargain hunters were happy to support the market on modestly heavier volumes. The Dollar Index climbed for the first time in five sessions on fresh risk aversion, though June Gold managed to end above $1664/oz

European Equities deflated, with French, Italian and Spanish indices posting near two percent losses. Spanish 10-Year Yields lost 11 basis even as the state contracted 0.3 percent in the first quarter, but compared to some estimates was not as worse as feared. Financials – Barclays (218.3p, -2.2%), BNP Paribas (€30.35, -2.2%), Credit Suisse (CHF 21.71, -2.0%), Deutsche Bank (€32.87, -1.9%) – were all offered. tumbled as the miner missed profit estimates and suspended shafts. BHP Billiton (1974p, +0.4%) climbed.

Treasuries advanced, with a weaker Chicago PMI print supporting the complex into the close, though gains were limited as Uncle Sam issued quarterly borrowing estimates. The long-end and belly led the light rise.

Barnes & Noble ($20.75, +51.7%) roared by a record after Microsoft ($32.02, +0.1%) said it will invest $300 million in the bookstore chain’s digital businesses, leaving the latter with a 17.6 percent holding. Apple ($583.98, -3.2%) again tuned lower, dragging Tech Stocks into the red. acquisition news, Sunoco ($49.29, +20.5%) caught a $5.3 billion bid from Energy Transfer Partners ($49.63, +3.6%). Gen-Probe ($81.55, +18.9%) rallied after Hologic ($19.12, -9.9%) said it will buy the former for $3.75 billion to expand the X-Ray company’s diagnostic operations.

NYSE Euronext ($25.75, -4.9%) tipped after its profits fell by almost a third in the first quarter due to a difficult trading environment and costs related to its failed merger with Deutsche Boerse. Major Banks – BofA ($8.11, -1.7%), Citi ($33.04, -1.4%), JPMorgan ($42.98, -0.8%), Wells Fargo ($33.43, -1.0%) – followed European peers. Metals & Miners – Alcoa ($9.73, -0.2%), Freeport ($38.30, +0.5%) – saw gains and losses

Global Market Wrap

US Equities progressed, with the S&P 500 capping its best week in a month as a consumer confidence gauge reached its highest level since February last year, while corporate earnings continued to inspire. Thus far about 75 percent of S&P 500 companies who’ve reported earnings have topped analysts’ estimates. Traders paid little attention to figures showing the US economy grew at a weaker-than-expected 2.2 percent annual rate in the first quarter. The Dollar Index fell to its lowest level in nearly eight weeks, helping June Gold advance to as high as $1668/oz

European Equities rallied, with some of the regional indices booking gains for a fourth-straight session after corporate earnings outweighed slower-than-forecast US GDP growth. Vinci (€35.56, +4.2%), Europe’s biggest homebuilder, posted a 6 percent increase in earnings, beating estimates. Logitech (CHF 8.88, +7.3%) extended gains after rising the most since 2007 the previous day on its earnings. Nobel Biocare (CHF 11.15, +4.2%), the world’s second-biggest dental implant maker, rallied after its quarterly earnings rose 9.5 percent on North American growth.

Treasuries climbed, with the 10-Year contract reaching a record-high as European peripheral concerns, speculation that the Fed will kick-off new asset purchases and weaker US economic growth drew in buying.

Amazon.com ($226.85, +15.8%) jumped after beating analysts’ sales and profit estimates on strong demand for the Kindle and e-commerce services for outside vendors. Expedia ($40.31, +23.5%) also roared as the online travel agency beat forecasts thanks to an increase in global hotel revenues. On the downside, Procter & Gamble ($64.48, -3.6%) fell the most in more than two years after reducing guidance amid new regulations in Venezula and slowing shipments to developed markets.

Starbucks ($57.43, -5.3%) slipped the most in eight months as samestore sales trailed estimates due to weaker demand in Europe. Ford ($11.59, -2.4%) also lost ground after its earnings fell on year. Chevron ($106.20, unch) closed flat as better refining margins offset a decline in production. Materials – Alcoa ($9.75, -1.1%), Cliffs ($62.15, -2.2%), Freeport ($38.13, +1.0%) – were mixed, while Major Banks – Bank of America ($8.24, -0.4%), JPMorgan Chase ($43.34, -1.1%) – declined.