Total Investor

US Equities climbed from session lows as the Dow Jones Industrial Average Industrial lost as much as 131 points before paring downside into the close following more supportive economic data. Volumes were rather light as conviction lacked amongst large accounts in the midst of ongoing Eurozone debt negations. Gold for April delivery hit $1718/oz, before regaining $1730/oz as the Dollar Index fluctuated, but still rose on the day. The Fed announced demand for business loans increased in the fourth quarter to a six-year high as economic growth accelerated.

European Equities dipped, with regional benchmarks falling the most in six weeks as 10-Year Portuguese Yields spiked more than 200 basis points to 17.39 percent. Hence, March Bunds advanced as much as 88 ticks, though overnight EURIBOR funding costs continued their recent trend lower. BNP Paribas ( 32.18, -7.1%) led losses in French Banks after President Nicolas Sarkozy announced he will unilaterally impose a financial-transaction tax. Hochtief ( 48.06, -5.8%) tipped after saying it expects to post a wider annual net loss of approximately 160 million.

Treasuries advanced, sending 5-Year Yields to a record low at 0.715 percent amid European rhetoric, while the spread between 2-Year and 10-Year narrowed to the least in six weeks on speculation that the Fed is willing to adjust its holdings to support the economy. Trading activity was fairly quiet with no real reaction to a mixed personal income report.

Financials declined as Bank of America ($7.07, -3.0%) sagged after Wall Street’s largest investment bank downgraded its recommendation citing higher execution risk for the firm. Citigroup ($30.23, -2.1%) was upgraded by the same firm who said there is a clearer path for the firm to return capital to stock holders. Morgan Stanley ($18.20, -1.9%) was upped to a ‘conviction buy.’ Oil & Gas Producers – Chevron ($103.41, – -0.5%), Exxon Mobil ($85.49, -0.4%) – followed Crude lower to $99/bbl.

In acquisition news, US Airways ($8.51, +4.0%) rose on reports that Delta ($10.77, +3.7%) may bid. The latter is also considering a buy out of recently defunct AMR ($0.70, +1.4%). Swiss-based ABB will acquire Thomson & Betts ($71.35, +23.1%) for $3.9 billion. Materials – Alcoa ($10.32, -1.1%), Cliffs ($72.10, -1.3%), Freeport ($46.1-, -0.1%) – fell.

US Equities fluctuated, with the NASDAQ composite climbing at the expense of the Dow Jones Industrial

Average following slightly weaker data on the health of the economic growth, albeit a gauge of consumer

confidence climbed to a near one-year high. Nevertheless, the market succumbed to profit-taking on average

trading flow. The Dollar further weakened against the Euro, while a weekend news report said Greece and its

private creditors expect to complete debt-swap agreement this week. Spot Silver climbed within reach of

$34/oz, or a two-month high.

European Equities declined as investors liquidated long positions on Gross Domestic Product data from

the US which came in a tad weaker relative to expectations. BP (464.55p, -2.6%) slipped as a Judge ruled that

it can’t collect part of the cleanup costs for the Gulf of Mexico oil spill from Transocean (CHF 43.83, +0.9%).

Regional Banks – Barclays (222.9p, unch), BNP Paribas ( 34.64, -3.3%), Deutsche Bank ( 33.51, +0.4%), Unicredit

( 3.65, -4.5%) – closed with gains and losses, while the 3M EURIBOR OIS spread shrunk to its lowest level since October.

Treasuries advanced as the complex climbed into the close after the GDP breakdown came in softer-than-anticipated,

leaning heavily on inventory rebuilding. The long-end led the late-week upside, though the sector still underperformed

throughout the week as the belly led gains.

Financials were the leader as Commercial – Bank of America ($7.29, -0.1%), Citigroup ($30.87, +1.6%), JPMorgan

Chase ($37.21, -0.8%), Wells Fargo ($29.60, +1.9%) – and Investment Banks – Goldman’s ($111.77, +3.0%), Morgan

Stanley ($18.56, +2.0%) – were mixed, but still mostly showed upside. In earnings news, Ford ($12.21, -4.2%) fell after

its quarterly was short of expectations, despite reporting its most profitable year since 1998. P&G’s ($64.30, -0.8%)

profit fell 49 percent.

Chevron ($103.96, -2.5%) knocked 20 points from the Dow Jones as the Oil & Gas producer reported disappointing

earnings dude to rising spending and costs. Eastman Chemical ($50.41, +7.0%) said that it will buy Solutio

($27.52, +41.1%) for $3.38 billion to expand its presence in Asia Pacific. Materials – Alcoa ($10.43, +0.7%), Cliffs

($73.06, -2.8%), Freeport ($46.13, -0.9%), Newmont ($61.51, +1.8%) – also fluctuated.

US Equities advanced, with the Dow Jones Industrial Average closing within 156 points of reaching a new high since

the commencement of the bull market almost 3 years ago. Trading volumes rebounded to the highest level of the year

thus far as market participants repositioned on supportive earnings and encouraging news on the economic front. The

Dollar declined against the Aussie and Yen, but rallied versus the Euro as Greek officials and creditors entered a third

deal of negotiations on a debt swap deal. Orange Juice futures hit a record on supply worries.

European Equities declined with the Stoxx Europe 600 falling from a 5-month high on profit taking. The benchmark

has still advanced 4.6 percent this year, marking its best yearly start since in 15 years. Greek 2-Year Yields fluctuated

near record levels at 180 percent as creditors and the Government reportedly reached an in initial agreement for a

voluntary debt swap. Financials – Barclays (222.65p, +0.6%), Crédit Agricole ( 4.96, +2.5%), Credit Suisse

(CHF 24.25, +1.5%), Société Générale ( 21.00, 4.5%) – rallied as overnight funding rates narrowed.

Treasuries fell in early European trading, with bulls briefly attempting upside, but quickly running out of steam.

The overbought nature of the complex helped push the curve past resistance levels as the 10-Year moved above

2.00% while the 30-Year broke through 3.05%. There was little reaction to housing figures that only slightly missed

estimates

IBM ($188.52, +4.4%) rallied, adding 60.5 points to the INDU after the tech bellwether said fourth-quarter profits

rose 4.4 percent due to rising software demand, while also providing guidance ahead of estimates. Microsoft

($29.71, +5.7%) also pleased the market with $6.62 billion in earnings, which was ahead of analysts’ expectations on

higher Xbox sales. Intel ($26.38, +2.9%) also posted profits and guidance that beat consensus. Google

($585.99, -8.4%), however, dropped on its results.

Major Banks – Bank of America ($7.07, +1.6%), Citi ($29.64, +1.1%), JPMorgan Chase ($37.36, +1.2%), Wells Fargo

($30.54, +1.3%) – all were well bid, extending recent upside. GE ($19.15, unch) reported profits ahead of forecast, but

revenues below. Metals & Miners – Alcoa ($10.17, -0.1%), Cliffs ($71.50, -0.7%), Freeport ($43.10, -2.9%) – fell.

US Equities held onto gains as the IMF announced its intention to raise US$500 billion to insulate the world economy from Europe’s debt crisis. Europe dominated the news as Germany cut its 2012 growth forecast and Britain’s unemployment rate rose to 8.4%, the highest since 1995. Greek creditors became more confident of reaching a deal.

European Equities closed little changed. Financials – BNP Paribas ( 32.06, -1.32%), Deutsche Bank ( 29.95, +0.27%), Unicredit ( 2.98, – 1.20%) – fluctuated around the market. Societe Generale ( 4.58, +6.02%) and Credit Agricole ( 4.38, +4.03%) were top movers after reports the French regulator would tell banks to raise write downs on Greek debt to 70% to 75%.

Treasuries came down as thirty-year yields rose the most in two days as Greece returned to talks with creditors, after talks broke down last week over the interest rate offered on new bonds. Germany sold twoyear notes at a record-low yield while Portuguese yields fell on the country’s biggest debt sale since its bailout last year.

Banks were winners with JPMorgan Chase ($36.54, +4.67%) and Bank of America ($6.80, +4.94%) both up. Goldman Sachs ($104.31, +6.79%) was another performer after it posted quarterly earnings that beat expectations, nonetheless revenue fell by 58% as investment banking revenue declined. US Bancorp ($29.08, +1.08%), edged up after the company said its net income increased 40% mainly from its core business. Other Commercial Banks – Citi ($29.03, +2.89%), Wells Fargo ($30.24, +1.39%) – mostly went with the market.

Yahoo rallied ($15.92, +3.18%) after cofounder and former CEO, Jerry Yang, left the company, as part of a reported broader boardroom shake-up. Ebay ($30.34, -0.62%) was down and will post earnings after the market closes. TransCanada ($41.41, -0.79%) fell on news that the US government would reject the Keystone XL oil pipeline.

US Equities climbed up after positive GDP results from China, forecast beating consumer sentiment in Germany, and successful bond auctions in Europe. A New York manufacturing survey also exceeded expectations, adding to the optimism that gripped Australia the day before.

European Equities closed higher, the pack predictably led by carmakers and miners, who had the most to gain from increases in demand. Financials – BNP Paribas ( 32.49, +0.57%), Deutsche Bank ( 29.87, +2.22%), Unicredit ( 3.01, +2.80%) – all performed well. Royal Bank of Scotland (2,485p, +1.76%) was up after it said it would sell its aircraft leasing business to Sumitomo Mitsui Financial Group.

Treasuries rose pushing yields down as the US began four consecutive days of purchasing debt without any new issuance for the first time since June. The push also came on the back of rising Italian and Spanish bonds as successful auctions from the prior two, Greece, and Belgium, eased sovereign default concerns. German bunds also dropped after the ZEW consumer confidence survey beat expectations.

Banks lagged the market as Citigroup ($28.25, -8.10%) slid after its quarterly earnings fell by 11% and missed expectations. Wells Fargo ($29.81, +0.68%) rose after it reported a 20% increase in fourth quarter profit, beating expectations by a mere penny. Kraft Foods ($38.13, +0.95%) said it plans to cut 1,600 positions as it works toward splitting into two separate North-American grocery and worldwide snack businesses.

Materials fluctuated as Major Miners – Alcoa ($9.76, -0.41%), Peabody ($35.30, -1.07%), United States Steel ($27.33, -0.36%) – all took hits. Newmont (60.94, -3.86%) declined on its guidance of lower copper production and higher costs in 2012. Freeport ($43.05, +2,50%) tracked the market thanks to Dr Copper. Energy and health care were the standouts of the day.

US Equities dipped, ending a four-session advance after speculation circled the market that Standard & Poor’s would downgrade European government credit ratings, offsetting more improved data on the health of the economy. After the closing bell, the rating agency France lost its AAA rating, while eight other states were also downgraded. Hence, the Euro fell within reach of making a new 16-month low against the  Dollar, sending February Gold modestly lower to $1630/oz. Volume improved, but was still below average. Participants will begin returning this week.

European Equities mostly fell given the speculation that S&P would cut regional credit ratings as several press reports suggested France would loose its AAA rating. Hence, French Bonds dipped sharply, with 10-Year Yields climbing as much as 13 basis points from session lows. Financials – Barclays (201.20p, +4.0%), BNP Paribas ( 31.79, +2.5%), Deutsche Bank (28.95, +1.5%), Unicredit ( 2.92, +0.5%) – were still bid as the EURIBOR OIS spread narrowed 2 basis points to a 3-month low. BHP Billiton (2045p, -0.5%) & Rio Tinto (3561p, +0.4%) fluctuated.

Treasuries pushed into positive territory in Europe as Italian auctions failed to live up to the strength of Thursday’s Spanish sale. Another push higher came after the trade deficit worsened, although the real bullish impetus came when rumours began circulating that Eurozone downgrades were imminent. The 10-30 Year sectors led the advance.

JPMorgan Chase ($35.92, -2.5%) declined after its quarterly earnings fell by 23 percent on lower investment-banking fess and revenue from trading stocks and bonds. Jamie Dimon said the investment-banking business is ‘naturally volatile’ and would eventually bounce back. For the year, the company’s net income rose to a record $19 billion. Fellow Commercial Banks – Bank of America ($6.61, -2.7%), Citi ($30.74, – 2.7%), Wells Fargo ($29.61, unch) – mostly fell ahead of their results.

Materials turned south as Metals & Miners – Alcoa ($9.80, -1.3%), Cliffs Resources ($70.25, -1.6%), Freeport ($42.00, -1.1%), Newmont ($63.39, -1.0%) – tracked commodity prices lower. Patriot Coal ($7.87, -12.7%) tipped as the coal miner said it will idle production on reduced demand. Chevron ($106.09, +1.1%) and Exxon 84.88, +0.2%) climbed.