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.

US stocks dropped after three days of sharp gains as Warren Buffett’s $5 billion investment in Bank of America failed to stoke investors’ appetite for risk ahead of Federal Reserve Chairman Ben Bernanke’s speech on Friday.

The Dow Jones Industrial Average dropped 170.89 points, or 1.51%, to 11149.82, in a broad decline. All but two of the Dow components dropped. Bank of America bucked the trend, rising 66 cents, or 9.4%, to $7.65 after Buffett’s disclosure, although at one point it gained as much as 26%.

The Standard & Poor’s 500-stock index lost 18.33 points, or 1.56%, to 1159.27. All 10 of the S&P 500′s sectors finished in the red, led lower by energy and consumer discretionary stocks.

The Nasdaq Composite fell 48.06 points, or 1.95%, to 2419.63, as the resignation of Apple Chief Executive Steve Jobs weighed on the technology sector.

Shares of Apple fell $2.46, or 0.7%, to $373.72 after Jobs said he was resigning as CEO. The stock dropped as much as 3% before paring losses.

Stocks opened higher, with the Dow rising as much as 86 points. But the market quickly lost its early gains and turned sharply lower following big declines in European equities.

Investors also worried about the condition of Harrisburg, Pa. The financially strapped state capital will likely miss a bond payment next month if a deal to secure a US$7.5 million loan falls through, a spokesman for the mayor said.

Copper closed above $9,000 a metric tonne for the first time in almost three weeks on the London Metal Exchange as the complex moved higher amid tentative economic confidence and thin trading conditions.

Gold snapped its two-day sell-off, rising as traders viewed the market’s steep declines as an opportunity to buy and as falling equities markets renewed investor demand for refuge assets.

Oil prices settled modestly higher, pulled up by gasoline futures, which soared 3.1% on fears that Hurricane Irene could disrupt supplies along the East Coast.

Australian Stock Prices Overnight

In New York, News Corp fell by US$0.30 to US$16.71, equivalent to A$16.03, A$0.21 below its last close on the ASX.

ResMed fell by US$0.70 to US$29.00, equivalent to A$2.78, A$0.02 below its last close on the ASX.

In London, Rio Tinto fell 5.5 pence to £35.00, A$0.09 lower in Australian currency terms.

BHP-Billiton rose 11.5 pence to £19.44, A$0.18 higher in Australian currency terms.

Henderson Group Plc rose 1.9 pence to £1.27, A$0.03 higher in Australian currency terms.

US stocks notched a third straight day of gains as an upbeat durable goods report set a positive tone while investors await Federal Reserve Chairman Ben Bernanke’s highly anticipated speech later this week.

The Dow Jones Industrial Average gained 143.95 points, or 1.29%, to 11320.71. All but one of the Dow’s 30 components closed higher. The index has surged nearly 5% this week and has risen in seven of the past 10 trading days.

Bank of America led blue-chip gains, surging 69 cents, or 11%, to $6.99. The stock had been battered in recent weeks amid worries over mortgage-litigation woes and the possibility of more capital raises. But analysts say the bank is much sounder now than it was before the financial crisis. Shares are still down 28% this month.

The Standard & Poor’s 500-stock index gained 15.25 points, or 1.31%, to 1177.60. Financial and utility stocks registered the biggest gains in a broad rally. All 10 of the S&P 500′s sectors rose. The technology-heavy Nasdaq Composite rose 21.63 points, or 0.88%, to 2467.69.

The recent gains come as investors hope Bernanke’s much-awaited speech will offer clues on how the central bank prepares to combat the slowing economy. That optimism may be fleeting, however, as the Fed hasn’t given signs that it is ready to enact additional stimulative measures.

Stocks got a jolt early as demand for long-lasting manufactured goods bounced back in July, giving the fragile economy a much-needed boost.

Orders for factory goods rose 4.0% from the prior month to $201.45 billion, according to the Commerce Department. However, orders for non-defence capital goods excluding aircraft, which economists use to gauge business spending on new equipment, dropped by 1.5%.

Base metals closed largely flat on the London Metal Exchange, supported by encouraging US durable goods data yet still seemingly inextricably tied to the gyrations of the global stock markets.

Oil spent most of the day in positive territory after the government said US oil stockpiles fell last week as refiners ratcheted up operations. But prices suddenly turned lower during the last 15 minutes of open outcry trading, and the selling intensified toward the close.

Gold plunged below $1,800, a dramatic reversal from a record-setting run.

Australian Stock Prices Overnight

In New York, News Corp rose by US$0.49 to US$17.01, equivalent to A$16.25, A$0.65 above its last close on the ASX.

ResMed rose by US$0.41 to US$29.70, equivalent to A$2.84, A$0.05 above its last close on the ASX.

In London, Rio Tinto rose 79.5 pence to £35.06, A$1.24 higher in Australian currency terms.

BHP-Billiton rose 42.5 pence to £19.33, A$0.66 higher in Australian currency terms.

Henderson Group Plc was unchanged at £1.26.

US stocks surged as another dose of bleak economic data raised hopes that the Federal Reserve will take additional measures to stimulate the economy.

The Dow Jones Industrial Average rose 322.11 points, or 2.97%, to 11,176.76. The steep gains were disturbed momentarily by a magnitude 5.8 earthquake centred in Virginia. Tremors were felt on the East Coast, through Washington, D.C., and up to New York City. But the earthquake failed to rattle investors, as stocks climbed in the final trading hour.

The Standard & Poor’s 500-stock index rose 38.53 points, or 3.43%, to 1162.35, as energy, technology and consumer discretionary stocks registered the strongest gains. All 10 of the S&P 500′s sectors finished in positive territory. The technology-oriented Nasdaq Composite rallied 100.68 points, or 4.29%, to 2446.06.

Another round of dismal economic reports prompted hopes that Federal Reserve Chairman Ben Bernanke will employ more accommodative measures to boost the economy.

New-home sales fell more than expected in July to an adjusted rate of 298,000, the lowest level in five months, as housing continued to struggle amid a sluggish economy. Sales in June were also revised lower. July sales were expected to fall to 310,000.

US employers in July took 1,579 mass-layoff actions, an increase of 3% or 47 layoff “events” from the previous month on a seasonally-adjusted basis, the Labor Department said.

Economic activity among manufacturers in the central Atlantic region also fell sharply in August, as the Richmond Federal Reserve Bank’s manufacturing general-business index tumbled to -10 in August from -1 in July.

The downbeat reports have put more of an emphasis on Bernanke’s scheduled speech in Jackson Hole, Wyoming on Friday. Investors hope Bernanke will be more open to new easing measures, but at the same time are unclear as to what the central bank may have in store.

Many analysts say the Fed doesn’t have as much political support to announce a third full-fledged bond-buying program, commonly known as quantitative easing, or QE3.

Base metals closed mostly higher on the London Metal Exchange as the US dollar continued to flounder and firmer equity markets boosted risk sentiment, a further sign of the metals’ recent reliance on exogenous factors for direction.

Oil rebounded on the back of stronger equities, but the latest fighting in Libya kept a lid on the rally as rebels made strides toward securing the capital.

Gold fell, snapping a rally that took prices to a record just shy of $1,900 an ounce as profit-taking ensued and as global equity markets posted gains.

Australian Stock Prices Overnight

In New York, News Corp rose by US$0.84 to US$16.52, equivalent to A$15.71, A$0.29 above its last close on the ASX.

ResMed rose by US$1.08 to US$29.29, equivalent to A$2.78, A$0.03 above its last close on the ASX.

In London, Rio Tinto rose 5.0 pence to £34.26, A$0.08 higher in Australian currency terms.

BHP-Billiton rose 11.5 pence to £18.90, A$0.18 higher in Australian currency terms.

Henderson Group Plc rose 1.0 pence to £1.26, A$0.02 higher in Australian currency terms.

US stocks registered slim gains in another choppy session as bargain-hunting investors scrounged for buying opportunities after four straight weeks of sharp losses.

The Dow Jones Industrial Average finished up 37 points, or 0.34%, at 10854.65, after dropping 4.01% last week and 15% throughout the four-week losing skid. Trading was volatile. The Dow advanced as much as 203 points early in the session, but pared gains throughout the morning and almost turned negative before bouncing back.

The index notched triple-digit gains in the final hour of trading, but that rally faded before the closing bell. Hewlett-Packard led the blue chips higher, rising 85 cents, or 3.6%, to $24.45, after slumping 20% on Friday as investors worried about the company’s extensive plans to reshape its business model. AT&T gained 46 cents, or 1.6%, to $28.45.

Financial stocks kept the rally in check. Bank of America slumped 55 cents, or 7.9%, to $6.42 as the cost to insure Bank of America’s bonds against a default soared.

Goldman Sachs Group tumbled $5.25, or 4.7%, to $106.51, and Dow component J.P. Morgan Chase fell 94 cents, or 2.7%, to $33.41.

The Dow’s advance comes after a tumultuous few weeks of trading that have put major indexes in correction territory and bruised investor sentiment.

The Standard & Poor’s 500-stock index edged up 0.29 point, or 0.03%, to 1123.82. Telecom, technology and industrial stocks rose, while the financial and energy sectors declined. The technology-heavy Nasdaq Composite gained 3.54 points, or 0.15%, to 2345.38.

The Russell 2000 index of small-capitalisation stocks fell 0.36 of one point, or 0.06%, to 651.34, its fifth straight daily decline.

Base metals closed lower on the London Metal Exchange as early gains were eroded by a strengthening US dollar and jitters in global equity markets.

Oil fell as Libya’s rebels captured most of the country’s capital, raising hopes that the six-month conflict there could be nearing an end.

Gold ended at a new record high amid growing speculation the US won’t be able to resist another round of stimulus and broader worries about the global economy.

Australian Stock Prices Overnight

In New York, News Corp fell by US$0.51 to US$15.80, equivalent to A$15.20, A$0.40 below its last close on the ASX.

ResMed rose by US$0.26 to US$27.81, equivalent to A$2.68, A$0.02 above its last close on the ASX.

In London, Rio Tinto fell 63.0 pence to £34.32, A$1.00 lower in Australian currency terms.

BHP-Billiton fell 30.0 pence to £18.60, A$0.47 lower in Australian currency terms.

Henderson Group Plc fell 7.0 pence to £1.23, A$0.11 lower in Australian currency terms.