The Treasury sells $35B in five-year notes at 0.748%. Bid-to-cover ratio of 2.99, vs. a recent average of 3.0; indirect bidders take 42.6%, vs. a recent 43.7%. Direct bidders take 6.5%, vs. a recent 12.2%. [View news story]
5year note at .748...average interest rate of U.S. government debt 2.13%
McDonald's (MCD -0.6%) plans to sell $750M worth of 3-year and 7-year notes amid an aggressive plan to hire 70K workers in China and ramp up store openings. The company paid a record-low 3.70% on a 30-year issue floated earlier this year. [View news story]
MBA Mortgage Applications:+3.8% vs. +9.2% last week. Thirty-year fixed mortgage rate with conforming loan balances ($417,500 or less) decreased to 3.93% from 3.96%. [View news story]
JPMorgan is sued on behalf of its employees, accused of violating its duties to 401(k) and other retirement plan participants by including JPM as an investment choice and hiding the stock's risk. Also named in the suit are individuals, including Jamie Dimon and Ina Drew. Shares are finally getting a bounce today, +5.3%. [View news story]
While not arguing against the reinstatement of Glass-Stegall, Andrew Ross Sorkin looks to explode the "myth" that it would have prevented the financial crisis. Bear Stearns, Lehman, Merrill Lynch, AIG, Fannie Mae and Freddie Mac had nothing to do with Glass Stegall, nor did the provision of lots of dodgy loans. [View news story]
"If history is any guide, it hasn’t often been the result of speculative bets. It has been the result of banks making loans to individuals and businesses who can’t pay them back."
Postponable Purchases to GDP had been way above its 65 year average for too long and not allowed to find its appropriate bottom after the tech bust ( in other words they jacked up Residential Investment to soften the 2001 recession)...we paid the price later...
More on Existing Home Sales: Seasonal supply at 6.6 months, up from previous level of a 6.2-month supply. The national median existing-home price for all housing types jumped 10.1% Y/Y to $177,400. Foreclosures and short sales sold at deep discounts accounted for 28% of monthly sales, down from 37% a year ago. [View news story]
Bears wanted to talk median prices when prices were down but now ..oh no...the numbers are distorted because???...
The short sales and foreclosures in my neighborhood have long since been bought up....now they are remodeling the homes...
India's rupee falls more than 1% to an all-time low, now requiring 55 of them to buy one greenback. The central bank is in a tough spot as inflation remains high while the economy slows. The slide in the rupee - at least some of which has to do with the "risk off" tone of markets - won't help the inflation picture. [View news story]
"In spite of the recent moderation in activity, assessments for business activity over the next six months remained generally positive since our last report. Contacts at more firms anticipated that shipments, new orders, backlogs, capacity utilization, and capital expenditures would continue to grow at a solid pace."
The Conference Board's April leading index for China rises 0.8%, matching March, and down from 1% in February. However, Andrew Polk from the Board isn't yet comfortable calling for a pick-up in growth in H2, instead wanting to see if recent easing policies start to filter through to the economy. Isn't that what the leading indicator is supposed to indicate? [View news story]
ICSC Retail Store Sales:-1.7% W/W, vs. -0.8% last week. +3.8% Y/Y, vs. +4.5% last week. The report notes little positive effect from favorable weather or from lower gas prices. [View news story]
The 4 week moving average of y-o-y remains at 3.9%...well above the recession warning level of 2.0%
European markets are at session highs, bouncing from an ugly few weeks of trade. Stoxx 50 +1.3%, led by Italy +2.6%. Germany +1%, Spain +1.1%. S&P futures turn back to green, +0.3%. Interestingly, the euro is lower by 0.5%. Could the break in correlation suggest easier monetary policy is about to come to the continent? [View news story]
Look at the diffential between 3 month euribor and 2 year euro swap spread....
Financial discipline, not the "nonsense" put forth by France's Hollande will resolve the EU debt crisis, says Austrian finmin Maria Fekter, clearly placing her country in the German camp as a power battle shapes up in the eurozone. "Growth financed by debt? Those are the recipes ... (that) got us into this whole mess." [View news story]
Bank Of America: A Valuation Call, Buying The Pullback [View article]
"Always do your homework, also see BAC SEC filings."
Every analyst needs to read at least 2 years worth ( actually should be 5 years worth) of BAC 10q's...if a financial journalist hasn't done that then they are just pushing out a quick article for their editors....
The Treasury sells $35B in five-year notes at 0.748%. Bid-to-cover ratio of 2.99, vs. a recent average of 3.0; indirect bidders take 42.6%, vs. a recent 43.7%. Direct bidders take 6.5%, vs. a recent 12.2%. [View news story]
McDonald's (MCD -0.6%) plans to sell $750M worth of 3-year and 7-year notes amid an aggressive plan to hire 70K workers in China and ramp up store openings. The company paid a record-low 3.70% on a 30-year issue floated earlier this year. [View news story]
MBA Mortgage Applications: +3.8% vs. +9.2% last week. Thirty-year fixed mortgage rate with conforming loan balances ($417,500 or less) decreased to 3.93% from 3.96%. [View news story]
JPMorgan is sued on behalf of its employees, accused of violating its duties to 401(k) and other retirement plan participants by including JPM as an investment choice and hiding the stock's risk. Also named in the suit are individuals, including Jamie Dimon and Ina Drew. Shares are finally getting a bounce today, +5.3%. [View news story]
While not arguing against the reinstatement of Glass-Stegall, Andrew Ross Sorkin looks to explode the "myth" that it would have prevented the financial crisis. Bear Stearns, Lehman, Merrill Lynch, AIG, Fannie Mae and Freddie Mac had nothing to do with Glass Stegall, nor did the provision of lots of dodgy loans. [View news story]
Postponable Purchases to GDP had been way above its 65 year average for too long and not allowed to find its appropriate bottom after the tech bust ( in other words they jacked up Residential Investment to
soften the 2001 recession)...we paid the price later...
More on Existing Home Sales: Seasonal supply at 6.6 months, up from previous level of a 6.2-month supply. The national median existing-home price for all housing types jumped 10.1% Y/Y to $177,400. Foreclosures and short sales sold at deep discounts accounted for 28% of monthly sales, down from 37% a year ago. [View news story]
now ..oh no...the numbers are distorted because???...
The short sales and foreclosures in my neighborhood have long since been bought up....now they are remodeling the homes...
India's rupee falls more than 1% to an all-time low, now requiring 55 of them to buy one greenback. The central bank is in a tough spot as inflation remains high while the economy slows. The slide in the rupee - at least some of which has to do with the "risk off" tone of markets - won't help the inflation picture. [View news story]
April Existing Home Sales: +3.4% to 4.62M vs. 4.66M expected, 4.47M prior (revised from 4.48M). [View news story]
May. Richmond Fed Mfg. Survey: -10, to 4 (above 0 = growth). Shipments -18 to 0, new orders -12 to 1, jobs +6 to 16. [View news story]
Doesn't sound like recession talk....
The Conference Board's April leading index for China rises 0.8%, matching March, and down from 1% in February. However, Andrew Polk from the Board isn't yet comfortable calling for a pick-up in growth in H2, instead wanting to see if recent easing policies start to filter through to the economy. Isn't that what the leading indicator is supposed to indicate? [View news story]
Spain: A Very Different Fiscal Crisis [View article]
ICSC Retail Store Sales: -1.7% W/W, vs. -0.8% last week. +3.8% Y/Y, vs. +4.5% last week. The report notes little positive effect from favorable weather or from lower gas prices. [View news story]
the recession warning level of 2.0%
European markets are at session highs, bouncing from an ugly few weeks of trade. Stoxx 50 +1.3%, led by Italy +2.6%. Germany +1%, Spain +1.1%. S&P futures turn back to green, +0.3%. Interestingly, the euro is lower by 0.5%. Could the break in correlation suggest easier monetary policy is about to come to the continent? [View news story]
spread....
Financial discipline, not the "nonsense" put forth by France's Hollande will resolve the EU debt crisis, says Austrian finmin Maria Fekter, clearly placing her country in the German camp as a power battle shapes up in the eurozone. "Growth financed by debt? Those are the recipes ... (that) got us into this whole mess." [View news story]
Bank Of America: A Valuation Call, Buying The Pullback [View article]
Every analyst needs to read at least 2 years worth ( actually should be 5 years worth) of BAC 10q's...if a financial journalist hasn't done that then they are just pushing out a quick article for their editors....