roguetrader
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Interesting, I show it down about 6% in after hours currently $26.44 after a low of $25.50
Alcoa profit surges but misses expectations
"I think that cost pressures are going to continue to build throughout the economy and Alcoa is going to feel it," said Peter Schiff, of Euro Pacific Capital. The results surprised Wall Street and the company's shares fell 7.2 percent to $26.25 in after-hours trading. Brian Hicks, co-portfolio manager on the U.S. Global Resources Fund, said it remains to be seen whether the weakness is mainly due to a "seasonal slowdown" and warned of potentially wider implications as the third-quarter earnings season kicks off this week.
"I think that cost pressures are going to continue to build throughout the economy and Alcoa is going to feel it," said Peter Schiff, of Euro Pacific Capital. The results surprised Wall Street and the company's shares fell 7.2 percent to $26.25 in after-hours trading. Brian Hicks, co-portfolio manager on the U.S. Global Resources Fund, said it remains to be seen whether the weakness is mainly due to a "seasonal slowdown" and warned of potentially wider implications as the third-quarter earnings season kicks off this week.
roguetrader
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Semi-conductors puttin on a bit of a show today after sleeping for the last week or so
Fed must hike if inflation stays at current level:
1:30 PM ET Oct 11, 2006
WASHINGTON (MarketWatch) -- The Federal Reserve must resume tightening if core consumer inflation just persists at its current level and doesn't rise further, said Jeffrey Lacker, the president of the Richmond Fed bank. Lacker, who dissented from the FOMC's decisions to hold rates steady at its last two meetings in favor of higher rates, said he was worried that investors do not believe core inflation will decline. "We don't have any perfect measures of inflation expectations, but what we do have suggests that market participants do not forsee a rapid fall in core inflation. This is why I have argued for further policy actions to convincingly restore price stability," Lacker said in a speech to the District of Columbia Chamber of Commerce. Lacker dismissed doomsday scenerios for the U.S. housing market. "I don't think a catastrophic collapse in housing activity is likely," he said. "Instead, I believe we are seeing a return to a more conventional level of housing market activity," he said. The housing slump won't dampen consumer and business spending, Lacker added.
1:30 PM ET Oct 11, 2006
WASHINGTON (MarketWatch) -- The Federal Reserve must resume tightening if core consumer inflation just persists at its current level and doesn't rise further, said Jeffrey Lacker, the president of the Richmond Fed bank. Lacker, who dissented from the FOMC's decisions to hold rates steady at its last two meetings in favor of higher rates, said he was worried that investors do not believe core inflation will decline. "We don't have any perfect measures of inflation expectations, but what we do have suggests that market participants do not forsee a rapid fall in core inflation. This is why I have argued for further policy actions to convincingly restore price stability," Lacker said in a speech to the District of Columbia Chamber of Commerce. Lacker dismissed doomsday scenerios for the U.S. housing market. "I don't think a catastrophic collapse in housing activity is likely," he said. "Instead, I believe we are seeing a return to a more conventional level of housing market activity," he said. The housing slump won't dampen consumer and business spending, Lacker added.
U.S. Stocks Fall on Earnings Reports, Fed's Focus on Inflation
By Allen Wan
Oct. 11 (Bloomberg) -- U.S. stocks fell for the first time in three days after Alcoa Inc. began the quarterly earnings season by missing analysts' estimates and the Federal Reserve damped speculation that interest rates will drop anytime soon. Alcoa, the first member of the Dow Jones Industrial Average to report, dropped along with Monsanto Co., the world's largest maker of genetically modified seeds, whose profit also trailed forecasts. ``The question you have to ask yourself is whether profits are sustainable,'' said Rudolph-Riad Younes, who helps manage $40 billion as head of international equities at Julius Baer Investment Management in New York. ``I tend to believe earnings will revert back to the historical average. If that's the case, it's going to be bad for stocks.''
Stocks slid after minutes of the Fed's latest policy meeting showed officials foresaw a "substantial risk" that inflation may not slow as expected. Prices reached the day's low after a plane crashed into an apartment building in New York, though the losses were recouped within minutes. The Standard & Poor's 500 Index lost 3.47, or 0.3 percent, to 1349.95. Exxon Mobil Corp. and other energy companies were the worst performers among the S&P 500's 10 industry groups as oil fell to the lowest this year. The Dow industrials dropped 15.04, or 0.1 percent, to 11,852.13. The Nasdaq Composite Index fell 7.16, or 0.3 percent, to 2308.27.
Fed officials raised concern inflation may not recede and noted they must ensure it slows, according to minutes issued today. Officials left the benchmark rate unchanged at 5.25 percent for a second time on Sept. 20. In a speech today, Fed Bank of Richmond President Jeffrey Lacker said the central bank must be ``quite vigilant'' to make sure inflation slows. ``Investors are concerned about the Fed going from a position of possibly cutting rates to now raising rates, a couple of disappointing earnings reports and North Korea,'' said Anita Clemons, who manages $1.4 billion at New Covenant Trust Co.
By Allen Wan
Oct. 11 (Bloomberg) -- U.S. stocks fell for the first time in three days after Alcoa Inc. began the quarterly earnings season by missing analysts' estimates and the Federal Reserve damped speculation that interest rates will drop anytime soon. Alcoa, the first member of the Dow Jones Industrial Average to report, dropped along with Monsanto Co., the world's largest maker of genetically modified seeds, whose profit also trailed forecasts. ``The question you have to ask yourself is whether profits are sustainable,'' said Rudolph-Riad Younes, who helps manage $40 billion as head of international equities at Julius Baer Investment Management in New York. ``I tend to believe earnings will revert back to the historical average. If that's the case, it's going to be bad for stocks.''
Stocks slid after minutes of the Fed's latest policy meeting showed officials foresaw a "substantial risk" that inflation may not slow as expected. Prices reached the day's low after a plane crashed into an apartment building in New York, though the losses were recouped within minutes. The Standard & Poor's 500 Index lost 3.47, or 0.3 percent, to 1349.95. Exxon Mobil Corp. and other energy companies were the worst performers among the S&P 500's 10 industry groups as oil fell to the lowest this year. The Dow industrials dropped 15.04, or 0.1 percent, to 11,852.13. The Nasdaq Composite Index fell 7.16, or 0.3 percent, to 2308.27.
Fed officials raised concern inflation may not recede and noted they must ensure it slows, according to minutes issued today. Officials left the benchmark rate unchanged at 5.25 percent for a second time on Sept. 20. In a speech today, Fed Bank of Richmond President Jeffrey Lacker said the central bank must be ``quite vigilant'' to make sure inflation slows. ``Investors are concerned about the Fed going from a position of possibly cutting rates to now raising rates, a couple of disappointing earnings reports and North Korea,'' said Anita Clemons, who manages $1.4 billion at New Covenant Trust Co.
We've been stuck in this 800 - 900 range for several days now with strong closing rallies to reverse earlier dips in the day. Only good for short term scalping on a day trading basis but otherwise very difficult to trade !Hook Shot said:
What action are you expecting to see in Gold & Oil ? Both looking weak at the moment and falling oil is one of the factors pushing the US equity markets higher !
Kriesau - dead right day traders market........at the moment.
OIL/Gold low yep, failed countertrend yep.........but #1- Dec Gold is holding the line at 560 despite the charts looking horrid. #2 DecGold is now on inside day numero 2 - implying decision time is approaching.
Direction don't know.... but if we get typical slap down -$20 we'll be near the 560 again and it makes it attractive low risk potential long. We should see this one coming cos it will break yesterday's lows. $ is bit wobbly on the forex markets so this indicates something might be afoot - but then again....
OIL - this is short term play which might turn out to be longer term mega call - hopefully!
Oil is low and inventories are due later... My hunch is any weakness pre - that report could be bought. We've had 3 mini drives down off monday's high - we might get one more but very short term -intraday ... a bounce could go on into inventories.
As for the mega call - this is dreamland but today is day 90 of the downwave in OIL and we are testing lows for 2006 - Post Katrina downwave ended around 90d/3m give or take.... Either way the trading risk is pretty low -IMHO.
Hook Shot
OIL/Gold low yep, failed countertrend yep.........but #1- Dec Gold is holding the line at 560 despite the charts looking horrid. #2 DecGold is now on inside day numero 2 - implying decision time is approaching.
Direction don't know.... but if we get typical slap down -$20 we'll be near the 560 again and it makes it attractive low risk potential long. We should see this one coming cos it will break yesterday's lows. $ is bit wobbly on the forex markets so this indicates something might be afoot - but then again....
OIL - this is short term play which might turn out to be longer term mega call - hopefully!
Oil is low and inventories are due later... My hunch is any weakness pre - that report could be bought. We've had 3 mini drives down off monday's high - we might get one more but very short term -intraday ... a bounce could go on into inventories.
As for the mega call - this is dreamland but today is day 90 of the downwave in OIL and we are testing lows for 2006 - Post Katrina downwave ended around 90d/3m give or take.... Either way the trading risk is pretty low -IMHO.
Hook Shot