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Monday, July 23, 2012

Stock Market Pre Market News . Dow will be down 300+ points today ?

"There's this vicious circle of investors not buying Spanish bonds, depositors moving out of Spanish banks, the problem with the regions and the problem that the recession in Spain shows no sign of turning around."
"With Greece we have reached the end of the road. There must not be any further aid. A country which does not have the will to fulfill the conditions, or is not able to do so, must get a chance outside the euro," Dobrindt told the daily Die Welt.

The CSU has often been more critical of EU bailouts than Merkel's party, but his comments underline the degree of German frustration with Athens over its continued failure to meet reform targets under its 130 billion euro aid programs.

"Greece should start to pay half of its civil service wages, pensions and other expenditures in drachmas now," Dobrint added. "A soft return to the old currency is better for Greece than a drastic move. Having the drachma as a parallel currency would allow the chance for economic growth to develop."
“You got to understand that U.S. Treasurys are at 1.6, 1.7 (percent), or pick a number on a given day, you’re getting 5 times the risk-free rate of return for a sovereign which does have taxing power and does hold hostage the northern European countries,” Scaramucci told CNBC Asia’s “Squawk Box” on Monday.

Roubini believes the U.S. economy will slow further this year and next as expectations of the “fiscal cliff” keep spending and growth lower — and uncertainty about the outcome of the presidential election dogs markets.

The fiscal cliff could knock 4.5 percent off 2013 growth if all tax cuts and transfer payments were allowed to expire and spending cuts where triggered, according to Roubini.

“Of course, the drag will be much smaller, as tax increases and spending cuts will be much milder. But, even if the fiscal cliff turns out to be a mild growth bump — a mere 0.5 percent of GDP — and annual growth at the end of the year is just 1.5 percent, as seems likely, the fiscal drag will suffice to slow the economy to stall speed: a growth rate of barely 1 percent,” he wrote.

The U.S. consumer, which drives plenty of the global economy as well as the U.S., will not be able to keep spending when $1.4 billion worth of tax cuts and extended transfer payments come to an end according to Roubini.

“In 2013, as transfer payments are phased out, however gradually, and as some tax cuts are allowed to expire, disposable income growth and consumption growth will slow. The U.S. will then face not only the direct effects of a fiscal drag, but also its indirect effect on private spending,” he wrote.

DOW (Mini)
1month
FUTURES FUTURES FAIR VALUE (-8.43)
12822.57 12540.0 -233.00 12764.57 12540.0 -224.57
Last Updated: 09:35:03 AM

S&P 500 (Mini)
1month
FUTURES FUTURES FAIR VALUE (-0.34)
1362.66 1336.5 -21.70 1357.86 1336.5 -21.36
Last Updated: 09:34:53 AM

NASDAQ (Mini)
1month
FUTURES FUTURES FAIR VALUE (-1.31)
2618.04 2552.75 -60.50 2611.94 2552.75 -59.19
Last Updated: 09:35:02 AM

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DJ Asia-Pacific Titans
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-2.67
-2.14%
19053.47
-587.33
-2.99%
8508.32
-161.55
-1.86%
2982.49
-33.04
-1.1%
2141.40
-27.24
-1.26%
Light Sweet Crude
88.45
-3.38
-3.68%
2.861
-0.082
-2.79%
3.053
-0.028
-0.91%
1571.50
-11.30
-0.71%
26.84
-0.462
-1.69%

VOLATILITY & GLOBAL INDEXES

CBOE Volatility Index
19.92
3.65
+22.43%
22.09
3.89
+21.37%
4685.65
-56.31
-1.19%
232.40
-5.20
-2.19%
1145.74
-15.93
-1.37%

US STOCK GAINERS ON XETRA

36.74
+14.08%
57.02
-0.14%
20.32
-0.9%
Russell 2000
791.54
---
UNCH
0
4991.93
-80.27
-1.58%
488.06
-1.28
-0.26%

DJ Stoxx 50
2390.18
-56.27
-2.3%
5526.98
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-2.21%
6403.75
-226.27
-3.41%
3104.76
-89.13
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312.94
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Euro - US Dollar
1.2094
-0.0028
-0.23%
78.23
-0.21
-0.27%
1.5491
-0.0115
-0.74%
0.9929
0.0028
+0.28%
1.0194
0.0061
+0.6%
3-Month Bill Yield
0.096
-0.003
0%
0.214
0.004
+0%
0.554
-0.027
0%
1.414
-0.053
0%
2.486
-0.063
0%

US STOCK LOSERS ON XETRA

75.42
-4.62
-5.77%
65.64
-2.38
-3.5%
27.50
-0.53
-1.89%
DJ Financial Services Index
351.97
-5.98
-1.67%
396.69
-5.11
-1.27%
713.12
-16.80
-2.3%
The problems in the euro zone, a slowdown in China and emerging markets, added to the chance that oil prices could be driven higher by tensions over Iran’s nuclear program, will also add to America’s economic woes, Roubini argued.
He does not advise clients to put all their money into Spanish debt but says that it is a “very interesting play” over the longer term because he believed that it is a matter of time before the euro zone nations agreed to combine their debt and underwrite risks across the region.
If GDP continues to be disappointing, then fiscal revenues could be lower than expected - which would limit Spain's ability to repay creditors if it has to take a bailout from the troika of the International Monetary Fund (IMF - for an explanation click here), European Central Bank (ECB - for an explanation click here) and European Commission
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