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United States News Title: U.S. Stock Futures Rise, Signaling Market May Extend Rally U.S. index futures rose, signaling the market may add to yesterday’s rally, as agricultural companies surged for a second day on takeover speculation. Potash Corp. of Saskatchewan Inc., which jumped 28 percent yesterday as BHP Billiton Ltd. made a takeover bid for the fertilizer company, climbed 2.2 percent today to $146.28 as BHP made the offer hostile and analysts at Macquarie Group Ltd. said the price may rise to as much as $165 a share. Other fertilizer makers including Mosaic Co. and Intrepid Potash Inc. climbed at least 1.3 percent. Target Corp. and Deere & Co. retreated at least 1.6 percent on results that disappointed investors. Standard & Poor’s 500 Index futures expiring next month increased 0.3 percent to 1,092.4 at 8:58 a.m. in New York. Dow Jones Industrial Average futures climbed 29 points, or 0.3 percent, to 10,387, while Nasdaq-100 Index futures rose 0.2 percent to 1,843.5. “We’re in a tug-of-war,” said Michael Mullaney, who manages $9 billion at Fiduciary Trust Co. in Boston. “There’s a lot of cash in the balance sheets, which will probably be used for M&A or buybacks. There’s speculation BHP may pay a premium for Potash. We’re getting good earnings reports from the majority of the companies, even if the economic horizon looks a bit cloudy.” Topped Estimates Of the 447 companies on the S&P 500 to have released earnings since July 12, about three-quarters have topped per- share profit estimates, while about 61 percent have beaten projections for sales, according to data compiled by Bloomberg. The S&P 500 climbed 1.2 percent to 1,092.54 yesterday, its biggest gain since Aug. 2, as a report showed industrial production in the U.S. rose 1 percent in July, double the median economist forecast, while retailers Wal-Mart Stores Inc. and Home Depot Inc. raised their forecasts and BHP’s approach to Potash drove raw-materials producers higher. Still, the benchmark gauge remains 10 percent below its high this year on April 23 amid signs that the economy is stalling. Potash Corp. rose 2.2 percent to $146.35. BHP, seeking to become the biggest fertilizer producer, offered $130 a share for Potash, which yesterday said it rejected an initial approach at the same price because it was “grossly inadequate.” The stock rose to $143.17 in New York trading yesterday, indicating BHP Chief Executive Officer Marius Kloppers may have to raise his bid to win over investors. Mosaic gained 1.3 percent to $56.34 after Macquarie said it may also be a target for a bid. Treasury 10-year yields were near a 17-month low today on speculation the Federal Reserve will increase its Treasury purchases in the coming weeks to stem a slowdown in U.S. economic growth. Buy Treasuries The Fed plans to buy Treasuries due from August 2016 to August 2020 tomorrow, after purchasing $2.551 billion of securities yesterday, to spur the economy by keeping borrowing costs low. James Bullard, president of the Fed Bank of St. Louis, said the central bank may need to buy more if inflation keeps slowing, in an article yesterday in the Wall Street Journal. The number of mortgage applications in the U.S. increased last week, propelled by a surge in refinancing as borrowing costs hovered near record lows. The Mortgage Bankers Association’s index rose 13 percent in the week ended Aug. 13, the Washington- based group said today. Refinancing jumped 17 percent to reach the highest level since May 2009, while purchases fell 3.4 percent. Deere dropped 1.6 percent to $66.15 in early New York trading after forecasting per-share earnings for the fourth quarter of about 88 cents, missing the average estimate of 89 cents. Deere Earnings The world’s largest farm equipment maker said net income climbed to $617 million, or $1.44 a share in the three months through July, from $420 million, or 99 cents, a year earlier. The average estimate of 17 analysts in a Bloomberg survey was for profit excluding some items of $1.22. Sales gained 18 percent to $6.22 billion. Target, the second-largest U.S. discount retailer, fell 3.1 percent to $49.35 in New York. The company said revenue in the second quarter was $15.5 billion. Analysts had estimated revenue of $15.6 billion. Earnings-per-share were 92 cents, in line with analysts’ projections.
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#2. To: go65 (#0)
PPT's at work. Market IMMEDIATELY goes down at open. Then select stocks like Frontline(Shipping/BDI) do a magic reversal on zero vol. OOPs. Something's not working. ;} http://finance.yahoo.com/q?s=FRO&reco=1 Problem. These are machines juggling chain saws. The market can lose a 1000 or just shut down now. At anytime. http://www.oftwominds.com/blogaug10/calling-PPT08-10.html In June, I'd made the case for a rise to the January highs, which would form a classic "head and shoulders" pattern with the April high as the head: Once More Up, Then the Big Down (June 28, 2010) Was the recent runup just that final move before the Big Down? Perhaps. On the other hand, what's the use of having a Plunge Protection Team if they sit idly by while the market implodes? Before we look at some charts, please read the HUGE GIANT BIG FAT DISCLAIMER below and refresh your awareness that this is merely the freely offered opinion of an amateur market observer. OK, let's look at some charts of the S&P 500 (SPX) and Mr. VIX (VIX). Here is the SPX daily chart:
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