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Halftime Report 8.02.2012

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S&P 500 futures (ESU2) dropped 14.75 points to 1355.75, Dow Jones Industrial Average futures fell 139 points to 12784.00 and NASDAQ futures fell 11 points to 2614.00.

Gold futures dipped below the $1600.00 level, trading down $16.20 to $1591.10. WTI crude futures (CLU2) fell $1.17 to $87.74.

Shares of Bristol-Myers Squibb Co. (BMY) fell over 7% this morning as a patient in a Hepatitis C study had heart failure due to their subsidiary’s medication.

The K-Cup has really taken off. Green Mountain Coffee Roasters Inc. (GMCR) gained over $4.50 (+26.18%) after posting a 30% increase in income for Q3.

Knight Capital Group Inc. (KCG) fell over 50% this morning after yesterday’s algo-meltdown with damages expected to reach $440 million.

Unsurprisingly, Monster Worldwide Inc. (MWW) posted weak earnings and fell almost 20%. The global job market is not doing well.

Weight Watchers International Inc.’s (WTW) shares lost over 13% or their weight this morning as they reported an 11% fall in earnings as well as weak guidance.

In the internet startup industry, Yelp Inc. (YELP) gained 22.69%. This comes as positive news to the sector after major declines in other internet based companies such as Facebook and Groupon.

David Cornes holds a degree in economics from the University of Montana.

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Movers and Shakers – KCG – 8.2.2012

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The Jersey City electronic market making firm had a technical glitch that affected owners of 140 different stocks.  Initially, in premarket trading, analysts expected the damages to total $140 million. Knight executed about $20 billion a day in trades in June.

Investors are still trying to figure out how Knight managed their positions after their systems crashed for 45 minutes on Wednesday. This is just another example on how algo-driven trading can lose a lot of money.

David Cornes holds a degree in economics from the University of Montana.


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Morning Rage 8.2.2012

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As for the announcements today, here is the schedule:
• Chain Store Sales
• Challenger Job-Cut Report at 7:30am
• Jobless Claims at 8:30am
• Bloomberg Consumer Comfort Index at 9:45am
• Factory Orders at 10:00am
• EIA Natural Gas Report at 10:30am
• Fed Balance Sheet at 4:30pm
• Money Supply at 4:30pm

The S&P 500 will open on a decline of 0.29% while 10-year treasuries are up 2.63%.
Oil is up as well at 0.37%. The dollar is struggling, opening at a decline of 0.62%.

GM announced its earnings today of 90 cents a share, beating analysts expectations
of 75 cents a share. Even with the better than expected earnings the company is not
doing well, losing $361 million to the European crisis. Profits are expected around
$1.69 billion for the third and fourth quarters.

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@keeneonmarket!

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Chris Cruises the Globe 8.2.2012

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The Hang Seng underperformed its peer today losing .7%, being drug down by losses from property
developers. China Over Seas Land & Development, China Resources Land and Evergrande all took a dive
down 3.4, 4.6 and 5% respectively. On the Shanghai Composite, which was down .6%, Poly Real Estate
had the same story dragging the index down as it lost 9.2%. Property has been very weak and Unstable
in China and the China Security Regulatory Commission has urged companies multiple times to buy back
their shares in hopes of improving market sentiment.

European shares have pushed their way up ahead of the ECB meeting as the FTSEurofirst is currently
above .6%. Beiersdorf, makers of Nivea, takes the lead today up 4.8% as it increases its 2012 profit
outlook. Veolia was the worst performer of the index dropping 9% after results missed expectations.
Merrill-Lynch cut the stocks rating to “neutral” and said its results estimates could also yet be reduced.

Switzerland had a 50% rise in fx reserves last quarter taking its holdings to a massive 62% of GDP. This
may yet be very controversial in months to come.

In Q2, for the first time ever, volume of North Sea Brent exceeded that of WTI on NYMEX, reflecting
London may be just as important as New York for global oil trading.

Commodities begin the day mixed with crude up as natural gas, gold and silver all begin in the red.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu