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Doherty at the Close 8.2.2012

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European stocks tumbled, with Spain’s IBEX 35 sliding 5.2%, and Italy’s FTSE MIB losing 4.6%. Overall, the Stoxx Europe 600 dropped 1.3%.

Knight Capital Group (KCG) lost 63% of their share value after annoucing that they had lost $440 million in a mishap with their electronic trading system. The company has lost more than two-thirds of its share value in 24 hours.

Concerns about Europe overshadowed mixed U.S. economic data. The number of workers filing applications for jobless benefits rose to 365,000 last week, a smaller increase than economists had expected, according to a Dow Jones Newswires poll. T

Abercrombie & Fitch (ANF) tumbled after the company lowered its outlook for the year based on lower than expected sales trend. Yelp (YELP) climbed 17% when the site reported a narrower than expected loss in its second quarter.

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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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