MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
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Today - Wednesday, June 19, 2013
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2:41 PM Bernanke press conference: In a change to the Fed's exit policy (if it ever happens), the chairman says a majority on the FOMC expects the Fed will not sell MBS, and will instead let the paper mature or get paid off. He reiterates that the unemployment rate falling to 6.5% will not automatically trigger a rate hike. The Fed could begin tapering asset purchases later this year if its economic forecasts are correct. 3 Comments
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2:30 PM More on the FOMC announcement: In addition to the now-customary dissent by the Kansas City Fed chief was a dissent by St. Louis' Jim Bullard. Whereas Esther George is concerned over too high a level of monetary accommodation, Bullard apparently feels just the opposite. He believes the FOMC "should signal more strongly its willingness to defend its inflation goal in light of recent low inflation readings." Bernanke's press conference is about to get underway. Comment!
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2:06 PM FOMC Economic Projections: 2013 GDP growth estimate is cut a hair to 2.3-2.6% from 2.3-2.8%, but is boosted in 2014 to 3-3.5% from 2.9-3.4%. The unemployment rate forecast for 2013 is trimmed to 7.2-7.3% from 7.3-7.5% and in 2014 to 6.5-6.8% from 6.7-7%. Core CPI expectations are cut to 1.2-1.3% this year from 1.5-1.6% and in 2014 to 1.5-1.8% from 1.7-2%. 14 out of 19 FOMC members see rate hikes beginning in 2015 (4 see hikes before then). 2 Comments
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2:01 PM FOMC Announcement: No changes to the $85B per month in asset purchases and the committee stands ready to increase or decrease the level as necessary. Downside risks to the economy and the labor market have diminished since the fall. 8 Comments
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11:09 AM ReneSola (SOL +4.9%) spikes higher after SA contributor Sneha Shah argues a low cost structure and diminishing competition in the solar wafer and polysilicon markets will allow the company to keep gaining share (it recently passed LDK to be the world's #2 wafer vendor), and that shares are due to rally after underperforming Chinese peers with stronger Japanese exposure. Shah also sees gross margin bottoming - it's expected to rise to 3%-5% in Q2 after coming in at -2% in Q1 - and predicts ReneSola will become a top-10 module supplier in 2013, with a 4%-5% share. 12% of the float was shorted as of May 31. Comment!
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Tuesday, June 18, 2013
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4:27 PM Hatteras Financial (HTS) receives board authorization for a stock repurchase program of up to 10M shares (about 10% of the float). Shares +0.8% AH. Previous: Hatteras maintains its $0.70 dividend. Comment!
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1:14 PM Nokia (NOK +9.3%) soars after the chairman of Huawei's consumer business group says his company would be open to buying Nokia in an off-hand remark. Any offer from Huawei would face intense EU scrutiny, given long-standing worries about the company's Chinese government/military ties. Is this a repeat of BlackBerry/Lenovo? 26 Comments
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11:30 AM Hudson City Bancorp (HCBK +2%) pops as M&T Bank (MTB +0.6%) looks to soon be able to move forward with its purchase after agreeing with regulators to beef up its anti-money laundering policies. Comment!
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Monday, June 17, 2013
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11:28 PM Dan Loeb's Third Point raises its stake in Sony (SNE) to 7% from 6.5% according to a letter (text) sent to SNE's board. "Shareholders should not have to wait any longer," Loeb says, "the company’s most valuable untapped synergies lie within entertainment itself." 1 Comment
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