Interactive Brokers Group (IBKR) receives a letter of noncompliance from Nasdaq, saying it's non-compliant with Nasdaq Listing Rule 5250(c)(1) because its quarterly 10-Q has not yet been filed. [View news story]
I wasn't aware of the inactivity fee. How much is it?
Beware the steepening yield curve in U.S. Treasurys, warns Pimco's Mohamed El-Erian. Despite their staunch credentials, El-Erian notes the spread between the two and 10-year Treasurys is the widest it's been since May. “What we would caution is rather than the level of the rates, the shape of the curve.” he says. “The long end is exposed to a lot more risk.” [View news story]
10 and 30 year yields moved lower by several basis points in the afternoon - that's why TBT fell late in the day.
There are a lot of issues with TBT, but its relation to TVIX (the VIX ETN that collapsed) isn't one of them.
TVIX was an ETN and traded far above NAV - this is what allowed the collapse even as VIX didn't do anything.
TBT is an ETF.
Translation of El-Erian: the long end of the Treasury curve is a lot riskier than the short end. Wow. What would we do without him.
According to an economic barometer called the Money Market Index, the recent rally in the Dow over the past three trading sessions has been "totally irrational," says the index's chief researcher Dan Geller. The rally, mostly due to the release of Friday's monthly jobs report, shows that the enthusiasm has been mispaced due to the simple fact that a large portion of the 163K new jobs reported are only temporary, and likely to vanish soon. The move "has no economic merit," Geller insists. [View news story]
Dow rally over last 3 sessions? DJIA was down Tues, Wed, Thurs. last week before move higher on Friday and all of a 20 point move today. So basically one day up (Friday) erasing the losses of the previous 3 days. Crazy.
Because of Friday's jobs report? Stock futures were up more than 1% on the back of a huge rally in Europe before NFP was even released. Did the jobs report add some strength to the move? Sure. But the rally hats were on before 8:30 hit.
Haven't heard of Geller before today, but he's not making a whole lot of sense here.
Treasury prices plunge (yields fly higher) following the big rally in Europe and the NFP report. The future is unknown, but a buyer of the 10-year Treasury at 1.5% requires an unceasing stream of bad news to make money, while being open to getting fried on just the slightest bit of economic sunlight. SPY pulls far ahead of TLT in YTD returns. [View news story]
At the moment, SPY +11.1% and TLT +4.8% YTD.
This doesn't include interest/dividends, but since SPY yields more than TLT, that would make the gap bigger!
The slides from Invesco's (IVR -1.4%) earnings presentation lay out in pictures the bear case (for some) on the mortgage REITs. A flattening yield curve is continually cutting net interest margins and higher prepayments mean a hit to book value as called paper - on the books at a premium - is paid off at par. Of course, ratcheting up leverage can offset some of this. (earnings) [View news story]
Did you look at the presentation? It has zero to do with rising rates. The issue is falling rates - a flatter curve narrows the interest rate spread and also causes higher prepayments, both of which lead to lower earnings/hits to book value.
I'm not saying this makes the sector a sell, but it is the reason many are bearish on it.
As for higher rates - have you ever owned a mortgage REIT through a rate hike cycle?
The slides from Invesco's (IVR -1.4%) earnings presentation lay out in pictures the bear case (for some) on the mortgage REITs. A flattening yield curve is continually cutting net interest margins and higher prepayments mean a hit to book value as called paper - on the books at a premium - is paid off at par. Of course, ratcheting up leverage can offset some of this. (earnings) [View news story]
The post wasn't meant to say the presentation or the company was bearish - why would they be - but to point out why some are staying away from the sector.
"Believe me, it will be enough," says Mario Draghi, promising to do "whatever it takes to preserve the euro." Yes, but at what level vs. the greenback? [View news story]
Wow. Lighten up Francis. Do I have to preface ever tongue-in-cheek comment with a warning?
The 'need' for a lower euro has been well-covered in MCs. The point of this particular one is that arguments over the euro's survival are trivial ones (IMO). Will the currency move higher, lower, sideways - that's what I want to know.
"What do I buy, what do I sell, how do I win," once said a successful hedge fund manager after hearing some high-level presentation about a macro theme.
I assume you are disgusted with Draghi's comments as they've sent the euro soaring.
Nationstar Mortgage (NSM -9.6%) plummets as Berkshire Hathaway (BRK.B) emerges as the front-runner in the battle to buy not just ResCap's mortgage portfolio, but its entire operation, reports the NYPost. Nationstar - the mortgage arm of hedge fund giant Wesley Eden - had originally hoped to get all and then at least part of the package. [View news story]
NCT is a subsidiary of FIG which is also involved in the bidding process. NCT is also a partner of NSM in other servicing deals.
Argentina's recently nationalized oil and gas company YPF (YPF +2.6%) will pay out just 5.7% of 2011's profits as dividends, in contrast with recent years when payouts surpassed 80%. YPF plans to invest ~$7B/year during 2013-17 in an ambitious plan to boost declining output. [View news story]
In an ambitious plan ... to pad payrolls at shareholder expense :)
The corn crop is gone, says Dennis Gartman, and despite already high prices, corn and corn-related shares should be bought on any weakness. Stay away from fertilizer stocks, however tempting as they may be as a proxy to corn. Buying them on the premise that laying more fertilizer will save the crop is just a "silly idea," Gartman quips. Fertilizer may be needed next year, but right now, anybody who's laid some down already wishes they hadn't because the crop is completely destroyed. (video) [View news story]
More on NAHB: "Builder confidence increased by solid margins in every region of the country in July," says NAHB chair Barry Rutenberg. The news is particularly encouraging given other parts of the economy have begun to soften, says chief economist David Crowe. The XHB gets a pop on the strong report, but remains lower by 0.8%. [View news story]
?
It was down more than that before the news hit, hence the "pop" to down 0.8% (not sure where your 1% is coming from).
Wilbur Ross defies Dennis "never, ever, ever add to a losing position" Gartman, adding 700K to his roughly 29M share stake in Exco Resources (XCO) last month. The purchases were made at an average price of $6.78, while his initial stake was taken at as much as $14. Has Ross even heard of Gartman? [View news story]
Wilbur Ross defies Dennis "never, ever, ever add to a losing position" Gartman, adding 700K to his roughly 29M share stake in Exco Resources (XCO) last month. The purchases were made at an average price of $6.78, while his initial stake was taken at as much as $14. Has Ross even heard of Gartman? [View news story]
Yes, please don't read this post as questioning Ross' ability (and do read it as questioning Gartman's!)
Ignore today's dive in Sprott Physical Silver Trust (PSLV -3.8%, with SLV +0.3%) on the back of about a $200M follow-on offering, writes Brendan Conway. Sprott is simply turning the fund's premium to NAV into cash with which to buy more silver - exactly what an owner of the shares wants to see. [View news story]
Yes, current owners got burned (like you said they should have known it was trading at a 7% premium), but I think Conway is saying it's too late to sell.
PSLV may go down from here because silver goes down, but not because of the capital raise.
Does Wal-Mart (WMT) get the respect it deserves, asks Tim Knight. While fanboys pull out the if-you-bought-AAPL-at-... argument to make the case that Apple is the greatest buy and hold stock, Wal-Mart's return since inception actually puts Apple to shame (so to speak). The recent rally may be largely a defensive move by investors, but then again betting against WMT isn't often a winning proposition. Shares +0.4% premarket to $72.36, just a trace below yet another all-time high. [View news story]
Ugh. After doing nothing for more than a decade, WMT's up 33% Y/Y and all of a sudden it's better than Apple? I smell a top.
Interactive Brokers Group (IBKR) receives a letter of noncompliance from Nasdaq, saying it's non-compliant with Nasdaq Listing Rule 5250(c)(1) because its quarterly 10-Q has not yet been filed. [View news story]
Beware the steepening yield curve in U.S. Treasurys, warns Pimco's Mohamed El-Erian. Despite their staunch credentials, El-Erian notes the spread between the two and 10-year Treasurys is the widest it's been since May. “What we would caution is rather than the level of the rates, the shape of the curve.” he says. “The long end is exposed to a lot more risk.” [View news story]
There are a lot of issues with TBT, but its relation to TVIX (the VIX ETN that collapsed) isn't one of them.
TVIX was an ETN and traded far above NAV - this is what allowed the collapse even as VIX didn't do anything.
TBT is an ETF.
Translation of El-Erian: the long end of the Treasury curve is a lot riskier than the short end. Wow. What would we do without him.
According to an economic barometer called the Money Market Index, the recent rally in the Dow over the past three trading sessions has been "totally irrational," says the index's chief researcher Dan Geller. The rally, mostly due to the release of Friday's monthly jobs report, shows that the enthusiasm has been mispaced due to the simple fact that a large portion of the 163K new jobs reported are only temporary, and likely to vanish soon. The move "has no economic merit," Geller insists. [View news story]
Because of Friday's jobs report? Stock futures were up more than 1% on the back of a huge rally in Europe before NFP was even released. Did the jobs report add some strength to the move? Sure. But the rally hats were on before 8:30 hit.
Haven't heard of Geller before today, but he's not making a whole lot of sense here.
Treasury prices plunge (yields fly higher) following the big rally in Europe and the NFP report. The future is unknown, but a buyer of the 10-year Treasury at 1.5% requires an unceasing stream of bad news to make money, while being open to getting fried on just the slightest bit of economic sunlight. SPY pulls far ahead of TLT in YTD returns. [View news story]
This doesn't include interest/dividends, but since SPY yields more than TLT, that would make the gap bigger!
The slides from Invesco's (IVR -1.4%) earnings presentation lay out in pictures the bear case (for some) on the mortgage REITs. A flattening yield curve is continually cutting net interest margins and higher prepayments mean a hit to book value as called paper - on the books at a premium - is paid off at par. Of course, ratcheting up leverage can offset some of this. (earnings) [View news story]
I'm not saying this makes the sector a sell, but it is the reason many are bearish on it.
As for higher rates - have you ever owned a mortgage REIT through a rate hike cycle?
The slides from Invesco's (IVR -1.4%) earnings presentation lay out in pictures the bear case (for some) on the mortgage REITs. A flattening yield curve is continually cutting net interest margins and higher prepayments mean a hit to book value as called paper - on the books at a premium - is paid off at par. Of course, ratcheting up leverage can offset some of this. (earnings) [View news story]
"Believe me, it will be enough," says Mario Draghi, promising to do "whatever it takes to preserve the euro." Yes, but at what level vs. the greenback? [View news story]
The 'need' for a lower euro has been well-covered in MCs. The point of this particular one is that arguments over the euro's survival are trivial ones (IMO). Will the currency move higher, lower, sideways - that's what I want to know.
"What do I buy, what do I sell, how do I win," once said a successful hedge fund manager after hearing some high-level presentation about a macro theme.
I assume you are disgusted with Draghi's comments as they've sent the euro soaring.
Nationstar Mortgage (NSM -9.6%) plummets as Berkshire Hathaway (BRK.B) emerges as the front-runner in the battle to buy not just ResCap's mortgage portfolio, but its entire operation, reports the NYPost. Nationstar - the mortgage arm of hedge fund giant Wesley Eden - had originally hoped to get all and then at least part of the package. [View news story]
Argentina's recently nationalized oil and gas company YPF (YPF +2.6%) will pay out just 5.7% of 2011's profits as dividends, in contrast with recent years when payouts surpassed 80%. YPF plans to invest ~$7B/year during 2013-17 in an ambitious plan to boost declining output. [View news story]
The corn crop is gone, says Dennis Gartman, and despite already high prices, corn and corn-related shares should be bought on any weakness. Stay away from fertilizer stocks, however tempting as they may be as a proxy to corn. Buying them on the premise that laying more fertilizer will save the crop is just a "silly idea," Gartman quips. Fertilizer may be needed next year, but right now, anybody who's laid some down already wishes they hadn't because the crop is completely destroyed. (video) [View news story]
More on NAHB: "Builder confidence increased by solid margins in every region of the country in July," says NAHB chair Barry Rutenberg. The news is particularly encouraging given other parts of the economy have begun to soften, says chief economist David Crowe. The XHB gets a pop on the strong report, but remains lower by 0.8%. [View news story]
It was down more than that before the news hit, hence the "pop" to down 0.8% (not sure where your 1% is coming from).
Wilbur Ross defies Dennis "never, ever, ever add to a losing position" Gartman, adding 700K to his roughly 29M share stake in Exco Resources (XCO) last month. The purchases were made at an average price of $6.78, while his initial stake was taken at as much as $14. Has Ross even heard of Gartman? [View news story]
http://bit.ly/O7mY0D;
Wilbur Ross defies Dennis "never, ever, ever add to a losing position" Gartman, adding 700K to his roughly 29M share stake in Exco Resources (XCO) last month. The purchases were made at an average price of $6.78, while his initial stake was taken at as much as $14. Has Ross even heard of Gartman? [View news story]
Ignore today's dive in Sprott Physical Silver Trust (PSLV -3.8%, with SLV +0.3%) on the back of about a $200M follow-on offering, writes Brendan Conway. Sprott is simply turning the fund's premium to NAV into cash with which to buy more silver - exactly what an owner of the shares wants to see. [View news story]
PSLV may go down from here because silver goes down, but not because of the capital raise.
Does Wal-Mart (WMT) get the respect it deserves, asks Tim Knight. While fanboys pull out the if-you-bought-AAPL-at-... argument to make the case that Apple is the greatest buy and hold stock, Wal-Mart's return since inception actually puts Apple to shame (so to speak). The recent rally may be largely a defensive move by investors, but then again betting against WMT isn't often a winning proposition. Shares +0.4% premarket to $72.36, just a trace below yet another all-time high. [View news story]