American Markets-Leading News

Repsol Demands 10 Billion in Compensation

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/9208174/Repsol-vows-to-fight-for-10bn-compensation-over-Argentinian-plans-to-seize-control-of-oil-group-YPF.html

FCX In Play

Notice all the City of London operators  involved in this take down, including one of the GATA fans and promoters. No one sells an asset for 30 pc over a naked short value on strike unless the CEO is a stooge . Mining firms go by NAV, with 2x NAV for working mines being the average. This deal is about the Crown firms getting  control, BHP, RIO and they will send out all kinds of liars and naked shorts. GATA is hardly a ‘pure’ organization with as many City of London types that are associated with it. Controlled opposition is more like it. Certainly FCX is a buy at this price. They have a long, long history of weathering every sort of Indonesian madness.

http://www.bloomberg.com/news/2012-04-17/freeport-deal-talk-intensifies-on-cheap-copper-real-m-a.html

Argentina Seizes Oil Producer YPF, as Repsol Gets Ousted

http://www.bloomberg.com/news/2012-04-16/argentina-to-send-bill-to-congress-for-control-of-51-of-ypf-1-.html

U.S. Housing Starts Unexpectedly Drop to Five-Month Low

Builders began work on fewer homes than forecast in March, signaling a sustained industry recovery will take time to get underway.

Housing starts dropped 5.8 percent to a 654,000 annual rate, less than the lowest estimate of economists surveyed by Bloomberg News and the least since October, Commerce Department figures showed today in Washington. The slump was led by the volatile multifamily category, which at the same time showed a jump in permits, a proxy for future construction…

http://www.bloomberg.com/news/2012-04-17/housing-starts-in-u-s-unexpectedly-decrease-to-five-month-low.html

Goldman Sachs EPS Hammered by 23 pc

Poor ‘trading’ results.

http://www.bloomberg.com/news/2012-04-17/goldman-sachs-beats-analysts-estimates-with-23-profit-drop.html

Republican Elite Refuse to Pay for Their Wars and ‘Free Trade’

Reuters) – Senate Republicans on Monday blocked President Barack Obama’s “Buffett Rule” legislation, which would have put a 30-percent minimum tax on millionaires, in a debate that is likely to resonate through the November general election.

Democrats, as expected, failed to garner the 60 votes needed in the 100-member Senate to move to a full debate and vote on the bill aimed at getting more tax revenues out of the wealthy.

Obama and congressional Republicans are squaring off this week over the tax hikes for millionaires and a Republican plan to give new tax cuts for businesses.

“Tonight, Senate Republicans voted to block the Buffett Rule, choosing once again to protect tax breaks for the wealthiest few Americans at the expense of the middle class,” Obama said in a statement.

Though scant changes to tax policy are expected ahead of the November 6 election, the skirmishes are giving voters a preview of debates they will hear over the next seven months…

http://www.reuters.com/article/2012/04/16/us-usa-congress-taxes-vote-idUSBRE83F1AC20120416

 

U.S. Stocks Rise as IMF Boosts Economic Growth Estimate

U.S. stocks rose, following a two- day slump for the Standard & Poor’s 500 Index, after the International Monetary Fund raised its global growth forecast and concern about Europe’s crisis eased as Spain’s bonds gained.

Bank of America Corp. (BAC) and Citigroup Inc. (C) advanced at least 1.7 percent, following gains in a measure of European lenders. Apple Inc. (AAPL) increased 2.5 percent, snapping a five-day drop that was the longest losing streak since October. Coca-Cola Co. (KO), the world’s largest soft-drink maker, rallied 2.5 percent after reporting earnings that topped analysts’ projections.

The S&P 500 rose 1 percent to 1,382.76 at 10:35 a.m. New York time. The benchmark gauge had fallen 1.3 percent in two days. The Dow Jones Industrial Average added 131.88 points, or 1 percent, to 13,053.29. The Russell 2000 Index of small companies added 1.4 percent to 809.54. Trading volume for S&P 500 companies was 7 percent below the 30-day average.

“Ultimately, growth is what matters,” said Paul Zemsky, the New York-based head of asset allocation for ING Investment Management. His firm oversees $160 billion. “There’s a lot of room for positive surprises given how pessimistic things were. We’ve got better news out of Germany and Spain, positive earnings surprises in the U.S.”

Equities rose as the IMF raised its forecast for global growth in 2012 to 3.5 percent from 3.3 percent and said the U.S. will grow 2.1 percent this year. German investor confidence unexpectedly rose and Spain sold 12-month and 18-month bills a day after borrowing costs climbed to the highest this year.

Banks Rally

American banks joined a rally in European lenders. Bank of America added 1.7 percent to $8.94. Citigroup increased 2.4 percent to $34.82.

Apple climbed 2.5 percent to $594.81. The shares, which have risen 47 percent in 2012, rebounded from an 8.8 percent decline in five days.

Investors also watched earnings reports. While S&P 500 (SPX) per- share profit growth slowed to 1.7 percent during the first three months of the year from 4.9 percent in the fourth quarter, it will accelerate to 8.6 percent during all of 2012, according to analyst estimates compiled by Bloomberg.

Coca-Cola gained 2.5 percent to $74.26. Chief Executive Officer Muhtar Kent has introduced smaller package sizes to attract price-conscious consumers as part of an effort to spur sales in North America.

Goldman Sachs swung between gains and losses, dropping 0.1 percent to $117.66. Profit fell 23 percent as revenue from trading bonds, currencies and commodities lagged behind JPMorgan Chase & Co. The bank boosted its quarterly dividend 31 percent to 46 cents a share, the first increase since 2006.

Beating Estimates

Comerica Inc. (CMA) added 3.5 percent to $31.94. The Dallas-based bank reported first-quarter profit of 66 cents a share, beating analysts’ estimates for a sixth straight quarter, according to Bloomberg data.

Allocations in U.S. stocks almost doubled in April on renewed concern that the euro-area debt crisis will worsen, prompting investors to sell European equities and hoard cash, a Bank of America Corp. survey showed.

A net 27 percent of 191 respondents, who together manage $554 billion, said they were overweight U.S. stocks, meaning they hold more than is represented in benchmarks. That’s up from 14 percent last month. Expectations for an appreciation in the dollar hit the third-highest level in over 10 years.

The U.S. “is a default for investors,” said Gary Baker, BofA’s head of European equity strategy at a press briefing in London. “If you’re concerned about growth, and not sure how concerned you should be, ultimately the U.S. is still your safest haven.”

2012 Peak

The S&P 500 may have hit its 2012 peak and started a drop of as much as 12 percent, Piper Jaffray Cos. said, citing trend lines and a decline in stocks setting new highs.

The S&P 500 has lost 3.5 percent since reaching an almost four-year high on April 2, sinking below its average during the past 50 days and breaking an uptrend line that extends from lows in October and December.

Indicators that the Minneapolis-based firm uses to track the number of groups making new highs and above a 200-day moving average sent sell signals for the first time in a year.

Craig W. Johnson, a technical market strategist with Piper Jaffray, said he expects the S&P 500 to approach 1,250 to 1,275, near its 200-day average. That would erase half of the index’s 320-point gain from its October low through early April. The index reached its 2012 high of 1,419.04 on April 2 and closed at 1,369.57 yesterday.

“The overall internals and breadth are deteriorating,” Johnson said in a telephone interview yesterday. “The highs for the year have been made in.” He expects the S&P 500 to end the year at 1,350.

http://www.bloomberg.com/news/2012-04-17/u-s-stock-futures-rise-before-housing-industry-reports.html

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