US midday: Banks double debt purchases, as deposits rise

Date: Monday 20 Aug 2012

-Technology stocks lead gains on S and P 500
-Apple and Samsung CEO´s will hold last minute talks -Apple Insider
-Banks double their purchases of Treasuries and agency debt
-Apple´s market cap exceeds Microsoft´s record

Dow Jones Industrial: -0.10%
Nasdaq Comp.: -0.21%
S&P 500: -0.18%

The main US equity indices are now trading slightly lower but above their lows for the session. That after falling at the start of the day on news of the Bundesbank´s criticism of the European Central Bank´s bond buying plans in its latest monthly bulletin.

Home improvement retailer Lowe´s fell sharply after missing analysts´ profit projections and after cutting its own forecasts.

The worst performer on the S&P 500, however, are still the shares of Best Buy, after the electronics retailer announced that negotiations with its ex-chief executive officer, Richard Schulze, have fallen through. This after the company´s board signaled that it might not accept his buy-out offer.

Coventry Health Care jumped 18% after Aetna agreed to buy the medical-care provider for about $5.6bn.

Banks have already bought $136.4bn in Treasury and government agency debt this year, more than double the $62.6bn which they purchased in all of 2011, pushing their holdings to an all-time high of $1.84trn, Bloomberg is reporting. According to that same data deposits grew almost three times as quickly as lending in the two months ended on July 31st.

Some market commentary is also highlighting how shares of Facebook are today hitting new lows, more than half way below its IPO price, while those of Apple are setting new highs. This on speculation over the possible and forthcoming roll-out of new products by the latter.

Of interest, some reports hold that the chief executive officers of Apple and Samsung are to hold last-minute settlement talks.

Sirius XM Radio is up by 2.3% after Liberty Media said that it plans to take control of the satellite-radio broadcaster and that this is now easier as it controls over 50% of its stock.

Kinder Morgan is to sell $3.3bn in energy pipeline and infrastructure assets in the Rocky Mountains to Tallgrass Energy Partners, including debt.

Shares of Deere could benefit following a positive mention in the latest edition of Barron´s magazine.

The Federal Reserve Bank of Chicago´s national activity index rose to -0.13 points in July, after -0.34 in June (Consensus: -0.05).

Front month West Texas crude futures are now down by 0.35% at 95.67 dollars per barrel on the NYMEX.

S&P 500 - Risers
Coventry Health Care Inc. (CVH) $41.66 +19.23%
First Solar Inc. (FSLR) $22.94 +7.90%
Aetna Inc. (AET) $39.88 +4.82%
Southwest Airlines Co. (LUV) $9.44 +3.40%
GameStop Corp. (GME) $19.18 +3.28%
Valero Energy Corp. (VLO) $29.62 +2.85%
Hewlett-Packard Co. (HPQ) $20.08 +2.84%
Hess Corp. (HES) $50.64 +2.70%
CONSOL Energy Inc. (CNX) $32.84 +2.69%
Peabody Energy Corp. (BTU) $22.82 +2.33%

S&P 500 - Fallers
Best Buy Co. Inc. (BBY) $18.69 -7.80%
Lowe's Companies Inc. (LOW) $26.05 -6.53%
Waste Management Inc. (WM) $34.09 -4.40%
PulteGroup Inc. (PHM) $12.88 -3.74%
D. R. Horton Inc. (DHI) $18.30 -3.58%
Lennar Corp. Class A (LEN) $31.68 -3.24%
Cabot Oil & Gas Corp. (COG) $41.63 -3.16%
Autodesk Inc. (ADSK) $33.90 -3.06%
Beam Inc. Common Stock (BEAM) $58.38 -3.02%
Sears Holdings Corp. (SHLD) $57.71 -2.99%

Dow Jones I.A - Risers
Hewlett-Packard Co. (HPQ) $20.08 +2.84%
Bank of America Corp. (BAC) $8.13 +1.62%
JP Morgan Chase & Co. (JPM) $37.42 +1.19%
McDonald's Corp. (MCD) $88.08 +0.82%
Merck & Co. Inc. (MRK) $43.69 +0.81%
Pfizer Inc. (PFE) $23.95 +0.67%
Wal-Mart Stores Inc. (WMT) $72.24 +0.35%
Alcoa Inc. (AA) $8.78 +0.34%
Travelers Company Inc. (TRV) $65.34 +0.32%
Kraft Foods Inc. (KFT) $40.62 +0.30%

Dow Jones I.A - Fallers
American Express Co. (AXP) $56.74 -1.48%
Home Depot Inc. (HD) $56.23 -0.89%
Verizon Communications Inc. (VZ) $43.70 -0.81%
AT&T Inc. (T) $36.89 -0.75%
Cisco Systems Inc. (CSCO) $18.93 -0.68%
Microsoft Corp. (MSFT) $30.72 -0.58%
Exxon Mobil Corp. (XOM) $87.90 -0.57%
General Electric Co. (GE) $20.90 -0.50%
3M Co. (MMM) $93.79 -0.48%
United Technologies Corp. (UTX) $80.01 -0.45%

Nasdaq 100 - Risers
Celgene Corp. (CELG) $70.70 +2.30%
Apple Inc. (AAPL) $662.30 +2.19%
Garmin Ltd. (GRMN) $41.99 +1.97%
Netflix Inc. (NFLX) $64.93 +1.95%
Dell Inc. (DELL) $12.44 +1.80%
Expedia Inc. (EXPE) $52.31 +1.35%
Perrigo Company (PRGO) $108.24 +1.23%
Wynn Resorts Ltd. (WYNN) $105.90 +1.05%
Sirius Satellite Radio Inc. (SIRI) $2.58 +0.78%
CH Robinson Worldwide Inc (CHRW) $57.47 +0.75%

Nasdaq 100 - Fallers
Avago Technologies Ltd. (AVGO) $35.57 -3.45%
Autodesk Inc. (ADSK) $33.90 -3.06%
Sears Holdings Corp. (SHLD) $57.71 -2.99%
Cerner Corp. (CERN) $70.87 -2.33%
Baidu Inc. (BIDU) $131.17 -2.10%
Maxim Integrated Products Inc. (MXIM) $28.20 -2.08%
F5 Networks Inc. (FFIV) $101.48 -2.01%
Microchip Technology Inc. (MCHP) $35.03 -1.95%
Virgin Media Inc. (VMED) $27.27 -1.94%
Green Mountain Coffee Roasters Inc. (GMCR) $24.47 -1.92%

AB

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