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US open: We risk the credibility of the institution, Plosser says

Date: Thursday 27 Sep 2012

US open: We risk the credibility of the institution, Plosser says

-Philly Fed chief (Plosser) says “watching European crisis” –Bbg
-Plosser: There is plenty to keep you up at night
-Plosser: We risk the credibility of the institution

Dow Jones Industrial: 0.15%
Nasdaq Comp.: 0.47%
S&P 500: 0.30%

Stock markets in Hong Kong, Shanghai and Tokyo registered gains today on speculation that the People’s Bank of China injected a net 365bn yuan this week into the Chinese banking system to boost markets ahead of next week's Golden Week holidays.

That is helping markets to catch their breath the world over, although investors are still bracing themselves for this evening’s presentation of next year’s budget (additional reforms included) in Madrid and against the risk of any further nasty surprises as regards the country’s current constitutional crisis.

Also helping to buttress sentiment a bit this afternoon are the latest weekly initial unemployment claims numbers, although the day’s other main reports: durable goods orders and pending home sales numbers, have come in weaker than expected.

In that same vein, and speaking to Bloomberg this afternoon, US Philadelphia Federal Reserve President Charles Plosser indicated the following: “The risks and the costs might be very much higher than whatever small benefits we get (...) If it doesn’t work, we risk the credibility of the institution.”

Shares of credit card company Discover Financial are advancing following the release of its latest quarterly results.

Analysts at Goldman Sachs have today initiated their coverage of Yahoo at “buy.” Over at Jefferies on the other hand analysts have downgraded Hewlett Packard to underweight from neutral.

Dollar General is moving lower after a secondary placement.

Weak tone to durable goods orders report

US durables goods orders for August were a bit of a horror show, declining 13,2% to show the biggest monthly decline in over three years. Economists were expecting a decline, but nothing of this scale; more something in the region of 5.3%.

The transportation sector had a malign impact on the figures, and with this sector stripped out the fall was a mere 1.6%, while orders for “core capital goods”, which exclude defence and aircraft orders, rose 1.1% after declining 5.2% in July. Even so, “a downward revision to July (to -5.2% from -4.0%) and a decline in core capital goods shipments (of 0.9%) gave the report a weak tone overall,” comment economists at Barclays Research.

Defence orders dropped by 40%.

First time jobless claims fell more than expected to a two-month low, by 26,000 to 359,000 (Consensus: 378,000).

Pending home sales dropped at a 2.6% month-on-month pace during August, well below the 0% expected.

Crude futures bounce back



10 year US Treasuries are falling by 6/32 dollars, with yields at 1.63%.

Front month West Texas crude futures are rising by 1.39%, to the 91.23 dollar level on the NYMEX.



S&P 500 - Risers
Goodyear Tire & Rubber Co. (GT) $12.60 +5.07%
First Solar Inc. (FSLR) $21.93 +4.93%
Alpha Natural Res (ANR) $6.86 +4.08%
Advanced Micro Devices Inc. (AMD) $3.45 +3.92%
Metropcs Communications Inc. (PCS) $11.64 +3.47%
Discover Financial Services (DFS) $38.28 +3.40%
Hartford Financial Services Group Inc. (HIG) $19.31 +3.37%
EQT Corp. (EQT) $58.86 +3.35%
Sprint Nextel Corporation (S) $5.61 +2.75%
Range Resources Corp. (RRC) $69.39 +2.42%

S&P 500 - Fallers
McCormick & Co. (MKC) $60.57 -3.69%
Target Corp. (TGT) $62.78 -1.64%
CenturyLink Inc. (CTL) $40.68 -1.34%
R.R. Donnelley & Sons Co. (RRD) $10.79 -1.31%
Altera Corp. (ALTR) $34.33 -1.27%
Windstream Corp. (WIN) $10.30 -1.19%
United States Steel Corp. (X) $19.10 -1.19%
Coach Inc. (COH) $53.56 -1.16%
Wisconsin Energy Corp. (WEC) $37.28 -1.14%
Southwest Airlines Co. (LUV) $8.82 -1.12%

Dow Jones I.A - Risers
Bank of America Corp. (BAC) $8.98 +1.87%
General Electric Co. (GE) $22.27 +0.77%
Walt Disney Co. (DIS) $52.29 +0.67%
Pfizer Inc. (PFE) $24.98 +0.60%
Coca-Cola Co. (KO) $37.98 +0.58%
Cisco Systems Inc. (CSCO) $18.68 +0.57%
Intel Corp. (INTC) $22.76 +0.51%
Chevron Corp. (CVX) $116.89 +0.51%
JP Morgan Chase & Co. (JPM) $40.44 +0.50%
Merck & Co. Inc. (MRK) $45.23 +0.48%

Dow Jones I.A - Fallers
Boeing Co. (BA) $69.81 -0.63%
Microsoft Corp. (MSFT) $29.99 -0.58%
Kraft Foods Inc. (KFT) $41.09 -0.44%
3M Co. (MMM) $92.20 -0.42%
Alcoa Inc. (AA) $8.86 -0.34%
United Technologies Corp. (UTX) $78.31 -0.28%
Procter & Gamble Co. (PG) $69.12 -0.26%
Wal-Mart Stores Inc. (WMT) $74.00 -0.26%
American Express Co. (AXP) $56.11 -0.06%
McDonald's Corp. (MCD) $93.19 -0.01%

Nasdaq 100 - Risers
Green Mountain Coffee Roasters Inc. (GMCR) $24.29 +3.27%
Electronic Arts Inc. (EA) $12.88 +2.22%
Sirius Satellite Radio Inc. (SIRI) $2.56 +2.20%
Akamai Technologies Inc. (AKAM) $38.70 +2.04%
Amazon.Com Inc. (AMZN) $254.65 +1.99%
Maxim Integrated Products Inc. (MXIM) $26.59 +1.96%
eBay Inc. (EBAY) $48.47 +1.95%
Yahoo! Inc. (YHOO) $15.91 +1.92%
Research in Motion Ltd. (RIMM) $7.13 +1.86%
Apollo Group Inc. (APOL) $29.19 +1.57%

Nasdaq 100 - Fallers
Altera Corp. (ALTR) $34.33 -1.27%
Warner Chilcott Plc (WCRX) $13.15 -1.13%
Dell Inc. (DELL) $9.92 -0.84%
Costco Wholesale Corp. (COST) $100.18 -0.81%
Netflix Inc. (NFLX) $54.74 -0.71%
Bed Bath & Beyond Inc. (BBBY) $62.33 -0.61%
Microsoft Corp. (MSFT) $29.99 -0.58%
Cerner Corp. (CERN) $73.65 -0.54%
Dollar Tree Stores Inc. (DLTR) $48.12 -0.54%
Ross Stores Inc. (ROST) $64.46 -0.48%

AB

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