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By: The Wild Investor Sunday, June 29, 2008 7:23 PM
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Auto insurance can be one of the most annoying things to buy, but of course, through the use of the internet, there are services that are making it much easier.
NOTE: AUTO INSURANCE IS A MUST WHEN YOU PURCHASE A VEHICLE.
There are no cheapest providers, and what might be inexpensive for one person could cost more for another, so how do you find the best one for you?
OnlineAutoInsurance.com helps you easily compare insurance quotes between several different companies. All you have to do is put in your zip code, fill out the form, and a quote list is generated for you.
OnlineAutoInsurance.com helps consumers quickly and easily make a car insurance comparison from a variety of companies. Instead of calling around or visiting individual websites, complete one single questionnaire to instantly get back the rates of different insurers. Completing a quote comparison is an easy way to find cheap prices for the coverage your need.
NOTE: ONLINE AUTO INSURANCE WILL SURELY PROVIDE CONVENIENCE TO CUSTOMERS.
California auto insurance or any state for that matter can be found one the site.
Aside from just finding quotes, the site also houses a few articles so you know what you are actually doing or looking for. Although the site layout could be a little bit cleaner and presentable, it gets the job done for your auto insurance needs.
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HOW TO DEAL WITH KNEE-JERK MARKET REACTIONS
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How to Deal with Knee-Jerk Market Reactions
by Jack Crooks 06-07-08
Jack Crooks
This past week was a roller coaster ride in the currency markets, and it sure ended with a bang. I'll get to the big news in a second. And I'll also tell you what to make of this market.
NOTE: CROOKS IS FAMOUS IN ANALYZING THE MARKET. HENCE, HIS COMMENTARY ALWAYS GIVES WEIGHT.
But first, I want to do a quick day-by-day rundown of what happened in the currency markets ...
Tuesday:
Ben Bernanke revealed new concern over inflation and spoke directly about the weaker dollar.
Knee-jerk reaction in the currency markets: The dollar jumped.
Thursday:
European Central Bank President Trichet signaled interest rate hikes may come as early as July.
Knee-jerk reaction in the currency markets: The euro soared.
Yesterday:
U.S. Non-farm Payrolls were reported down 49,000 (better-than-expected) for the month of May. But U.S. unemployment leapt by half a percentage point to 5.5% (worse-than-expected).
Knee-jerk reaction: The dollar tumbled. The Dow lost almost 400 points. And on the same day, crude oil skyrocketed by more than $10 a barrel!
Looks like it's time to queue up the recession talk again. And don't forget that inflation is a big concern — Big Ben even said so!
Did this tag-team of Fed inflation rhetoric and freshly disappointing economic data open up the flood gates? Sure might have.
Federal Reserve Chairman Ben Bernanke's leadership ability is being called into question as crude oil prices explode and unemployment soars.
Federal Reserve Chairman Ben Bernanke's leadership ability is being called into question as crude oil prices explode and unemployment soars.
Stocks don't like it when the Fed gets lovey-dovey with inflation. In an already tight lending environment, if the Fed leans toward drying up access to money (or away from doling it out freely), who's going to keep what little leftover cash they have invested in bogged-down companies that still may be many months away from honest-to-goodness recovery?
It's been surprising how well stocks have held up so far. It's likely the keep-hope-alive mentality was buoying the Dow and the S&P. But with every new fundamental defeat how long can investors' minds stay focused on the light at the end of the tunnel? It's dimming rather quickly and should be practically invisible if the Fed keeps its attention on rising prices.
And for the buck, it comes down to one thing: Sentiment. We can argue all day for a dollar rally, or a collapse to new lows. And we have. But what matters is how the dollar is perceived by those who are trading it.
If you're off trading solo it's not always easy to keep a firm grip on market sentiment.
But protecting against most of the bad and positioning for most of the good is a crucial step toward successful trading.
External Sponsorship
Smart Investors Profit Overseas ...
Live in real luxury where waves roll into your "backyard" ... where your own gardener prunes your hollyhocks and your own maid serves your dinner in your own piece of paradise. You don't need to be a millionaire to afford this ... in fact, you can live this life on just $19 a day ...
Click here for more information ...
Here's a little guideline for today's markets ...
Hope Can Hurt; Fear Can Help
I read a book on trading many years ago that said before every trading day begins, you must ask yourself: How badly can I screw-up my account today?
It sounded a bit blunt, and an odd way to start the morning. But I've found this simple approach is a great way to focus on the key element that will determine long-term success in any asset market — stocks, bonds, commodities, currencies, and even real estate.
It's risk.
In terms of the risks today, you probably have your own personal checklist. You might be including:
* Inflation fears brewing.
* Potential time-bomb of derivatives.
* An overvalued stock market.
* Falling real estate values.
* On and on into infinitum ...
John Pierpont Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist, and art collector who dominated corporate finance and industrial consolidation during his time.
John Pierpont Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist, and art collector who dominated corporate finance and industrial consolidation during his time.
No doubt these are market risks. And they do inspire fear. But there's nothing we can do to fully eliminate risks. We can neither keep them from happening, nor forecast them with complete accuracy. But you can control the small stuff, like your individual account risk.
It's obvious some of us can handle more risk than others. The best single phrase about how much investment risk one should take comes from J.P. Morgan, who told a worried friend, "sell down to your sleeping point."
Translation: If you're lying awake at night, worrying about your investments, you are carrying too much risk.
I have found the simple "screw up your account" mantra very useful for risk control, so much so that I have it printed across the top of my "trade sheets" where I record each of my trades, risk levels, and reasons for the trade.
Why does it help me? Because it forces me to define the level of risk I will take BEFORE I enter an investment position. The reason I have capitalized "before" is because before you enter the investment you still have at least a degree of objectivity left in your brain.
AFTER you enter an investment position, your objectivity is flushed down the drain and replaced with something very dangerous — hope.
NOTE: IMPORTANT CONSIDERATION BEFORE TRADING...
Here's an example of how I define my risk in a currency trade BEFORE putting on a trade ...
I look for a key technical level — some type of chart support area, or basic trend line that will tell me that the dynamics of supply and demand in the market have changed. Or put another way: if prices reach this level I am wrong because the market has proven me wrong.
At this point I'm out of the trade with a loss, period, end of story. I can always reenter the trade if it makes sense. But because I have exited, I somewhat regain that modicum of objectivity to better evaluate price action.
Always remember: Being in cash is an investment position; and it's sometimes the best position!
There is an old market adage: Bull markets climb a wall of worry, while bear markets flow down a river of hope. It's natural to hope our losses will subside and be afraid our profits will go away. And it's also why we are tricked by Mr. Market.
Legendary Wall Street trader Jesse Livermore summed it up best when he talked about reversing our natural impulses in the market:
"When the market goes against you, you hope that every day will be the last day — and you lose more than you should had you not listened to hope. And when the market goes your way, you become fearful that the next day will take away your profit and you get out — too soon. The successful trader has to fight these two deep-seated instincts."
We must turn hope and fear inside out. We must fear our losses will get bigger and cut them short. And we must hope that our profits get bigger and let them run. In these choppy markets, defining risk beforehand is the best thing you can do.
Best wishes,
Jack
About Money and Markets
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How to Deal with Knee-Jerk Market Reactions
by Jack Crooks 06-07-08
Jack Crooks
This past week was a roller coaster ride in the currency markets, and it sure ended with a bang. I'll get to the big news in a second. And I'll also tell you what to make of this market.
NOTE: CROOKS IS FAMOUS IN ANALYZING THE MARKET. HENCE, HIS COMMENTARY ALWAYS GIVES WEIGHT.
But first, I want to do a quick day-by-day rundown of what happened in the currency markets ...
Tuesday:
Ben Bernanke revealed new concern over inflation and spoke directly about the weaker dollar.
Knee-jerk reaction in the currency markets: The dollar jumped.
Thursday:
European Central Bank President Trichet signaled interest rate hikes may come as early as July.
Knee-jerk reaction in the currency markets: The euro soared.
Yesterday:
U.S. Non-farm Payrolls were reported down 49,000 (better-than-expected) for the month of May. But U.S. unemployment leapt by half a percentage point to 5.5% (worse-than-expected).
Knee-jerk reaction: The dollar tumbled. The Dow lost almost 400 points. And on the same day, crude oil skyrocketed by more than $10 a barrel!
Looks like it's time to queue up the recession talk again. And don't forget that inflation is a big concern — Big Ben even said so!
Did this tag-team of Fed inflation rhetoric and freshly disappointing economic data open up the flood gates? Sure might have.
Federal Reserve Chairman Ben Bernanke's leadership ability is being called into question as crude oil prices explode and unemployment soars.
Federal Reserve Chairman Ben Bernanke's leadership ability is being called into question as crude oil prices explode and unemployment soars.
Stocks don't like it when the Fed gets lovey-dovey with inflation. In an already tight lending environment, if the Fed leans toward drying up access to money (or away from doling it out freely), who's going to keep what little leftover cash they have invested in bogged-down companies that still may be many months away from honest-to-goodness recovery?
It's been surprising how well stocks have held up so far. It's likely the keep-hope-alive mentality was buoying the Dow and the S&P. But with every new fundamental defeat how long can investors' minds stay focused on the light at the end of the tunnel? It's dimming rather quickly and should be practically invisible if the Fed keeps its attention on rising prices.
And for the buck, it comes down to one thing: Sentiment. We can argue all day for a dollar rally, or a collapse to new lows. And we have. But what matters is how the dollar is perceived by those who are trading it.
If you're off trading solo it's not always easy to keep a firm grip on market sentiment.
But protecting against most of the bad and positioning for most of the good is a crucial step toward successful trading.
External Sponsorship
Smart Investors Profit Overseas ...
Live in real luxury where waves roll into your "backyard" ... where your own gardener prunes your hollyhocks and your own maid serves your dinner in your own piece of paradise. You don't need to be a millionaire to afford this ... in fact, you can live this life on just $19 a day ...
Click here for more information ...
Here's a little guideline for today's markets ...
Hope Can Hurt; Fear Can Help
I read a book on trading many years ago that said before every trading day begins, you must ask yourself: How badly can I screw-up my account today?
It sounded a bit blunt, and an odd way to start the morning. But I've found this simple approach is a great way to focus on the key element that will determine long-term success in any asset market — stocks, bonds, commodities, currencies, and even real estate.
It's risk.
In terms of the risks today, you probably have your own personal checklist. You might be including:
* Inflation fears brewing.
* Potential time-bomb of derivatives.
* An overvalued stock market.
* Falling real estate values.
* On and on into infinitum ...
John Pierpont Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist, and art collector who dominated corporate finance and industrial consolidation during his time.
John Pierpont Morgan (April 17, 1837 – March 31, 1913) was an American financier, banker, philanthropist, and art collector who dominated corporate finance and industrial consolidation during his time.
No doubt these are market risks. And they do inspire fear. But there's nothing we can do to fully eliminate risks. We can neither keep them from happening, nor forecast them with complete accuracy. But you can control the small stuff, like your individual account risk.
It's obvious some of us can handle more risk than others. The best single phrase about how much investment risk one should take comes from J.P. Morgan, who told a worried friend, "sell down to your sleeping point."
Translation: If you're lying awake at night, worrying about your investments, you are carrying too much risk.
I have found the simple "screw up your account" mantra very useful for risk control, so much so that I have it printed across the top of my "trade sheets" where I record each of my trades, risk levels, and reasons for the trade.
Why does it help me? Because it forces me to define the level of risk I will take BEFORE I enter an investment position. The reason I have capitalized "before" is because before you enter the investment you still have at least a degree of objectivity left in your brain.
AFTER you enter an investment position, your objectivity is flushed down the drain and replaced with something very dangerous — hope.
NOTE: IMPORTANT CONSIDERATION BEFORE TRADING...
Here's an example of how I define my risk in a currency trade BEFORE putting on a trade ...
I look for a key technical level — some type of chart support area, or basic trend line that will tell me that the dynamics of supply and demand in the market have changed. Or put another way: if prices reach this level I am wrong because the market has proven me wrong.
At this point I'm out of the trade with a loss, period, end of story. I can always reenter the trade if it makes sense. But because I have exited, I somewhat regain that modicum of objectivity to better evaluate price action.
Always remember: Being in cash is an investment position; and it's sometimes the best position!
There is an old market adage: Bull markets climb a wall of worry, while bear markets flow down a river of hope. It's natural to hope our losses will subside and be afraid our profits will go away. And it's also why we are tricked by Mr. Market.
Legendary Wall Street trader Jesse Livermore summed it up best when he talked about reversing our natural impulses in the market:
"When the market goes against you, you hope that every day will be the last day — and you lose more than you should had you not listened to hope. And when the market goes your way, you become fearful that the next day will take away your profit and you get out — too soon. The successful trader has to fight these two deep-seated instincts."
We must turn hope and fear inside out. We must fear our losses will get bigger and cut them short. And we must hope that our profits get bigger and let them run. In these choppy markets, defining risk beforehand is the best thing you can do.
Best wishes,
Jack
About Money and Markets
For more information and archived issues, visit http://www.moneyandmarkets.com
Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Tony Sagami, Nilus Mattive, Sean Brodrick, Larry Edelson, Michael Larson and Jack Crooks. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Amber Dakar, Dinesh Kalera, Mathias Korzan, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau and Leslie Underwood.
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DOW STOCK INDEX FALLS NEARLY 400 POINTS IN OIL
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MARKETS
Dow stock index falls nearly 400 points on oil, jobs news
Major indexes plunge 3%. Indicators have been mixed, stirring volatile trading.
By Walter Hamilton, Los Angeles Times Staff Writer
June 7, 2008
NEW YORK -- Illustrating the stock market's deep confusion about the economy, bad news about oil prices and jobs sent the Dow Jones industrials tumbling almost 400 points Friday, a day after the index rallied strongly on optimism about jobs and consumer spending.
The sharp reversal reflects a pattern of uncertainty that is leading investors to react frantically to each day's helping of news.
* Graphic: Spike in unemployment rate
Graphic: Spike in unemployment rate
* Graphic: Volatility
Graphic: Volatility
* Chart: Crude oil prices rise sharply
"It goes to show how bipolar the attitude is," said Paul Hickey, co-founder of investment research firm Bespoke Investment Group in Harrison, N.Y. "One day things can be great, and the next day things can be bad."
The Dow plummeted 394.64 points Friday, or 3.1%, to 12,209.81. It was the blue-chip average's biggest drop since February 2007.
NOTE: STOCKMARKET NEEDED TO BE STUDIED WELL FOR IT'S EFFECT IS WORLDWIDE.
Other major indexes suffered similar declines.
Stock/fund symbol or name:
empty
The Standard & Poor's 500 sank 43.37 points, or 3.1%, to 1,360.68. The Nasdaq composite index lost 75.38 points, or 3%, to 2,474.56.
The market fell sharply in the morning, after the Labor Department reported that the unemployment rate jumped in May to 5.5%, its highest level since 2004. The half-point increase from 5% in April marked the rate's biggest monthly increase in 22 years. Economists had expected only a tick up to 5.1%.
After absorbing the job news, stocks gradually extended their losses as oil prices ballooned throughout the day.
Crude futures rocketed up $10.75 to settle at $138.54 a barrel, exceeding their record close set two weeks ago. It was the biggest one-day rise in dollar terms in the New York Mercantile Exchange's history.
Oil's rally was triggered in part by an analyst's prediction that crude would hit the $150-a-barrel mark by the Fourth of July.
The stock sell-off was the opposite of Thursday's trading, which boosted the Dow 214 points. Benign economic data and impressive retail sales raised hopes that the economy would sidestep the worst-case scenario.
But that optimism may have set the market up for disappointment. Though the economy shed fewer jobs last month than expected -- 49,000 versus analysts' consensus estimate of 60,000 -- so-called whisper numbers circulating on Wall Street had raised hopes for a better showing.
"That budding optimism in a lightly traded summer market was vulnerable to a correction on bad news," said Alan Gayle, senior investment strategist at RidgeWorth Capital Management in Richmond, Va. "And when the jobs report came in, the market got crunched. The exclamation point was the over $10-a-barrel rise in crude prices."
NOTE: ANALYSTS ARE VERY CRITICAL WITH THEIR STUDIES ON THE SEESAW MOVEMENT OF THE STOCKMARKET.
The seesaw action shows that investors can't figure out which way the economy is going and are simply listing with each day's news.
"You're getting a lot of mixed signals out there," said Georges Yared, chief investment strategist at Yared Investment Research in Minneapolis. "The dots of bad news and good news just aren't connecting yet."
The market losses were widespread. Declining issues outnumbered advancers by more than 4 to 1 on the New York Stock Exchange. All 30 of the stocks in the Dow industrials lost ground, as did all 10 major industry groups in the S&P 500. And all 91 financial stocks in the S&P 500 fell, tumbling 5% as a group, dropping below their March low. The 24-member BKX bank index slid 5.3% to a five-year low.
Credit card stocks fell on concern that rising unemployment will lead to more defaults among cardholders. American Express dropped $2.78, or 5.9%, to $44.65. Capital One Financial retreated $3.47, or 7%, to $46.15.
Among brokerages, Morgan Stanley led the declines, tumbling $3.78, or 8.5%, to $40.81.
Washington Mutual sank $1.08, or 13%, to $7.53, losing its title as the largest U.S. savings and loan by stock value to Hudson City Bancorp. WaMu is still the largest thrift by assets.
Midwest regional bank National City dropped 40 cents, or 7.5%, to $4.95 after the Wall Street Journal reported that regulators had effectively put the company on probation.
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MARKETS
Dow stock index falls nearly 400 points on oil, jobs news
Major indexes plunge 3%. Indicators have been mixed, stirring volatile trading.
By Walter Hamilton, Los Angeles Times Staff Writer
June 7, 2008
NEW YORK -- Illustrating the stock market's deep confusion about the economy, bad news about oil prices and jobs sent the Dow Jones industrials tumbling almost 400 points Friday, a day after the index rallied strongly on optimism about jobs and consumer spending.
The sharp reversal reflects a pattern of uncertainty that is leading investors to react frantically to each day's helping of news.
* Graphic: Spike in unemployment rate
Graphic: Spike in unemployment rate
* Graphic: Volatility
Graphic: Volatility
* Chart: Crude oil prices rise sharply
"It goes to show how bipolar the attitude is," said Paul Hickey, co-founder of investment research firm Bespoke Investment Group in Harrison, N.Y. "One day things can be great, and the next day things can be bad."
The Dow plummeted 394.64 points Friday, or 3.1%, to 12,209.81. It was the blue-chip average's biggest drop since February 2007.
NOTE: STOCKMARKET NEEDED TO BE STUDIED WELL FOR IT'S EFFECT IS WORLDWIDE.
Other major indexes suffered similar declines.
Stock/fund symbol or name:
empty
The Standard & Poor's 500 sank 43.37 points, or 3.1%, to 1,360.68. The Nasdaq composite index lost 75.38 points, or 3%, to 2,474.56.
The market fell sharply in the morning, after the Labor Department reported that the unemployment rate jumped in May to 5.5%, its highest level since 2004. The half-point increase from 5% in April marked the rate's biggest monthly increase in 22 years. Economists had expected only a tick up to 5.1%.
After absorbing the job news, stocks gradually extended their losses as oil prices ballooned throughout the day.
Crude futures rocketed up $10.75 to settle at $138.54 a barrel, exceeding their record close set two weeks ago. It was the biggest one-day rise in dollar terms in the New York Mercantile Exchange's history.
Oil's rally was triggered in part by an analyst's prediction that crude would hit the $150-a-barrel mark by the Fourth of July.
The stock sell-off was the opposite of Thursday's trading, which boosted the Dow 214 points. Benign economic data and impressive retail sales raised hopes that the economy would sidestep the worst-case scenario.
But that optimism may have set the market up for disappointment. Though the economy shed fewer jobs last month than expected -- 49,000 versus analysts' consensus estimate of 60,000 -- so-called whisper numbers circulating on Wall Street had raised hopes for a better showing.
"That budding optimism in a lightly traded summer market was vulnerable to a correction on bad news," said Alan Gayle, senior investment strategist at RidgeWorth Capital Management in Richmond, Va. "And when the jobs report came in, the market got crunched. The exclamation point was the over $10-a-barrel rise in crude prices."
NOTE: ANALYSTS ARE VERY CRITICAL WITH THEIR STUDIES ON THE SEESAW MOVEMENT OF THE STOCKMARKET.
The seesaw action shows that investors can't figure out which way the economy is going and are simply listing with each day's news.
"You're getting a lot of mixed signals out there," said Georges Yared, chief investment strategist at Yared Investment Research in Minneapolis. "The dots of bad news and good news just aren't connecting yet."
The market losses were widespread. Declining issues outnumbered advancers by more than 4 to 1 on the New York Stock Exchange. All 30 of the stocks in the Dow industrials lost ground, as did all 10 major industry groups in the S&P 500. And all 91 financial stocks in the S&P 500 fell, tumbling 5% as a group, dropping below their March low. The 24-member BKX bank index slid 5.3% to a five-year low.
Credit card stocks fell on concern that rising unemployment will lead to more defaults among cardholders. American Express dropped $2.78, or 5.9%, to $44.65. Capital One Financial retreated $3.47, or 7%, to $46.15.
Among brokerages, Morgan Stanley led the declines, tumbling $3.78, or 8.5%, to $40.81.
Washington Mutual sank $1.08, or 13%, to $7.53, losing its title as the largest U.S. savings and loan by stock value to Hudson City Bancorp. WaMu is still the largest thrift by assets.
Midwest regional bank National City dropped 40 cents, or 7.5%, to $4.95 after the Wall Street Journal reported that regulators had effectively put the company on probation.
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MARKET SNAPSHOT: U.S. STOCK INDEXES END WITH STIFF LOSSES ON SPIKE IN OIL PRICES
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MARKET SNAPSHOT: U.S. Stock Indexes End With Stiff Losses On Spike In Oil Prices
Dow Jones
June 06, 2008: 04:52 PM EST
Slammed hard by the soaring price of crude-oil futures, which on Friday closed at a new record high, and a rise in the jobless rate, U.S. stocks more than wiped out weekly gains, with the Dow chalking up the 8th-largest point drop in the blue-chip index's history.
NOTE: SOARING PRICE OF CRUDE-OIL HAS GREAT EFFECT ON THE STOCKMARKET.
"It looks crazy because we've had such a low unemployment rate for the past three years. But it's all about the oil, and today was not a pretty ride," said Art Hogan, chief market strategist at Jefferies & Co.
The Dow Jones Industrial Average fell 394.64 points, or 3.1%, to 12,209.81, giving it a weekly loss of 3.5%.
The Dow's decline, which left all 30 of its components in the red, is the heaviest hit in terms of points lost, since Feb. 27, 2007, when it fell 416.02 points.
Heavy losses were posted by the likes of with American International Group Inc. and General Motors Corp. .
NOTE: AMERICAN INTERNATIONAL GROUP INC AND GENERAL MOTORS CORP. ARE MAJOR PLAYERS OF THE STOCKMARKET.
The S&P 500 fell 43.36 points, or 3.1%, to 1,360.69, leaving it down 2.9% for the week, Financials and consumer discretionary led sector declines, with the former off 4.8% and the latter down 4.3%.
The technology-dominated Nasdaq Composite shed 75.38 points, or 3%, to 2, 474.56 for a weekly decline of 1.9%.
The major indexes were prepped for an opening drop by the Labor Department's pre-open report that the unemployment rate in May rose to 5.5%. Economists had forecast a far smaller 0.1 percentage point gain in the unemployment rate, to 5.1%.
But, the skyrocketing price of crude-oil proved to be the stock's market's major undoing.
Helping trigger the surge in crude was the dollar's decline, which fell sharply one day after the European Central Bank opted to leave its key lending rate unchanged at 4%.
Crude moves
Crude futures reached a record of $139.01 in electronic trading on Globex, an all-time high for a front-month future contract, while July crude climbed $ 10.75, or 8.4%, to end at $138.54 a barrel on the New York Mercantile Exchange and climbed as high as $138.80 earlier on.
"Tough talk from Israel, where an official there said attacks on Iran's nuclear facilities looked 'unavoidable,' has ramped up geopolitical concerns. If all that is not enough, a U.S. investment bank has raised its oil price forecast to $150 a barrel by July 4th," said analysts at Action Economics.
On Thursday, crude futures bounced off a key support level of $122 a barrel, but the bounce was "a bounce with steroids," Orlando said.
"The jobs report is going to dominate everyone's attention," said Phil Orlando, equity market strategist at Federated Investors. "The nonfarm payrolls data was fine. In fact, it was a little better than expected, but what is going to be the headline in every paper in America tomorrow is the unemployment rate spiked to 5.5%."
"If people over the course of the day start to focus on wage inflation, nonfarm numbers, et cetera, we might do better after a sloppy opening. Or, investors may decide to shift to the price [rise] of crude over the last two days, and sell on that," said Orlando in outlining a scenario that played out during the session.
Other commodities trade had gold futures climbing more than $23 an ounce to end the week with a gain of 0.8%, with August gold up $23.50 at $899 an ounce.
Friday's volume on the New York Stock Exchange neared 1.5 billion, with decliners topping advancing issues 5 to 1. On the Nasdaq, 950 million shares switched hands, and declining stocks outran those advancing more than 4 to 1.
On Thursday, U.S. stocks snapped a three-session losing streak, rallying strongly after better-than-expected weekly jobless claims data and a strong May sales report from retailing giant Wal-Mart Stores Inc. .
On the heels of that report, Wal-Mart is holding its annual investors' meeting.
Active issues
Shares of National Semiconductor Corp. shares rose 4.8% after it beat earnings and sales forecasts.
The Wall Street Journal reported American International Group is under inquiry as the Securities and Exchange Commission examines the blue-chip insurance giant's involvement in credit default swaps.
The Journal also reported National City Corp. is under heightened scrutiny from federal regulators. Other medium-sized banks are also likely being closely watched as regulators push lenders to raise more capital and improve risk management, the newspaper said.
Also in the banking sector, Societe Generale downgraded Swiss institutions UBS and Credit Suisse to sell from hold, saying it expects the investment banking sector to see revenue fall back to 2005 levels.
Best Buy Co. Inc. fell 6.6% after its downgrade to hold from buy at Deutsche Bank, which cited increased competition from Wal-Mart.
In deal news, Dutch chip-equipment manufacturer ASM International said it received a preliminary approach from Applied Materials about potentially buying two business units for $400 million to $500 million.
(END) Dow Jones Newswires
06-06-08 1652ET
Copyright (c) 2008 Dow Jones & Company, Inc.
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* : Time reflects local markets trading time. † - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer
Copyright © 2008 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. All Times are ET.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Hemscott.
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.
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TRADING
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MARKET SNAPSHOT: U.S. Stock Indexes End With Stiff Losses On Spike In Oil Prices
Dow Jones
June 06, 2008: 04:52 PM EST
Slammed hard by the soaring price of crude-oil futures, which on Friday closed at a new record high, and a rise in the jobless rate, U.S. stocks more than wiped out weekly gains, with the Dow chalking up the 8th-largest point drop in the blue-chip index's history.
NOTE: SOARING PRICE OF CRUDE-OIL HAS GREAT EFFECT ON THE STOCKMARKET.
"It looks crazy because we've had such a low unemployment rate for the past three years. But it's all about the oil, and today was not a pretty ride," said Art Hogan, chief market strategist at Jefferies & Co.
The Dow Jones Industrial Average fell 394.64 points, or 3.1%, to 12,209.81, giving it a weekly loss of 3.5%.
The Dow's decline, which left all 30 of its components in the red, is the heaviest hit in terms of points lost, since Feb. 27, 2007, when it fell 416.02 points.
Heavy losses were posted by the likes of with American International Group Inc. and General Motors Corp. .
NOTE: AMERICAN INTERNATIONAL GROUP INC AND GENERAL MOTORS CORP. ARE MAJOR PLAYERS OF THE STOCKMARKET.
The S&P 500 fell 43.36 points, or 3.1%, to 1,360.69, leaving it down 2.9% for the week, Financials and consumer discretionary led sector declines, with the former off 4.8% and the latter down 4.3%.
The technology-dominated Nasdaq Composite shed 75.38 points, or 3%, to 2, 474.56 for a weekly decline of 1.9%.
The major indexes were prepped for an opening drop by the Labor Department's pre-open report that the unemployment rate in May rose to 5.5%. Economists had forecast a far smaller 0.1 percentage point gain in the unemployment rate, to 5.1%.
But, the skyrocketing price of crude-oil proved to be the stock's market's major undoing.
Helping trigger the surge in crude was the dollar's decline, which fell sharply one day after the European Central Bank opted to leave its key lending rate unchanged at 4%.
Crude moves
Crude futures reached a record of $139.01 in electronic trading on Globex, an all-time high for a front-month future contract, while July crude climbed $ 10.75, or 8.4%, to end at $138.54 a barrel on the New York Mercantile Exchange and climbed as high as $138.80 earlier on.
"Tough talk from Israel, where an official there said attacks on Iran's nuclear facilities looked 'unavoidable,' has ramped up geopolitical concerns. If all that is not enough, a U.S. investment bank has raised its oil price forecast to $150 a barrel by July 4th," said analysts at Action Economics.
On Thursday, crude futures bounced off a key support level of $122 a barrel, but the bounce was "a bounce with steroids," Orlando said.
"The jobs report is going to dominate everyone's attention," said Phil Orlando, equity market strategist at Federated Investors. "The nonfarm payrolls data was fine. In fact, it was a little better than expected, but what is going to be the headline in every paper in America tomorrow is the unemployment rate spiked to 5.5%."
"If people over the course of the day start to focus on wage inflation, nonfarm numbers, et cetera, we might do better after a sloppy opening. Or, investors may decide to shift to the price [rise] of crude over the last two days, and sell on that," said Orlando in outlining a scenario that played out during the session.
Other commodities trade had gold futures climbing more than $23 an ounce to end the week with a gain of 0.8%, with August gold up $23.50 at $899 an ounce.
Friday's volume on the New York Stock Exchange neared 1.5 billion, with decliners topping advancing issues 5 to 1. On the Nasdaq, 950 million shares switched hands, and declining stocks outran those advancing more than 4 to 1.
On Thursday, U.S. stocks snapped a three-session losing streak, rallying strongly after better-than-expected weekly jobless claims data and a strong May sales report from retailing giant Wal-Mart Stores Inc. .
On the heels of that report, Wal-Mart is holding its annual investors' meeting.
Active issues
Shares of National Semiconductor Corp. shares rose 4.8% after it beat earnings and sales forecasts.
The Wall Street Journal reported American International Group is under inquiry as the Securities and Exchange Commission examines the blue-chip insurance giant's involvement in credit default swaps.
The Journal also reported National City Corp. is under heightened scrutiny from federal regulators. Other medium-sized banks are also likely being closely watched as regulators push lenders to raise more capital and improve risk management, the newspaper said.
Also in the banking sector, Societe Generale downgraded Swiss institutions UBS and Credit Suisse to sell from hold, saying it expects the investment banking sector to see revenue fall back to 2005 levels.
Best Buy Co. Inc. fell 6.6% after its downgrade to hold from buy at Deutsche Bank, which cited increased competition from Wal-Mart.
In deal news, Dutch chip-equipment manufacturer ASM International said it received a preliminary approach from Applied Materials about potentially buying two business units for $400 million to $500 million.
(END) Dow Jones Newswires
06-06-08 1652ET
Copyright (c) 2008 Dow Jones & Company, Inc.
Top of page
More Markets
Freaky Friday on Wall Street
Wall Street cozying up to Obama
Oil prices bounce back over $130
The Hot List
100 best places to start a business
Diesel: The truck stops here
'You're working for gas now'
Top Stories
The trick to getting a mortgage fixed
Oil-using nations urge more production
Gas prices just shy of record
Summer camps cut back
The ultimate kitchen upgrade
Get a FREE TRIAL Issue!
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Canada, click here.
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Home Portfolio Calculators Contact Us Newsletters Podcasts RSS Mobile Widgets Press Center Site Map User Preferences
Advertise with Us Magazine Customer Service Download Fortune Lists Reprints Career Opportunities Special Sections Conferences Business Leader Council
Live Quotes automatically refresh, but individual equities are delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET.
* : Time reflects local markets trading time. † - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer
Copyright © 2008 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. All Times are ET.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Hemscott.
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.
Thursday, June 5, 2008
2nd UPDATE: NASDAQ OFFERS FREE, REAL - TIME STOCK-PRICE DATA
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2nd UPDATE: Nasdaq Offers Free, Real-Time Stock-Price Data
Dow Jones
June 02, 2008: 03:19 PM EST
(Updates throughout to note it is a one-month trial program, adds comments from Nasdaq executive, context on dispute over access to market information and latest share prices.)
By Doug Cameron
Of DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. (NDAQ) announced plans Monday to provide free, real-time stock-price data through online vendors such as Google Inc. (GOOG) as part of a one-month trial program, a move that comes amid a debate over access to stock- market information.
Retail investors had been limited to price data with a 15-minute to 20-minute delay from the major U.S. equity exchanges, which derive a large part of their revenue from charging institutional clients and online brokerages for more- detailed information.
Under the pilot program announced Monday, Nasdaq will allow its online partners to redistribute real-time stock-price data this month, at no cost to the online partners or the end user. After that, Nasdaq will charge the vendors up to $150,000 per month for the right to distribute the real-time data, leaving the partners to determine whether they will continue to provide the information free of charge.
NOTE: NASDAQ IS A WELL RESPECTED COMPANY IN THE STOCKMARKET INDUSTRY.
Nasdaq said it will provide "last quoted price data" for stocks on its own bourse, the New York Stock Exchange and the American Stock Exchange. Professional traders will still be charged for "depth of book" data such as trading volumes at particular prices.
Adena Friedman, Nasdaq OMX's executive vice president, said the move was " overdue," claiming to be the first U.S. stock exchange to offer free, universal access to real-time data.
The move comes more than a year after efforts by Nasdaq and the NYSE to publish free price data foundered amid opposition from some online vendors represented by the NetCoalition, an industry lobby group. The U.S. Securities and Exchange Commission has also failed to sign off.
Nasdaq has refiled to the SEC for permission to provide free, real-time quotes. Meanwhile, NYSE, a unit of NYSE Euronext (NYX), said Monday its own plans to offer free data have been awaiting approval from the SEC since January 2007. The SEC didn't return calls seeking comment on Nasdaq's latest move.
"We have returned (to the idea) as a pilot project," Nasdaq's Friedman told Dow Jones Newswires, noting that Nasdaq will waive charges to its online partners during June.
In addition to Google, vendor partners for the free data include business TV channel CNBC, a unit of General Electric Co. (GE), Xignite, an online quote service, and WSJ.com, a unit of News Corp. (NWS), which also publishes The Wall Street Journal and Dow Jones Newswires.
Friedman said the pilot would allow online vendors to develop a business model for providing the service. After June, Nasdaq will charge online vendors $100, 000 a month for access to data from its own platform, plus $50,000 a month for prices from NYSE and the Amex.
Friedman said the last quote price data had become an "innocent victim" of a wider debate at the SEC over ownership and access to depth-of-book data. She described the new initiative as "a safe way to start."
Nasdaq Doesn't Expect Revenue To Suffer
Nasdaq's move also reflects intensifying competition in the U.S. cash equities market, with Nasdaq and NYSE Euronext losing market share to electronic rivals such as Kansas City-based BATS Trading.
BATS last week launched real-time price quotes via Yahoo Inc. (YHOO), though it said it had never charged for data as part of its pitch to undercut trading costs on established exchanges. BATS has lifted its share of U.S. equities trading above 10% and is applying for regulated exchange status, with plans to launch a European platform later this year.
"We believed that market data - including full depth of book, not just last quotes - should be free to investors," said Randy Williams, a BATS spokesman.
Nasdaq OMX generated 22% of its revenue from market data related to its U.S. and European exchange platforms in the first quarter of 2008, its second-largest business segment after issuer services, which accounted for 23%. U.S. equities trading fees accounted for 16% of sales in the quarter.
NOTE: NASDAQ'S MONEY MAKING SCHEMES ARE NOT ONLY EFFECTIVE BUT ALSO BENEFITS IT'S CO PLAYERS..
Friedman said the trial wasn't expected to have a negative impact on revenue. Nasdaq plans to launch a similar trial for data from its European exchanges this month.
Nasdaq shares were recently down 3.7% at $33.73, in line with a broader downturn for exchange sector stocks.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com
(Shara Tibken contributed to this report.)
(END) Dow Jones Newswires
06-02-08 1519ET
Copyright (c) 2008 Dow Jones & Company, Inc.
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2nd UPDATE: Nasdaq Offers Free, Real-Time Stock-Price Data
Dow Jones
June 02, 2008: 03:19 PM EST
(Updates throughout to note it is a one-month trial program, adds comments from Nasdaq executive, context on dispute over access to market information and latest share prices.)
By Doug Cameron
Of DOW JONES NEWSWIRES
Nasdaq OMX Group Inc. (NDAQ) announced plans Monday to provide free, real-time stock-price data through online vendors such as Google Inc. (GOOG) as part of a one-month trial program, a move that comes amid a debate over access to stock- market information.
Retail investors had been limited to price data with a 15-minute to 20-minute delay from the major U.S. equity exchanges, which derive a large part of their revenue from charging institutional clients and online brokerages for more- detailed information.
Under the pilot program announced Monday, Nasdaq will allow its online partners to redistribute real-time stock-price data this month, at no cost to the online partners or the end user. After that, Nasdaq will charge the vendors up to $150,000 per month for the right to distribute the real-time data, leaving the partners to determine whether they will continue to provide the information free of charge.
NOTE: NASDAQ IS A WELL RESPECTED COMPANY IN THE STOCKMARKET INDUSTRY.
Nasdaq said it will provide "last quoted price data" for stocks on its own bourse, the New York Stock Exchange and the American Stock Exchange. Professional traders will still be charged for "depth of book" data such as trading volumes at particular prices.
Adena Friedman, Nasdaq OMX's executive vice president, said the move was " overdue," claiming to be the first U.S. stock exchange to offer free, universal access to real-time data.
The move comes more than a year after efforts by Nasdaq and the NYSE to publish free price data foundered amid opposition from some online vendors represented by the NetCoalition, an industry lobby group. The U.S. Securities and Exchange Commission has also failed to sign off.
Nasdaq has refiled to the SEC for permission to provide free, real-time quotes. Meanwhile, NYSE, a unit of NYSE Euronext (NYX), said Monday its own plans to offer free data have been awaiting approval from the SEC since January 2007. The SEC didn't return calls seeking comment on Nasdaq's latest move.
"We have returned (to the idea) as a pilot project," Nasdaq's Friedman told Dow Jones Newswires, noting that Nasdaq will waive charges to its online partners during June.
In addition to Google, vendor partners for the free data include business TV channel CNBC, a unit of General Electric Co. (GE), Xignite, an online quote service, and WSJ.com, a unit of News Corp. (NWS), which also publishes The Wall Street Journal and Dow Jones Newswires.
Friedman said the pilot would allow online vendors to develop a business model for providing the service. After June, Nasdaq will charge online vendors $100, 000 a month for access to data from its own platform, plus $50,000 a month for prices from NYSE and the Amex.
Friedman said the last quote price data had become an "innocent victim" of a wider debate at the SEC over ownership and access to depth-of-book data. She described the new initiative as "a safe way to start."
Nasdaq Doesn't Expect Revenue To Suffer
Nasdaq's move also reflects intensifying competition in the U.S. cash equities market, with Nasdaq and NYSE Euronext losing market share to electronic rivals such as Kansas City-based BATS Trading.
BATS last week launched real-time price quotes via Yahoo Inc. (YHOO), though it said it had never charged for data as part of its pitch to undercut trading costs on established exchanges. BATS has lifted its share of U.S. equities trading above 10% and is applying for regulated exchange status, with plans to launch a European platform later this year.
"We believed that market data - including full depth of book, not just last quotes - should be free to investors," said Randy Williams, a BATS spokesman.
Nasdaq OMX generated 22% of its revenue from market data related to its U.S. and European exchange platforms in the first quarter of 2008, its second-largest business segment after issuer services, which accounted for 23%. U.S. equities trading fees accounted for 16% of sales in the quarter.
NOTE: NASDAQ'S MONEY MAKING SCHEMES ARE NOT ONLY EFFECTIVE BUT ALSO BENEFITS IT'S CO PLAYERS..
Friedman said the trial wasn't expected to have a negative impact on revenue. Nasdaq plans to launch a similar trial for data from its European exchanges this month.
Nasdaq shares were recently down 3.7% at $33.73, in line with a broader downturn for exchange sector stocks.
-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com
(Shara Tibken contributed to this report.)
(END) Dow Jones Newswires
06-02-08 1519ET
Copyright (c) 2008 Dow Jones & Company, Inc.
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Live Quotes automatically refresh, but individual equities are delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET.
* : Time reflects local markets trading time. † - Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. Disclaimer
Copyright © 2008 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. All Times are ET.
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Wednesday, June 4, 2008
US INSURANCE CHIEFS UNVEIL ALTERNATE MUNI RATING
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U.S. insurance chiefs unveil alternate muni rating
Mon Jun 2, 2008 3:06pm EDT
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NEW YORK (Reuters) - A group representing state insurance regulators on Monday said it will offer a substitute rating for municipal bonds backed by downgraded insurers so that insurance companies are not pressured to sell such debt.
Insurance companies have long been among the biggest players in the $2.6 trillion muni market. Currently, ratings on municipal bonds can rise and fall with their bond insurers.
NOTE: INSURANCE COMPANIES ARE KNOWN TO INVEST IN THE STOCKMARKET FOR OVER A CENTURY.
This was not a problem until this spring when several insurers lost the top "AAA" ratings their business requires because of their money-losing plays in the subprime mortgage market.
The National Association of Insurance Commissioners said it will begin offering a substitute rating on July 1.
Relieving the pressure on the insurance companies to sell their muni bonds should benefit the states, cites, agencies and hospitals that sell this debt by helping to prevent their borrowing costs from spiking, the group said.
An insurance company that holds a muni bond that is downgraded might have to reserve more capital for it, and if the rating falls below investment grade "some insurance companies will no longer want to hold them," the group said.
"We know that many municipal bond credit ratings are no longer accurate because they are based on the downgraded rating of the bond insurer, not of the municipal issuer," said Wisconsin Insurance Commissioner Sean Dilweg in a statement. Dilweg said he made the proposal.
NOTE: DILWEG IS A WELL RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
New York State Insurance Superintendent Eric Dinallo said in a statement that "removing the current restrictions on our rating unit will permit insurance companies to submit downgraded municipal securities to it." He noted, "The unit, where appropriate, will now be able to assign the correct rating to those municipal bonds."
Bond insurers that have lost the highest rating from at least one credit agency includes: MBIA (MBI.N: Quote, Profile, Research), Ambac Assurance Corp (ABK.N: Quote, Profile, Research), Financial Guaranty Insurance Co., Security Capital Assurance XL Capital Assurance (SCA.N: Quote, Profile, Research), Radian Asset Assurance (RDN.N: Quote, Profile, Research), CIFG Guaranty, and ACA Financial Guaranty Corp ACAH.PK.
(Editing by Leslie Adler)
© Thomson Reuters 2008 All rights reserved
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U.S. insurance chiefs unveil alternate muni rating
Mon Jun 2, 2008 3:06pm EDT
Email | Print |
Share
| Reprints | Single Page| Recommend (-)
[-] Text [+]
NEW YORK (Reuters) - A group representing state insurance regulators on Monday said it will offer a substitute rating for municipal bonds backed by downgraded insurers so that insurance companies are not pressured to sell such debt.
Insurance companies have long been among the biggest players in the $2.6 trillion muni market. Currently, ratings on municipal bonds can rise and fall with their bond insurers.
NOTE: INSURANCE COMPANIES ARE KNOWN TO INVEST IN THE STOCKMARKET FOR OVER A CENTURY.
This was not a problem until this spring when several insurers lost the top "AAA" ratings their business requires because of their money-losing plays in the subprime mortgage market.
The National Association of Insurance Commissioners said it will begin offering a substitute rating on July 1.
Relieving the pressure on the insurance companies to sell their muni bonds should benefit the states, cites, agencies and hospitals that sell this debt by helping to prevent their borrowing costs from spiking, the group said.
An insurance company that holds a muni bond that is downgraded might have to reserve more capital for it, and if the rating falls below investment grade "some insurance companies will no longer want to hold them," the group said.
"We know that many municipal bond credit ratings are no longer accurate because they are based on the downgraded rating of the bond insurer, not of the municipal issuer," said Wisconsin Insurance Commissioner Sean Dilweg in a statement. Dilweg said he made the proposal.
NOTE: DILWEG IS A WELL RESPECTED PERSONALITY IN THE INSURANCE INDUSTRY.
New York State Insurance Superintendent Eric Dinallo said in a statement that "removing the current restrictions on our rating unit will permit insurance companies to submit downgraded municipal securities to it." He noted, "The unit, where appropriate, will now be able to assign the correct rating to those municipal bonds."
Bond insurers that have lost the highest rating from at least one credit agency includes: MBIA (MBI.N: Quote, Profile, Research), Ambac Assurance Corp (ABK.N: Quote, Profile, Research), Financial Guaranty Insurance Co., Security Capital Assurance XL Capital Assurance (SCA.N: Quote, Profile, Research), Radian Asset Assurance (RDN.N: Quote, Profile, Research), CIFG Guaranty, and ACA Financial Guaranty Corp ACAH.PK.
(Editing by Leslie Adler)
© Thomson Reuters 2008 All rights reserved
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NASDAQ NORDIC STOCK MARKET BLACKOUT HURTS CONFIDENCE
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Nasdaq's Nordic stock market blackout hurts confidence
Bloomberg News
Published: June 3, 2008
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STOCKHOLM: Nasdaq OMX Group was able to resume trading in Nordic financial markets Tuesday after fixing a software error that locked out clients and caused the exchanges' longest blackout in a decade, an incident that users said could hurt its business.
Trading in Stockholm, Copenhagen, Oslo and Helsinki started after Nasdaq OMX delayed the market opening twice Tuesday and suffered software errors Monday.
NOTE: NASDAQ OMX GROUP IS A WELL RESPECTED GROUP IN THE STOCK MARKET INDUSTRY.
The shutdown of more than five hours Tuesday was the longest since 1999, the exchange said. Trading hours will not be prolonged to make up for the delay.
"This puts the focus on OMX, and not in a good way. It's a problem of confidence," said Ronny Jacobsson, the head of equity trading at Swedbank in Stockholm. "Technological changes have clearly not been prepared adequately."
The halt in trading hit Nasdaq three months after it paid 32 billion kronor, or $5.34 billion, to buy OMX in a joint transaction with Borse Dubai, providing a foothold for the U.S. market operator in Europe. Competition has intensified with the emergence of companies including Chi-X Europe, a pan-European electronic system that allows clients to trade major Swedish stocks like Ericsson or Volvo.
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Tests in the last few weeks before a system upgrade did not indicate any problems, said Jonas Rodny, a spokesman for OMX. The goal of the upgrade was to improve the speed of the system and introduce more functionality, he said. The integration of the Nasdaq and OMX systems was not a reason for the malfunction, he said.
About 75 percent of the members of the exchanges have to be operational for the market to open, Rodny said, a requirement that was not met Tuesday. The last time OMX had a technical problem that required it to close the market was in June 2006, when the exchange was suspended for 38 minutes, he said.
"It is a disaster that the stock market doesn't work better than this," said Claes Hemberg, a spokesman for the Swedish online brokerage Avanza.
OMX runs the exchanges in Stockholm, Helsinki, Reykjavik and Copenhagen in addition to exchanges in the Baltic states. OMX also holds a 5.8 percent stake in the Norwegian exchange, according to its Web site. The Dow Jones Nordic 30 index, which includes companies like Ericsson, Volvo and Nokia, trades more than a billion shares on average each week.
Nasdaq has sought access to Europe to compete with its bigger rival, NYSE Euronext, which operates stock and derivatives exchanges on both sides of the Atlantic. Deutsche Börse of Germany also became a trans-Atlantic market after its acquisition of International Securities Exchange Holdings, a large U.S. options exchange.
"Its extremely unfortunate," said Anders Berg, the head of equity research at Evli Bank in Stockholm. "There are other institutions in Europe trying to build pools of liquidity, and this plays into their hands."
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Nasdaq's Nordic stock market blackout hurts confidence
Bloomberg News
Published: June 3, 2008
E-Mail Article
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3-Column Format
Translate
Share Article
Text Size
STOCKHOLM: Nasdaq OMX Group was able to resume trading in Nordic financial markets Tuesday after fixing a software error that locked out clients and caused the exchanges' longest blackout in a decade, an incident that users said could hurt its business.
Trading in Stockholm, Copenhagen, Oslo and Helsinki started after Nasdaq OMX delayed the market opening twice Tuesday and suffered software errors Monday.
NOTE: NASDAQ OMX GROUP IS A WELL RESPECTED GROUP IN THE STOCK MARKET INDUSTRY.
The shutdown of more than five hours Tuesday was the longest since 1999, the exchange said. Trading hours will not be prolonged to make up for the delay.
"This puts the focus on OMX, and not in a good way. It's a problem of confidence," said Ronny Jacobsson, the head of equity trading at Swedbank in Stockholm. "Technological changes have clearly not been prepared adequately."
The halt in trading hit Nasdaq three months after it paid 32 billion kronor, or $5.34 billion, to buy OMX in a joint transaction with Borse Dubai, providing a foothold for the U.S. market operator in Europe. Competition has intensified with the emergence of companies including Chi-X Europe, a pan-European electronic system that allows clients to trade major Swedish stocks like Ericsson or Volvo.
Today in Business with Reuters
Fishermen stake out EU to protest high fuel prices
OECD sees slow growth through next year
United Airlines to shutter low-fare airline, cut jobs
Tests in the last few weeks before a system upgrade did not indicate any problems, said Jonas Rodny, a spokesman for OMX. The goal of the upgrade was to improve the speed of the system and introduce more functionality, he said. The integration of the Nasdaq and OMX systems was not a reason for the malfunction, he said.
About 75 percent of the members of the exchanges have to be operational for the market to open, Rodny said, a requirement that was not met Tuesday. The last time OMX had a technical problem that required it to close the market was in June 2006, when the exchange was suspended for 38 minutes, he said.
"It is a disaster that the stock market doesn't work better than this," said Claes Hemberg, a spokesman for the Swedish online brokerage Avanza.
OMX runs the exchanges in Stockholm, Helsinki, Reykjavik and Copenhagen in addition to exchanges in the Baltic states. OMX also holds a 5.8 percent stake in the Norwegian exchange, according to its Web site. The Dow Jones Nordic 30 index, which includes companies like Ericsson, Volvo and Nokia, trades more than a billion shares on average each week.
Nasdaq has sought access to Europe to compete with its bigger rival, NYSE Euronext, which operates stock and derivatives exchanges on both sides of the Atlantic. Deutsche Börse of Germany also became a trans-Atlantic market after its acquisition of International Securities Exchange Holdings, a large U.S. options exchange.
"Its extremely unfortunate," said Anders Berg, the head of equity research at Evli Bank in Stockholm. "There are other institutions in Europe trying to build pools of liquidity, and this plays into their hands."
» Save up to 72% on morning home delivery of the IHT
Back to top
Home > Business with Reuters
IHT.com Home »
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Susan Walsh/The Associated Press
Obama gets right to work
Barack Obama stood at a historic juncture Wednesday after a grueling but finally victorious primary battle that crowned him as the first black presidential candidate of a major party.
In Opinion: Roger Cohen: Energy lessons
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* Hong Kong vigil for Tiananmen Square protesters low-key this year
* U.S. firms turning to EU in antitrust cases
* OECD sees slow growth through next year
* German government backs enhanced surveillance
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Discovery is converting its Discovery Home Channel into an eco-lifestyle channel dubbed Planet Green.
Discovery launches Planet Green
Discovery is converting its Discovery Home Channel into an eco-lifestyle channel dubbed Planet Green.
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No end in sight for high gas costs
In Washington, energy costs have managed to bring the two parties together, at least in theory, but analysts e...
Coal makes a comeback
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iht.com/culture
Cannes Film Festival 2008
Complete coverage:
Cannes Film Festival 2008
Also in Culture:
* With affection, Cannes calls the big names home
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Blogs: Managing Globalization
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