New York Stock Exchange
This is what client-facing desks are seeing at various banks across Wall Street right now. One example below:
PLEASE DO NOT ENTER ANY MARKET ORDERS FOR TWTR UNTIL AFTER THE STOCK STARTS TRADING. THESE ORDERS ARE CAUSING A LARGE NUMBER OF REJECTS WHICH MAY DELAY ENTRY OF YOUR ORDER. THANK YOU FOR YOUR CO-OPERATION
Translation: slow down damn it, there will be more than enough shares sold to satsify all demand. Why is there a scramble? Because of this: TRADING RANGE: TWTR (NYSE): 40.0000-44.0000
Is someone a little bit nervous ahead of the year's most anticipated IPO?
When it comes to US equities today, the picture below summarizes it all... the only question is whether the NYSE breaks to celebrate the year's overhyped social media IPO.Aside from the non-event that is the going public of a company that will likely not generate profits for years, if ever, the overnight market has been quiet with all major stock indices in Asia trading modestly lower on the back of a modestly stronger dollar, although the main currency to watch will be the Euro (German Industrial production of -0.9% today was a miss of 0.0% expectations and down from 1.6% previously), when the ECB releases its monthly statement at 7:45 am Eastern when it is largely expected to do nothing but may hint at more easing in the future. On the US docket we have the weekly initial claims (expected at 335k) which now that they are again in a rising phase, have been the latest data item to be ignored in the Bizarro market, as well as the latest Q3 GDP estimate, pegged by consensus at 2.0%.
And they are off as Twitter prices just shy of the whisper $27 upper end of the IPO range, raising $1.82 billion in equity proceeds for the 70 million shares it will sell (before the greenshoe is exercised).
- Christie Sets Himself Up for Run in 2016 (WSJ)
- De Blasio Elected Next New York City Mayor in Landslide (WSJ)
- Hilsenrath: Fed Study: Rate Peg Off Mark (WSJ)
- MF Global Customers Will Recover All They Lost (NYT) - amazing what happens when you look under the rug
- Virginia, Alabama Voter Choices Show Tea Party Declining (BBG)
- Explosions kill 1, injure 8 in north China city (Reuters)
- Toyota boosts full-year guidance as weak yen drives revenues (FT)
- Starbucks wants to recruit 10,000 vets, spouses to its ranks (Reuters)
- U.S. Economy Slack Justifies Stimulus, Top Fed Staff Papers Show (BBG)
- Israel set to become major gas exporter (FT)
- China premier warns against loose money policies (Reuters)
- Brussels forecasts tepid Eurozone growth (FT)
- SAC Case Began With Informant’s Tips on Cohen, Rajaratnam (BBG)
- Dirty Munich Home’s Nazi Loot Estimated at $1.35 Billion (BBG)
- Mortar hits Vatican embassy in Damascus, no casualties (Reuters)
- India Launches Mars Mission (WSJ)
- Lael Brainard to leave Treasury, heading to Fed (FT)
- U.S. Takes Aim at 'Forced' Insurance (WSJ)
- Wife of Jeff Bezos attacks book about Amazon (FT)
- Fall of Brazil’s Batista embarrasses President Dilma Rousseff (FT)
- The One Thing People Still Really Like About BlackBerry (BusinessWeek)
UPDATE: 10 minutes later - *BATS EXCHANGES REVOKE SELF-HELP AGAINST NYSE EXCHANGES
It's Monday morning and stock "markets" are open for trading... well some of them...
- *BATS EXCHANGES DECLARE SELF-HELP AGAINST NYSE
- *NYSE AND NYSE MKT REVIEWING TRADES MARKED AS SOLD
Of course, as CNBC once said, we are all getting used to this now (and stocks are going higher) - so it doesn't matter.
Last week, Bank of America warned that "it's getting frothy, man" based on the sheer surge of fund flows into equities. Here is the same firm with some other observations on what can simply be described as a "frothy", "overbought", "overmargined" market with "not enough bears."
No wonder investors don't take economists seriously. Or if they do, they shouldn't. Since Richard Nixon interrupted Hoss and Little Joe on a Sunday night in August 1971, it's been one boom and bust after another. But don't tell that to the latest Nobel Prize co-winner, Eugene Fama, the founder of the efficient-market hypothesis. No matter the facts, Fama has his story and he's sticking to it. "I think most bubbles are 20/20 hindsight," Fama told Cassidy. The rest of us, who lived through the tech and real estate booms while Fama was locked in his ivory tower, know that in a boom people go crazy. There's a reason the other term for bubble is mania.
The NYSE Composite is indicating some uncomfortable symmetry currently. As NewEdge's Brad Wishak notes, the index (which represents 61% of the market capitalization of globally listed companies) has risen about the same amount over the same period as in the run-up of the last debt-fueled bubble (only this time the valuations are notably richer). Will Janet Yellen make sure this time is different...? Or is the right question, 2007 USA or 2006 Zimbabwe?
Shitty data, worse earnings, worst volume, new highs. Among the lowest volume days in NYSE single-stocks, S&P futures trading, and VIX options saw stocks levitate back to overnight highs during the day only to slide lower to around unch by the close. Trannies have managed 11 up days in the last 13 and gained 10.3% - sure why not? S&P 500 hit new all-time highs but ended the day well off its highs. Gold hit 5-week highs but faded back to modest gains. The USD rallied early and faded to unch by the close. Treasuries rallied early on but faded into close +/1bp on the day... The pattern was the same across most assets but a very last minute 4.5 point rampapalooza closed the S&P at all-time highs.
Supermarkets, healthcare and education are next in line for technological upheaval. We look at the best ways to profit from upcoming changes.
The risk of a more meaningful reversion is rising. It is unknown, unexpected and unanticipated events that strike the crucial blow that begins the market rout. Unfortunately, due to the increased impact of high frequency and program trading, reversions are likely to occur faster than most can adequately respond to. This is the danger that exists today. Are we in the third phase of a bull market? Most who read this article will immediately say "no." However, those were the utterances made at the peak of every previous bull market cycle. The reality is that, as investors, we should consider the possibility, evaluate the risk and manage accordingly. With the current bull market now stretching into its fifth year; it seems appropriate to review the three very distinct phases of historical bull market cycles. While the current bull market cycle may not be set to end tomorrow; it seems sensible to take a pause to question mainstream beliefs.
This is probably the most painful bug report I’ve ever read, describing in glorious technicolor the steps leading to Knight Capital’s $460m trading loss due to a software bug that struck late last year, effectively bankrupting the company. The tale has all the hallmarks of technical debt in a huge, unmaintained, bit-rotten codebase (the bug itself due to code that hadn’t been used for almost 9 years), and a really poor, undisciplined dev-ops story.