New York Stock Exchange
The overnight global scramble to buy stocks, any stocks, anywhere, continued, with the Nikkei soaring higher by 2% as the USDJPY rose firmly over 100, to levels not seen since May as the previously reported speculation that more QE from the BOJ is just around the corner takes a firm hold. Sentiment that the liquidity bonanza would accelerate around the world (with possibly more QE from the ECB) was undented by news of a surge in Chinese short-term money market rates or the Moody's one-notch downgrade of four TBTF banks on Federal support review. The release of more market-friendly promises from China only added fuel to the fire and as a result S&P futures are now just shy of 1800, a level which will almost certainly be taken out today as the multiple expansion ramp continues unabated. At this point absolutely nobody is even remotely considering standing in front of the centrally-planned liquidity juggernaut that has made "market" down days a thing of the past.
We have seen a confluence of events that suggests we may be reaching the terminal point of the financial markets merry-go-round – that point just before the ride stops suddenly and unexpectedly and the passengers are thrown from their seats. Having waited with increasing concern to see what might transpire from the gridlocked US political system, the market was rewarded with a few more months’ grace before the next agonising debate about raising the US debt ceiling. There was widespread relief, if not outright jubilation. Stock markets rose, in some cases to all-time highs. But let there be no misunderstanding on this point: the US administration is hopelessly bankrupt. (As are those of the UK, most of western Europe, and Japan.) The market preferred to sit tight on the ride, for the time being.
Congratulations to our new managing directors, http://t.co/gqrsGKrKvY
— Goldman Sachs (@GoldmanSachs) November 13, 2013
"Frustrated" Liquidity Addicts Demand Moar From BOJ As Nikkei Rally Stalls, Abenomics Founders And "Hope Fades"Submitted by Tyler Durden on 11/13/2013 10:25 -0400
While the only topic of discussion for "sophisticated" investors everywhere is when (and if) the Fed will ever dare to reduce its monthly flow injection into US markets from $85 billion to a paltry $75 billion, everyone has forgotten that across the Pacific, for the past seven months the BOJ has been calmly injecting another $75 billion each and every month into the market, with no risk of this liquidity boost ever being tapered (since the broad 2% inflation target relies on ever broader wage increases that will never come). However, much to Japan's chagrin, in the current insta-globally fungible capital markets, over the past five months the bulk of this liquidity has found its way to the US stock bubble, leaving the Nikkei in the dust. As a result, the local Japanese liquidity junkies have started to loudly complain once again, and now the FT reports that "as excitement over the world’s second-biggest stock market has faded, some are now crying out for another jump-start." In other words: the BOJ must do "moar" to push the Nikkei bubble even higher following its rangebound trade since May which, worst of all, is now the primary reason why "hope is fading."
- Desperate Philippine typhoon survivors loot, dig up water pipes (Reuters)
- Fading Japanese market momentum frustrates investors (FT)
- China's meager aid to the Philippines could dent its image (Reuters)
- Headline du jour: Granted 'decisive' role, Chinese markets decide to slide (Reuters)
- Central Banks Risk Asset Bubbles in Battle With Deflation Danger (BBG)
- Navy Ship Plan Faces Pentagon Budget Cutters (WSJ)
- Investors pitch to take over much of Fannie and Freddie (FT)
- To expand Khamenei’s grip on the economy, Iran stretched its laws (Reuters)
- Short sellers bet that gunmaker shares are no long shot (FT)
- Deflation threat in Europe may prompt investment rethink (Reuters)
Following the DoJ's 'surprising' August decision to block the $11bn merger of American and US Airways (after approving other airline mergers in the recent past), it would appear the parties have reached a settlement:
*U.S. FILES PROPOSED SETTLEMENT IN AMR CASE IN FEDERAL COURT
*DOJ REQUIRES US AIRWAYS, AMERICAN AIRLINES TO DIVEST FACILITIES
*AIRPORT SLOTS TO BE SOLD UNDER PROCESS APPROVED BY U.S.
*AMR SEES COMBINED CO OPERATING 12 FEWER DAILY DEPARTURES AT LGA
*AMR SEES COMBINED CO OPERATING 44 FEWER DAILY DEPARTURES AT DCA
Some of the initial details (Full statement below) include divesting slots at Laguardia and Reagan National. AMR is trading up over 25%...
Just when Twitter briefly dipped in bear market territory from its post IPO highs, and threatened to wipe out the retail mania of 2013 (very much as FaceBook did in 2012), here comes the hail mary to provide the most anticipated IPO of the year its second wind. "From its inception in 1974, the intent always has been for the Wilshire 5000 Total Market Index to be the most complete and investable measure of the total U.S. equity market," noted Robert J. Waid, managing director. "As a rules-based index, the Wilshire 5000 does not need to make special accommodations for early entry of large IPOs, like Twitter, as stock additions always have been made monthly for U.S. companies with readily available price data. The Twitter IPO is no exception," he concluded. Of course, how inclusion in the Wilshire 5000 will boost TWTR profitability, remains a mystery.
- Philippines Left Reeling in Wake of Storm (WSJ)
- Khamenei controls massive financial empire built on property seizures (RTRS)
- Race to Bottom Resumes as Central Bankers Ease Anew (BBG)
- U.S. Postal Service to deliver Amazon packages on Sundays (LA Times)
- Obama Stocks Among Best After Re-Election as Rally Tested (BBG)
- Health-Law Rollout Weighs on Obama's Ratings, Agenda (WSJ)
- Twitter in Celebrity Spat With Facebook as Rivalry Builds (BBG)
- Iran deputy industry minister shot dead (AFP)
- Financier of Taliban-linked group shot dead in Pakistan (RTRS)
- Obama: The Lonely Guy (Vanity Fair)
- Fed Anxiety Rises as QE Raises Risk of Loss With Political Cost (BBG)
- Iran Nuclear Deal Expected as Early as Friday (WSJ)
- Israel rejects mooted interim Iran nuclear deal, Kerry heads to talks (Reuters)
- JPMorgan Banker Backed $200 Million Madoff Loan in 2008 (BBG)
- Unleashing the food nazis - FDA Says Trans Fats Aren't Safe in Food (WSJ)
- Draghi Aggression Shows Pledges Backed by Rate Surprise (BBG)
- S&P Cuts France's Credit Rating by One Notch to Double-A (WSJ)
- S&P criticises France’s high tax rates for stifling growth (FT)
- Payroll Gains in U.S. Probably Cooled Amid Government Shutdown (BBG)
On Thursday, November 7, 2013, the Financial Industry Regulatory Authority, Inc. (“FINRA”) halted trading in all OTC Equity Securities pursuant to FINRA Rule 6440(a)(3). FINRA determined to impose a temporary halt because of a lack of current quotation information. Therefore, FINRA has determined that halting quoting and trading in all OTC Equity Securities is appropriate to protect investors and ensure a fair and orderly marketplace. The trading and quotation halt began on Thursday, November 7, 2013, at 11:25:00 a.m. E.T. FINRA will notify the market when trading may resume.
* * * Update: range now $45.000-$46.0000
It just gets better and better: TRADING RANGE: TWTR (NYSE): 42.0000-46.0000
As a reminder, at $44/share, Twitter's valuation rises to $31 billion!
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).