| Stocks Advance, Led by Techs
Stocks closed higher Wednesday after reversing an earlier drop. Technology issues were among the session's best performers, aided by a strong earnings report from Hewlett-Packard (HPQ). Financial stocks rose later in the day, as minutes from Federal Reserve January policy meetings apparently supported hopes for further interest rate cuts. Stocks tied to precious metals and oil got a lift from gains in commodities futures, as crude oil topped the $100 mark once again to close at a new record. Investors also digested reports showing worsening inflation risks and only slight improvement in the housing market. On Wednesday, the Dow Jones industrial average finished higher by 90.04 points, or 0.73%, at 12,427.26. The broader S&P 500 index added 11.25 points, or 0.83%, to end at 1,360.03.
Market Watch | An arbitrage opportunity, almost risk-free
There are two ways to participate in a retail-fuelled momentum market. The aggressive way is to buy stock futures in momentum stocks and hope the party lasts long enough. The conservative way is to milk the substantial arbitrage opportunities that arise out of the general appetite for stock futures. Something which a lot of institutional investors do actively. This is like the good old badla: in times of heightened speculative activity like this, badla rates would shoot up to 20-25 per cent. Virtually risk-free returns. Exactly what you can capture today by playing between the cash and futures market. The thing to monitor is how much premium the futures of any stock is trading at above the cash market price. If the premium is 1 per cent or more, it opens up a good arbitrage opportunity.
Le rogue trader
TROUBLE had been expected but nothing like this. Widespread concerns that Société Générale, France’s second-largest bank by market capitalisation, had more subprime-related woes to reveal were proved right on Thursday January 24th, with the announcement of a €2.05 billion ($3 billion) write-down on its exposure to mortgage-related investments and to creaking bond insurers. But those numbers were a sideshow to something far more shocking. The bank also revealed that a single trader had racked up a further €4.9 billion loss by taking unauthorised bets on futures linked to European stockmarkets. Trading in SocGen’s shares were suspended on Thursday morning but it will not escape punishment. .
Tricom's future on the line
THE future of Tricom is in the hands of Melbourne-based investment bank Bell Financial Group, which yesterday confirmed it was in talks with the beleaguered Sydney broking house. Bell only wants the Tricom client base, including its futures and broking business, but is not interested in the back office, corporate advisory or margin lending business, The Weekend Australian understands. Based on other recent deals, including the sale of Andrew West to CMC Markets last month, any deal could be worth less than $50 million to Tricom boss and major shareholder Lance Rosenberg. It is understood that Bell has been in talks with Tricom for over a week. If Bell buys Tricom it is unclear how many of Tricom's 300 staff will be kept. In a statement yesterday, Bell, which is listed on the ASX, said "no agreement" had been reached and that there was "no certainty" the discussions would lead to a transaction.
Brown and Salmond ‘have not talked in months’
The lack of communication is very much a 10 Downing Street centred problem." Alex Salmond today issues his first Christmas message as First Minister, hailing a "remarkable year" in which people made the historic decision to elect the country's first SNP government. "In the past eight months I have led that government which has shown a willingness to get to grips with the key issues in order to move the nation forward," he states. "My government has been keen to work with other political parties to build parliamentary consensus around issues that matter to the people." Citing advances such as a slimmed-down cabinet, moves to scrap student fees, prescription charges and bridge tolls, striking a deal with local government and winning the 2014 Commonwealth Games for Glasgow, he said ministers were determined to do more.
WallSt.net (www.wallst.net) Updates the Investment Community Through ...
NEW YORK, Oct. 23 /PRNewswire/ -- On October 8, Jeff Smith, President of PSM Holdings, Inc. (PinkSheets: PSMH) (http://www.psmholdings.com) updated the investment community in an all-new interview with http://www.wallst.net. Interview highlights include detailed discussions on the following topics: To hear the interview in its entirety, and to read an in-depth report on the company, visit http://www.wallst.net/superstocks/superstocks_profile.asp?ticker=psmh On October 12, Kevin Mills, CEO of Socket Communications, Inc. (NASDAQ: SCKT) (http://www.socketcom.com) updated the investment community in an all-new interview with www.wallst.net. Interview highlights include detailed discussions on the following topics: -- how the company changed its strategic focus over the last year -- "large opportunity" for the company's revamped model -- industry trends bolstering the company's growth prospects -- "exceptionally strong" reviews for the company's mobile product -- upcoming milestones for investors to watch for To hear the interview in its entirety, visit http://www.wallst.net/audio/audio.asp?ticker=SCKT&id=4017 On October 10, Ariel Kelman, Senior Director of Platform Product Marketing for Salesforce.com, Inc.
Recovery to continue Mon; RBI, Fed meet eyed
MUMBAI: The recovery in Indian equities is seen continuing on Monday on positive cues from global markets. In the subsequent sessions, the market will track the outcome of RBI's credit policy review Tuesday, US Federal Reserve's 2-day meet starting Tuesday and expiry of January futures and options series Thursday. .
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