Market Wrap – S&P 500 is a ‘Pinball Wizard’
Yep.. for all of the crazy moves up and down we have experienced in recent days we are essentially still trapped in between bumpers (support and resistance).
The market is moving from one bumper to the next. And for all its bells and beeps the market has yet to signal to us what is in store for the near term. We have to wait for a clear sign by a break of one of the two important levels identified on the hourly chart (see link below).
Tomorrow begins the automaker sob story appeal for money in Washington. Ironic how tonight Moody’s downgrades General Motors and Chrysler. That downgrade increases the financial woes for the companies even more.
Remember Ambac (ABK)? The bond insurer who kept saying ‘all is well’ and that they are ‘well capitalized’, well today they decided they could no longer afford to pay their quarterly dividend. How much was their quarterly dividend? $0.01. Wow… I guess perhaps Ambac is not so ‘well capitalized’ after all if they have to cut the $0.01 dividend.
Layoffs just keep coming in everyday now. Add this to the list:
The Wall Street Journal reports:
CARLYLE GROUP LLC IS CUTTING 10% OF ITS STAFF
- This is the first large US private-equity firm to announce firm wide layoffs.
How about this tidbit, also from the Wall Street Journal:
JP MORGAN SEIZED TENS OF MILLIONS OF DOLLARS OF COLLATERAL FROM A COMMERCIAL PROPERTY FUND RUN BY GUGGENHEIM PARTNERS
- JP Morgan started to auction off the collateral this week following the funds failure to come up with added capital to meet margin calls.
(yep.. that is the very same Guggenheim family that has been around since 1881)
Citigroup said today that the top company executives will give up their annual bonus. Awwww, I feel so bad for them… NOT!
New York City Mayor Michael Bloomberg said this afternoon that the city’s budget deficit may be even higher, reaching $1.6 Billion.
It is being reported on the news wires tonight that Legg Mason (LM) may begin job cuts as soon as this week.
Adobe Systems (ADBE) issued an earnings warning after the market closed:
GUIDES Q4 EPS $0.59-$0.60 (HAD SEEN $0.51-$0.53) V $0.51E; R$912M-$915M (HAD SEEN $925M-$955M) V 930ME; TO CUT 600 JOBS (8.6% OF WORKFORCE)
- The Q4 EPS includes $0.05 of favorable tax items
- The Company cited weaker-than-expected demand for its new Creative Suite 4 family of products that began shipping in Q4 in North America and Europe as the main cause for the shortfall in fourth quarter revenue.
- Guides Q1 R$800M-$850M v $929Me
- Guides Q1 non-GAAP operating margin 37%-38%- Job Cuts: The announced job cuts will result in pre-tax charges totaling about $44M-$50M and the company expects approximately $28 million to $30 million of the restructuring charges to be recorded in the fourth quarter of fiscal year 2008.
- Company comments: "The global economic crisis significantly impacted our revenue during the fourth quarter," said Shantanu Narayen, president and chief executive officer. "We have taken action to reduce our operating costs and fine-tune the focus of our resources on key strategic priorities."
Just another normal day on Wall Street…
