Stock markets have rebounded this short trading week. Fortunately Black Monday stayed only with Bear Stearns and the fear hasn't been spread all over. FED cut by 75 bp below street expectation but it has been taken as a good step. Gold and crude oil stepped down from record prices and US dollar bounced from bottom.
Let's have a look to broadly expected earnings results for brokerages.
Both Lehman Bros and Goldman Sachs reported this week significant profit decline, 57% down respectively 53%. Even thought they beat estimates which returns faith in financial sector. As well as Morgan Stanley on Wednesday with decline 42% (top analyst estimates). After Bear Stearn collapse there were a lot of fear about earnings this week. Nevertheless the most risky is seen result of Merrill Lynch. This company has more than 30 bln USD in risky loans. Also liquidity ratio is the lowest (52%) among financials. The best liquidity has Lehman Brothers with 74%.
Related tickers: (SPY), (DIA), (QQQQ), (BSC), (MS), (GS), (LEH), (GLD), (OIL), (USO),
Showing posts with label FED meeting. Show all posts
Showing posts with label FED meeting. Show all posts
Thursday, March 20, 2008
Saturday, March 15, 2008
Next FED meeting ahead.
Last week was again in token of volatility. One day record growth in 5 years and next day credit fear sell off. Standard and Poor´s reported expectation for total write-downs 285 bln USD and predicted soon end of credit market turmoil. Day after Bear Stearns bailout dragged markets again to red.
Coming week brings FED interest rate decision. What is broad market expectation? Based on futures the most probable (94%) is cut by 75 bp 2,25% on 18.3. Next meeting is scheduled for 30.4. and current expectations are 84% for 25 bp cut.
Previous cuts stopped broad markets from sharp fall. 16.8.2007 indices bottomed after FED lowered by 50 bp. 22.1.2008 againg bottom after sharp emergency cutting by 75 bp which followed by 50 bp week after during regular meeting. All cuts triggered rebound from strong technical support lines. Currently major indices are again on support
line. Here are resistance and support level for DJIA and S&P 500
DJIA: S1: 11 650 – 11 700
R1: 12 450
R2: 12 700 – 800
S&P: S1: 1 270
R1: 1 350 – 1 370
R2: 1 400
Related tickers: (BSC), (SPY), (DIA),
Coming week brings FED interest rate decision. What is broad market expectation? Based on futures the most probable (94%) is cut by 75 bp 2,25% on 18.3. Next meeting is scheduled for 30.4. and current expectations are 84% for 25 bp cut.
Previous cuts stopped broad markets from sharp fall. 16.8.2007 indices bottomed after FED lowered by 50 bp. 22.1.2008 againg bottom after sharp emergency cutting by 75 bp which followed by 50 bp week after during regular meeting. All cuts triggered rebound from strong technical support lines. Currently major indices are again on support
line. Here are resistance and support level for DJIA and S&P 500
DJIA: S1: 11 650 – 11 700R1: 12 450
R2: 12 700 – 800
S&P: S1: 1 270
R1: 1 350 – 1 370
R2: 1 400
Related tickers: (BSC), (SPY), (DIA),
Posts
All Comments