Financial Review

Hot, Hot, Hot

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-09-19-2014.mp3Podcast: Play in new window | Download (Duration: 13:15 — 6.1MB)Subscribe: Apple Podcasts | Android | RSS09192014 Financial Review DOW + 13 = 17,279 (record) SPX – 0.96 = 2010 NAS – 13 = 4579 10 YR YLD – .04 = 2.58% OIL – .61 = 92.46 GOLD – 8.60 = 1217.20 SILV – .73 = 17.89 The Dow Industrials posted the 18th record high close of the year. The big story on Wall Street today was the Alibaba IPO. You’ve probably never heard of Alibaba, so here is a quick update. Alibaba is China’s biggest online marketplace, and it combines online shopping with online banking, and a search engine. It is the world’s most popular online shopping site; it’s even bigger than eBay and Amazon combined. As a search engine, it goes up against Google and Microsoft’s Bing. It also provides financial services; you could buy certain things using AliPay, so it competes with the new Apple Pay, and it even has its own money market fund with $87 billion in assets; so it’s kind of like a bank. The company was founded in China 15 years ago by an English teacher named Jack Ma, who is now the richest man in China, with personal net worth over $20 billion. Early investors include Yahoo, with a 16% stake in the company; and Softbank, with a 32% stake. You might think it was a good day for Yahoo; not so much. Yahoo sold 120 million BABA shares, keeping more than …

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Monday, January 13, 2014, Hacks and Leaks

Hacks and Leaks by Sinclair Noe DOW – 179 = 16,257SPX – 23 = 1819NAS – 61 = 411310 YR YLD – .03 = 2.83%OIL – 1.14 = 91.58GOLD + 3.80 = 1253.40SILV + .23 = 20.51 This week’s economic calendar includes retail sales report and business inventories tomorrow; reports on wholesale inflation and the Fed Beige Book on Wednesday; Thursday we’ll see the inflation numbers on the retail level; Friday brings an update on housing starts, industrial production, and an options expiration Friday. We are smack dab in earnings reporting season. This week, the big banks report. Tomorrow we’ll hear from JPMorgan and Wells Fargo; Bank of America on Wednesday; Goldman Sachs and Citigroup on Thursday; Morgan Stanley on Friday. The banks’ reports will provide insight into how much activity there has been in both consumer and commercial lending and portfolios. Another area of interest is changes in the banks’ trading portfolios, which are expected to decline. Financial companies announced more job cuts last year than any other corporate sector; those cuts can’t continue indefinitely. Litigation costs will be the wild card in earnings reports as some of the big banks have been trying to clean out the skeletons from the closets. Fourth-quarter earnings expectations are highest for health-care stocks, financials and consumer-discretionary names, as well as Industrial companies. Much like in the third-quarter, the financial sector is expected to have the best earnings growth in the fourth quarter, with an estimated growth rate of 22.6%. S&P 500 earnings …

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