This week, we have quite a few economic reports, with the biggies being Tuesday’s Producer Price Index for September and Wednesday’s Consumer Price Index for September.
But let’s not forget earnings this week:
MONDAY: IBM, Wells Fargo, Citigroup
TUESDAY: Apple, Johnson & Johnson, Coca-Cola, Intel, Bank of America, Goldman Sachs
WEDNESDAY: Abbott Laboratories, American Express
THURSDAY: Microsoft, AT&T, Philip Morris
FRIDAY: GE, Verizon, Schlumberger, McDonald’s
Occupy Wall Street gets some interesting new friends
Look who is on the side of the OWS movement now: The American Nazi Party and the Communist Party USA. This isn’t as surprising or as opportunistic as it sounds, especially when you consider the history of both the National Socialist and Communist movements. Both movements have a long history of anti-capitalism, so OWS is right up their alley.
OWS spreads to 4 continents
Speaking of OWS, the “Occupy” movement has now spread to 4 continents, with protests in the following cities outside the U.S.: London, Rome, Florence, Milan, Sydney, Melbourne, Tokyo, Hong Kong, Zurich, Dublin, Amsterdam, and Madrid.
End of the world rescheduled for October 21st
You have to love people who incorrectly predict the end of the world on a specific date, then push the date back when it doesn’t happen. Radio preacher Harold Camping was the one who predicted the world would end on May 21st. Now he has changed the date to this Friday, October 21st. Just in time for monthly options expiration! Wouldn’t it be terrible if the world ended and there were still options hanging out there?
Sometimes it doesn’t pay to be an insider
I got a chuckle out of reading how Wall Street’s bond traders lost money on insider information. It seems Standard & Poor’s leaked information to the big bond trading desks about how S&P was going to downgrade U.S. debt. Naturally, the big banks proceeded to short U.S. treasuries. Unfortunately, they didn’t count on Europe. When the European debt problem hit, investors over there started pouring money into treasuries, totally screwing up the insider short trade. Doesn’t it just break your heart?
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Ed's Talking Stock 
A question for the group. Barron’s did an article on Seaspan. They mentioned the preferred C shares, which payer a higher dividend (9.5%). If I’m already investing in SSW, why not buy the preferred? The pluses seem to be: higher dividend (9.5% vs 5.5%), and closer to the front of the line for payouts vs the common. Down side seems to be: lower volume. Anything else I’m missing?
John,
As a general rule, if I like the company, and the preferred shares pay a higher dividend, and assuming no other issues with them (watch call dates, for example), I will buy the preferred shares over the common shares.
Don’t let volume on preferred shares scare you. Preferred shares typically attract more “buy and hold” investors, so they get far less trading activity.
“sometimes it doesn’t pay to be an insider” This is where if current administration really practiced what it preached the proverbial doo should hit the fan. If they really wanted to enforce the law they should be coming down on the leakers and here is a great chance to use a large bat on the people who got info to get the people giving info. But it won’t happen cause they are way to busy 1. Making new more effective regs. 2. Getting another war started. 3 Covering their butts after getting caught giving guns to bad guys.
From the article: “But in most cases of insider trading, participants need to make money for it to be a crime.” So even if they wanted to prosecute they may not be able to. The article indicates that the SEC is investigating, of course the Repubs haven’t approved increased funding for the SEC so it is unclear if they really have the staff or money to do that effectively.
Cheers,
Robb
Golly why does it not suprise me that it is the republicans fault. This is the same SEC that let Madoff slide by for a decade-Pubs fault- IRS let Timmy and Charley pay their taxes- Pubs fault. Cliton and cohorts repealing Glas-seagal -Pubs fault. Sure makes it easy for it to always be the other guys fault. I guess when you are perfect things that go wrong always have to be the other guys fault. It is nice when the buck always stops somewhere else. 🙂
Play nice you two, or I’ll take your toys away! 😛
So you disagree that that the Pubs have shot down the SEC requests for additional resources to implement and enforce new regulations and laws? Since you were the one that complained that the administration was too busy to actually attempt to prosecute these folks I simply provided one of the reasons it seems that the SEC is always behind the criminals. When you don’t have the funding to do all the things you are supposed to everything you do suffers. But I would hate for reality to intrude on bashing the administration.
I do love how you then expand the argument beyond anything I actually said.
Cheers,
Robb
Robb, Sorry that you took it that way. My point is how can it always be 100% the other guys fault. I see no solutions to current and future problems always blaming it on the other guy.
Mike,
I look at it this way: You can’t look at insider information in a vacuum. These alleged “professional” bond traders totally ignored the risk from Europe, even though we’ve known about it for over a year. They paid the price for not looking at the big picture.
Ed, that is a lesson for many of us to consider. I think we have all thought some things would go our way with a certain trade, just to see some action that we didn’t think of occur.
This could be Europe, exchanges adjusting margin requirements, downgrades, …..take your pick.
Art,
That is why I’m reluctant to do more than daytrade in the current bull market. All it takes is one snafu from Europe, and we’re falling hard.
How many articles need to be written about the Apple 4S before the world realize it has blown everyone away by its sales numbers?
What kind of response are you looking for? If you are looking for the stock price to take off, I would think that the current market conditions are taking priority over anything else right now.
Chris,
Tom does make an interesting point. For every article about how disappointing the 4S is, there’s another one talking about it’s sales figures. And guess which one is getting the bigger headlines? There are some serious Appleheads in the Media.
My previous note is poorly worded. What I was trying to say is I have read more articles about the new Apple phone than I needed to and they are still writing additional articles.
As for the price of Apple stock, I agree that with today’s market sell off even Apple can’t swim against the strong tide.