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Friday, August 3, 2012

STOCKS SURGE AFTER AWESOME NEWS: Here's What You Need To Know, August 3, 2012

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Friday, August 3, 2012

A crucial week of economic data ended on a high note.

First the scoreboard:

Dow: 13,096, +217.2, +1.6%
S&P 500: 1,390, +25.9, +1.9%
NASDAQ: 2,967, +58.1, +2.0%

And now the top stories:

U.S. companies added 163k jobs in July, which was far ahead of the 100k analysts were expecting. This was led by private payrolls which jumped 172k versus an expectation for 110k. Gains more than offset downward revisions to last month's number. The unemployment rate, however, squeaked up to 8.3 percent from 8.2 percent last month. The long-term unemployment rate fell to a three-year low. Here Are The Most Unemployed Big Countries In The World >
Bank of America's Michelle Meyer noted that the good report reduced the odds that the Federal Reserve would have to embark on QE3, a bond-buying program aimed at lowering long-term interest rates for businesses and consumers.
However, the report was not without its naysayers. PIMCO's Mohamed El-Erian said that the 163k was still a "muddling number." Morgan Stanley's David Greenlaw acknowledged the better-than-expected number, but warned that we might see some "payback" next month. In other words, some of the job gains in July may have been pulled forward from August.
The better-than-expected jobs number certainly boosted the Citigroup Economic Surprise Index, one of the best leading indicators of the stock market. Indeed, JP Morgan's Tom Lee said that the index has "decisively turned up." Lee thinks this means corporate earnings are heading up. "Bottom line, we would recommend investors be buyers of the dip," he wrote. UBS Is Recommending These 25 Stocks To The Richest People In World >
The Knight Capital computer glitch saga continues. The stock actually surged this morning at the open. According to reports, Knight has hired Sandler O'Neill and Goldman Sachs as advisers, which could potentially end in a sale of the company. Shares went even higher in the afternoon after TD Ameritrade said it would resume routing trades through the beleaguered market-maker.
Don't Miss: Analyst Presents A Terrifying Vision: THE DECLINE OF THE WEST >




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Business Today: Wall Street up for fourth week as payrolls jump

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08/3/2012

Reuters Election 2012 Daily round-up of the day's top news from the campaign trail, the White House and all the politics in between

Wall Street up for fourth week as payrolls jump

NEW YORK (Reuters) - Wall Street rallied to its highest level since early May on Friday on a stronger-than-expected U.S. jobs report and renewed hope European authorities would act to contain the euro zone debt crisis.

Hiring picks up but not enough to sideline Fed

WASHINGTON (Reuters) - Employers hired the most workers in five months in July, but an increase in the jobless rate to 8.3 percent kept prospects of further monetary stimulus from the Federal Reserve on the table.

U.S. Treasury says to sell $4.5 billion in AIG stock

WASHINGTON (Reuters) - The U.S. Treasury Department said on Friday it will sell $4.5 billion worth of American International Group stock, taking another step toward unwinding its position in the financial crisis bailout programs.

Insight: Morgan Stanley brokers chafe at new system's glitches

By Lauren Tara LaCapra and Joseph A. Giannone and Ashley Lau

Spain inches towards a full EU bailout

MADRID (Reuters) - Spanish Prime Minister Mariano Rajoy inched closer on Friday to asking for an EU bailout for his country, but said he needed first to know what conditions would be attached and what form the rescue would take.

Reuters blogging platform hacked, false Syria blog posted

(Reuters) - Thomson Reuters said the blogging platform of the Reuters News website was compromised on Friday and a false posting purporting to carry an interview with a Syrian rebel leader was illegally posted on a Reuters' journalist's blog.

Procter & Gamble profit tops forecast, plans buybacks

(Reuters) - Procter & Gamble Co posted a higher-than-expected quarterly profit despite a drop in sales, as the world's largest household products maker tries to prove that it can make the improvements needed to move past recent disappointments.

Apple reveals rare ad-spend on iPad, iPhone

SAN JOSE, California (Reuters) - Apple Inc marketing chief Phil Schiller told a jam-packed courtroom on Friday that Apple's strategy in maintaining its market momentum is to "make the product the biggest and clearest thing in advertising."

Nasdaq expects "significant" new expenses over Facebook IPO

NEW YORK (Reuters) - Nasdaq OMX Group Inc expects to incur costs well above the $62 million it has set aside to pay back firms harmed by the glitch-ridden Facebook IPO, as it fights lawsuits and updates its systems, it said in a regulatory filing on Friday.

Buyers eye Knight Capital as some customers return

(Reuters) - Struggling Knight Capital Group Inc's future remained in flux on Friday, with major clients saying they would resume trading with the company, while potential buyers were still combing through the company's books with an eye toward a deal.