Jan 26. Stocks remain pressured
The stock market remains under pressure (despite positive news from AAPL earnings report). I saw an item on zerohedge that said with 20% of companies reporting, revenues ex-financial, are down something like 5%. So cost cutting has been major driver of positive EARNINGS reports. Also, because of relaxed accounting rules and the steep curve financial companies have been printing money, but now if under regulatory attack what does that mean for the stock market in general? Lastly, a big driver of growth has been government spending, which Obama is now proposing to freeze. At the same time there are further indications out of China that credit is being tightened.
–Existing Home Sales tumbled yesterday, helping the front end of the eurodollar curve move from a small deficit to unchanged, though back end yields rose. Also in real estate news, Tishman returned the keys on the Stuyvesant Town and Peter Cooper apartment complex, “marking the collapse of one of the largest transactions during the U.S. real estate boom.” (not unexpected).
–There was continued buying in EDU10 puts; total of 30k EDU 98.625p bought for 8.0 (closing position). Same house bought about 15k EOM 9675p (also a closer).
