U.S. Morning Call: Stocks to open lower; buy pullback -JPM
Monday, June 24, 2013 - 03:27
Jun 24 - U.S. stock futures are set for a lower open after last week's Fed comments and worries over China, but a JPMorgan strategist says it's overblown.
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Nothing -- another wild ride his coat that looks like it has a few more drop slept in it taking a look at Dow futures were down 122. Points right now. NASDAQ S&P futures also down sharply with the S&P potentially opening. -- full percent lower. One of the biggest market indicators right now the US ten year yield hitting levels not seen since August 2011. It's hovering around two point 6% as investors John bond markets to. Not any asset classes run -- gold not this since September 2010. Trading around 1285. Gold producer -- laying off a third of its corporate staff and killing an exploration project as a direct result of gold's drop. Think investors have always been able to count on backing from the Fed which we now know won't last forever and also China's willingness to provide liquidity when -- conditions. Tighten the check this out Hong Kong markets had their worst day in almost four years. Think it's gloom and doom for the rest of the summit JPMorgan's -- thinks the back must be bought. China has been really sort of disappointing for several years now. And then some of the things we're seeing with. Interbank rates there. Are really deliberate policy to crack down on trust landing -- in a way it's it's more the same story with higher interest rates what's safe to own. I think we're all gonna come to the conclusion that. In a stronger economy. The best hedge against rising rates is going to be equities especially cyclical stocks. And and -- stocks to watch Jefferies cutting Apple's price target from 420 dollars to 405 how the mighty have fallen. Only last year the stock hit a high at 705 and that it's down over 42%. From that point and if the stock -- the worst thing is for CEO Tim Cook. Here's why times stock award worth over 413. Million dollars as a Friday is now part is subject to the performance of the shares. Busy -- under pressure since he asked the board to impose this rule and has yet to be vested shares. And one tech dinosaur of linking its fortunes -- -- another Microsoft hooking up with oracle on cloud computing. A major partnership announcement is expected at 3:30 PM eastern. After fourth quarter sales -- last week oracle is now striving to catch up of its own line of clouds software. Built partly through acquisitions. US banks try to stay one step ahead of the Fed are presenting their own crisis plan. Off future reports that on May 22 major banks who planted the Fed which. They hold a certain amount of debt and equity that would be used to rescue any failed banks seized by regulators. For the sixth biggest US banks that may have to hold an additional buffer -- international guidelines. To -- could be as high as fifteen to sixteen and a half percent. The plant to force some banks to issue expense of long term debt that's about it what regulators have proposed in the past which is a minimum amount of long term. That's it clear Monday morning call remembered follow us on Twitter at Reuters Insider and get more great videos at Reuters dot com slash -- he. -- -- --
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