We've got quite an end to the first trading week of May. When you've got the anniversary of the flash crash, the monthly jobs report from Washington and a continuing steep, rapid decline in commodity prices, it's not exactly got the makings of a relaxing springtime Friday.
The latter, which is causing widespread angst in the investing world, has traders pointing their fingers (when not on the sell button) in every direction -- the Fed, the economy, lousy demand, the rising dollar and any combination of those factors. Who's right? Breakout's Jeff Macke offered this: "For those tied to the headline drops in silver, gold and crude, please note that smart, or at least professional, money has an eye on the U.S. dollar." He adds, "From where I'm sitting, and after discussions with brainy traders like Jon Najarian, the reversal of the dollar is the dog to the commodities' tail."
The selloff is covered by Bloomberg with Commodities Plunge for a Fifth Consecutive Day on 'Panic' Among Investors.
Meanwhile, the jobs report, one of the truly key measures of the health of the economy, is in, and stock futures are still sorting it out. The economy has 244,000 new jobs for April, about 60,000 more than expected, but the unemployment rate edged up to 9% from 8.8%.
And what would this May 6 be without looking back at the aforementioned flash crash, the day one year ago that saw the Dow Jones Industrial Average sink nearly 1,000 points in minutes and then rebound by some 700 points just as fast? Revisit the chaos that was and read about the continuing concerns that are on CNNMoney, with A Year Later, 'Flash Crash' Worries Go Global.
* @pointsnfigures - looks like they managed the number, earlier this week expected +200, after Wed, down to +150. $$
* @BGrete - Market reaction to April jobs data relatively muted. $ firmed initially, but has slipped to near unch. Gold favoring upside. #pfnews
* @alaidi - Bias seen favoured towards CAD on robust US & CAD jobs report... so $CADJPY eyeing 84.60s
* @LWinthorpe - there are you 60K $MCD jobs.
* @tradefast -$GS sees further downside [risk] for oil prices, but says prices could surpass recent highs by next year - per Reuters
ON THE BLOGS:
* Three Levels to Keep an Eye On - Pragmatic Capitalism
* Social Darwinism - Market Anthropology
* Getting Out of Silver - Trading Goddess
* Oil Consumption Demand Destruction vs. Speculative Futures Positions - Mish's Global Economic Trend Analysis
IN THE HEADLINES:
* Has the Commodities Bubble Popped? - SmartMoney
* Speculators Seen Leading Commodities Crash - MarketWatch
* Catch 22 as Fed Exports Inflation - CNBC
* TIPS: The Latest Big Steal - MarketWatch
* Credit Will Save Stock Bulls in Next 'Flash Crash' - MarketWatch
STOCKS TO WATCH:
* Alcatel-Lucent (ALU) reported a loss of 10 million euros for the latest quarter, but that was down considerably from a loss of 515 million euros in the same quarter a year earlier.
* Sony (SNE) CEO Howard Stringer, responding to hacker attacks that have affected roughly 100 million of its PlayStation users, said he was sorry for the "inconvenience and concern" the incidents created.
* JPMorgan Chase (JPM) has been a subpoenaed by the Securities and Exchange Commission regarding failed mortgages, according to a Bloomberg report.
* Cell Therapeutics (CTIC) received a notice of listing non-compliance from the Nasdaq and plans a 1-for-6 reverse stock split.
* VimpelCom (VIP) plans to acquire a mobile phone company operating in the eastern part of Russia for $420 million. The company had about 950,000 subscribers at the end of 2010.
UPGRADES & DOWNGRADES:
* PepsiCo (PEP) has been upgraded at Credit Suisse to outperform from neutral.
* Priceline (PCLN) was downgraded at Goldman to neutral from buy, but its price target was kept at $600. Citigroup raises its target on the stock to $650 from $610.
* Citigroup (C) was upgraded to overweight from equal weight at Morgan Stanley.
* Hess (HES) was upgraded at Morgan Stanley to overweight from equal weight.
KEY EARNINGS FOR MAY 6:
* Wellcare (WCG)
* BASF (BAS.DE)
* Beckman Coulter (BEC)
* Booz Allen Hamilton (BAH)
* Brookfield Residential (BRP)
* Clear Channel (CCO)
* Deutsche Telekom (DTE.DE)
* Washington Post (WPO)
* YRC Worldwide (YRCW)
Compiled by Elizabeth Trotta and Chris Nichols.
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