Nasdaq

Hurricane Sandy: Wall Street Shuts Down; Trading May Not Resume Until Wednesday

by

– All US Equity Markets Closed Monday (And Maybe Tuesday) Due To Sandy (ZeroHedge, oct 29, 2012):

Late Updates – after a day of consultation and realization that if the algos were left alone to play then things could go a little pear-shaped – NYSE and NASDAQ will now be totally closed tomorrow:

  • *U.S. EQUITY MARKETS TO CLOSE ON OCT. 29 FOR STORM, SEC SAYS
  • *NEW YORK STOCK EXCHANGE TO CLOSE MARKETS FOR STORM
  • *NASDAQ OMX MARKETS CLOSED TOMORROW ON HURRICANE SANDY  :NDAQ US
  • *CBOE TO CLOSE EXCHANGES OCT. 29 BECAUSE OF HURRICANE SANDY

Via NYSE:

“In consultation with other exchanges and market participants, NYSE Euronext will close its markets on Monday, Oct. 29, 2012 and pending confirmation on Tuesday, Oct. 30, 2012’’

“We support the consensus of the markets and the regulatory community that the dangerous  conditions developing as a result of Hurricane Sandy will make it extremely difficult to ensure the safety of our people and communities, and safety must be our first priority’’

“We will work with the industry to determine the next steps in restoring trading as soon as the situation permits’’

Add to this, SIFMA’s recommendation that bond markets close at midday – which is all a little moot given MTA’s closure and tomorrow looks like being a busy day for the European desks…

– Hurricane to close Wall St on Monday, possibly Tuesday (Reuters, Oct 29, 2012):

U.S. stock and options markets will be closed on Monday and possibly Tuesday, the exchange operator said, going back on a plan that would have kept electronic trading going on Monday.

As Hurricane Sandy bears down on the New York area, regulators, exchanges and brokers grew increasingly worried about the integrity of markets and the safety of employees.

It will be the first time the market has closed for a weather-related event since Hurricane Gloria on September 27, 1985.

– Wall Street shuts for storm; trading may not resume until Wednesday (Los Angeles Times, Oct 28, 2012):

As Hurricane Sandy barrels down on the East Coast, Wall Street is shutting down.

The nation’s two biggest trading platforms — the New York Stock Exchange and the Nasdaq Stock Market — have both closed for business. They said trading might not get back to normal until Wednesday.

This would be the first time trading has been halted in all U.S. stocks since a four-day stretch after the Sept. 11, 2001, terrorist attacks.

Read moreHurricane Sandy: Wall Street Shuts Down; Trading May Not Resume Until Wednesday

The Cult Of AAPL Maybe Coming To An End …

by

– AAPL Reality Sinks In Sub-$600 As Option-Overlays Lifted (ZeroHedge, Oct 26, 2012):

…

In english this looks like this:

  • Managers were grossly over-weight (in their books) AAPL
  • Wanted to reduce weight as AAPL’s weight in index reached peak levels and fundamental cracks started to show
  • Last few weeks have seen VWAP sell orders dominating
  • BUT – the algos can only clear so much and given the huge breadth of holdings…
  • Managers bought Option overlays with both hands and feet (as we noted yesterday) to protect through earnings
  • And today – with options open, they are unwinding the protection (implied vol dropping even as stock price plunges) and reducing net long exposure in size (see volume)…

Bottom line – long-only managers will retain exposure (as index trackers) but clearly need to unwind some weight and anyone telling you this is all short-sellers is incorrect – the simple facts of VWAP fades and implied vol dropping suggests its long-exits as the cult of AAPL maybe coming to an end…

Apple Disappoints – 230 Hedge Funds Suddenly Cried Out In Terror And Were Suddenly Silenced

by

– Apple Disappoints (ZeroHedge, Oct 25, 2012):

And so the behemoth misses… again:

  • APPLE 4Q EPS $8.67, EST. $8.75 – miss
  • APPLE 4Q SALES $36.0B – slight beat
  • APPLE SOLD 14.0 MILLION IPADS DURING QTR, UNIT EST. 15.3M

But the uglyness is in the forecast. And this time it is not a low-ball:

  • APPLE SEES 1Q EEPS $11.75, , EST. $15.49
  • APPLE SEES 1Q REV. ABOUT $52B, EST. $55.07B

Stock halted so keep an eye on the QQQ as a proxy – QQQs imply AAPL $590 here (200DMA is $587)… AAPL will resume trading at 4:50ET

…

– 230 Hedge Funds Suddenly Cried Out In Terror And Were Suddenly Silenced (ZeroHedge, Oct 25, 2012):

A week after the second most populous hedge fund hotel, Google, blew up, it is now time for good ole’ Hotel Caaplefornia itself. The HF holders table below is presented without comment (as we have said all there is to say many times). Remember: orderly, cool, calm, collected single file procession through the tight exit: and nobody panic!

…

Apple Slide Halts Yet Another Rumor-Driven Risk Rally … The Fruit Shall Lead The Way

by

– Apple Slide Halts Yet Another Rumor-Driven Risk Rally (ZeroHedge, Oct 11, 2012):

Yesterday even as the broader market slid materially, much to the dismay of permabulls everywhere, taking out post QE3 lows, one stock that obstinately refused to join the trend was Apple, which as we have noted before is the vanguard of the index known as NASDAAPL, and whichever way the NASDAAPL goes, so go America’s hedge funds, all of which have decided to piggyback on the stock in hope of catching up to the market performance and avoid being redeemed to death. Today, we get a mirror image of yesterday, when after opening at its highs, AAPL has since tumbled 2.5% from its highs, following news that an Apples court has allowed sales of Samsung Galaxy to continue. Finally, the broader market, which ramped early on hope that the intolerable Basel III requirements would be delayed by 1 year (they will be eventually as they demand that banks sell trillions in assets: something they can’t do), is about to slide not only with AAPL as the catalyst but following news from Dow Jones that the “EU Trialogue Didn’t Discuss Basel III Delay Thursday.” In other words, we ramped on a completely bogus rumor originating in Europe once again. What else is new?AAPL loses $10 billion in market cap in a few hours:

– The Fruit Shall Lead The Way (ZeroHedge, Oct 11, 2012):

As Monty Python might have said, apart from AAPL; what has the market done for you today? S&P 500 cash managed (somehow) to cling to a green close while the Dow and Nasdaq ended red. Critically – markets went only one way all day – from upper left to lower right as we go out at the lows of the day – back again at the Draghi cliff edge and just below pre-QE levels. AAPL was a disaster – on heavy volume – as it pushed back down towards it 100DMA (over 3% from its opening highs today!) ending at its lowest in two months with its biggest slide in 5 months (last 14 days). Risk-assets in general tracked closely as while AAPL slide from the open, equity indices manage to hold opening gap gains until Europe closed and then it went pear-shaped. The USD slid all day but didn’t ‘help’ stocks as JPY weakened more (carry offsetting). Treasury yields plunged – 30Y now down 12bps on the week. Commodities all gained on the day – led by Oil (with gold/silver lagging). Meanwhile VIX ignored the debacle, gapping lower at the open and holding down 0.7vols at 15.6% as HYG handily outperformed on low volume.

…

 

Apple Has Satanic Close To Quarter

by

– Apple Has Satanic Close To Quarter (ZeroHedge, Sep 28, 2012):

Ending the day at the lows, AAPL’s stock price traded with a truly demonic $666.66  after-hours. The reason for the last few days’ weakness? Who knows when a bubble bursts but between its analog to MSFT’s meteoric rise, the stocks’ weight in the NASDAQ, ‘disappointing’ first-week sales, Cook’s Maps FUBAR, supply-chain disruptions, or the market having to suddenly price in the arrival of the new Obama-phone, volumes have been picking up.The Bat-Phone…

The Apple iPhone… and its high-volume selling pressure and $666.66 after-hours close…

AAPL +65% YTD, +14% in Q3, +0.23% in September

The Cleveland Obama-Phone…

Marc Faber: ‘Fed Will Destroy The World’ (Video)

by

– Marc Faber: “Fed Will Destroy The World” (ZeroHedge, Sep 14, 2012):

“Everything will collapse” is the consequence Gloom, Boom, & Doom’s Marc Faber sees from the Fed’s latest ‘stimulus’ (and the fallacy and misconception of how money-printing can help employment). In a wondrously clarifying interview on Bloomberg TV this morning, Faber explained why he was ‘happy’, since “the asset values of his holdings will go up” but as a responsible citizen he is worried because “the monetary policies of the US will destroy the world.“ It truly is class warfare under a veil of ‘its good for you’ as he notes: “the fallacy of monetary policy in the U.S. is to believe this money will go to the man on the street. It won’t. It goes to the Mayfair economy of the well-to-do people and boosts asset prices of Warhols.” Congratulations, Mr. Bernanke.

Must-watch (or read the transcript) – it is truly remarkable.

Faber on more Federal Reserve stimulus:

“It is difficult to tell what will happen. I happen to believe that eventually we will have a systemic crisis and everything will collapse. But the question is really between here and then. Will everything collapse with Dow Jones 20,000 or 50,000 or 10 million? Mr. Bernanke is a money printer and, believe me, if Mr. Romney wins the election the next Fed chairman will also be a money printer. And so it will go on. The Europeans will print money. The Chinese will print money. Everybody will print money and the purchasing power of paper money will go down. And I don’t like bonds. I don’t particularly like equities, but I think equities are a better space to be in than bonds.”

Read moreMarc Faber: ‘Fed Will Destroy The World’ (Video)

AAPL Weight In NASDAQ Index Now 19.8% … Is Another Rebalancing Imminent?

by

– With AAPL 19.8% Of The NASDAQ, Is Another Rebalancing Imminent? (ZeroHedge, Aug 24, 2012):

Just over 16 months ago, the NASDAQ did an unusual thing. As the WSJ noted at the time, AAPL, which had reached a 20% weighting in the NASDAQ-100, was rebalanced to 12.3%. This weighting was apparently too much for the index-provider who feared “the tech company’s big weighting means that a change in fortune for the maker of iPhones, iPods and iPads has a huge impact on one of the most heavily traded indexes in the market.”Since 04/05/11, when that rebalance occurred, AAPL’s market cap has doubled, while the NASDAQ-100 is up just under 20% ($627bn versus $3.15tn). With the current weighting of AAPL in the NASDAQ-100 at 19.8%, we wonder what is next – as the WSJ noted at the time, any “rebalancing is likely to kick off waves of trading… as money managers scramble to adjust holdings to reflect the new composition of the index.” Interestingly, AAPL has reached 20% of the index twice this year already – which just happened to coincide with significant selling pressure on the stock – will third time be the charm?

Read moreAAPL Weight In NASDAQ Index Now 19.8% … Is Another Rebalancing Imminent?

UBS Is Sitting On Facebook Trading Loss Of Up To $350 Million

by

– UBS May Have Facebook Trading Loss of $350 Million (Yahoo Finance/CNBC, June 8, 2012):

UBS is sitting on losses that could be as high as $350 million stemming from its investment in the Facebook initial public offering, and is preparing legal action against Nasdaq as a result, people familiar with the matter told CNBC.

That loss is some ten-times more than the $30 million number that is currently being speculated in the market by others.

The issue has to do with the failure to get confirmations and executions from the Facebook trade.

Read moreUBS Is Sitting On Facebook Trading Loss Of Up To $350 Million

Nasdaq Hackers Spied On Company Boards

by

– Exclusive: Nasdaq hackers spied on company boards (Reuters, Oct. 20, 2011):

Hackers who infiltrated the Nasdaq’s computer systems last year installed malicious software that allowed them to spy on the directors of publicly held companies, according to two people familiar with an investigation into the matter.

The new details showed the cyber attack was more serious than previously thought, as Nasdaq OMX Group had said in February that there was no evidence the hackers accessed customer information.

It was not known what information the hackers might have stolen. The investigation into the attack, involving the FBI and National Security Agency, is ongoing.

“God knows exactly what they have done. The long term impact of such attack is still unknown,” said Tom Kellermann, a well-known cyber security expert with years of experience protecting central banks and other high-profile financial institutions from attack.

Read moreNasdaq Hackers Spied On Company Boards

Jim Rogers: ‘Saudi Arabia Is Lying About Being Able To Increase Its Oil Production’

by

Rogers Interview on Commodities, Global Stocks, Feb. 28

“Saudi Arabia has been lying about the reserves for decades.

Saudi Arabia the last two times said they are going to increase production and they couldn’t increase production. Don’t fall for that.

The reason oil is going up is the world is running out of known reserves of oil.”

Feb. 28 (Bloomberg) — Jim Rogers, chairman of Rogers Holdings, talks about his investment strategy for global stocks and commodities. Gold advanced, approaching a record, as tensions in the Middle East boosted oil prices, increasing demand for precious metals as a protector of wealth and hedge against inflation. Rogers also discusses his strategy for the U.S. dollar. He speaks in Hong Kong with Rishaad Salamat on Bloomberg Television’s “On the Move Asia.”

Source: Bloomberg
 ?

??

Hackers Penetrate Nasdaq Computers

by

Feb. 05 (Wall Street Journal) — Hackers have repeatedly penetrated the computer network of the company that runs the Nasdaq Stock Market during the past year, and federal investigators are trying to identify the perpetrators and their purpose, according to people familiar with the matter.

The exchange’s trading platform—the part of the system that executes trades—wasn’t compromised, these people said. However, it couldn’t be determined which other parts of Nasdaq’s computer network were accessed.

Investigators are considering a range of possible motives, including unlawful financial gain, theft of trade secrets and a national-security threat designed to damage the exchange.

The Nasdaq situation has set off alarms within the government because of the exchange’s critical role, which officials put right up with power companies and air-traffic-control operations, all part of the nation’s basic infrastructure. Other infrastructure components have been compromised in the past, including a case in which hackers planted potentially disruptive software programs in the U.S. electrical grid, according to current and former national-security officials.

“So far, [the perpetrators] appear to have just been looking around,” said one person involved in the Nasdaq matter. Another person familiar with the case said the incidents were, for a computer network, the equivalent of someone sneaking into a house and walking around but—apparently, so far—not taking or tampering with anything.

Read moreHackers Penetrate Nasdaq Computers

Wall Street Emergency: Nasdaq to Cancel U.S. Trades That Moved More Than 60%

by

– Market Plunge Baffles Wall Street (Wall Street Journal):

Investors already were jittery about the ripple effects of the crisis in Greece when the market went into free fall at 2:42 p.m. By 2:47, the Dow Jones Industrial Average had crossed 10000 in the biggest intraday point drop in its history. By 3:07, the market had regained 500 points, ultimately staggering to a close at 10520.32, down 347.80 points.
…
Multiple stocks, ranging from Accenture PLC to Boston Beer Co., momentarily lost nearly 100% of their value, changing hands for just one penny. Exchange-traded funds, which are index funds that trade like stocks on exchanges, were also temporarily vaporized. The $9.5 billion iShares Russell 1000 Value Index Fund went from $59 to around 8 cents in the blink of an eye.

– Markets on edge after Dow plunge (CNN Money)

– The No.1 Trend Forecaster Gerald Celente: Greece Only The Beginning; Wall Street Plunge; Bailout Bubble Bursting; 2010 Global Crash; Gold

nyse
Donald Civitanova works at a post on the floor of the New York Stock Exchange in New York Photographer: Daniel Acker/Bloomberg

May 6 (Bloomberg) — Nasdaq OMX Group Inc. said it will cancel trades of 286 securities that fell or rose more than 60 percent from their prices at 2:40 p.m. New York time, just before U.S. equities plummeted.

The Dow Jones Industrial Average plunged almost 1,000 points before trimming its drop and ended down 347.80 points, or 3.2 percent, at 10,520.32. About $700 billion of U.S. stock- market value was wiped out in less than 10 minutes, according to data compiled by Bloomberg.

Nasdaq, which investigated trades between 2:40 p.m. and 3 p.m., said it didn’t find any technology or system issues that caused declines of as much as 99.9 percent in some shares. Citigroup Inc. may have been the firm that made an erroneous trade, CNBC said, citing “multiple sources.” New York-based Citigroup said it found “no evidence” of erroneous trades, and CME Group Inc. said the bank’s activity in CME stock index futures didn’t appear to be “irregular or unusual.”

“Somebody hits the wrong button and everybody heads through the same door at the same time,” said David Goerz, who oversees $17 billion as chief investment officer at Highmark Capital Management in San Francisco. “It clearly was a factor. When you have a lot of skepticism and nervousness in the market place, that just exacerbates the problem.”

Accenture, Exelon

Accenture Plc and Exelon Corp. were on Nasdaq’s list of companies and dropped more than 60 percent as U.S. equities tumbled, before recovering by the close. The list also included some bearish exchange-traded funds that surged as stocks fell.

The decision means that trades in Cincinnati-based Procter & Gamble Co., which slid as much as 37 percent for the biggest intraday drop in the Dow industrials, would stand. The world’s largest consumer products company said stock trades that pushed its shares down were probably an error.

Read moreWall Street Emergency: Nasdaq to Cancel U.S. Trades That Moved More Than 60%

VeriChip Corp. Granted Exclusive License for Patents Used in Virus Triage Detection System for H1N1 Virus

by

1. Inform everybody you know about the microchip and built the largest connection of people possible. Connect to other groups that oppose the chip.

2. Inform yourself about your rights and your protection given to you by the constitution.
(NSPD 51 and the Patriot Act are unconstitutional.)

3. Civil disobedience. Do not be immunized. Do not allow any chip implant. Resist if you have to.

4. Protect yourself “against all enemies foreign and domestic” if necessary.

5. Read: Solution.

More on microchips:
– Greg Evenson on Microchips and Swine Flu
– Whistleblower: Forced vaccinations – clear warning
– CASPIAN RELEASES MICROCHIP CANCER REPORT:
A new paper titled “Microchip-Induced Tumors in Laboratory Rodents and Dogs: A Review of the Literature 1990–2006” has been released…
– Met Police officers to be ‘microchipped’ by top brass in Big Brother style tracking scheme
 Every single Metropolitan police officer will be ‘microchipped’….
…there will not be any choice about wearing one.
– UK: Compulsory microchipping of dogs
– U.S. School District to Begin Microchipping Students
So far the RFID chips are only implanted in the schoolbag to monitor the students movements.
– The Microchip is here !!! – New World Order
– The Microchip: Health, Privacy, Civil Rights And Freedom Under Siege
U.K. to Begin Microchipping Prisoners

VeriChip shares jump after H1N1 patent license win

verichip-corporation

DELRAY BEACH, Fla. & CHASKA, Minn.–(BUSINESS WIRE)–VeriChip Corporation (“VeriChip”) (NASDAQ: CHIP – News) and its development partner RECEPTORS LLC, a technology company whose AFFINITY by DESIGNTM chemistry platform can be applied to the development of selective binding products, announced today that VeriChip has been granted an exclusive license to RECEPTORS’ Patent No. 7,504,364 titled “Methods of Making Arrays and Artificial Receptors” and Patent No. 7,469,076 “Sensors Employing Combinatorial Artificial Receptors,” in their application to the development of the virus triage detection system for the H1N1 virus. The patents can also be applied to detection systems for other viruses and biological threats such as Methicillin-resistant Staphylococcus aureus (MRSA).

Last week, VeriChip announced its plans to fund its existing partnership with RECEPTORS to develop the virus triage detection system for the H1N1 virus. The companies have published a white paper entitled, “An Integrated Sensor System for the Detection of Bio-Threats from Pandemics to Emerging Diseases to Bioterrorism,” which outlines the system’s development and is available at www.verichipcorp.com.

Scott R. Silverman, Chairman and CEO of VeriChip, said, “In a short period of time following our announcement earlier this month that VeriChip has agreed to acquire Steel Vault Corporation (OTCBB: SVUL – News) and form PositiveID Corporation, we have been intently focused on maximizing our product portfolio and relationships in order to bring identification technologies and tools for consumers and businesses to market. Our strong balance sheet immediately positions us to invest in our partnership with RECEPTORS and we believe that receiving the exclusive license as it relates to this application of the ‘364 and ‘076 patents, which are the foundation of the virus triage detection system being developed with RECEPTORS, is a key step in the evolution of PositiveID.”

About RECEPTORS LLC

RECEPTORS LLC is a private company based in Chaska, Minnesota. RECEPTORS’ mission is to advance the diagnosis and treatment of disease and to enhance the health, safety, and quality of the global environment through the development and application of artificial receptor products for both research and industry. To achieve this mission, RECEPTORS focuses its individual and collective efforts, its commitment to excellence, and the power of its technology to develop innovative solutions that meet the unique needs of its customers and stakeholders. For further information please visit http://www.receptorsllc.com.

About VeriChip Corporation

VeriChip Corporation, headquartered in Delray Beach, Florida, has developed the VeriMedTM Health Link System for rapidly and accurately identifying people who arrive in an emergency room and are unable to communicate. This system uses the first human-implantable passive RFID microchip and corresponding personal health record, cleared for medical use in October 2004 by the United States Food and Drug Administration.

On September 8, 2009, VeriChip announced it agreed to acquire Steel Vault Corporation to form PositiveID Corporation. PositiveID will provide identification technologies and tools to protect consumers and businesses. The companies expect the merger to close in the fourth quarter of 2009.

Read moreVeriChip Corp. Granted Exclusive License for Patents Used in Virus Triage Detection System for H1N1 Virus

Former Nasdaq Chairman Madoff Confessed $50 Billion Fraud Before FBI Arrest

by

Dec. 12 (Bloomberg) — Bernard Madoff confessed to employees this week that his investment advisory business was “a giant Ponzi scheme” that cost clients $50 billion before two FBI agents showed up yesterday morning at his Manhattan apartment.

“We’re here to find out if there’s an innocent explanation,” Agent Theodore Cacioppi told Madoff (The FBI ‘should’ be there to find out the truth, not an ‘innocent explanation’.), who founded Bernard L. Madoff Investment Securities LLC and was once chairman of the Nasdaq Stock Market.

“There is no innocent explanation,” Madoff, 70, told the agents, saying he traded and lost money for institutional clients. He said he “paid investors with money that wasn’t there” and expected to go to jail. With that, agents arrested Madoff, according to an FBI complaint.

Read moreFormer Nasdaq Chairman Madoff Confessed $50 Billion Fraud Before FBI Arrest

Wall Street Meltdown: U.S. Stocks Plunge, Sending S&P to Lowest Level Since 1997

by

Nov. 20 (Bloomberg) — U.S. stocks slid and the Standard & Poor’s 500 Index plunged to its lowest level in 11 years after economic reports depicted a deepening recession and lawmakers postponed a vote on a plan to salvage the auto industry.

The Standard & Poor’s 500 Index extended its 2008 tumble to 49 percent, poised for the worst annual decline in its 80-year history. Chesapeake Energy Corp. and National-Oilwell Varco Inc. slid more than 21 percent after oil sank to a three-year low as the slumping economy crushes demand. JPMorgan Chase & Co. lost 18 percent and Citigroup Inc. plunged 26 percent as concern the recession will trigger more bankruptcies pushed the cost of insurance against corporate defaults to an all-time high.

“We’re just trying to stay away from the window,” said James Paulsen, who helps oversee about $220 billion as chief investment strategist at Wells Capital Management Inc. in Minneapolis. “This isn’t about fundamentals, it’s not about bad balance sheets, it’s about fear and confidence.”

Read moreWall Street Meltdown: U.S. Stocks Plunge, Sending S&P to Lowest Level Since 1997

Dow’s 2nd best day ever

by

Dow rises 11% on big rally, but October is still shaping up to be one of the worst months in Wall Street history.

NEW YORK (CNNMoney.com) — The Dow rallied as much as 906 points during Tuesday’s session, as investors dove back into stocks near the end of one of the worst months in Wall Street history.

The Dow Jones industrial average (INDU) added 889 points after having risen as much as 906 points earlier in the session. It was the Dow’s second-biggest one-day point gain ever, following a 936-point rally two weeks ago. The advance of 10.9% was the sixth-biggest ever.

The Standard & Poor’s 500 (SPX) index gained 91.6 points or 10.8%, its second-biggest one-day point gain ever and its fifth-best one-day percentage gain.

The Nasdaq composite (COMP) rose 143.6 points or 9.5%. On a percentage basis, it was the fourth-best one-day gain ever for the tech-fueled Nasdaq. But on a point basis, it didn’t crack the top 10.

The broad advance occurred as the two-day Federal Reserve meeting got underway, with a decision on interest rates expected Wednesday afternoon. Policymakers are widely expected to cut a key short-term interest rate.

Stocks ended Monday’s session at the worst levels in more than five years, with the major gauges down more than 25% for October. Global markets had fallen too, as investors worldwide bailed out of stocks amid the credit crisis and weak economy.

Read moreDow’s 2nd best day ever

U.S. Stocks Drop; S&P 500, Dow Post Worst Retreats Since 1937

by


Ben S. Bernanke, chairman of the U.S. Federal Reserve, speaks on a television above a trader in the S&P pit at the Chicago Board of Trade in Chicago, on Tuesday Oct. 7, 2008. Photographer: Joshua Lott/Bloomberg News

Oct. 7 (Bloomberg) — U.S. stocks fell, sending the Standard & Poor’s 500 Index below 1,000 for the first time since 2003, on speculation banks and real-estate companies are running short of money as the credit crisis worsens.

Bank of America Corp. tumbled 26 percent after cutting its dividend in half and saying it plans to sell $10 billion in common stock to brace for a recession. Morgan Stanley, KeyCorp and JPMorgan Chase & Co. slid more than 10 percent as investors shrugged off signs the Federal Reserve will reduce interest rates. General Growth Properties Inc., a mall owner, plunged 42 percent on concern it won’t be able to repay debt.

The S&P 500 slid 60.66 points, or 5.7 percent, to 996.23, extending its 2008 tumble to 32 percent in the market’s worst yearly slump since 1937. The Dow Jones Industrial Average dropped 508.39, or 5.1 percent, to 9,447.11, giving it a 29 percent retreat in 2008 that would also be the worst in 71 years. The Nasdaq Composite Index lost 5.8 percent to 1,754.88.

“We’ve approached the edge of the cliff,” Leon Cooperman, 65, who manages $6 billion at hedge fund Omega Advisors Inc., said at the Value Investing Congress in New York. “Do we go over the cliff or begin to recede? History says we recede, but there’s no guarantee. This is the most difficult financial environment I’ve lived through.”

Read moreU.S. Stocks Drop; S&P 500, Dow Post Worst Retreats Since 1937

Are “Dark Pools” Destined to be the Capital Markets’ Next Black Hole?

by

Related article: – Big Traders Dive Into Dark Pools

We can almost hear that ominous “Jaws” theme music in the background and can see that huge dorsal fin as it slices threateningly through the water – knowing full well that the real terror is hidden beneath the water’s surface.

But this time around, it’s not a “Great White” that’s sparking our fears; it’s a well-capitalized and broadly based series of secret stock exchanges known as “Dark Pools of Liquidity,” “Dark Liquidity,” or just “Dark Pools.”

Most investors have never even heard the term – and are truly shocked to discover these “off-the-books” trading networks actually exist.

But to Wall Street insiders looking to anonymously move billions of dollars in stocks, bonds, and other investment instruments, dark pools are de rigueur – especially when you’re an institutional trader who doesn’t want to reveal your intentions or your actions to the “rest” of the market, until after the fact when the orders are “printed.”

And that makes these dark pools of capital highly problematic when it comes transparency: There is literally none in most pools and only limited visibility in others.

Dark Pools: From Trading Haven to Heavyweight

Dark Pools are electronic “crossing networks” that offer institutional investors many of the same benefits associated with making trades on the stock exchanges’ public limit order books – without tipping their hands to others, meaning publicly quoted prices aren’t affected. This is the capital markets’ version of a godsend – especially for traders who desire to move large blocks of shares without the public investors ever knowing.

Some examples of so-called crossing networks include Liquidnet Inc., Pipeline, the Posit unit of Investment Technology Group (ITG), or the SIGMA X unit of Goldman Sachs Group Inc. (GS).

In an era in which “secret” transactions contributed to what’s shaping up to be the largest credit crisis in history, you’d think that any mechanism that allows insiders to trade in complete secrecy and with total anonymity would be scrutinized more closely than a Roger Clemens vitamin shot. But that’s not the case with Dark Pools.

Read moreAre “Dark Pools” Destined to be the Capital Markets’ Next Black Hole?

S&P 500 plunges into a bear market

by

NEW YORK (Reuters) – Stocks tumbled on Wednesday, dragging the S&P 500 into a bear market, as worries about more credit losses hurt financial companies and Cisco Systems led technology shares lower after its CEO raised fears of an extended economic downturn.

The S&P closed 20 percent below its all-time high set in October, making it the last of the three major U.S. stock indexes to fall into a bear market. Stocks have been roiled for months by the credit crisis and a severe U.S. economic slowdown.

Related article: US: Total Crash of the Entire Financial System Expected, Say Experts

In the latest news to scare the market, Cisco’s (CSCO.O: Quote, Profile, Research, Stock Buzz) John Chambers told Reuters that customers of the company, which makes Internet infrastructure, see the economy picking up early in 2009 rather than later this year. At least two brokerages also cut their price targets on the stock.

Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz) dropped sharply as some investors worried that the two pillars of the U.S. housing market will need to raise billions of dollars in additional capital through stock sales, diluting the holdings of current investors.

Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz) shares fell more than 9 percent, after Fitch Ratings said it may cut the U.S. investment bank’s debt rating, given expected ongoing write-downs and diminished prospects for earnings.

Read moreS&P 500 plunges into a bear market

Nasdaq Gives High Rollers A Market Free Of Regulation

by

Nasdaq is set to launch tomorrow what its executives are calling one of the most significant developments on Wall Street in decades — a private stock market for super-wealthy investors.Minimum requirement for traders: $100 million in assets.

Any private firm can list on Nasdaq’s new platform, which is called the Portal Market, and raise money by selling stock to an elite group of shareholders. These companies would remain private and not have to make public their financial statements or submit to federal regulation, such as the Sarbanes-Oxley corporate accountability law.

Read moreNasdaq Gives High Rollers A Market Free Of Regulation

Darker Days Ahead?

by

Robert Reich warns a recession, or worse, could be coming.

Think the last few days have been bad for Wall Street and the rest of the world’s markets? Hang on, things are probably going to get worse, says Robert Reich, President Clinton’s former secretary of Labor and author of the recent book “Supercapitalism: The Transformation of Business, Democracy and Everyday Life.” According to Reich, who currently teaches public policy at the University of California, Berkeley, the United States might even be headed toward a depression.

080123_robertreich_vl-vertical.jpg

Reich: 'Now we have a mess on our hands. Bernanke has the only
       pooper-scooper in town, but it is too small for the job.'

Read moreDarker Days Ahead?

Global “Oil Shock” Rattles World Stock markets

by

Cleaning up the mess that Mr Greenspan left behind was never going to be easy. Banks and brokers around the world face more than half-trillion dollars in write-offs as a consequence of the US sub-prime mortgage crisis, which is spreading from the US property market and roiling global stock markets. It’s toppled the US economy into a recession and the tremors are also rattling Asian stock markets.

Roughly $7 trillion has been wiped from world stock markets since the beginning of the year amid fears of a severe US economic recession and financial institutions reporting more mega losses. “The market crisis will preoccupy us well into 2008,” he said German Finance Minister Peer Steinbrueck on Feb 15th. “The financial risks securitized by banks contained packaged explosives,” and he accused rating agencies of having a conflict of interest in the role they played in the process.

So far, the Bernanke Federal Reserve has pumped more than half-a-trillion dollars into the markets with open market operations and special emergency lending schemes, to help cushion the blow to the US economy and stock markets. However, there’s evidence that the Fed’s prescription for dealing with the sub-prime debt crisis, is actually making matters much worse, and leading to “Stagflation.”

Read moreGlobal “Oil Shock” Rattles World Stock markets

World stocks tumble on US recession fears

by

LONDON (AFP) – European equities dived on Monday after heavy falls earlier in Asia as markets were gripped by growing concern that the US economy was slipping into recession, dealers said.

Stock markets in Europe and the United States had sunk late last week following signs that the fallout from the US credit crisis was far from over.

In late morning European trade on Monday, Frankfurt, London and Paris stock markets chalked up fresh losses of about 1.5 percent.

Asian stocks plunged earlier Monday with Tokyo ending down almost 4.5 percent, Hong Kong tumbled 3.07 percent and Seoul gave up 2.3 percent. Singapore and Sydney both shed about 3.0 percent.

“Not a great start to the week with the UK following falls in the US Friday and Asia today,” said Mike Lenhoff, strategist at brokerage Brewin Dolphin.

“What matters most to investors is what is happening in the US. Investors view the US as in recession or going into recession which is not good news for corporate earnings and the market.”

tokyo.jpg

Read moreWorld stocks tumble on US recession fears