The post-Fed gyrations are continuing this morning. For now at least, it appears that yesterday's selling was overdone. The futures were up strong early and they've surged even more thanks to this from the Plunge Protection Team:
Details of Fed actions to address liquidityToday, the Bank of Canada, the Bank of England, the European Central Bank, the Federal Reserve, and the Swiss National Bank are announcing measures designed to address elevated pressures in short-term funding markets. Actions taken by the Federal Reserve include the establishment of a temporary Term Auction Facility (approved by the Board of Governors of the Federal Reserve System) and the establishment of foreign exchange swap lines with the European Central Bank and the Swiss National Bank (approved by the Federal Open Market Committee). Under the Term Auction Facility (TAF) program, the Federal Reserve will auction term funds to depository institutions against the wide variety of collateral that can be used to secure loans at the discount window. All depository institutions that are judged to be in generally sound financial condition by their local Reserve Bank and that are eligible to borrow under the primary credit discount window program will be eligible to participate in TAF auctions. All advances must be fully collateralized. By allowing the Federal Reserve to inject term funds through a broader range of counterparties and against a broader range of collateral than open market operations, this facility could help promote the efficient dissemination of liquidity when the unsecured interbank markets are under stress. Each TAF auction will be for a fixed amount, with the rate determined by the auction process (subject to a minimum bid rate). The first TAF auction of $20 biln is scheduled for Monday, December 17, with settlement on Thursday, December 20; this auction will provide 28-day term funds, maturing Thursday, January 17, 2008. The second auction of up to $20 bln is scheduled for Thursday, December 20, with settlement on Thursday, December 27; this auction will provide 35-day funds, maturing Thursday, January 31, 2008. The third and fourth auctions will be held on January 14 and 28, with settlement on the following Thursdays. The amounts of those auctions will be determined in January. The Federal Reserve may conduct additional auctions in subsequent months, depending in part on evolving market conditions.
No stopping the PPT!
On Today's Calendar:
- 10:30 -- Crude Inventories
More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
In reaction to weak earnings/guidance: COO -12.3%, OFI -10.4%, PNC -3.9%, ALO -3.9%, CP -3.6%... Other news: ADY -9.9% (announces it has dismissed its independent registered public accounting firm), NUAN -9.0% (announces offering of 15 mln shares of common stock), UNTD -7.3% (announces decision to withdraw IPO of Classmates Media), NWK -7.2% (announces an $85 mln convertible notes private offering), BDC -1.7% (announces voluntary separation program; to incur charges in Q4 2007 of $5-9 mln pre-tax, $0.06-0.11 after tax)... Analyst downgrades: FRPT -8.8% (initiated with Sell at Stanford), AKAM -3.0% (downgraded to Neutral at Cowen), BA -1.9% (downgraded to Equal Weight at Morgan Stanley).
Gapping Up
In reaction to strong earnings/guidance: MTW +6.8%, CCE +2.9%, LTRE +2.9%, MMM +2.2%, WMGI +2.2%, ISCA +1.4%... M&A news: NEXT +64.3% (to be acquired by Teradyne for $20/share)... Other news: MPG +14.8% (forms special committee to focus on strategic alternatives), CRIS +11.7% (reports decision to advance a hedgehog antagonist into phase II; will be eligible to receive cash payments from DNA), CRME +10.2% (FDA advisors recommend approving Vernakalant, Astellas drug should be cleared, FDA panel says - Bloomberg; FDA advisory committee recommends approval of Kynapid for acute atrial fibrillation), IOM +9.3% (to acquire ExcelStore Group, expect the transaction to be accretive), LEAP +8.8% (to expand with Hargray collaboration), LNUX +6.8% (announces amendment to agreements with Google), ACTG +5.2% (announces it has entered into a settlement agreement with Alltel for patent infringement lawsuit), HOV +4.8% (CEO on Bloomberg TV, says December sales have picked up and there's plenty of credit for good borrowers), QLTI +4.8% (appoints GS to review of strategic options), ANDE +4.6% (will replace CCBL in the S&P SmallCap 600), EK +4.5% (Cramer makes positive comments on MadMoney), BCSI +4.1% (selected by H3C Technologies for internet security), AYR +3.5% (increases dividend to $0.70/share), MT +3.5% (announces program to buy back up to 44 mln shares), SWK +3.4% (announces 10 mln share buyback), GLBC +3.3% (signs VoIP contract with Lotus Interworks), ZMH +2.6% (receives FDA approval to market mobile bearing knee), BIDU +2.3% (still checking), ECA +2.2% (announces plans for 2008 CapEx of about $6.9 bln), CPRT +2.1% (profiled in New America section of IBD), PNRA +2.0% (announced the resignation of Neal Yanofsky, President), RADS +1.8% (to acquire Quest Retail Tech for ~$54 mln; expects the acquisition to be accretive to 2008 earnings), RATE +1.7% (Cramer makes positive comments on MadMoney), MCHP +1.6% (authorizes additional 10 mln share repurchase), FMCN +1.6% (Cramer makes positive comments on MadMoney), CMI +1.5% (announces second stock split in 2007; begins third share repurchase initiative), CBZ +1.4% (sells interest in Albridge Solutions; reaffirms FY07 EPS guidance), PEP +1.0% (Cramer makes positive comments on MadMoney), MYL +1.0% (announces tentative FDA approval for lamotrigine tablets)... Analyst upgrades: FBP +5.5% (initiated with Buy at Kaufman), SAF +4.4% (upgraded to Market Perform at Friedman Billings), SPWR +4.0% (upgraded to Outperform at Raymond James), ACAD +3.6% (upgraded to Strong Buy at JMP), ARGN +2.8% (initiated with Buy at KeyBanc), PNK +2.2% (initiated with Market Perform at BMO Capital and initiated with Overweight at Morgan Stanley), TER +1.9% (hearing upgraded to Neutral at tier-1 firm), CMOS +1.9% (hearing upgraded to Neutral at tier-1 firm), ACGY +1.6% (upgraded to Overweight at Lehman), BMR +1.4% (upgraded to Overweight at Morgan Stanley).
Disclaimer & How I use this list
The Fed is acting like a teenage girl who does not want to go to the prom with you, but doesn't want to reject you either. Last night's text-message via Steve Leisman on CNBC and today's 'wait - wait, we didn't really want a 300-pt reaction' announcement show they are continuing to react immaturely to every adverse market repsonse stemming from a Fed action.
Either they are deliberate or they are just idiots - neither of which is very impressive and all of which is a concern for when things are more challenging and the general market is not but a few %-points from highs.
Wow.