Petroleo Brasileiro S.A.(PBR) made an announcement today that might shape the oil world for the next 2-3 years. Several months ago they announced that they might have found the worlds largest oil deposit in the Brazil.
Today they announced they want to extend leases with RIG for deep water drilling.
There could be a major long term trade here.
Getting back to the Dow that finished up 94.28 points to 12,992.
Oil finshed down 38 cents to 122.63.
It looks like the commodity trade is starting to unwind. Watch the DBA, for keys to this trade.
The saga continues with Icahn and Yahoo. If you would like to see how the pros do it, you might want to check out this letter to Yahoo. It will give you the framework how deals of this sort get done.
http://www.marketwatch.com/news/story/complete-text-carl-icahns-letter/story.aspx?guid=%7bFF85A1D4-4B12-4EAB-8762-7E0FCF49436C%7d&print=true&dist=printTop
Th options buying tells us that the odds are against this deal in terms of it ever getting done. But when you have Icahn and Paulson(the guy that earned the most on the Mortagage crisis) couple with a power house of potential board members, you have to feel that even if Microsoft doesn't step back up to the plate to play ball, these guys have a "what if" backup in mind.
The dollar ended up softer today after sluggish economic news.
Natural Gas was down in the NY session due to higher inventories post announcement today.
Comex Gold was up $2.90 today.
Good Fortune from Trade Equity!!!
Thursday, May 15, 2008
Market LunchBox
The housing numbers look pretty rough still. Except for the Southwest and Northwest stats from the National Homebuilders Association.
Homebuilder stocks are up again today also.
The Dow is showing the high for the day currently, up 45+ points to 12941.
At the Bernanke Fed conference in Chicago today, Bernanke put the big push on for banks to raise more cash. After hearing the same message at a few different venues, the banks would do well to take this message into consideration(this is our gut feeling).
Bernanke seems to be wanting to get out in front of the predicted bank downturn.
And rightfully so, due to what he has just gone through.
The commodity exchange ICE, is experiencing power issues today. But they have stated the issues are being handled and coming back online.
Keep an eye on VMW. Up 6% and room to move further over the next 6 months.
Good Fortune from Trade Equity!!!
Homebuilder stocks are up again today also.
The Dow is showing the high for the day currently, up 45+ points to 12941.
At the Bernanke Fed conference in Chicago today, Bernanke put the big push on for banks to raise more cash. After hearing the same message at a few different venues, the banks would do well to take this message into consideration(this is our gut feeling).
Bernanke seems to be wanting to get out in front of the predicted bank downturn.
And rightfully so, due to what he has just gone through.
The commodity exchange ICE, is experiencing power issues today. But they have stated the issues are being handled and coming back online.
Keep an eye on VMW. Up 6% and room to move further over the next 6 months.
Good Fortune from Trade Equity!!!
PreMarket Buzz
With Asia and Europe finishing up, with 18 minutes before the Dow opens, Dow futures are up 24, and the S&P is up 4.4.
Oil is showing 125+, up about 1.30.
CBS is on the move to purchase CNET. CNET is the 9th most visited site in the world.
This might be the catalyst to turn the CBS share price around.
CNET stock has surged 42%.
Sina gained 12% after posting an 87% gain in the first quarter. The increase in profits were due to modification on the website allowing user to listen to more music and benefit through the use of real estate information.
GE is trying to sell its appliance unit. Goldman Sachs has been hired to assist in this sale. The proposed number on the street is $8B.
The big news today the slow NY manufacturing number and the unemployment claims. With the unrevised Unemployment number being the most important prior to open.
Although, the NY manufacturing number was worse than expected, the unemployment numbers are not getting any better, which leads us to believe they might be reissued later to be worse than today.
The dollar reacted negatively toward the news after it was released.
Bernanke is talking in Chicago this morning and could bring the market down.
Oil is showing 125+, up about 1.30.
CBS is on the move to purchase CNET. CNET is the 9th most visited site in the world.
This might be the catalyst to turn the CBS share price around.
CNET stock has surged 42%.
Sina gained 12% after posting an 87% gain in the first quarter. The increase in profits were due to modification on the website allowing user to listen to more music and benefit through the use of real estate information.
GE is trying to sell its appliance unit. Goldman Sachs has been hired to assist in this sale. The proposed number on the street is $8B.
The big news today the slow NY manufacturing number and the unemployment claims. With the unrevised Unemployment number being the most important prior to open.
Although, the NY manufacturing number was worse than expected, the unemployment numbers are not getting any better, which leads us to believe they might be reissued later to be worse than today.
The dollar reacted negatively toward the news after it was released.
Bernanke is talking in Chicago this morning and could bring the market down.
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