Bloggy Business Today

PARIS |
Wed May 23, 2012 6:05am EDT

PARIS (Reuters) – Stock index futures pointed to a lower open on Wall Street on Wednesday, with futures for the SP 500 down 0.65 percent, Dow Jones futures down 0.46 percent and Nasdaq 100 futures down 0.49 percent at 0911 GMT.

Dell Inc (DELL.O) will be in focus after the computer major forecast disappointing second-quarter revenue as U.S. and European corporate tech spending weakens and consumer personal computer sales continue to shrink.

Dell shares sank more than 11 percent in after hours trade on Wall Street on Tuesday and were down 12 percent in Frankfurt on Wednesday morning (DELL.F).

Lenovo Group Ltd (0992.HK), the world’s No.2 PC maker, said on Wednesday that it expects a slowdown in corporate spending in the United States and Europe amid deepening global economic uncertainty.

Ariba Inc (ARBA.O) will also be in the spotlight after top European software company SAP AG (SAPG.DE) said it plans to buy Ariba in a deal valuing the business and commerce network company at $4.3 billion, its latest maneuver against Oracle (ORCL.O) in the fast-growing Internet-based computing market.

Facebook (FB.O) will also be eyed, after sources said that while company officials traveled the country to talk up the company’s $16 billion initial public offering, the social networking giant advised analysts for underwriters to reduce revenue and earnings forecasts.

European stocks sank 1.5 percent in morning trade on Wednesday, reversing a two-session recovery rally, while the euro hit a 21-month low against the dollar ahead of an EU meeting later .EU.

The informal summit is expected to discuss growth-boosting measures and the prospect of common euro zone bonds, but investors doubt it will produce a plan to resolve the debt crisis and restore market optimism, especially as Germany strongly opposes the idea of mutualising debt.

The Congressional Budget Office warned on Tuesday a stalemate over how to tackle a series of fiscal deadlines at year’s end would likely push the United States economy into recession in the first half of next year.

Wells Fargo Co (WFC.N) does not employ the same kind of hedging strategy that has triggered a trading loss of at least $2 billion at rival JPMorgan Chase Co (JPM.N), the bank’s chief risk officer said on Tuesday.

Ford Motor Co (F.N) received its second “investment grade” credit rating on Tuesday, allowing the second-largest U.S. automaker to reclaim its Blue Oval insignia and other assets it mortgaged in 2006 to fund its turnaround plan.

U.S. clothing maker Guess Inc (GES.N) reported a

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LONDON (Reuters) – A growing number of senior executives around the world are willing to pay bribes to win or keep business, as the hunt for growth supersedes concerns over ethics and regulatory fines, according to a survey published on Wednesday.

Ernst & Young said in its annual global fraud survey that the number of top executives at leading firms who said they would be willing to pay cash to secure business – particularly as they expand into new markets – had risen to 15 percent from 9 percent this year.
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By Ryan Vlastelica

NEW YORK |
Mon May 21, 2012 4:27pm EDT

NEW YORK (Reuters) – Stocks rose more than 1 percent on Monday, with the SP 500 snapping a six-day losing streak in a rebound from equities’ biggest weekly drop in almost six months, but Facebook slumped in its second session after a disappointing debut.

Tech shares .GSPT were among the day’s biggest gainers, with an SP sector index surging 2.8 percent on the strength of Apple Inc (AAPL.O). Shares of Apple climbed 5.8 percent to $561.28, leading the Nasdaq to its biggest one-day percentage gain since December 2011.

Facebook Inc (FB.O), the social networking giant that fell short of lofty expectations last week, fared no better on Monday. Facebook’s stock sank 11 percent in its second day of trading, dropping to $34.03, well below its $38 issue price.

“Institutional buyers weren’t as enamored with Facebook as retail investors were, so it isn’t a surprise to see them taking their liquidity out for other areas,” said John Norris, managing director of wealth management with Oakworth Capital Bank in Birmingham, Alabama.

Investors are watching the 1,300 to 1,290 range on the SP 500 as a major support level, the lower end of which was tested last week after the benchmark index had fallen 7.8 percent since the end of April. The bottom of the range coincides with the SP 500′s 10-month moving average.

Sentiment improved after G8 leaders gave verbal backing for Greece to stay in the euro and stressed over the weekend that their “imperative is to promote growth and jobs.” Greece is expected to hold elections after the country was unable to form a government following its most recent elections.

The Dow Jones industrial average .DJI jumped 135.10 points, or 1.09 percent, to 12,504.48 at the close. The Standard Poor’s 500 Index .SPX climbed 20.77 points, or 1.60 percent, to 1,315.99. The Nasdaq Composite Index .IXIC rose 68.42 points, or 2.46 percent, to close at 2,847.21.

In another factor helping sentiment, China’s premier called for additional efforts to support growth on Sunday, signaling Beijing’s willingness to take action after a recent series of economic indicators suggested that the world’s second-biggest economy will slow further in the second quarter.

“We’ve been in something of a near panic lately, and after so many down days, it was inevitable that we would bounce back, especially with news indicating that things aren’t falling apart,” Norris said.

Facebook shares were expected to face tough trading this week if lead underwriter Morgan Stanley

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By Angela Moon

NEW YORK |
Fri May 18, 2012 6:35pm EDT

NEW YORK (Reuters) – Normally a big decline would set up Wall Street for a technical rebound. But that may not be the case next week, even after the market posted its worst weekly loss for the year and the SP fell for six straight sessions.

With the corporate earnings season drawing to an end and recent U.S. economic data raising doubts about the pace of growth, the SP 500, which is down 7.3 percent so far in May, could decline further next week as concerns about the financial health of Europe persist.

“What has changed in the world since April? We went from hearing a constant refrain that the world is awash in money and markets must go higher to hearing nobody wants to take any risk. … All in a week,” said Peter Cecchini, global head of institutional equity derivatives at Cantor Fitzgerald Co in New York.

The SP 500 fell 4.3 percent for the week, its steepest weekly decline this year, and closed below 1,300 for the first time in four months.

The hotly awaited market debut of Facebook on Friday was marred by technology glitches on the Nasdaq in sending messages back to the brokerages that handled orders of Facebook Inc (FB.O) for individual, or “retail,” investors. Those problems rekindled fears about the market’s electronic trading system and caused some investors to stay away from equities.

Weighing on sentiment is a growing sense among investors that the euro zone debt crisis is nearing new heights, fueled by fears of the potential for a Greek euro exit and the deteriorating health of the Spanish banking system.

Solid corporate earnings and upbeat U.S. economic indicators had fueled the rally in U.S. stocks, offsetting jitters over Europe. But with earnings almost out of the way and data starting to disappoint, investors have shifted their focus back to headlines out of Europe.

Leaders of the Group of 8 major industrial economies meet this weekend to try to tackle the financial crisis in Europe. U.S. President Barack Obama, the G8 host, has urged European leaders repeatedly to do more to stimulate growth, fearing contagion from the euro crisis that could hurt the U.S. economy and his chances of re-election in November.

“The market is extremely oversold. Nonetheless, all major indicators remain on sell signals,” said Larry McMillan, president of options research firm McMillan Analysis Corp, in a report on Friday.

“We expect a powerful but short-lived rally should

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By Chuck Mikolajczak

NEW YORK |
Fri May 18, 2012 5:21pm EDT

NEW YORK (Reuters) – Stocks fell on Friday after a sloppy debut by Facebook Inc (FB.O) spoiled hopes that a spectacular open for the most-anticipated stock sale in years would brighten the mood in what has been a gloomy month for equity markets.

Shares of Facebook, the social networking giant, were volatile in the busiest day ever for a trading debut. After early gains of more than 10 percent, Facebook shares fell back to the $38 issue price, ending up just 0.6 percent at $38.23.

It was the Nasdaq’s most actively traded stock, with more than 566 million shares traded.

“When Nasdaq started running into some problems early on before Facebook opened – when there was a sense they kept putting it off, putting it off, the market did come under a little bit of pressure because people were getting nervous about it,” said Ken Polcari, managing director at ICAP Equities in New York.

The SP 500 dipped below 1,300, seen as a key support level, for the first time since mid-January. Investors were cautious before leaders of the Group of Eight nations met about the euro zone debt crisis.

After delays in the scheduled start of Facebook trading raised anxiety levels among traders and onlookers outside Nasdaq’s headquarters, the stock opened at $42.05, compared with an initial public offering price of $38 a share. It rose as high as $45 before pulling back.

Investors were left in the dark about whether their buy and sell orders on Facebook went through as the Nasdaq did not tell broker/dealers whether opening trades had been executed. Nasdaq did not disseminate execution data until 1:50 p.m. (1750 GMT).

“The fact that there is this much interest in a big capital raise, an event like this is good for the markets overall,” said Gordon Charlop, a managing director at Rosenblatt Securities in New York.

The SP 500 fell for a sixth straight day and recorded its worst week since November on growing concerns that global growth will suffer from the euro zone’s problems and signs of a slowing U.S. recovery.

The broad index has dropped 7.3 percent so far in May.

The Dow Jones industrial average .DJI dropped 73.11 points, or 0.59 percent, to 12,369.38. The Standard Poor’s 500 Index .SPX lost 9.64 points, or 0.74 percent, to 1,295.22. The Nasdaq Composite Index .IXIC fell 34.90 points, or 1.24 percent, to 2,778.79.

For the week, the Dow fell 3.5 percent, the SP 500

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