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Jobless claims decreased by 3,000 in the week ended Sept. 15 to 382,000, while the estimate was 375,000. Companies are believed to be holding back hiring and investment as overseas demand slow, and potential tax increases and government spending cuts threaten growth.
The amount of VIX futures outstanding climbed to a record 429,193 on September 17, 2012 and total options on the S&P index reached an all time high of 8.09 million on September 18, 2012, showing that investors in the US are turning to volatility securities to protect against losses.
DJIA: 13,597 (+0.14%)
S&P500: 1,460 (-0.05%)
Nasdaq: 3,176 (-0.21%)
Hang Seng: -1.2%
Oracle reports 1Q EPS of $0.53 vs. estimated $0.53, and revenue of $8.21B vs. estimated $8.42B on continued decline of computer hardware (-24%). The company sees 2Q EPS $0.59-$0.63 vs. estimated $0.61, and revenue up 0%-4% vs. estimated +5%. The hardware segment is expected to continue to struggle. Shares dropped 1.2%.
JCPenney shares fell 10%, the most in three months, after the CEO’s showcase of the stores’ new layout failed to inspire confidence in his remake of the retailer. The CEO took 300 analysts on a tour of a prototype aimed to show how the company will transform more of the stores into a collection of 100 branded shops and gathering areas. It is a step in the right direction, but recovery is still viewed as a few years off.
iBoxx IG: 120.58 (-0.1%)
iBoxx HY: 93.28 (-0.5%)
CDX IG S18 5Y: 87.16 (+3.1%)
CDX HY S18 5Y: 101.84 (-0.2%)
US Bancorp may be downgraded by Moody’s by one-level from Aa3 on increased competition from its competition returning to health and seeking growth. The bank is also subject to “incremental volatility” from its expansion in mortgage banking, with that volatility magnified because of a capital profile that, while healthy, doesn’t distinguish it from its peers.
Ford raises $1B in its first 10year bond sale in more than a year. The 4.25% debt may be rated Baa3 by Moody’s, and the coupon is the company’s lowest on record for similar-maturity debt.
WTI Crude: 92.52 (+0.13%)
Nat Gas: +1.27%
EURUSD: 1.2973 (+0.04%)
DXY Dollar Index: 79.4 (+0.47%)
U.S. 10y: 1.76% (-1bp)
German 10y: 1.57% (-5bp)
Spanish 10y: 5.74% (+8bp)
Italian 10y: 4.98% (+7bp)
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