Tag - Amtd

Yesterday rare earth stocks sold off quickly. The timing was perfect as I wrote a bullish article on this sector, suggesting that these stocks had further to run. For those who are invested in this space, or are looking to add exposure, days like yesterday when many of these stocks are off 10 percent, or more, are a great time to add exposure.

Small-cap stocks pushed higher in a relatively tame session, with morning pressure from concerns about sloppy sales at Wal-Mart countered by optimism for massive infrastructure spending projects in the months ahead. Perhaps the story lines simply balanced out each other, or perhaps the market was taking a little “breather” ahead of Friday’s big jobs report. The Russell 2000 (NYSE:IWM) closed up 4.91, or 0.99% at 502.01 and is now up 0.5% for the year; meanwhile the Dow is off 0.3% for 2009 and the S&P 500 is up 0.7%.

The day started off with a thud as the Wal-Mart worries ignited fears that if consumer spending is slack at discounters, then how bad might it be for higher-end fare? Wal-Mart Stores Inc. (NYSE:WMT) reported same-store sales were up 1.7% in December, which missed the forecast for a rise of 2.8%. WMT was a drag on large-cap index products throughout the day, and eventually lost more than 7%.

There actually was plenty of movement today in the retail arena, with most stores now coming out with monthly same-store results. However, for every Wal-Mart, Limited Brands Inc. (NYSE:LTD) and Abercrombie & Fitch Co. (NYSE:ANF), all of which fell on weak numbers, there was a Sears Holdings Corp. (Nasdaq:SHLD), which jumped 23%. If you owned stock in any retailers, chances are you experienced ...

The Russell 2000 (NYSE: IWM) and the Dow have trimmed their gains but are still in positive territory following news that four major U.S. banks borrowed money from the U.S. Federal Reserve. At 2:15 p.m. the small-cap index had added 7.76 points, or 0.98%, to 796.14. The Dow Jones Industrial Average (INDU) had climbed 97.31 points, or 0.74%, to 13,188.17.

Citigroup Inc. (NYSE: C) announced this afternoon that it has borrowed $500 million directly from the Fed.

The New York-based financial services giant, a Dow component, said that it is borrowing the funds “on behalf of clients.”  It became the first to take advantage of the Fed’s lower discount rate, which was dropped to 5.75% from 6.25% on Friday to encourage banks to borrow money and inject it into the financial markets.

The discount rate is the interest rate the U.S. central bank charges commercial banks on loans they receive.

The Russell 2000 (NYSE: IWM) is leading the rally with the Dow Jones Industrial Average (INDU) in tow as stocks react to news of mergers and acquisitions.

At 10:04 a.m. ET the small-cap index had added 9.59 points, or 1.22%, to 797.97. The Dow was up 97.71 points, or 0.75%, to 13,188.57.

MGM Mirage (NYSE: MGM) will sell a 9.5% stake to Dubai World for $5 billion, according to news reports this morning. That comes to a price of $84 per share, 13% above the stock’s closing price of $74.32 on Tuesday.

Under the terms of the deal, which was approved by MGM’s board on Tuesday, Dubai World will also pay $2.7 billion to acquire 50% of CityCenter, a hotel and residential development slated to open in 2009.

The Russell 2000 (NYSE: IWM) futures are rising and the small-cap index is poised to move up following news of mergers and acquisitions.

MGM Mirage (NYSE: MGM) will sell a 9.5% stake to state-owned Dubai World for $5 billion, according to news reports this morning. That comes to a price of $84 per share, 13% above the stock’s closing price of $74.32 on Tuesday.

Mergers and acquisitions have been absent during the past few weeks, as markets have been affected by a credit squeeze.