Tag - Gsol

Small-cap stocks took flight this afternoon, spurning fresh bear market lows as bargain-hunters swooped in to snatch up deals, especially in the oversold and downtrodden commodities arena. The market once again showed a willingness to look past dreary employment data, seeing bad news on that score as Wednesday’s worries. The Russell 2000 (NYSE:IWM) closed up 38.41, or 8.48%, at 491.20. For the year, the Russell is down 36%, while the Dow is off 33% and the S&P 500 is down 38%

The weekly unemployment claims report this morning showed that the number of Americans filing continuing claims is at the highest point in 25 years, and just the latest weekly figure alone was the highest since September 2001. Still, the market barely budged when those figures came out, even though they were worse than expected, which created an aura that the jobs numbers weren’t behind market actions today. Even when the market crumbled in the afternoon and sank to new lows, you could tell there was more to the story than just worries about the jobs picture.

Coming into this morning’s activity, investors also had to weigh a revenue warning from technology bellwether Intel Corp. (Nasdaq:INTC); solid quarterly profits, but a mixed outlook from the world’s largest retailer, Wal-Mart Stores Inc. (NYSE:WMT); another wave of selling in overseas markets; a rise in bank lending rates for the first time in a month; the first German recession in five years; and a dip in crude oil prices to 22-month lows before an afternoon snap-back bounce in concert with equities.

“I think selling was related to the lift in Libor rates, poor earnings at Intel, weak guidance from Wal-Mart and ongoing disappointment over the TARP,” Nick Kalivas, vice president of financial research with MF Global, said in an email interview. “There have also been rumors that GE’s dividend may be cut. When the market started to rally back, I think sellers did not want to press in front of the G-20 meeting, insider buying at GE was announced and the earlier selling in stocks was not confirmed by outside market action.”

The market appears preoccupied with finding a bottom for the collapse, which is understandable because the risk is obviously much less near the lows. The pace of market declines has now shifted into a grueling slow-torture process, especially compared with the breakneck speed of the September-October collapse, . . .

Small-cap stocks mounted an impressive rally Thursday, eye-catching not for the severity of the climb, but for the ability to shrug off bearish economic data. Fresh worries about inflation and the jobs picture were fanned this morning, but those issues had a surprisingly short shelf life as investor appetite for riskier investments and the unwinding of long commodity trades continues to bolster equity markets. The Russell 2000 (NYSE:IWM) closed up 6.69, or 0.89%, at 754.38. The Russell is now down just 1.5% for 2008, while the Dow is off 12.3% and the S&P 500 down 11.9%. Very quietly, the Russell 2000 today generated the second highest daily close of the year, which puts all the shorts on a tight equity leash.

Although a big jump in consumer price inflation pulled down the stock market on the opening today, investors quickly set aside the data as “dated,” reasoning that recent sharp declines in the price of energy have not filtered into the official inflation numbers yet. Indeed, on a near-term basis, crude oil prices have collapsed some 21% from the summer peak and were down about $1 dollar a barrel today to $115. However, it was a volatile session for crude oil, as the market did bounce off the intraday low of $112.59 as traders are unsure if a cease-fire order between Russia and Georgia will hold up.

Elsewhere on the commodities front, soft markets were taking a hit today, with cotton down 2.3%, cocoa off 1.5% and sugar down 2.3%. Clearly, commodities are unwinding off a major bullish run and some of that money (most likely flush from big profits) is more than willing to take a stab at the stock market — especially within the small-cap arena. Playing a big role in the unraveling of commodity market inflation has been a dramatic strengthening in the U.S. dollar, which makes many physical goods sold on the world that are priced in dollars more expensive. Look at it this way, crude oil priced in dollar terms is still not extremely cheaper than it was at the . . .

Who says the good old-fashioned style of business (schmoozing, shaking hands and face-to-face selling) is a thing of the past?
 
This year's China Sourcing Fair, a four-day event held last month at the AsiaWorld-Expo, Hong Kong's largest convention and exhibition facility, saw record attendance, featuring 3,200 suppliers, 26% more than the previous year (and a 33% increase in exhibitors from Mainland China). The fair brought together manufacturers, distributors, sales professionals and purchasing agents from all over Asia. Additional China Sourcing Fairs are scheduled for Dubai next month and Hong Kong again in October. These events are attended by representatives of some of the world's largest brands, including Samsung, Sony Corp. (NYSE:SNE), Cisco Systems (Nasdaq:CSCO), Radio Shack (NYSE:RSH), Philips (NYSE:PHG), Siemens (NYSE:SI) and The Chubb Corporation (NYSE:CB).
 
The annual fairs are but one of several marketing venues being used by Global Sources Ltd. (Nasdaq:GSOL), the event's organizer, to help its clients pitch new products, make valuable contacts and nail sales in China's hot marketplace.

Based in Bermuda, Global Sources is a China-focused business-to-business media, communications and marketing agency that uses trade shows, exhibition fairs, marketing websites, trade publications and seminars to connect international buyers with pre-screened suppliers. Its clients do business across a wide range of industry sectors, including computer products (hardware, software and peripherals), electronic gadgets and components, telecom and security products, clothing and textiles, auto parts and accessories, household goods and gifts. In all, the company . . .

The Russell 2000 (NYSE: IWM) posted a stunning rise on news the U.S. Federal Reserve has moved to increase liquidity. The small-cap index jumped 29.84 points, or 4.63%, its largest increase this year, to 673.81. The Dow Jones Industrial Average (INDU) added 416.66 points, or 3.55%, to 12,156.81.

On a year-to-date basis, the Russell 2000 has declined 12.04%, while the Dow is down 8.35% and the S&P 500 has let go 10.06%.

Stocks soared out of the gate on news before the start of trading that the U.S. Federal Reserve and four other central banks will make expanded loans of cash and securities to financial institutions in an effort to ease the credit squeeze and keep the economy growing.

The Fed said it will lend up to $200 billion of Treasury securities to primary dealers for a term of 28 days. The U.S. central bank usually makes such loans overnight.

The Russell 2000 opened strong and bobbled in the green until halfway through the session, when it settled on an upward trajectory.