Interesting developments to come - See what made the cut...|
Wall Street Back to Business
Wall Street will be back to 'business as usual' Monday morning, as Federal
Agencies grapple with effects of potential budget cuts. After the moves across
the board last week from data released, the sequester appears to be on the back
burner, for investors. With the Dow holding its own at less than 1% away from
its all-time intraday high, declines should remain shallow and short lived as
investors continue to take advantage of the dips. Upcoming announcements of cuts
resulting from the sequester, in days and weeks ahead, will eventually take its
toll on the Street.
The euro zone's sovereign debt crisis will also remain on the minds of
investors, with overall market action showing the reflection of their approval
or dismay. The austerity-weary population is increasingly demanding an end to
budget-balancing measures, seen as worsening the crisis.
We'll start to see markets reaction to cuts effecting blue chips and other major
firms. Defense stocks will feel an increase in the pace of pullbacks. Short
interest will be seen rising in firms facing direct hits from budget cuts. First
come, first serve will begin to be the motto for companies facing cuts, as
investors show their concerns by exiting positions they would have otherwise,
held for the longer term.
The real challenge facing Wall Street is to whether equities can sustain highs
of psychological significance. Breaking through uncharted territory will prove
as a truth test of investors faith in the stability of, a rally. Of late, we are
seeing investors taking stock in, value stocks which are likely to generate
steady, reliable gains. To investors, these gains are likely to prove more
stable, should a correction occur.
Word has it that there is an increase of put hedging in financials, over the
past month. The put-to-call ratio representing an aggregate of nearly 562
financial stocks is 1:1, when normally, calls should be outnumbering puts.
Executive Order Signed
President Barack Obama signed the executive order Friday March 1, 2013 for
federal agencies to begin implementing across-the-board spending cuts, setting
in motion a rare budget process that may likely play out for months. The
directive puts in motion cuts, that could take effect immediately for some
EXECUTIVE OFFICE OF THE PRESIDENT
OFFICE OF MANAGEMENT AND BUDGET
WASHINGTON, D.C. 20503
FOR IMMEDIATE RELEASE MARCH 1, 2013
Tonight, in accordance with section 251A of the Balanced Budget and Emergency
Deficit Control Act, as amended, the President issued a sequestration order for
Fiscal Year 2013.
As also required by the Act, the Office of Management and Budget (OMB)
transmitted the Report to the Congress On The Joint Committee Sequestration for
Fiscal Year 2013.
One passage from the OMB Report: OMB calculates that the Joint Committee
sequestration requires a 7.8 percent reduction in non-exempt defense
discretionary funding and a 5.0 percent reduction in non-exempt non defense
discretionary funding. The sequestration also imposes reductions of 2.0 percent
to Medicare, 5.1 percent to other non-exempt nondefense mandatory programs, and
7.9 percent to non-exempt defense mandatory programs. Sands findings are related
to deals in mainland China led by executives no longer employed at the company.
Las Vegas Sands Violates U.S. Corruption Act
According to a Securities and Exchange Commission filing on Friday, Las Vegas
Sands Corp (LVS) reports it "likely" violated the federal Foreign Corrupt
Practices Act, which outlaws the bribery of foreign officials. The Sands said
"There were likely violations of the books and records and internal controls
provisions of the FCPA,"
Billionaire Republican donor Sheldon Adelson, casino operator and founder,
presented disclosures that the Sands was under investigation.
March 4, 2013