Wall Street to Main Street: News, Views and Commentary: June 15, 2006
Really Thursday June 15, 06\, and finally we got an up day, the market showed some durability pretty much for the complete trading session, granted it was modest but definitely a welcome sight. The Nasdaq avoided making record by being down for a ninth day in a row and the S&P broke that 7-month slide. Arms Industries News
Yesterday morning the Labor Department reported that the May Consumer Cost Index aka the CPI rose 0. 4 percent, after having a zero. 6 percent within The spring. This is beyond coziness level of the pumpiing fighting Fed. These latest numbers are pretty much an indication that the Fed will raise interest levels on June 29, 06\. So we may have to prepare ourselves for another increase in September but lets stay away from too ahead of ourselves at this time.
Political Front side
It looks like Iran’s master plan may be coming to light as Iran’s President Mahmoud Ahmadinejad explained that he would like to increase cooperation with a central Asian security group that includes Chinese suppliers and Russia and that the region requires a stable wall against any outside the house interference. This was said at the S’hanghai Co-operation Organization Summit, which contained Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. China has widely said that they will not be a part of the group, that is the story today anyway, as we know tomorrow always brings another aspect into the mix.
Now staying with the Shanghai Cooperation Firm Summit or the SCO Summit, Russia’s president Vladimir Putin made a proposition while he spoke at the SCO, he offered the creation of an energy club within the SCO and mentioned that Russia could actually funding some monetary projects went after by the six-nation local forum. And the story thickens.
President Bush spoken on Wednesday, this occurs the heels of a surprise visit that this individual made to Baghdad. This individual looked confident as this individual explained that he gets a gut feeling something very different going on in Iraq. He expected that the progress in the area will be steady and he appears for the violence to subside.
The Bank of Japan’s Governor Toshihiko Fukui issued a public apology to the Japanese legislative house on Thursday as it related to an investment that selection in a fund run by an ex-bureaucrat arrested for diagnosed insider trading, he said he would not keep any profit. He spent approximately $87, 000 again in 1999 and organised it since then, so this had not been a recent investment and was preceding to the arrest of the high profile account manager Yoshiaki Murakami.
Boeing (NYSE: BA) should be the person or better yet the beneficiary of the recent slide of Airbus. The credibility of EADS, who is many owner of Airbus, was questioned after the company reported significant delays of their AIRBUS380 super jumbo planes. This kind of just sliced over thirty of the company’s stock value off the top. Now retain in mind that these delays may be contract breakers and Boeing could get started to get a slew of orders for their latest plane that was created to be competitive with Airbus. The street liked what they observed and this pushed Boeing up $5. 03 as it closed at $82. 01 on Wednesday.
Goldman Sachs (NYSE: GS) is not taking any prisoners on this one, they have raised their offer for most significant port operator, Affiliated British Ports Plc, by 3. 7% or US$4. 76 billion (2. 49 billion pounds). This can be in an effort to overcome a potential offer from Macquarie Bank Ltd. The acquisition of this company puts Goldman Sachs in an interesting position as they could now be granted U. S. opening deals with ease. A recommendation from the new Treasury Secretary Hank Paulson doesn’t hurt their cause either.
Crude oil futures and options got a boost last week on the heels of a report from the United States that demonstrated US crude stocks experienced a larger-than-expected fall as US refineries boosted creation rates to meet optimum summer fuel demand. And so we may see follow through today.
As we mentioned on Wednesday, treasured and base metals seems to have come near hitting a bottom, but we need follow through before we can be certain of these. Gold, Silver, Real estate agent and other metals flower yesterday and could possibly rise today as the demand is getting into play once again. The important metals are potentially closer to to a bottom than the bottom metals so be aware of that heading in. Of course this trickle down to the metals stocks, companies like Rio Tinto (NYSE: RTP), BHP Billiton (NYSE: BHP), Crystallex International (AMEX: KRY), Phelps Dodge (NYSE: PD) Newmont Mining (NYSE: NEM), Peru Copper (AMEX: CUP) and Bema Gold (AMEX: BGO) should move higher as the metals get started to rebound. So let us look at this carefully today and going into the weekend.