David's Feed
Jun 29, 2015
via Morning Bid with David Gaffen

It’s All Greek to Us

Today looks set to be one of those days when the fictional (The Princess Bride) character Inigo Montoya’s directive: “Let me explain. No, there is too much. Let me sum up” would prove valuable.

The Greek and Puerto Rican balance sheet problems are coming to a head, strangely at about the same time, and the early ructions in futures on Sunday night may be indicative of how it’s going to go, at least for 24 hours, in U.S. markets.

Jun 29, 2015
via Morning Bid with David Gaffen

It’s All Greek to Us

Today looks set to be one of those days when the fictional (The Princess Bride) character Inigo Montoya’s directive: “Let me explain. No, there is too much. Let me sum up” would prove valuable.

The Greek and Puerto Rican balance sheet problems are coming to a head, strangely at about the same time, and the early ructions in futures on Sunday night may be indicative of how it’s going to go, at least for 24 hours, in U.S. markets.

Jun 25, 2015
via Morning Bid with David Gaffen

The Big Fat Greek Disaster

To the absolute surprise of nobody, Greece and its so-called “Troika” of creditors have once again hit an impasse in its most recent meeting on figuring out everything that will make the sun shine brighter and result in dancing in the streets.

The interesting thing here is that the markets haven’t had much of a reaction overall, having grown accustomed to the on-again/off-again stuff that has made us all a bit wary of things. What’s next? European Union leaders are convening to discuss the issue again before the “deadline” next week that results in the Greeks possibly being forced to leave the euro zone, default on its debt, and all other sorts of bad things that the markets, at least the U.S. markets, seem not to be worried about anymore. That, even though one minister told Reuters that the loss of trust was becoming “extreme”.

Jun 23, 2015
via Morning Bid with David Gaffen

Good Health, The Most Important Thing

The healthcare sector remains one of the bigger focuses for investors, particularly in coming days as everyone anticipates the outcome of the Supreme Court’s ruling on a case that could affect the future of the Affordable Care Act. It comes just as the major health insurers are considering big tie-ups (Anthem buying Cigna, Humana possibly being sold to Aetna or Cigna) that has heightened interest in one of the few sectors that’s expected to show reasonably solid earnings growth, something we’ll get more clues about in coming weeks.

The health sector is anticipated to post year-over-year growth of 4.1 percent in the second quarter, better than most other sectors save consumer discretionary names, financials and the tiny telecom sector.

Jun 22, 2015
via Morning Bid with David Gaffen

Do You Believe in Magic?

The main action for investors is a focus on that same problem – Greece. But hope springs anew on fresh reports of a cash-for-reforms deal in the hours jut before the latest LAST meeting to be held Monday evening Europaland-time.

That’s got markets in a good mood, boosting equities and sending bond prices lower. Perhaps it was the reports about pressures on the Greek banks, more expectations that the loans outstanding won’t be paid on time, and more dire consequences expressed by EU members that shifted things.

Jun 19, 2015
via Morning Bid with David Gaffen

Off the rails on a crazy train

Matters continue to worsen in Greece, and the markets are becoming more sensitive to each sundry rumor about a deal, a lack of a deal, progress or no progress.

There’s now talk about capital controls and worries about bank runs. Strategists at Brown Brothers Harriman said this morning that what’s currently a liquidity crisis has the chance to turn into a solvency crisis (that is, moving from not having enough money on a given day, to not having enough money…on any day).

Jun 19, 2015
via Morning Bid with David Gaffen

Off the rails on a crazy train

Matters continue to worsen in Greece, and the markets are becoming more sensitive to each sundry rumor about a deal, a lack of a deal, progress or no progress.

There’s now talk about capital controls and worries about bank runs. Strategists at Brown Brothers Harriman said this morning that what’s currently a liquidity crisis has the chance to turn into a solvency crisis (that is, moving from not having enough money on a given day, to not having enough money…on any day).

Jun 18, 2015
via Morning Bid with David Gaffen

Fitness Buffs Run to Wall Street

The day’s most interesting new stock is Fitbit, which gives investors a chance to invest in running, rather than just running away from Greece’s markets, or something of that type. Fitbit makes wearable fitness tracking devices, so, the little things that go on to your wrist while you’re in the middle of a 10K or doing some other fitness activity (it’s also waterproof, so maybe it even survives muddy obstacle courses). But it also stands as another way in which the United States embraces its extremes, i.e., those who eat copious servings of newfangled hamburgers, and those who run miles at a time to avoid looking like they eat those hamburgers (these are often the same people).

The question some will have is whether the company is likely to remain a going concern, given its competition includes not only other upstarts but also Apple, whose watch – sure to be improved in coming quarters – will probably mimic plenty of Fitbit’s own capabilities. The stock is going to be worth somewhere around $4 billion when it starts trading on Thursday, and this is for an outfit that brought in about $745 million in revenue in 2014 and profits of $132 million. So a large company we’re not discussing here.

Jun 18, 2015
via Morning Bid with David Gaffen

Fitness buffs run to Wall Street

The day’s most interesting new stock is Fitbit, which gives investors a chance to invest in running, rather than just running away from Greece’s markets, or something of that type. Fitbit makes wearable fitness tracking devices, so, the little things that go on to your wrist while you’re in the middle of a 10K or doing some other fitness activity (it’s also waterproof, so maybe it even survives muddy obstacle courses). But it also stands as another way in which the United States embraces its extremes, i.e., those who eat copious servings of newfangled hamburgers, and those who run miles at a time to avoid looking like they eat those hamburgers (these are often the same people).

The question some will have is whether the company is likely to remain a going concern, given its competition includes not only other upstarts but also Apple, whose watch – sure to be improved in coming quarters – will probably mimic plenty of Fitbit’s own capabilities. The stock is going to be worth somewhere around $4 billion when it starts trading on Thursday, and this is for an outfit that brought in about $745 million in revenue in 2014 and profits of $132 million. So a large company we’re not discussing here.

Jun 17, 2015
via Morning Bid with David Gaffen

How much does Greece matter to the Fed?

The Fed’s meeting is going to conclude this afternoon without much in the way of change – except maybe to its central economic forecasts, which will invariably end up proved incorrect when history is the judge.

The Greek drama continues, meanwhile, with more investors becoming concerned about a disastrous outcome that involves not just a default but a full exit from the euro zone. This outstanding possibility, one that swings to and fro on a daily basis, has some investors thinking it will affect the Fed’s calculations when it looks at the path of interest rates going forward.

    • About David

      "David Gaffen oversees the U.S. markets team, having joined Reuters in May 2009. He spent four years at the Wall Street Journal, where he was the original writer of the web site's MarketBeat blog. He is a frequent guest on Reuters TV, and has appeared on CNN International, Fox Business, NPR, and assorted other media and is the author of the book "Never Buy Another Stock Again.""
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