IBD's Top 10 - Monday (Investor's Business Daily)
Mon, 15 Jun 2009 23:17:11 Etc/GM
1 Stocks sold off in higher volume, pushed down by profit-taking and weak economic data. The Dow fell 2.1%, the Nasdaq 2.3%, the S&P 500 2.4% and the NYSE composite 2.9%. Many of the top stocks fell, but in below-average trade. All of the IBD 197 groups took a loss, with metal groups especially hard-hit.
Iran Demonstration Turns Deadly
2 A gov't-tied militia fired on demonstrators, killing 1 and wounding several others. Backers of reform leader Mir Hossein Mousavi, numbering in the hundreds of thousands, took to the streets in Tehran to denounce Pres. Ahmadinejad's re-election as a fraud. In a surprise move, Supreme Leader Ayatollah Ali Khamenei, Iran's most powerful figure, ordered an election inquiry.
Obama Gives Docs Rx For Reform
3 The president tried to sway a skeptical audience to support his plans to create a gov't-sponsored health plan, a move some physicians fear will hurt them financially. Obama even drew boos at the AMA meeting as he rejected limits on malpractice awards. GOP Rep. Tom Price, an ex-surgeon, accused Obama of seeking a "government takeover."
Dollar Flies, Commodities Dive
4 The euro fell 2.30 cents to $1.3791. Currencies from commodity producers like Australia suffered harder blows. Russian Finance Minister Alexei Kudrin said the dollar was in "good shape," backpedaling from negative Kremlin statements recently. Big losses in stocks added to the dollar's strength. Commodities fell broadly on the strong dollar and economic worries.
Credit Card Defaults Up In May
5 Bank of America's credit card default rate rose to 12.5% from 10.5% in April, as consumers remained under pressure. American Express' rate grew to 10.4% from 9.9%, but AmEx also sold off some debt that it had written off. Capital One's (NYSE:COF - News) rose to 9.4% from 8.6%; Discover's hit 8.9% vs. 8.3%. Also, JPMorgan's rate increased to just 8.4% from 8.1%.
Bank Rules Overhaul Plan Near
6 The Obama administration is expected to propose a sweeping revamp of financial regulations Wed., including a new overseer for consumer-oriented financial products. It also wants to give the Fed power over all institutions that could threaten the financial system's stability. It seems to have backed off trying to consolidate all banking regulation in one agency.
N.Y. Factory Index Falls In June
7 The Empire State Manufacturing Index sank to -9.41 from -4.55 in May. The prior 2 months' big gains suggested the sector's decline quickly easing, with recovery coming soon. In June, the shipments gauge turned negative again. The new orders and jobs subindexes were slightly less negative. N.Y.-area factories' expectations were the highest in nearly 2 years.
Homebuilders' Confidence Ebbs
8 The NAHB's housing market index fell 1 point 14 June to 15 after 2 monthly gains that raised hopes for a bottom. Readings below 50 signal pessimism. Mortgage rates shot up to 5.59% last week, 73 ticks above where they were 4 weeks ago, Freddie Mac data show. Home-loan rates are retreating as Treasury yields cool.
China, Japan Reduce U.S. Stake
9 China, the top owner of U.S. debt, cut its holdings of Treasuries in April, the first decline in 11 months, the U.S. gov't reported. No. 2 Treasuries holder Japan and Russia also trimmed their holdings of T-bills. Soaring U.S. deficits have raised fears that Treasuries will lose their int'l appeal, forcing the gov't to pay higher interest on its debt.
Foreign Captives Slain In Yemen
10 Shepherds found the bodies of 3 German women from a party of 9 aid workers and family members abducted last week in an area known as an al-Qaida hideout. Yemeni security officials said all 9 abductees had been killed, but the gov't later said it didn't know the fate of the other 6. Among the captives: 7 Germans, including a doctor, his wife and 3 children under the age of 5.
source: http://biz.yahoo.com/ibd/090615/top10.html?.v=1