Dow Jones 30: Industrials Index

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Overnight U.S. Stock News.......

•   Sep S&Ps this morning are up +12.10 points. The stock market yesterday traded on either side of unchanged throughout the day and settled mixed (Dow +0.05%, S&P 500 +0.04%, Nasdaq Composite -0.28%). Bullish factors included (1) carry-over strength from a rally in European stocks after Standard & Poor's said the risk of a renewed recession in Europe is "remote," (2) gains in homebuilders after the larger-than-expected increase in the Jun S&P Case-Shiller composite-20 home price index (+0.3% m/m and +4.2% y/y versus expectations of +0.2% m/m and +3.6% y/y), (3) strength in consumer stocks after the larger-than-expected increase in Aug US consumer confidence (+2.5 to 53.5 versus expectations of +0.3 to 50.7), (4) a rally in bank stocks after the FDIC said US banks posted $21.6 billion in profit in Q2, up +17% q/q and their biggest quarterly profit in nearly 3 years, and (5) the prediction from Cabot Money Management that individual investors a re the least bullish on US stocks since March 2009, a contrarian signal that stocks prices may rally.

•   Bearish factors included (1) concern that the US economy is slowing after the larger-than-expected decline in the Aug Chicago purchasing managers index which fell to a 9-month low (-5.6 to 56.7 versus expectations of -5.3 to 57.0), (2) the FDIC report that said US "problem" banks rose to 829 at the end of Q2, up +7% from 775 at the end of Q1, (3) weakness in semiconductor stocks after Goldman Sachs said that Intel's agreement to purchase Infineon Technologies AG's wireless business could give Intel a cost advantage over other semiconductor makers, and (4) the Aug 10 FOMC meeting minutes in which policy makers signaled no plans to resume large-scale asset purchases to bolster the economy.

•   Alcoa (AA) jumped 2.2% in pre-market trading as metals prices climbed after China reported stronger-than-expected manufacturing activity in Aug.

•   Freeport-McMoRan Copper & Gold (FCX) rallied 1.2% in pre-market trading after copper prices surged to a 4-month high and gold climbed to a 2-month high.

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Overnight U.S. Stock News...

•   Sep S&Ps this morning are down -1.20 points. The stock market yesterday rallied sharply and closed on its high (Dow +2.54%, S&P 500 +2.95%, Nasdaq Composite +2.97%). The Nasdaq climbed to a 1-1/2 week high, while the S&P 500 and the Dow rallied to 1-week highs. Bullish factors included (1) carry-over strength from a rally in Asian and European stock markets which bolstered confidence in the global economic outlook after China's manufacturing activity accelerated more than expected in August and Australia's economy expanded in Q2 at its fastest pace in 3 years, (2) a rally in industrial stocks after the unexpected increase in the US Aug ISM manufacturing index (+0.8 to 56.3 versus expectations of -2.7 to 52., (3) strength in commodity and energy producers after a slide in the dollar and increased optimism that an expanding global economy will boost demand for raw materials lifted most commodity prices, and (4) gains in semiconductor makers after resea rch firm Gartner predicted chip sales will grow by +32% to $300 billion this year.

•   Bearish factors included (1) the unexpected decline in jobs in the Aug ADP employment change (-10,000 versus expectations of +15,000), which fuels concern about Friday's Aug nonfarm payroll report, (2) the larger-than-expected decline in July US construction spending which fell for the third straight month along with the downward revision to June construction spending (Jul -1.0% versus expectations of -0.5% and Jun revised down to -0.8% from +0.1%), and (3) comments from Dallas Fed President Fisher who said he is "reluctant" to expand the Fed's balance sheet to stimulate the economy unless there are additional tax and regulatory policies in place to spur job growth.

•   Collective Brands (PSS) sank 7.3% in pre-market trading after the company reported Q2 earnings of 32 cents a share, missing analysts' estimates of 45 cents.

•   Costco (COST) may be active to the upside today after the largest warehouse club chain in the US reported sales rose 9% to $5.9 billion in the four weeks that ended Aug 29 with comparable revenue increasing 7% during the period.

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Unexpected good news regarding growth in manufacturing gave buyers the will to drive up stock prices sharply Wednesday. The DJIA closed up 254 points at 10,269. The DJIA was able to rise above resistance now at 10,250 but the SmarTrend® indicators signal the somewhat overbought DJIA will have difficulty turning this resistance level into solid support, thereby converting what still appears to be only an evolving bear market rally, for a broader uptrend.

Stocks rallied from opening bell as investors were encouraged by a rebound in Chinese manufacturing and stronger economic growth in Australia. The rally shifted into high gear following an unexpectedly strong report on U.S. manufacturing. Dismal sales by auto manufacturers later in the day did little to reverse the buying mood, although stock price increases were definitely not accompanied by robust trading volume. Still the daily SmarTrend(R) uptrends to downtrends turned polarized to the upside at 104:9. This gave a much-needed boost to the IBDI and the Trend Ratio, but neither climbed enough to cause the intermediate-term downtrend's drag on stocks to cease entirely. Furthermore, the long-term downtrend remained unaffected by the one-day jump up to first resistance level by the DJIA. Despite the best gains by stocks in the last two months, the investing environment remains inhospitable for long stock positions.

The trading environment trends did their job even better than expected after the positive manufacturing news. This bullish reaction was typical of the trade-term trend, but provided an unusual kick up to the near-term trend indicators. Yesterday, it was noted here that these indicators were moving to establish bases from which to rally. And they did. All four headed north and one, the NBDX, is close to becoming overbought. This coincides with the first level of resistance for the DJIA at 10,240, which the DJIA overshot slightly in a burst of buying exuberance. This acutely overbought state is likely to start correcting this morning as the DJIA tries to turn resistance into support at 10,250. Similarly, the first level of resistance reached by the S&P500 index was 1,080 and the next level of resistance is at 1,115.

The trade-term trend wasted no time in becoming overbought yesterday and spent most of the day in that territory. Moreover, buyers generally ignored a private payrolls report showing companies unexpectedly cut 10,000 jobs in August as well as government data indicating construction spending fell to its lowest rate since 2000. It is now estimated that unemployment in the construction sector has reached 27%, and this sector continues to be overstaffed by several million jobs. Besides needing time to correct its acutely overbought status, the trade-term trend will have ample opportunity to react to further employment news starting this morning with initial jobless claims reports and carrying through till tomorrow when broad unemployment data is released. All of these issues are discussed below. Thus, expect investor focus to shift from the new issue du jour regarding manufacturing to jobs, which are the lynchpin to consumer spending, which in turn represents two-thirds of the economy. Regardless of whether reports are better or worse than expected, the SmarTrend(R) indicators continue to point to an evolving bear market rally that will soon give way to a substantial downward correction by stocks starting later this month.

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Overnight U.S. Stock News

•   Sep S&Ps this morning are up +0.10 of a point. The stock market yesterday finished on its high with modest gains (Dow +0.49%, S&P 500 +0.91%, Nasdaq Composite +1.06%). The S&P 500 and the Dow climbed to 2-week highs and the Nasdaq posted a 1-1/2 week high. Bullish factors included (1) carry-over strength from a boost to European equity markets after the ECB raised its 2010 GDP estimate for the Euro-Zone to between 1.4% and 1.8%, up from a previous forecast of between 0.7% and 1.3%, (2) comments from ECB President Trichet who said a double-dip recession in the Euro-Zone is "not in the cards," which boosts confidence in the global economic recovery, (3) the unexpected decrease in weekly US initial unemployment claims (-6,000 to 472,000 versus expectations of +2,000 to 475,000), (4) strength in homebuilders after the unexpected increase in Jul pending US home sales (+5.2% m/m versus expectations of -1.0% m/m), and (5) a rally in retailers after Aug ICSC chain store sales rose +3.2% y/y, their ninth straight monthly increase.

•   Bearish factors included (1) the weaker-than-expected Jul factory orders (+0.1% versus expectations of +0.2%), (2) the prediction from the chief economist at FTN Financial who said that with "the rate of layoffs still uncomfortably high, there's no reason to expect an acceleration in US consumer spending," and (3) the prediction from Edward Prescott, senior adviser to the Minneapolis Fed, that the US economy is likely to experience a period of stagnation until the country reduces its debt.

•   Take-Two Interactive (TTWO) surged 13% in European trading after the video game publisher reported an unexpected Q3 profit of 28 cents a share and boosted its earnings outlook on sales of the newest release "Red Dead Redemption."

•   H&R Block (HRB) climbed 3.8% in pre-market trading after it reported a fiscal Q1 loss of 36 cents a share, beating analysts' estimates for a loss of 40 cents.

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Dow Jones Industrial Average...
The Dow is headed for a test of resistance at 10700. Twiggs Money Flow (21-day) respect of the zero line suggests a new uptrend. Breakout above 10700 would offer a target of 11500. Reversal below the former primary support level at 9900 is unlikely, but would indicate a primary downswing, with a target of 8700.

Target calculations: 10700 + ( 10700 - 9900 ) = 11500 and 9700 - ( 10700 - 9700 ) = 8700

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Overnight U.S. Stock News.......

•   Sep S&Ps this morning are up +3.90 points. The stock market yesterday traded in negative territory the entire day and closed just above its low (Dow -1.03%, S&P 500 -1.15%, Nasdaq Composite -1.11%). Bearish factors included (1) carry-over weakness from a fall in European equity markets on concern the European debt crisis may worsen after the WSJ reported that European stress tests published in July may have understated some financial institutions' sovereign debt holdings of potentially risky government debt, along with a separate report from the Association of German banks that Germany's top lenders might need about 105 billion euros ($135 billion) in fresh capital, (2) concern that the recovery in Europe's largest economy may be losing momentum after Jul German factory orders unexpectedly posted their biggest monthly decline in 17 months (-2.2% m/m versus expectations of +0.6% m/m), (3) the prediction from Bank of America Merrill Lynch that the jobless rat e in the US is likely to approach 10% in coming months as the economy fails to grow quickly enough to employ people rejoining the labor force, (4) the action by Oppenheimer to cut its year-end forecast for the S&P 500 Index to 1,225 from an earlier forecast of 1,300, saying "the deceleration of important economic indicators recently cannot be ignored," and (5) losses in raw materials and energy producers as demand concerns and a surge in the dollar prompted a sell off in the prices of most commodities.

•   Bullish factors included (1) the report from Bank of America that said more US stocks are paying dividends that exceed bond yields by the most in 15 years as profits rise at the fastest pace in two decades, which may lead to increased demand for US stocks that pay high dividends, and (2) the prediction from Goldman Sachs that the world economy won't slip back into recession as it benefits from growth in emerging economies in Asia.

•   Hewlett-Packard (HPQ) fell 1.4% in pre-market trading after UBS downgraded the world's largest maker of personal computers and printers to "neutral" from "buy."

•   Staples (SPLS) rose 1.7% in pre-market trading after Goldman Sachs lifted its recommendation on the world's largest office-supply retailer to "buy" from "neutral" and added the stock to its "conviction buy" list.

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Overnight U.S. Stock News...

•   Sep S&Ps this morning are up +4.10 points. The stock market yesterday finished moderately higher and recovered half of Tuesday's losses (Dow +0.45%, S&P 500 +0.64%, Nasdaq Composite +0.90%). Bullish factors included (1) carry-over strength from a rally in European stocks when demand rose at a Portuguese bond sale and Poland's auction of 5-year debt attracted the strongest bids since 2008, which pushed financial stocks higher and eased concern that Europe's debt crisis is worsening, (2) the prediction from the research director of the San Francisco Fed that while the US economy faces "stern headwinds" that interest rates can't fully combat, it isn't likely to fall into a recession again, and (3) comments from Minneapolis Fed President Kocherlakota that the "modest" economic recovery is likely to continue with 2.5% GDP growth in the 2nd half of 2010 and near 3.0% GDP growth in 2011.

•   Bearish factors included (1) weakness in chipmakers and semiconductor stocks after UBS cut its outlook on global semiconductor stocks to "negative" and predicted flat global semiconductor revenue in 2011 with an oversupply of DRAM chips until at least Q4 2011, (2) the Fed's Beige Book which stated the US economy showed "widespread signs of deceleration" with home sales "very low" or "declining" in most Fed districts, and (3) the prediction from well-known bank analyst Meredith Whitney that securities firms around the world will cut as many as 80,000 jobs in the next 18 months as revenue growth begins to slow.

•   Fuqi International (FUQI) slumped 11% in European rading after the Chinese jewelry maker received a subpoena from the SEC for failing to file periodic reports on time.

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Overnight U.S. Stock News...

•   Dec S&Ps this morning are up +3.80 points. The stock market yesterday traded higher the entire day but finished well off of its best levels (Dow +0.27%, S&P 500 +0.48%, Nasdaq Composite +0.33%). The S&P 500 and the Nasdaq rallied to 1-month highs and the Dow climbed to a 3-week high. Bullish factors included (1) the larger-than-expected decline in weekly initial unemployment claims (-27,000 to 451,000 versus expectations of -2.000 to 470,000), (2) the narrower-than-expected Jul trade deficit (-$42.8 billion versus expectations of -$47.0 billion) as exports rose +1.8% to $153.3 billion, their highest level in nearly 2 years which will boost Q3 GDP, (3) the action by Morgan Stanley to raise their Q3 GDP forecast for the US to 2.4% from 2.1%, and (4) strength in financial stocks after Morgan Stanley said that banks will be able to boost dividends and increase buy backs of stock next year.

•   Bearish factors included (1) increased concerns over the health of the European banking sector after ECB Council member Stark said that Germany's savings banks, which weren't subject to EU stress tests, and state-owned Landesbanks, may need more capital, and (2) comments from the OECD who said that the slowdown in the global economic recovery is "more pronounced" than projected and policy makers may need to extend or bolster stimulus programs to support it.

•   National Semiconductor (NSM) declined 5.7% in pre-market trading after the company late yesterday reported Q2 sales of $416 million at most, below analysts' etimates of $420.6 million.

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Dow Jones Industrial Average...

The Dow is headed for a test of resistance at 10700. Twiggs Money Flow (21-day) respect of the zero line signals buying pressure and recovery above 15% would strengthen the signal. The index is unlikely to reverse direction before the month-end and may well break resistance, indicating an advance to 11500, but it would be prudent to wait for retracement to test the new support level in October. Reversal below the former primary support level at 9900 is unlikely at present, but would indicate a primary down-swing, with a target of 8700

Target calculations: 10700 + ( 10700 - 9900 ) = 11500 and 9700 - ( 10700 - 9700 ) = 8700 

[setravis]

Overnight U.S. Stock News...

•   Dec S&Ps this morning are up +9.40 points. The stock market last Friday closed modestly higher (Dow +0.46%, S&P 500 +0.49%, Nasdaq Composite +0.28%). Bullish factors included (1) the bigger-than-expected increase in July wholesale inventories which posted their largest monthly advance in 2 years (+1.3% versus expectations of +0.4%), as improved demand prompts businesses to rebuild stockpiles, (2) the larger-than-expected +34.4% y/y increase in Aug China exports and the upward revision to Q2 Japan GDP, which boosted optimism about the global economic outlook, (3) a rally in energy producers after crude oil climbed to a 3-1/2 week high, and (4) comments from St. Louis Fed President Bullard who said the Fed will take additional steps to boost the US economy if needed.

•   Bearish factors included (1) carry-over weakness from a slump in European stocks on concern European banks may need additional capital after a newswire report said that Deutsche Bank AG may raise 9 billion euros ($11.4 billion) in a stock sale, (2) comments from ECB President Trichet who said it will "take time" to wean banks off of emergency lending measures and comments from ECB Council member Ordonez who said that another bout of financial instability can't be ruled out, and (3) comments from former Fed Chairman Volcker who said the US and European economies may take years to recover from the recession.

•   Bank of America (BAC) rose 2.1% and JPMorgan Chase (JPM) rose 1.1% in pre-market trading as regulators gave the world's lenders up to 8 years to comply with tighter capital rules.

•   Dollar Thrifty (DTG) gained 3.6% in European trading after Hertz Global Holdings raised its offer for the company to $1.56 billion, beating Avis Budget Group's latest bid.

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Overnight U.S. Stock News...

•   Dec S&Ps this morning are down -2.60 points. The stock market yesterday gapped higher and traded in positive territory the entire day and finished moderately higher (Dow +0.78%, S&P 500 +1.11%, Nasdaq Composite +1.93%). The Nasdaq rose to a 2-1/2 month high and the S&P 500 and the Dow both rallied to 1-month highs. Bullish factors included (1) carry-over support from stronger-than-expected Chinese economic data and comments from China's Premier Wen Jiabao who said that China's economy is in "good shape," which eases concern that the global economy will lapse back into recession, (2) a rally in bank stocks after the Basel Committee on Banking Supervision reached a compromise that doubles capital requirements for banks while giving them until 2019 to meet the buffer requirements to withstand future crisis, (3) carry-over strength from a rally in European equity markets after the European Commission raised its economic growth forecast for the Eur o-Zone this year to 1.7% instead of a previously projected 0.9%, (4) gains in raw-materials and energy producers as the slumping dollar pushed most commodities higher, with crude oil climbing to a 1-month high, (5) strength in chipmakers after research firm Gartner Inc. predicted that semiconductor equipment spending will double in 2010, (6) the smaller-than-expected US budget deficit in Aug as the economic recovery generated more tax revenue for the Treasury (-$90.5 billion versus expectations of -$100.0 billion), and (7) the prediction from CLSA Ltd. that US stock prices are "screamingly cheap" and will rally at least 30% in the next 12 months as the cheapest valuations in decades lure investors.

•   Bearish factors included (1) the statement from IMF Managing Director Strauss-Kahn that the global economy may not generate much employment growth in coming years, and (2) the prediction from well-known bank analyst Richard Bove that legislators who don't understand the banking industry and a sense of "mass hysteria" led to the passage of financial-reform law that will hurt US consumers.

•   Campbell Soup (CPB) fell 2.3% in European trading after Goldman Sachs cut the stock to "sell" from "neutral" as they downgraded the packaged foods industry to "cautious" from "neutral," citing a mixed outlook for US sales, margin risks and valuations.

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Overnight U.S. Stock News...

•   Dec S&Ps this morning are down -3.80 points. The stock market yesterday gave up most of its gains from an early rally and finished mixed (Dow -0.17%, S&P 500 -0.07%, Nasdaq Composite +0.18%). The S&P 500 and the Dow rallied to 1-month highs but settled lower while the Nasdaq climbed to a 2-3/4 month high. Bullish factors included (1) the stronger-than-expected Aug US retail sales which rose for a second month and eased concern of a slowing economic recovery (+0.4% and +0.6% less autos versus expectations of +0.3% and +0.3% less autos), (2) the stronger-than-expected Jul business inventories which grew at the fastest pace in 2-years (+1.0% versus expectations of +0.7%), as companies stocked up ahead of a back-to-school season that was better than expected, (3) strength in mining companies and gold producers after the price of gold climbed to a record, and (4) speculation that the Fed will announce additional purchases of government debt securities this year and expand its quantitative easing program to keep borrowing costs low and support the economic recovery.

•   Bearish factors included (1) carry-over weakness from the larger than expected decline in German investor confidence after the Sep German ZEW economic sentiment fell to a 19-month low, (2) comments from Chinese Premier Wen Jiabao who said his government will continue to seek to cool the property market as unaffordable housing could affect "social stability," which may prompt the government to slow the overall Chinese economy and that may drag the global economy lower as well, and (3) the prediction from the CEO of Capital One Financial that his bank is prepared for a continued decline in US home prices because foreclosures are boosting the supply of properties on the housing market and undercutting the confidence of homebuyers.

•   Micron Technology (MU) dropped 2.8% in pre-market trading after Goldman Sachs downgraded the largest US maker of computer-memory chips to "neutral" from "buy."

•   Maxim Integrated Products (MXIM) lost 3.3% in European trading after the computer-chip maker was cut to "sell" from "neutral" at Goldman Sachs.

[setravis]

Overnight U.S. Stock News

•   Dec S&Ps this morning are down -3.20 points. The stock market yesterday shook off early weakness and closed modestly higher (Dow +0.44%, S&P 500 +0.35%, Nasdaq Composite +0.50%). The Nasdaq posted a 2-3/4 month high. Bullish factors included (1) the prediction from Huntington Asset Advisors that "companies are starting to use their cash" which bodes well for the economy's prospects because companies are willing to commit cash to mergers, dividends and stock buybacks, and (2) the action by the German RWI economic institute to raise its growth estimates for Germany this year to 3.4% and to 2.2% in 2011, up from earlier forecasts for a 1.9% increase in 2010 and a 1.7% expansion in 2011, which is positive for the sustainability of global economic recovery.

•   Bearish factors included (1) the unexpected decline in the Sep Empire manufacturing index which tumbled to a 14-month low (-3.0 to 4.1 versus expectations of +0.9 to 8.0), (2) the annual Trade and Development report from the UN that said premature fiscal austerity in Europe and the US is pushing the global economy closer to a "deflationary spiral" that will choke consumption and leave millions of people without work, and (3) the prediction from Moody's Analytics that the slide in US home prices may have another 3 years to go as the shadow inventory, the supply of homes in default or foreclosure that may be offered for sale, might add as many as 12 million more properties to the market.

•   NPS Pharmaceuticals (NPSP) slumped 3.3% in European trading after the biopharmaceutical company said it plans to sell $41.3 million shares in a public offering.

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Overnight U.S. Stock News

•   Dec S&Ps this morning are up +6.80 points. The stock market yesterday traded weaker until late in the session when it rallied into the close and finished mixed (Dow +0.21%, S&P 500 -0.04%, Nasdaq Composite +0.08%). The Dow climbed to a 1-month high and the Nasdaq soared to a 4-month high. Bullish factors included (1) the unexpected decline in weekly US initial unemployment claims which fell to their lowest level in 2 months (-3,000 to 450,000 versus expectations of +7,000 to 458,000), (2) the Jul net long-term TIC flows that showed foreigners bought a net $12.5 billion US equities in July, (3) strength in technology stocks led by a surge in Apple Computer to an all-tine high on anticipation of strong sales ahead of the release of its iPad tablet computer in China, and (4) the prediction from well-known stock analyst Ralph Acampora that US stocks may gain by more than 20% within the next 10 months as investors are too pessimistic about the prospects for eco nomic recovery.

•   Bearish factors included (1) carry-over weakness from a slump in European equity markets after an unexpected decline in UK retail sales heightened concern that global economic growth is stalling, (2) the larger-than-expected increase in the Aug PPI which posted its biggest increase in 5 months (+0.4% m/m versus expectations of +0.3% m/m), (3) the smaller-than-expected increase in the Sep Philadelphia Fed manufacturing index which contracted for a second month (+7.0 to -0.7 versus expectations of +8.0 to 0.3), and (4) a slump in homebuilders after the report from RealtyTrac that said US homes lost to foreclosure rose in Aug by +3% m/m and +25% y/y, the ninth month in a row that the pace of homes lost to foreclosure has increased on an annual basis, which may keep US home prices under pressure as banks put more foreclosed properties back on the market.

•   Oracle (ORCL) rose 4.6% in pre-market trading after it reported Q2 earnings of 42 cents a share, easily beating analysts' estimates of 37 cents, and as it forecast sales in the current period of $8.4 billion, higher than analysts' estimates of $8.21 billion.

•   Texas Instruments (TXN) climbed 2.8% in pre-market trading after the company said it will raise the quarterly dividend payment to 13 cents from 12 cents and that it is adding $7.5 billion to funds to buy back shares.

•   Research in Motion (RIMM) gained 5.9% in pre-market trading after the company projected revenue this quarter of as much as $5.5 billion and earnings per share as high as $1.70, much better than analysts' estimates of projected revenue of $4.82 billion and profit of $1.39 a share.

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September 20, 2010
Overnight U.S. Stock News...


•   Dec S&Ps this morning are up +5.30 points. The stock market last Friday closed higher but well off of its high (Dow +0.12%, S&P 500 +0.08%, Nasdaq Composite +0.54%). The S&P 500 and the Nasdaq rallied to 4-month highs while the Dow climbed to a 1-1/4 month high. Bullish factors included (1) strength in technology stocks after strong earnings results from Oracle and Research in Motion boosted optimism for increased technology spending, (2) slack inflation pressures with the smaller-than-expected increase in Aug core CPI of unchanged m/m and +0.9% y/y (versus expectations of +0.1% m/m and +1.0% y/y), with the +0.9% y/y increase matchings the smallest year-over-year gain since 1966, and (3) the prediction from the chief economist at JPMorgan Chase that he expects the Fed to expand its balance sheet by the end of the year in an attempt to support the economy as it engages in further quantitative easing measures.

•   Bearish factors included (1) carry-over weakness from a slump in European equity markets on renewed European sovereign-debt concerns after the leader of Ireland's Green Party warned that the country's bond spreads would widen if Ireland considers renegotiating with bondholders of nationalized Anglo Irish Bank along with the prediction from former Portuguese finance ministers that Portugal may have to seek assistance from the IMF to address its problems of external financing, (2) concern about the sustainability of the economic recovery after the unexpected decline in Sep US University of Michigan consumer confidence which tumbled to a 13-month low (-2.3 to 66.6 versus expectations of +1.1 to 70.0), (3) weakness in meat producers after Morgan Stanley said rising grain prices will likely weigh on meat company profits, and (4) the Fed's Flow of Funds Report that said household wealth in the US fell -2.8% or $1.5 trillion to $53.5 trillion in Q2, which may keep consumer conf idence and spending at depressed levels and hold back the economic recovery.

•   Best Buy (BBY) rallied 1.3% in European trading after Oppenheimer advised buying the shares as it upgraded the company to "outperform" from "market perform."