Quick Notes for the Day - October 26

National Index Rises Above Recession Level - The Chicago Federal Reserve reported that the national activity index (includes 85 separate indices) rose to -0.63 over the past three months from -0.96 in the three months ending in August. This marks the first time the index's three-month average has been above the -0.70 level since early in the recession. For September, the index slipped to negative 0.81 from negative 0.65 in August. In September, production and income indicators were positive for the third straight month, but the other three main categories (employment, sales and consumption) remained negative.

Dollar Trades Higher, Oil Falls on Dollar's Strength - The dollar has traded higher Monday by about 0.6% reversing a trend against the Euro. On the news, oil traded below $80 (stronger dollar equals lower crude oil prices). Also adding to pressure on oil was an announcement over the weekend that Nigeria's main militant group declared an indefinite ceasefire which had put some possible supply pressure into the price.

Gold, Copper Fall on Stronger Dollar - Gold and other metals futures turned lower midday Monday as the U.S. dollar rose off earlier lows. Gold for December delivery was down about $10.10 (0.9%) at $1046 an ounce. Gold, seen as a safe place to park cash in uncertain times, often trades in the opposite direction of US stocks. But lately, both have been rising together as a drop in the dollar makes hard assets like gold and oil more valuable, and at the same time, supports profits at US companies with international earnings.

Romer: Health Care Reform Is Key to Deficit - Council of Economic Advisers Chair Christina Romer in prepared remarks said Monday morning that health care reform is "the most significant act" the U.S. can take to tackle its long-term budget deficit problem. "Done correctly, health care reform can genuinely slow the growth rate of health care costs and thus put us on a path to greatly reduced budget deficits in the long run."

Quick Notes for the Day - June 29

Treasurys, Dollar Gain on Chinese Comments - The dollar and Treasurys gained support after People's Bank of China Governor Zhou Xiaochuan said Sunday that "our forex reserve policy is always quite stable" and that "there are not any sudden changes," according to Dow Jones Newswires. This comes on the heels of the publicized comments that China wished to have a "super currency" to replace the dollar.

Madoff Receives 150 Years - A federal judge on Monday sentenced admitted multi-billion dollar swindler Bernard Madoff to 150 years in prison, according to published reports. Madoff's lawyers had sought a sentence of 12 years. In March, Madoff pleaded guilty to 11 felony charges, including securities fraud, money laundering, and theft from an employee-benefit plan. His clients have reportedly lost more than $13 billion.

Oil, Energy Sector Rally - Oil rose back above $70 per barrel on continued problems in Nigeria and a broad rally in the equity markets. Based on the oil news, the energy sector rallied.

Gold Drops, Copper Rises - On the news out of China, the dollar gained against foreign currencies which sent gold lower by about 0.5%. When the dollar is strong, gold loses its appeal as a hedge against it. When the dollar is soft, gold gains. Also, copper gained as inventories fell. As infrastructure and home building pick up, copper generally rises since it is used in a variety of materials.

Quick Notes for the Day - June 22

Apple Sells More Than 1 Million New iPhones - Apple said Monday that it has sold more than 1 million iPhone 3GS models through Sunday, just three days after the phone's launch. Some 6 million customers have downloaded the new iPhone 3.0 software in the product's first five days, Apple said. In a statement, CEO Steve Jobs said the iPhone's momentum is "stronger than ever." The newest iPhone, which runs twice as fast as its predecessor, offers a 3-megapixel camera, the ability to capture video and other features such as new voice controls for making calls and playing music.

Treasurys Up on Fed Buys, World Bank Outlook - Treasury prices were higher Monday which pushed yields lower as the Federal Reserve was in the process of its continuing purchase of bonds. Also, a negative economic outlook from World Bank was creating a "flight to quality" to Treasurys which helped push the prices higher.

The Fed is expected to purchase Treasurys maturing between 2026 and 2039. The previous purchases for this maturity range have been for $3.5 billion and $2.5 billion. The buyback is part of the Fed's continuing effort to keep borrowing costs low including mortgage rates.

Dollar Stronger, Gold, Oil Fall - As part of the "flight to quality" after the World Bank outlook, the dollar and yen moved higher against the euro. The dollar is still seen as the most secure currency in the world.

Gold fell Monday to $923, the lowest level in one month, as falling oil prices and a stronger U.S. dollar reduced the precious metal's appeal as a hedge against inflation and a weaker currency. Crude oil fell below $68 a barrel Monday, the weakest in nearly two weeks.

In other metals, platinum fell 1.6%, palladium 1.9%, silver sank 2.8%, and copper fell 3%.

Quick Notes for the Day - June 5

Payrolls Fall Less Than Expected, Hourly Earnings Rise - Now, the headline number will be that the unemployment rate jumped to a 26-year high of 9.4% in May, but the big item looking forward (and not back as the unemployment rate does) is that 345,000 payroll jobs were lost in May compared to the 500,000 that had been expected. Average hourly earnings rose by 2 cents, or 0.1%, to $18.54.

Over the previous six month, there had been an average loss of 643,000 jobs. Payrolls in March and April were revised higher by 82,000. The payroll figures from a survey of business sites was much better than expected, a separate survey of households showed unemployment increased more than expected. Officially, unemployment rose by 787,000 in the month to 14.5 million, pushing the jobless rate from 8.9% to 9.4% which is the highest since August 1983.

In a separate survey of households, the government found that employment fell by 437,000. While unemployment rose by 787,000 to 14.5 million, the data showed that 350,000 people joined the workforce last month. The number of people who've been out of work longer than six months rose by 268,000 to stand at 3.9 million. Representing 2.5% of the workforce, this figure marks the highest seen since 1983.

Rio Tinto Jumps - Rio Tinto shares shot up 14.4% on the new that the Anglo-Australian mining giant said that it decided to reject a $19.5 billion deal to sell part of itself to China's Aluminium Corp. and announced the launch of a heavily discounted rights issue to raise about $15.2 billion in gross proceeds. The company also announced that it's in a deal with BHP Billiton to establish a production joint venture that will cover both of the companies' Western Australian iron-ore assets. BHP Billiton shares rose 10.6% in response.

FDIC Looks to Change Citi Management - The FDIC is pushing to change Citigroup's management, and they may be starting at the top which would threaten the future of Chief Executive Vikram Pandit, The Wall Street Journal reported, citing people familiar with the matter. Officials at the FDIC have been concerned about the lack of senior executives with experience in commercial banking, and Pandit comes from an investment-banking background, The Journal said Friday.

The Journal quoted Ned Kelly, Citi's chief financial officer, as responding: "The FDIC is our tertiary regulator," implying that any decision about the bank's fate would first have to be addressed by the Office of the Comptroller of the Currency or the Federal Reserve. This is just more fuel to the fire to somehow streamline the regulatory procedures with someone being the ultimate regulator.

Oil, Copper Up, Treasurys, Gold, Silver Down on Jobs Data - Oil and copper futures rose Friday after the government data showed the U.S. lost much fewer jobs last month than expected. After data, oil broke through the $70 a barrel barrier and rose 1.7% while copper for July delivery rose 0.7% to $2.318 a pound. Meanwhile, Treasury prices plunged sending yields to their highest point since November 2008. Additionally, gold fell 0.4% to $977.60 an ounce and silver lost 1.5% to $15.66 an ounce.

Quick Notes for the Day - June 1

General Motors Files for Bankruptcy - GM filed for bankruptcy Monday morning after months of the company and government tried to avoid it. At the same time, GM (and Citigroup) was being removed from the Dow 30. In the bankruptcy filing, the company reported total assets of $82.3 billion on a consolidated basis with total debt of $172.8 billion.

"Today marks a defining moment in the reinvention of GM as a leaner, more customer-focused, and more cost-competitive company that, above all, can quickly generate winning bottom line results," CEO Fritz Henderson said. "The economic crisis has caused enormous disruption in the auto industry, but with it has come the opportunity for us to reinvent our business. We are going to do it once and do it right."

The government's stake in the new GM will be about 60%, and it hopes bankruptcy will be a quick 60-90 day process. The U.S. government will provide $30 billion in bankruptcy financing to allow the company to operate as it restructures $27 billion debt and pension liabilities.

Changes in the Dow 30 Index - What is the most recent change in the financial markets? Changes in the Dow... According to The Wall Street Journal, GM and Citigroup are being removed by Dow Jones. The replacements, which will be effective June 8, will be Cisco Systems for GM and Travelers for Citigroup.

Construction Spending Up Thanks to Home Improvements - Construction spending rose 0.8% in April, the biggest gain since August, as outlays for home improvements grew, the Commerce Department reported Monday. Spending on private-sector residential projects increased 0.7% as home improvements rose 8.9%. Outlays for new construction on single-family homes fell 6.7%, the 38th consecutive decline. Outlays for private-sector non-residential projects rose 1.8%, led by power, manufacturing and communications structures. Outlays for public-sector projects fell 0.6%.

Manufacturing Sees Improvements - The Institute for Supply Management index rose to 42.8% in May from 40.1% in April. The 42.8% is its highest reading since September 2008.

Copper Rises to Seven Month High - Copper futures climbed to their highest level in more than seven months after China, the biggest copper consumer, reported its May manufacturing expanded for a third month. Two competing purchasing-manager indexes released Monday showed Chinese factory activity remained on an uptrend in May.

Personal Savings Rate Increases - The US personal savings rate increased to a 14-year high of 5.7% in April as after-tax incomes were boosted by provisions of the economic stimulus plan the Commerce Department reported Monday.

Court Clears Fiat Deal for Chrysler - Chrysler said Monday that a federal bankruptcy court has approved its request to sell its operations to Chrysler Group LLC, the new company formed in alliance with Italy's Fiat SpA. The revamped Chrysler could exit bankruptcy as soon as Monday after Judge Arthur Gonzalez of the U.S. Bankruptcy Court for the Southern District of New York cleared a $2 billion transaction in connection with the deal.

"With this approval, the new Chrysler Group is created and can prepare to launch as a vibrant new company formed with Fiat," said Robert Nardelli, chairman and chief executive of Chrysler LLC, in a statement.

Quick Notes for the Day - May 1

Consumer Sentiment Rises in April - Consumer sentiment rose in April, but remained at relatively low levels, according to media reports of a survey released Friday by the University of Michigan and Reuters. The consumer sentiment index rose to 65.1 from 57.3 in March. In mid-April the estimate was 61.9. Economists were looking for a final April result of 62. The recent move in the stock market and a leveling of economic news pointing toward a bottom of the recession were credited with the change in sentiment. In November, consumer sentiment hit a record low of 55.3.

Stress Test Results to be Released on Thursday - The Federal Reserve and the U.S. Treasury Department will release bank stress test results on Thursday, later than previously planned, The Wall Street Journal reported Friday on its Web site. Regulators are expected to disclose potential loss estimates for the country's 19 largest banks individually, according to The Journal.

Treasurys Down, Oil Up on Economic Outlook - Treasurys fell early on Friday (yields thus went higher) as hopes that the worst of a global recession might be behind led investors away from safe assets. In addition, the market is absorbing huge amounts of debt issued by the government to fund its recovery efforts. Next week, the Treasury Department will auction a record $71 billion in notes and bonds in its quarterly refunding. Yields on the benchmark 10-year Treasury bond were up 5 basis points to 3.166%, while those on two-year notes were up 1 basis points to 0.923%. The same hopes that fueled the bottoming of a global recession fueled a little bump up in oil by more than 0.5%.

Gold Down, Copper Up - Much like Treasurys, gold is seen as a "safe haven" during economic uncertainty. With the continued hopes that the global economy may be bottoming, gold futures dropped again Friday with loss for the week being roughly 3%. On the flip side, as gold has dropped, copper has started to move up. The primary reason here is that copper is still one of the base metals in construction. It is needed obviously for electric lines (both commercial and residential), some internet cabling, etc. A change in copper price could reflect the demand for increased construction worldwide (China primarily). Copper moved more than 1% higher Friday.

More Auto News: Chrysler Financial Pushing to GMAC; Ford Sales Drop - Chrysler Financial, the separate financing arm for Chrysler LLC, stopped offering auto loans for car buyers, The Wall Street Journal reported Friday on its Web site, citing Chrysler dealers. Chrysler Financial, which said it would shutter its business Thursday, will direct business toward GMAC LLC, General Motors's finance arm, according to The Journal. Also, Ford reported a 31.6% drop in April domestic sales to 134,401 vehicles from 196,385 a year ago. Truck sales slid 33% to 77,435 units with sales of the the F-Series pickup down 35.8% to 28,757. If you combine Ford, Lincoln and Mercury together, the combined car sales fell 28.8% to 52,463 units. Additonally, Volvo sales slumped 36.9% to 4,503 vehicles.