RB "Morning Markets Notes" - Jobless Numbers, Supreme Healthcare, JP Morgan $9B Loss? & More

By: Rob Black - Thu, 28 Jun 2012 13:10:30 -0800

Winner: Senate to Attempt  Highway & Student Loan Bills Today
Winner: Supreme Court Upholds Obama’s Health-Care Overhaul
Loser: Jobless Claims Near 2012 High
Loser:  JPMorgan Trading Loss May Reach $9 Billion
 Winner:   News Corp To Split  Publishing & Media
Loser: Family Dollar Store Shows Weak Consumer
Loser: Summertime Child Care Costs Sting


Loser: Jobless Claims Near 2012 High

The number of applications fo unemployment benefits hovered last week near the highest level of the year, showing little improvement in the U.S. labor market.

Jobless claims  decreased by 6,000 to 386,000.

Concern about the fallout from the European debt crisis and the so-called fiscal cliff that will face the U.S. at the end of this year may prompt employers to keep payrolls lean.

There is no progress.  The labor market is sputtering along, struggling to create jobs.

Today’s report showed the number of people continuing to receive jobless benefits fell by 15,000 to 3.3 million.

There are an additional 2.6 million people who receive  extended benefits under federal programs.
 
 

Hospital  & Laboratory Stocks Jump on Obamacare
Loser: Insurance Companies Fall on Obamacare
Winner: Pharaceuutical & Pharamaceutical Benefit Companies
Loser:  Medical Device Companies  Fall On Obamacare


Loser:  JPMorgan Trading Loss May Reach $9 Billion
 
Losses on JP Morgan Chase’s bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation.

In May that the bank had lost $2 billion in a bet on credit derivatives, he estimated that losses could double within the next few quarters.

With much of the most volatile slice of the position sold, however, regulators are unsure how deep the reported losses will eventually be.

Some expect that the red ink will not exceed $6 billion to $7 billion.

Keep in mind they loss over $70 billion in mortgages and $20 billion in credit cards.

JPMorgan plans to disclose part of the total losses on July 13, when it reports second-quarter earnings.

Essentially, JPMorgan has been operating a hedge fund with federal insured deposits within a bank.

Winner:   News Corp To Split  Publishing & Media

Rupert Murdoch's News Corp will pursue splitting the $60 billion media conglomerate into separate publicly traded publishing and entertainment companies.

Murdoch will be chairman of both companies and will be chief executive of the entertainment business.
 The company did not name a chief executive for the new publishing company.

Loser: Family Dollar Store Shows Weak Consumer

SSS increased 5% on +4.7%, falling short of its +5.5% forecast

Inventory levels are concerning, up 22% yr./yr.

Gross margin contraction of 40bps was steeper than expected, driven by the continued mix shift to lower-margin consumables and higher markdowns.

Mgmt narrowed its guidance range.


Loser: Summertime Child Care Costs Sting


KEEP YOUR KIDS BUSY THIS SUMMER, IT COULD COST YOU SOME MONEY.

ACTIVITIES LIKE CAMP AND SWIMMING ARE AT THEIR PEAK DURING THE SUMMER MONTHS SO PARENTS SHOULD ANTICIPATE PAYING A PREMIUM.

AMERICAN EXPRESS SAYS FAMILIES ACROSS THE COUNTRY WILL SPEND MORE THAN $16 BILLION THIS SUMMER TRYING TO KEEP THEIR KID OCCUPIED.

THAT BREAKS DOWN TO MORE $600 PER CHILD FOR AN AVERAGE FAMILY.
AND OVER $1000 FOR THE WEALTHY.

ABOUT 28 MILLION FAMILIES ARE EXPECTED TO ENTERTAIN THEIR KIDS WITH SOME SORT OF DAY TRIP.

AND THE AVERAGE FAMILY WILL SPEND MORE THAN $400 ON A BABYSITTER THIS SUMMER.
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