Thursday, November 15, 2007

Is It The Weekend Yet?

The markets have been bouncing all over in early trading today. In case you missed it, yesterday the markets got hit with a sharp late day selloff. The culprit looks to be this news out of GE Asset Management.

GE announced that its GEAM Trust Enhanced Cash Fund ran into some trouble on its asset-backed securities and had to liquidate some holdings. This is a $5 billion fund, and when big investors went to redeem, GEAM told them they could get 96 cents on the dollar. This is not good news for a cash fund, and was likely the spark for yesterday's selloff.

Chip-maker Applied Materials (AMAT) gave weak guidance yesterday when it reported earnings, but the stock is up this morning, which is nice to see. Maybe the semis are finally oversold.

Asian markets were lower overnight. Oil is down this morning, trading near $93. And bond yeilds are lower with the 10-year yield back down to 4.24%.

Let's see if the market can make a stand and close firmly today.

long GE (client accts)


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