In The News:
Chief, do I have to turn in my shoe phone?
Samsung released the much hyped Galaxy Gear, the first smart watch produced beating Apple to the market. The device which must be paired to a phone or tablet has some snappy features. You can make calls, receive emails, take photos, has a voice control function and can run its on apps. However the price is $299. Analysts are skeptical people will pay that much for a screen only 1.5″ in size. Samsung feels the Galaxy Gear will become a fashion icon with its sleek design and range of colorful watch straps. Their target is 500,000 sold in the second half which is a fraction of the 25 million smartphones they sell each quarter.
Do I hear $10… $10? Do I hear $8?
Blackberry, the struggling handset maker is looking to quickly auction itself off in parts or as a whole, possibly as soon as November. Speculation had been around that Microsoft might buy them but the announced Nokia deal effectively shut the door on that. The likely scenario is parts of the company get sold and the whole will not survive.
Made in ….not the U.S.A.
The U.S. trade deficit widened slightly more than expected in July. When adjusted for inflation the trade gap rose to $47.7 billion from $43.8 billion in June. However the 3 month moving average decreased to $39.1 billion in the 2nd quarter, down from $39.3 billion in the first quarter. Bottom Line: The more we buy from overseas manufacturers, the fewer jobs we have in the United States. But as the average shows….things are about normal.
I feel the earth move, under my feet….wait this is Ohio?!
Wastewater from the controversial practice of fracking (explained below) appears to be linked to all the earthquakes in an Ohio town that had no known past activity. Before January 2011, Youngstown had never experienced an earthquake since observation started in 1776. Youngstown is located on the Marcellus Shale.
Now lets gather all the facts: Hydraulic fracturing or “fracking” is a method of extracting oil or natural gas by injecting water, sand and other materials under high pressures into a well to fracture the rock. This opens up fissures that allow the oil or gas to flow more freely. The process generates wastewater which is usually pumped underground to get rid of it. One of the most profitable areas for fracking is the Marcellus Shale.
Steady as she goes…
The Beige Book, a Federal Reserve survey, showed all 12 of the Fed’s regional banking districts reported modest to moderate growth. Economic growth held steady across the United States from July through late August, as Americans purchased more cars and homes and auto factories added workers. Back-to-school shopping helped boost consumer spending overall, particularly in Boston, Kansas City and Dallas. Sales were mixed in New York, and more modest in the other districts. Bottom Line: Better economic numbers could have the Fed starting the taper party soon.
The NASDAQ Stock Market had a brief outage Wednesday, but this time the problem was resolved and trading was not affected. Nasdaq OMX, the parent company of the NASDAQ Stock Market, says the outage lasted six minutes – from 11:35 a.m. to 11:41 a.m. EST. The outage occurred in one of NASDAQ’s quote dissemination channels, used to provide real-time price quotes on stocks. The outage came just hours before a previously scheduled meeting addressing last month’s breakdown, in which NASDAQ officials laid out ways the exchange plans to better manage the data feed, a key record of NASDAQ securities’ prices.
In The Markets:
Asian markets continued their trend of closing mixed on Thursday. Investors are anxiously waiting for the big ADP (Private Jobs report) report out of the US and clarity on Syria.
European markets closed slightly higher after a bumpy Wednesday trading session. Markets down in their morning session were given a boost by upbeat sentiment across the pond and ahead of the Beige Book.
US stocks closed up for a second straight day on news from the Beige Book the economy is chugging right along. DJIA:+97.38 14931.34 NASDAQ: +36.43 3649.04 S&P:+13.30 1653.07
In Dinner or Drink:
1 oz. gin
1 oz. bourbon whiskey
3/4 oz. Deva® absinthe
Shake with ice and strain into a Collins glass.
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