The steady bullish run from capital markets was knocked back a step this past week. Despite the positive light the Stress Test and NFPs were cast in this past week; the potential for demand, production, earnings and return are still suffering. Perhaps the more stable advance comes from commodities. The tested its highest levels for the year as the sharp drop in commodity production may have finally met the slow and tentative rebound in production that will eventually turn into positive growth. Equities are far more uncertain. Earnings will struggle to stay positive and investors are nervous that the government could change the rules at any time.
Risk indicators have leveled off somewhat over the past week. The index has rallied over the past few days back above 14 percent. For equities, the rise in the VIX has been far more controlled; but the shift has been notable. This shift has come despite the passing of major scheduled event risk including central bank decisions, major event risk and most prominently the Fed’s Stress Test results. Why would risk and the sense of uncertainty rise after such an influential round of market fodder? Investors are now left to wonder how a recovery will actually progress and whether the government can allow the market to take over the responsibility in a timely fashion.
Friday, June 5, 2009
US Stock Futures Gain After Jobs Data, Citi (NYSE: C) Eyed
(By Salman - iStockAnalyst Writer)US stock futures advanced on Friday after a government release showed economy lost 345,000 jobs in May, fewer than economists expected. At 8:32 am ET, Standard & Poor's 500 Index futures climbed 12.60 points to 953.10. Dow Jones Industrial Average futures rose 106 points to 8836. Nasdaq Composite Index futures increased 13.25 points to 1506.25.A release by Department of Labor on Friday showed U.S. employers slashed 345,000 net jobs in May. Economists were expecting a drop of 520,000 in non-farm payrolls. Unemployment rate jumped to a 26-year high of 9.4%. Consensus estimates were for jobless rate to increase to 9.2%.According to the Wall Street Journal, the Federal Deposit Insurance Corp is pushing for a shake-up of Citigroup Inc's ( top management, including replacing Chief Executive Vikram Pandit.Bank of America Corp (Chief Executive Kenneth Lewis has been asked to testify before a congressional committee over as part of an ongoing investigation into the bank's acquisition of Merrill Lynch & Co.Meanwhile, media reports suggested that Apple ) CEO Steve Jobs is on track to return from medical leave this month.The Semiconductor Industry Association (SIA) said on Friday that global chip sales are expected to fall 21.3% year-over-year to $195.6 billion in 2009.The SIA expects a rebound in global sales to begin in 2010, with a year-over-year growth of 6.5% to $208.3 billion.Late on Thursday, clothing and apparel maker Guess Inc. ( reported that net earnings first quarter net income declined 32% to $32.5 million, or 35 cents a share from $47.8 million, or 50 cents a share, in the prior year quarter. Revenue decreased 9.8% to $441.2 million.Shares of mining giant Rio Tinto ( surged up in European trade after it scrapped a planned $19.5 billion investment deal with China's Chinalco. The company also said that enter into an iron ore joint venture with rival BHP Billiton and will launch a rights issue to slash its debts.Merrill Lynch on Friday downgraded shares of chemical DuPont to underperform from neutral.On the economic front, consumer credit data for the month of April is due for release at 14:00 am ET.European stocks climbed in afternoon trade. At 12:58 pm London time, the UK FTSE increased 68.55 points or 1.56% to 4,455.49. The German DAX and French CAC gained 0.52% and 1.08% respectively. Asian stocks finished higher. The Nikkei 225 rose 99.05 points or 1.02% to 9,768.01. The Hang Seng index of Hong Kong advanced 176.76 points or 0.96% to 18,679.53. NYMEX Crude oil for July delivery declined as much as 51 cents or 0.7% to $68.30 a barrel in electronic trading. Disclosure: Author does not own any of the stocks discussed here.
The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.
Choosing a Life Insurance Representative
Selecting a life insurance representative is the first step toward getting the right plan for your employees.
You need to decide whether to use a life insurance agent or a broker. While agents represent only the company they work for, brokers work as independent agents and represent multiple carriers. Plus, a broker will shop around and compare plans to help you find one that best meets your needs.
Ultimately you should choose the agent or broker who will provide the best service. He or she should be knowledgeable about insurance, and be able to understand your financial situation and your business's requirements. Additionally, your broker or agent should explain life insurance in terms you can understand. Before you hire a broker or an agent, ask the following questions:
How long have they been in the life insurance business?
Do they have a license to sell life insurance in your state?
Which carriers do they represent?
Can they provide you with a list of references?
And remember, according to insurance law, the agent or broker must put all proposals in writing. Don't do business with a broker who doesn't provide you with copies of proposals and documentation on every aspect of your potential policy.
Insurance - Industry Overview
LIFE INSURANCE
Premium receipts of life insurance companies grew nearly 6 percent in 1993 to $298.9 billion. Strong annuity sales and modest growth in health premiums led this growth. Life insurance sales were flat. Life insurance in force - the total face value of all policies - grew very little in 1993.
Before reading this chapter, see "Getting the Most Out of Outlook '94" on page 1. It will answer any questions you may have concerning data collection procedures, forecasting methodology, and sources and references. For related topics, see Chapter 42 (Health and Medical Services), Chapter 45 (Financial Services) and Chapter 46 (Securities Industry).
The life insurance industry consists of more than 1,700 companies that engage in underwriting life insurance and annuities. Life insurance companies also engage significantly in underwriting accident and health insurance, and in managing pension and trust funds. These companies are classified mostly in SIC 631 "Life Insurance" and SIC 6321 "Accident and Health Insurance." Stock companies, owned by shareholders, and mutual companies, owned by policyholders, are the two main types of insurance providers.
Life insurance companies get their premium income from three major product areas: life insurance, annuities, and health insurance. There was little growth in premium receipts for life insurance products in 1993. Sales of traditional whole life and term insurance for individuals fell considerably. This was offset by growth in investment-type products - variable and universal and their hybrids - in which policyholders assume much or most of the financial risk of the underlying assets. Many consumers who bought investment-type life insurance were looking for long-term yields higher than banks and money market funds offered. Sales of group life insurance fell in 1993. Income from individual and group annuities rose strongly to $132.6 billion in 1992 (Table 1) and this growth continued into 1993. Despite some consumer confidence problems, individual annuities sold extremely well in 1993 as people with maturing bank certificates of deposit or qualified retirement plans often rolled over the funds into higher-yielding annuities, especially variable products. Insurers with strong balance sheets did well with group annuities. In particular, guaranteed investment contracts (GICs) offered by insurers remained popular with 401(k) plans - the fastest growing part of the retirement investment market.
Premium growth from health insurance increased again in 1992 and 1993. Cost pressures were the chief reason for this growth. The trend toward managed health care, however, has tempered the increase of health premiums for life insurers. Life insurance companies are major providers of health insurance. Other providers of health insurance include Blue Cross/Blue Shield plans, property/casualty insurers, self-funded employer plans, and government programs.
Growth in investment income for insurers in 1992 and 1993 fell off as interest rates dropped. Other income fell in 1992 because insurers were taking capital losses on mortgages and other troubled assets.
The assets of life insurers increased an estimated 7.5 percent in 1993 to $1.79 trillion. The proportion of corporate bonds remained level from 1991 to 1992 because of the improvements in the bond market, while equities increased their proportion of life insurers assets. The commercial mortgage portfolio of insurers declined both absolutely and as a proportion of assets from 1991 to 1992 (Table 2). Assets consist mainly of financial instruments such as stocks and bonds. These assets back insurance and annuity reserves required to pay expected claims and provide the necessary surplus and capital to meet solvency standards.
The life insurance industry remained financially sound in 1993. Balance sheets improved in 1992 and 1993 for most companies as they adjusted to the new risk-based capital standards (see Key Developments section). In 1991, a stagnant economy, a depressed real estate market, excessive investments in low-grade corporate bonds, and a sharp drop in consumer confidence were the immediate causes of several large, well-publicized failures. Since then, the bond market has improved, the stock market has grown strongly, and the decline in real estate has leveled off in many regions, although real estate holdings remain the problem for many companies. The overall quality of assets in the portfolios of life insurance companies has improved, demonstrated by a shift from commercial mortgages to more conservative assets such as higher-grade bonds.
Life insurance companies cut operating costs by reducing staff and home office expenses and by focusing on reform of their agency and product distribution systems. As a result, employment in the industry fell again in 1993 to 520,800, down from 537,400. Merger and acquisition activity was strong. Many insurers acquired pieces of troubled companies, while some divested unprofitable product lines and operations. Foreign insurers have been active in acquisitions and investments in the United States, although there was a decrease in this activity in 1992.
Premium receipts of life insurance companies grew nearly 6 percent in 1993 to $298.9 billion. Strong annuity sales and modest growth in health premiums led this growth. Life insurance sales were flat. Life insurance in force - the total face value of all policies - grew very little in 1993.
Before reading this chapter, see "Getting the Most Out of Outlook '94" on page 1. It will answer any questions you may have concerning data collection procedures, forecasting methodology, and sources and references. For related topics, see Chapter 42 (Health and Medical Services), Chapter 45 (Financial Services) and Chapter 46 (Securities Industry).
The life insurance industry consists of more than 1,700 companies that engage in underwriting life insurance and annuities. Life insurance companies also engage significantly in underwriting accident and health insurance, and in managing pension and trust funds. These companies are classified mostly in SIC 631 "Life Insurance" and SIC 6321 "Accident and Health Insurance." Stock companies, owned by shareholders, and mutual companies, owned by policyholders, are the two main types of insurance providers.
Life insurance companies get their premium income from three major product areas: life insurance, annuities, and health insurance. There was little growth in premium receipts for life insurance products in 1993. Sales of traditional whole life and term insurance for individuals fell considerably. This was offset by growth in investment-type products - variable and universal and their hybrids - in which policyholders assume much or most of the financial risk of the underlying assets. Many consumers who bought investment-type life insurance were looking for long-term yields higher than banks and money market funds offered. Sales of group life insurance fell in 1993. Income from individual and group annuities rose strongly to $132.6 billion in 1992 (Table 1) and this growth continued into 1993. Despite some consumer confidence problems, individual annuities sold extremely well in 1993 as people with maturing bank certificates of deposit or qualified retirement plans often rolled over the funds into higher-yielding annuities, especially variable products. Insurers with strong balance sheets did well with group annuities. In particular, guaranteed investment contracts (GICs) offered by insurers remained popular with 401(k) plans - the fastest growing part of the retirement investment market.
Premium growth from health insurance increased again in 1992 and 1993. Cost pressures were the chief reason for this growth. The trend toward managed health care, however, has tempered the increase of health premiums for life insurers. Life insurance companies are major providers of health insurance. Other providers of health insurance include Blue Cross/Blue Shield plans, property/casualty insurers, self-funded employer plans, and government programs.
Growth in investment income for insurers in 1992 and 1993 fell off as interest rates dropped. Other income fell in 1992 because insurers were taking capital losses on mortgages and other troubled assets.
The assets of life insurers increased an estimated 7.5 percent in 1993 to $1.79 trillion. The proportion of corporate bonds remained level from 1991 to 1992 because of the improvements in the bond market, while equities increased their proportion of life insurers assets. The commercial mortgage portfolio of insurers declined both absolutely and as a proportion of assets from 1991 to 1992 (Table 2). Assets consist mainly of financial instruments such as stocks and bonds. These assets back insurance and annuity reserves required to pay expected claims and provide the necessary surplus and capital to meet solvency standards.
The life insurance industry remained financially sound in 1993. Balance sheets improved in 1992 and 1993 for most companies as they adjusted to the new risk-based capital standards (see Key Developments section). In 1991, a stagnant economy, a depressed real estate market, excessive investments in low-grade corporate bonds, and a sharp drop in consumer confidence were the immediate causes of several large, well-publicized failures. Since then, the bond market has improved, the stock market has grown strongly, and the decline in real estate has leveled off in many regions, although real estate holdings remain the problem for many companies. The overall quality of assets in the portfolios of life insurance companies has improved, demonstrated by a shift from commercial mortgages to more conservative assets such as higher-grade bonds.
Life insurance companies cut operating costs by reducing staff and home office expenses and by focusing on reform of their agency and product distribution systems. As a result, employment in the industry fell again in 1993 to 520,800, down from 537,400. Merger and acquisition activity was strong. Many insurers acquired pieces of troubled companies, while some divested unprofitable product lines and operations. Foreign insurers have been active in acquisitions and investments in the United States, although there was a decrease in this activity in 1992.
Stock futures rise ahead of jobs data
NEW YORK (Reuters) - U.S. stock index futures pointed to a higher open on Friday as investors awaited key monthly data on the labor market.
U.S. May non-farm payrolls were forecast to fall by 520,000, a slowing from the loss of 539,000 jobs in April, although the previous month's number could be revised. The U.S. unemployment rate is seen rising to 9.2 percent in May from 8.9 percent in April, according to Reuters poll.
"This morning's jobs number is going to be critical in terms of giving us a picture of what's going on," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
"Today's number is either going to confirm that the numbers are improving, or at least not getting any worse. But if that number comes in worse than expected, and if on top of that you've got a worse-than-expected revision to the previous month's number, then the market is not going to look at that favorably."
Global miner Rio Tinto rejected $19.5 billion in funding from China's Chinalco on Friday in favor of a cost-saving iron ore joint venture with rival BHP Billiton (BLt.L) and a share sale to cut debt. Aluminum producer Alcoa Inc (aan) rose 2.9 percent to $11 in premarket trade.
S&P 500 futures rose 5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones Industrial Average futures added 54 points, while Nasdaq 100 futures gained 5.75 points.
Apple Inc shares rose 1.9 percent to $146.49 in premarket trade after the Wall Street Journal reported that Chief Executive Steve Jobs is on track to return to the company from a medical leave after being treated for a rare type of pancreatic cancer.
The Journal also reported the Federal Deposit Insurance Corp is aiming to shake up Citigroup Inc's top management, including replacing CEO Vikram Pandit, citing people familiar with the matter. Citigroup shares added 0.8 percent to $3.60 in premarket trade.
A U.S. federal appeals court will hear arguments on Friday to block the sale of Chrysler LLC to a group including Italian carmaker Fiat SpA and the U.S. government, arguing it violates longstanding bankruptcy law. The ruling will have implications for General Motors Corp which filed for bankruptcy on June 1.
European shares traded higher by midday, led by Rio Tinto, after the mining group backed out of a planned tie-up with Chianlco and announced a rights issue while planning a joint venture with BHP Billiton. Asian shares, oil and higher-yielding currencies rose as positive signals from the latest U.S. weekly job data sparked tentative optimism ahead of the Friday employment report.
U.S. shares climbed Thursday as a brokerage's upbeat view on U.S. banks sparked a run-up in financials, while surging prices in oil and other commodities boosted natural resource companies on hopes the economic slump was waning.
The Dow Jones industrial average. DJI gained 74.96 points, or 0.86 percent, to 8,750.24. The Standard & Poor's 500 Index .SPX climbed 10.70 points, or 1.15 percent, to 942.46. The Nasdaq Composite Index. IXIC rose 24.10 points, or 1.32 percent, to 1,850.02.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)
source:.reuters.com/
U.S. May non-farm payrolls were forecast to fall by 520,000, a slowing from the loss of 539,000 jobs in April, although the previous month's number could be revised. The U.S. unemployment rate is seen rising to 9.2 percent in May from 8.9 percent in April, according to Reuters poll.
"This morning's jobs number is going to be critical in terms of giving us a picture of what's going on," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
"Today's number is either going to confirm that the numbers are improving, or at least not getting any worse. But if that number comes in worse than expected, and if on top of that you've got a worse-than-expected revision to the previous month's number, then the market is not going to look at that favorably."
Global miner Rio Tinto rejected $19.5 billion in funding from China's Chinalco on Friday in favor of a cost-saving iron ore joint venture with rival BHP Billiton (BLt.L) and a share sale to cut debt. Aluminum producer Alcoa Inc (aan) rose 2.9 percent to $11 in premarket trade.
S&P 500 futures rose 5 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones Industrial Average futures added 54 points, while Nasdaq 100 futures gained 5.75 points.
Apple Inc shares rose 1.9 percent to $146.49 in premarket trade after the Wall Street Journal reported that Chief Executive Steve Jobs is on track to return to the company from a medical leave after being treated for a rare type of pancreatic cancer.
The Journal also reported the Federal Deposit Insurance Corp is aiming to shake up Citigroup Inc's top management, including replacing CEO Vikram Pandit, citing people familiar with the matter. Citigroup shares added 0.8 percent to $3.60 in premarket trade.
A U.S. federal appeals court will hear arguments on Friday to block the sale of Chrysler LLC to a group including Italian carmaker Fiat SpA and the U.S. government, arguing it violates longstanding bankruptcy law. The ruling will have implications for General Motors Corp which filed for bankruptcy on June 1.
European shares traded higher by midday, led by Rio Tinto, after the mining group backed out of a planned tie-up with Chianlco and announced a rights issue while planning a joint venture with BHP Billiton. Asian shares, oil and higher-yielding currencies rose as positive signals from the latest U.S. weekly job data sparked tentative optimism ahead of the Friday employment report.
U.S. shares climbed Thursday as a brokerage's upbeat view on U.S. banks sparked a run-up in financials, while surging prices in oil and other commodities boosted natural resource companies on hopes the economic slump was waning.
The Dow Jones industrial average. DJI gained 74.96 points, or 0.86 percent, to 8,750.24. The Standard & Poor's 500 Index .SPX climbed 10.70 points, or 1.15 percent, to 942.46. The Nasdaq Composite Index. IXIC rose 24.10 points, or 1.32 percent, to 1,850.02.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)
source:.reuters.com/
Home Insurance
Protect your house — and your possessions — with home insurance through Progressive. For homeowners, insurance protection is an important aspect of homeownership. Buying home insurance means buying protection for your home — both inside and out.
Progressive Home Advantage, underwritten by Homesite Insurance, offers home insurance, condo insurance and renters insurance to new and existing Progressive customers.
If you already know what kind of home insurance policy you need, get a home insurance quote today! Or, learn more about:
What is home insurance?
Homeowners insurance, or home insurance, compensates you for losses to your home and your possessions inside it, so purchasing a homeowners policy provides added security for your investment. Home insurance also protects you if you're legally liable for someone's injuries on your property, as well as from financial losses caused by storms, fire, theft and other events outlined in your policy.
Why buy condo insurance?
Home insurance isn't your only option when it comes to protecting your belongings. When you own a condominium, you — not your condo association — are responsible for what's inside your condo. That's why having a personal condo insurance policy is important.
Why buy renters insurance?
Renters insurance protects you in situations that everyone can face: fire, theft, water damage and other unforeseen circumstances — situations your apartment owner's policy doesn't cover.
Progressive Home Advantage, underwritten by Homesite Insurance, offers home insurance, condo insurance and renters insurance to new and existing Progressive customers.
If you already know what kind of home insurance policy you need, get a home insurance quote today! Or, learn more about:
What is home insurance?
Homeowners insurance, or home insurance, compensates you for losses to your home and your possessions inside it, so purchasing a homeowners policy provides added security for your investment. Home insurance also protects you if you're legally liable for someone's injuries on your property, as well as from financial losses caused by storms, fire, theft and other events outlined in your policy.
Why buy condo insurance?
Home insurance isn't your only option when it comes to protecting your belongings. When you own a condominium, you — not your condo association — are responsible for what's inside your condo. That's why having a personal condo insurance policy is important.
Why buy renters insurance?
Renters insurance protects you in situations that everyone can face: fire, theft, water damage and other unforeseen circumstances — situations your apartment owner's policy doesn't cover.
Thursday, June 4, 2009
HARD NOW A DAYS
Now a days due to financial crisis it is obviously hard in the field of forex trading, insurance policies and stock market. Lets hope for good and it will be....
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