Jun 8, 2012

Stock recommendations today

A Fitch Ratings executive said Thursday that the firm would likely downgrade US debt if the federal government does not get its fiscal house in order.

Speaking at the firm's global banking conference in New York, Fitch sovereign group managing director Ed Parker said "the US does not have a credible fiscal consolidation plan" and that "if we don't see one after the election, I would expect a downgrade."
Fitch rates the US at triple-A but put it on negative outlook earlier this year, and Parker's comments were a reiteration of the firm's position. Fitch has the US, UK and France on negative outlook because of high debt-to-gross-domestic-product-ratios.
Parker noted that the three countries, plus Germany, have the top credit ratings but are also the most heavily indebted nations.
"There is a limit to how high these government debt levels can go," Parker said as quoted by Foxbusiness.com.
Regarding the future of the eurozone, Parker said that in the event of a Greek exit from the eurozone, all member countries in the union would be put on negative ratings watch and placed under review. He also said that the peripheral countries of Italy, Spain, Ireland, Portugal and Cyprus, all currently on negative outlook, would be downgraded. "The big concern is potential contagion to other countries," Parker said.
A broad rally that was fueled by China's surprise rate cut ran out of steam in late-session action as traders interpreted signs that the Federal Reserve may not be ready to offer additional monetary stimulus.
The Dow Jones Industrial Average climbed 46.2 points, or 0.37%, to 12461, the S&P 500 fell 0.14 point, or 0.01%, to 1315 and the Nasdaq Composite slumped 13.7 points, or 0.48%, to 2831.
The Dow had been up close to 140 points at the highs of the session, only to close out the day with modest gains. Four out of ten S&P 500 sectors ended in the red, led by telecommunications companies. On the other side of the spectrum, utilities posted the best performance.
The People's Bank of China cut its benchmark lending and deposit rates by 0.25-percentage point in the hopes of keeping the economic expansion there from cooling down too quickly. Additionally, the PBOC said that it will allow the deposit rate to climb by 110% of the benchmark and the lending rate fall to 80% of the benchmark.
How about Indonesia stock market today? Bisnis Indonesia provides recommendations:
 
Panin Sekuritas:
Today, Jakarta Stock Exchange (JCI) may move mixed with downtrend possibility within the support and resistance level at 3,810-3,865.

Henan Putihrai:
Candlestick shows bearish meeting lines, signaling taking profit may occur. The support and resistance levels are within 3,875-3,900. Several stocks to monitor: INDF and UNVR.

e-Trading Securities: 
Today, the trading may run sideways. Investors are recommended to do short term trading with buy on weakness or sell. Several stocks to watch: SMGR and INTP.
 
Disclosure: No position at the stock mentioned above.

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