What if a judge solicited cases from big corporations by offering them a business-friendly venue in which to pursue consumers who are behind on their bills? What if the judge tried to make this pitch more appealing by teaming up with the corporations' outside lawyers? And what if the same corporations helped pay the judge's salary?
It would, of course, amount to a conflict of interest and cast doubt on the fairness of proceedings before the judge.
Yet that's essentially how one of the country's largest private arbitration firms operates. The National Arbitration Forum (NAF), a for-profit company based in Minneapolis, specializes in resolving claims by banks, credit-card companies, and major retailers that contend consumers owe them money. Often without knowing it, individuals agree in the fine print of their credit-card applications to arbitrate any disputes over bills rather than have the cases go to court. What consumers also don't know is that NAF, which dominates credit-card arbitration, operates a system in which it is exceedingly difficult for individuals to prevail.
Some current and former NAF arbitrators say they make decisions in haste—sometimes in just a few minutes—based on scant information and rarely with debtor participation. Consumers who have been through the process complain that NAF spews baffling paperwork and fails to provide the hearings that it promises. Corporations seldom lose. In California, the one state where arbitration results are made public, creditors win 99.998% of the time in NAF cases that are decided by arbitrators on the merits, according to a lawsuit filed by the San Francisco city attorney against NAF.
"NAF is nothing more than an arm of the collection industry hiding behind a veneer of impartiality," says Richard Neely, a former justice of the West Virginia supreme court who as part of his private practice arbitrated several cases for NAF in 2004 and 2005.
A DIFFERENT REALITY
NAF presents its service in print and online advertising as quicker and less expensive than litigation but every bit as unbiased. Its Web site promotes "a fair, efficient, and effective system for the resolution of commercial and civil disputes in America and worldwide."
But internal NAF documents and interviews with people familiar with the firm reveal a different reality. Behind closed doors, NAF sells itself to lenders as an effective tool for collecting debts. The point of these pitches is to persuade the companies to use the firm to resolve clashes over delinquent accounts. JPMorgan Chase (JPM) and Bank of America (BAC) are among the large institutions that do so. A September, 2007, NAF PowerPoint presentation aimed at creditors and labeled "confidential" promises "marked increase in recovery rates over existing collection methods." At times, NAF does this kind of marketing with the aid of law firms representing the very creditors it's trying to sign up as clients.
NAF, which is privately held, employs about 1,700 freelance arbitrators—mostly moonlighting lawyers and retired judges—who handle some 200,000 cases a year, most of them concerning consumer debt. Millions of credit-card accounts mandate the use of arbitration by NAF or one of its rivals. NAF also resolves disputes involving Internet domain names, auto insurance, and other matters. In 2006 it had net income of $10 million, a robust margin of 26% on revenue of $39 million, according to company documents.
NAF's success is part of a broader boom in arbitration dating back to the 1980s, when companies began introducing language into employment contracts requiring that disputes with workers be resolved out of court. Mandatory arbitration spread to other kinds of agreements, including those involving credit cards.
Friday, June 6, 2008
An Ugly Day for Stocks
Major U.S. stock indexes each tumbled nearly 3% Friday as a surge in crude oil prices to fresh record highs and a weaker-than-expected May U.S. jobs report heightened investors' worries about inflation and the economy.
Bonds, which plunged Thursday as stocks rallied, soared in a flight to safety from the weakness in equities. Gold finished higher.
The dollar index was lower, while the euro was higher as the European Central Bank indicated it may raise interest rates.
On Friday, the blue-chip Dow Jones industrial average sank 394.64 points, or 3.13%, to end the session at 12,209.81. Transportation issues were among the hardest hit, although all Dow components fell. The broader S&P 500 index shed 43.37 points, or 3.09%, to finish at 1,360.68. The tech-heavy Nasdaq composite index declined 62 points, or 2.43%, to close at 2,487.94.
Activity in the broader market was resoundingly negative. On the New York stock exchange, 26 stocks were lower in price for every six that gained. The ratio on the Nasdaq was 23-5 negative.
“It was a fairly quiet week until Thursday and Friday, when all hell broke loose,” says S&P chief technical strategist Mark Arbeter. “The rebound in crude, along with the
spike in the May unemployment rate, was too much for the stock market to take in one day, so today was just plain ugly.”
Among the groups suffering significant losses in Friday’s rout: The S&P Airlines index was down 4.3% as the industry, which had a couple of days of positive results, felt renewed pressure from the spike is crude oil.
The S&P Homebuilders index fell 6.4% amid pres reports of record levels of mortgage delinquencies and foreclosures in the first quarter.
The S&P Regional Banks index fell 4.1% on a Wall Street Journal report that National City’s (NCC) banking unit, which has been buffeted by rising bad loans, has recently entered into a "memorandum of understanding" with federal regulators, effectively putting the bank on probation.
The S&P Multi-line Insurance index sank 3.9% on weakness in shares of American International Group (AIG) on reports that the SEC is investigation whether AIG overstated the value of contracts linked to subprime mortgages.
Crude oil staged an extraordinary recovery from its recent slump. July West Texas Intermediate crude-oil futures were up $11.13 a barrel in late trading Friday to a record $138.92, spurred by heightened tensions in the Middle East and Asia and a weaker US dollar.
Market watchers said crude oil scored one of its biggest one-day gains ever after Shaul Mofaz, Israel's transportation minister and a contender for the post of prime minister, told the daily newspaper Yediot Ahronot that Israel will have to attack Iran if it doesn't abandon its nuclear development. In addition, Morgan Stanley issued at note stating current crude oil shipping patterns are suggesting WTI oil could reach $150 per barrel by July 4.
The oil run-up was a carryover of Thursday's late $5.49 surge that had Rep. Bart Stupak (D., Mich.) complaining oil and products markets were being "manipulated" by the biggest trading houses in the futures markets. But he said a probe hasn't uncovered illegal activity. Wall Street firms denied the charges.
U.S. nonfarm payrolls fell 49,000 in May, in line with market expectations. Both April and May were downwardly revised to -28,000 and -88,000, respectively (-20,000 and -81,000 previously).
The big surprise in the report: The unemployment rate jumped to 5.5% from 5.0% in April, and was well above the 5.1% expected.
Bonds, which plunged Thursday as stocks rallied, soared in a flight to safety from the weakness in equities. Gold finished higher.
The dollar index was lower, while the euro was higher as the European Central Bank indicated it may raise interest rates.
On Friday, the blue-chip Dow Jones industrial average sank 394.64 points, or 3.13%, to end the session at 12,209.81. Transportation issues were among the hardest hit, although all Dow components fell. The broader S&P 500 index shed 43.37 points, or 3.09%, to finish at 1,360.68. The tech-heavy Nasdaq composite index declined 62 points, or 2.43%, to close at 2,487.94.
Activity in the broader market was resoundingly negative. On the New York stock exchange, 26 stocks were lower in price for every six that gained. The ratio on the Nasdaq was 23-5 negative.
“It was a fairly quiet week until Thursday and Friday, when all hell broke loose,” says S&P chief technical strategist Mark Arbeter. “The rebound in crude, along with the
spike in the May unemployment rate, was too much for the stock market to take in one day, so today was just plain ugly.”
Among the groups suffering significant losses in Friday’s rout: The S&P Airlines index was down 4.3% as the industry, which had a couple of days of positive results, felt renewed pressure from the spike is crude oil.
The S&P Homebuilders index fell 6.4% amid pres reports of record levels of mortgage delinquencies and foreclosures in the first quarter.
The S&P Regional Banks index fell 4.1% on a Wall Street Journal report that National City’s (NCC) banking unit, which has been buffeted by rising bad loans, has recently entered into a "memorandum of understanding" with federal regulators, effectively putting the bank on probation.
The S&P Multi-line Insurance index sank 3.9% on weakness in shares of American International Group (AIG) on reports that the SEC is investigation whether AIG overstated the value of contracts linked to subprime mortgages.
Crude oil staged an extraordinary recovery from its recent slump. July West Texas Intermediate crude-oil futures were up $11.13 a barrel in late trading Friday to a record $138.92, spurred by heightened tensions in the Middle East and Asia and a weaker US dollar.
Market watchers said crude oil scored one of its biggest one-day gains ever after Shaul Mofaz, Israel's transportation minister and a contender for the post of prime minister, told the daily newspaper Yediot Ahronot that Israel will have to attack Iran if it doesn't abandon its nuclear development. In addition, Morgan Stanley issued at note stating current crude oil shipping patterns are suggesting WTI oil could reach $150 per barrel by July 4.
The oil run-up was a carryover of Thursday's late $5.49 surge that had Rep. Bart Stupak (D., Mich.) complaining oil and products markets were being "manipulated" by the biggest trading houses in the futures markets. But he said a probe hasn't uncovered illegal activity. Wall Street firms denied the charges.
U.S. nonfarm payrolls fell 49,000 in May, in line with market expectations. Both April and May were downwardly revised to -28,000 and -88,000, respectively (-20,000 and -81,000 previously).
The big surprise in the report: The unemployment rate jumped to 5.5% from 5.0% in April, and was well above the 5.1% expected.
Icahn Presses Yahoo to Sell to Microsoft
l C. Icahn told Yahoo on Friday that it should offer to sell the company to Microsoft for $34.375 a share, or about $48.7 billion.
Skip to next paragraph
Related
Times Topics: The Battle for Yahoo
Bits: Icahn vs. Yahoo: The Latest Exchange
In his latest letter to Roy J. Bostock, Yahoo’s chairman, Mr. Icahn said that if Microsoft did not accept the offer “in a friendly and cooperative transaction,” he would push Yahoo to do a deal with Google if he won control of the Yahoo board.
Mr. Icahn, who has offered a dissident slate to replace Yahoo’s board at its annual meeting on Aug. 1, had not previously named a price at which he believed Yahoo should agree to a sale.
Microsoft walked away from a $33 a share, or $47.5 billion offer, on May 3, after Yahoo demanded $37 a share.
Yahoo shares closed in trading up 11 cents to $26.44.
Mr. Icahn, a veteran of many shareholder campaigns, renewed his attack on Yahoo and its co-founder, Jerry Yang, whom he accused of “sabotaging” the possibility of a deal with Microsoft. Investment funds controlled by Mr. Icahn hold about 59 million shares and options, or about 4.28 percent of the company.
Mr. Icahn reiterated his previous demand that Yahoo cancel a “change of control” severance plan that awards accelerated benefits to the bulk of Yahoo’s staff members in the event of a takeover.
Mr. Icahn cited a recent shareholder lawsuit against Yahoo, in which the company estimated the value of the plan at “a staggering $2.4 billion,” which he said is “a major obstacle” to any Microsoft acquisition.
Yahoo, in response, said Mr. Icahn had an “inaccurate interpretation” of its employee retention plan but did not elaborate. “Mr. Icahn’s suggestion that we cancel our retention plan would have a destabilizing impact on Yahoo,” it said.
It also said Mr. Icahn had no “credible plan to operate Yahoo” if he won his proxy campaign.
It reiterated that it was “open to any transaction, including a sale to Microsoft if it is in the best interests of shareholders.”
Microsoft declined to comment.
Skip to next paragraph
Related
Times Topics: The Battle for Yahoo
Bits: Icahn vs. Yahoo: The Latest Exchange
In his latest letter to Roy J. Bostock, Yahoo’s chairman, Mr. Icahn said that if Microsoft did not accept the offer “in a friendly and cooperative transaction,” he would push Yahoo to do a deal with Google if he won control of the Yahoo board.
Mr. Icahn, who has offered a dissident slate to replace Yahoo’s board at its annual meeting on Aug. 1, had not previously named a price at which he believed Yahoo should agree to a sale.
Microsoft walked away from a $33 a share, or $47.5 billion offer, on May 3, after Yahoo demanded $37 a share.
Yahoo shares closed in trading up 11 cents to $26.44.
Mr. Icahn, a veteran of many shareholder campaigns, renewed his attack on Yahoo and its co-founder, Jerry Yang, whom he accused of “sabotaging” the possibility of a deal with Microsoft. Investment funds controlled by Mr. Icahn hold about 59 million shares and options, or about 4.28 percent of the company.
Mr. Icahn reiterated his previous demand that Yahoo cancel a “change of control” severance plan that awards accelerated benefits to the bulk of Yahoo’s staff members in the event of a takeover.
Mr. Icahn cited a recent shareholder lawsuit against Yahoo, in which the company estimated the value of the plan at “a staggering $2.4 billion,” which he said is “a major obstacle” to any Microsoft acquisition.
Yahoo, in response, said Mr. Icahn had an “inaccurate interpretation” of its employee retention plan but did not elaborate. “Mr. Icahn’s suggestion that we cancel our retention plan would have a destabilizing impact on Yahoo,” it said.
It also said Mr. Icahn had no “credible plan to operate Yahoo” if he won his proxy campaign.
It reiterated that it was “open to any transaction, including a sale to Microsoft if it is in the best interests of shareholders.”
Microsoft declined to comment.
Jobs Down for 5th Month; Oil’s Rise Adds to Gloom
The unemployment rate surged to 5.5 percent in May from 5 percent — the sharpest monthly spike in 22 years — as the economy lost 49,000 jobs, registering a fifth consecutive month of decline, the Labor Department reported Friday.
Skip to next paragraph
Multimedia
The Labor Picture in May
Back Story With Jad Mouawad and Peter Goodman (mp3)The weak jobs report, coupled with a staggering rise in the price of oil — up a record $10.75 a barrel to more than $138 — unleashed a feverish sell-off on Wall Street, sending the Dow Jones industrial average down nearly 400 points. The dollar plunged against several major currencies.
Investors’ recent hopes that the United States might yet skirt a recession sank swiftly in the face of gloomy indications that the economy is gripped by a slowdown and pressured by record fuel prices.
For tens of millions of Americans struggling to pay bills, the jobs report added an official stamp of authority to a dispiriting reality they already know: A deteriorating labor market is eliminating paychecks just as they are needed to compensate for the soaring cost of food and fuel, and as the fall in house prices hacks away at household wealth and access to credit.
“It’s unambiguously ugly,” said Robert Barbera, chief economist at the research and trading firm ITG. “The average American already knows that gas prices are up a ton and it’s really hard to find a job. Sally and Sam on Main Street are already well aware of this, and that’s why sentiment surveys are lower than they were in each of the last two recessions.”
President Bush acknowledged the jump in unemployment as an indication of “slow economic growth,” but he held out hope that $100 billion in tax rebates now being distributed to American households would spur spending and generate jobs.
"We’re beginning to see the signs that the stimulus may be working," Mr. Bush said during a swearing-in ceremony for the housing secretary, Steven C. Preston.
In a presidential election year in which the economy has emerged as a crucial issue, both major candidates used the employment data as an opportunity to criticize their opponent’s governing philosophy.
“The wrong change for our country would be an economic agenda based upon the policies of the past that advocate higher taxes,” said Senator John McCain, Republican of Arizona, in a written statement. “To help families at this critical time, we cannot afford to go backward as Senator Obama advocates."
Senator Barack Obama, Democrat of Illinois, called the labor report “a reminder that working families continue to bear the brunt of the failed Bush economic policies that John McCain wants to continue,” in a statement. “We can’t afford John McCain’s plan to spend billions of dollars on tax breaks for big corporations and wealthy C.E.O.’s.”
Democrats on Capitol Hill and advocates for the unemployed pointed to the spike in joblessness in arguing for the swift extension of federal unemployment insurance.
Among the 8.55 million people who were unemployed in May, 1.55 million had been unemployed for 27 weeks or longer. Unemployment benefits now expire after 26 weeks. An Iraq war financing bill approved by the Senate includes a provision that would extend cash benefits for an additional 13 weeks.
“It would show a new level of callousness by Congress, a new level of disconnect between Washington and the rest of the country, not to pass an extension now,” said Andrew Stettner, executive director of the National Employment Law Project, an advocacy group.
The White House has said it would veto the bill for imposing deadlines on the withdrawal of troops from Iraq. The administration also argues that jobless benefits should not be extended, with the unemployment rate still low by historical measures. Tony Fratto, a White House spokesman, said Friday’s report did not change that position.
The spike in joblessness significantly cooled talk that the Federal Reserve could stop worrying about recession and might soon begin to raise interest rates to choke off rising prices for crucial goods like gasoline and food.
Since last fall, as fears of recession have grown along with the financial turmoil resulting from falling home prices, the Fed has cut interest rates to encourage investment and spur economic activity. A chorus of economists has warned that the Fed has unleashed too much easy money, feeding inflation and driving down the dollar. Some have suggested the Fed might have to reverse course and raise rates. Not anymore, as the labor market continues to offer up evidence of enduring trouble.
“There’s a greater chance of peace breaking out in the Middle East,” said Mr. Barbera, the ITG economist.
Skip to next paragraph
Multimedia
The Labor Picture in May
Back Story With Jad Mouawad and Peter Goodman (mp3)The weak jobs report, coupled with a staggering rise in the price of oil — up a record $10.75 a barrel to more than $138 — unleashed a feverish sell-off on Wall Street, sending the Dow Jones industrial average down nearly 400 points. The dollar plunged against several major currencies.
Investors’ recent hopes that the United States might yet skirt a recession sank swiftly in the face of gloomy indications that the economy is gripped by a slowdown and pressured by record fuel prices.
For tens of millions of Americans struggling to pay bills, the jobs report added an official stamp of authority to a dispiriting reality they already know: A deteriorating labor market is eliminating paychecks just as they are needed to compensate for the soaring cost of food and fuel, and as the fall in house prices hacks away at household wealth and access to credit.
“It’s unambiguously ugly,” said Robert Barbera, chief economist at the research and trading firm ITG. “The average American already knows that gas prices are up a ton and it’s really hard to find a job. Sally and Sam on Main Street are already well aware of this, and that’s why sentiment surveys are lower than they were in each of the last two recessions.”
President Bush acknowledged the jump in unemployment as an indication of “slow economic growth,” but he held out hope that $100 billion in tax rebates now being distributed to American households would spur spending and generate jobs.
"We’re beginning to see the signs that the stimulus may be working," Mr. Bush said during a swearing-in ceremony for the housing secretary, Steven C. Preston.
In a presidential election year in which the economy has emerged as a crucial issue, both major candidates used the employment data as an opportunity to criticize their opponent’s governing philosophy.
“The wrong change for our country would be an economic agenda based upon the policies of the past that advocate higher taxes,” said Senator John McCain, Republican of Arizona, in a written statement. “To help families at this critical time, we cannot afford to go backward as Senator Obama advocates."
Senator Barack Obama, Democrat of Illinois, called the labor report “a reminder that working families continue to bear the brunt of the failed Bush economic policies that John McCain wants to continue,” in a statement. “We can’t afford John McCain’s plan to spend billions of dollars on tax breaks for big corporations and wealthy C.E.O.’s.”
Democrats on Capitol Hill and advocates for the unemployed pointed to the spike in joblessness in arguing for the swift extension of federal unemployment insurance.
Among the 8.55 million people who were unemployed in May, 1.55 million had been unemployed for 27 weeks or longer. Unemployment benefits now expire after 26 weeks. An Iraq war financing bill approved by the Senate includes a provision that would extend cash benefits for an additional 13 weeks.
“It would show a new level of callousness by Congress, a new level of disconnect between Washington and the rest of the country, not to pass an extension now,” said Andrew Stettner, executive director of the National Employment Law Project, an advocacy group.
The White House has said it would veto the bill for imposing deadlines on the withdrawal of troops from Iraq. The administration also argues that jobless benefits should not be extended, with the unemployment rate still low by historical measures. Tony Fratto, a White House spokesman, said Friday’s report did not change that position.
The spike in joblessness significantly cooled talk that the Federal Reserve could stop worrying about recession and might soon begin to raise interest rates to choke off rising prices for crucial goods like gasoline and food.
Since last fall, as fears of recession have grown along with the financial turmoil resulting from falling home prices, the Fed has cut interest rates to encourage investment and spur economic activity. A chorus of economists has warned that the Fed has unleashed too much easy money, feeding inflation and driving down the dollar. Some have suggested the Fed might have to reverse course and raise rates. Not anymore, as the labor market continues to offer up evidence of enduring trouble.
“There’s a greater chance of peace breaking out in the Middle East,” said Mr. Barbera, the ITG economist.
Pakistanis despise or lionise 9/11 mastermind
A day after al Qaeda's Sept. 11 mastermind made his first appearance in a U.S. military court, Pakistanis were divided between admiration and revulsion for their countryman, Khalid Sheikh Mohammed.
"He deserves to be hanged," spat Mazhar Awais, an observant Muslim who runs a pharmacy in the northwestern city of Peshawar.
"Islam doesn't allow the killing of innocent people. If you're against the U.S. government, it doesn't mean kill Americans."
Many Pakistanis believe al Qaeda and its cohorts have brought dishonour on Islam by killing civilians and fellow Muslims.
But anti-American sentiment runs deep in Pakistan, where President Pervez Musharraf is often cursed for caving in to pressure to join a "war on terrorism" many Pakistanis see as America's, not theirs.
Mohammed, widely known by his initials KSM, has no shortage of admirers.
"What's happening in Guantanamo Bay? What's happening in Iraq and Afghanistan? We believe the U.S. is an aggressor and he's a hero," said Syed Sajjad Ali Shah, a retired government school principal in Peshawar.
Mohammed is on trial with four al Qaeda comrades for conspiring to murder civilians in the 2001 attacks.
They also face 2,973 counts on murder, one for each person killed when hijacked passenger planes slammed into the World Trade Centre, the Pentagon and a Pennsylvania field.
On his first appearance, Mohammed asserted his right to act as his own attorney, declared his wish to be a martyr, and chanted an Islamic verse in Arabic, before pausing to cheerfully translate its meaning into English.
His bravado resonated among Pakistanis looking for a hero to stand up against U.S. hegemony and Muslim rulers dependent on American support.
"He's a beacon of light for Muslims. It's the time to say no to the U.S. and the West. Otherwise history won't forgive us," said Dr. Tariq bin Wahab in the southern central city of Multan.
"We have to get rid of U.S. agents like General Musharraf who have sold our country for his vested interests."
Others were sickened by Mohammed's posturing in court.
"He's a killer; he's not a martyr," said Sameena Gul, a human rights activist in Islamabad.
Mobeen Ansari, a college student in Karachi, struck a similar note.
"I think he's a criminal and the 9/11 incident has just caused hatred," he said.
More dispassionately, some saw the U.S. military trial becoming a public relations disaster for Washington, as few people will believe it could be fair.
"He's been charged (with) a global terror act, so they should hold a global level trial. It cannot be a military trial," said Muhammad Akram, a 45-year-old lawyer in the southern city of Karachi.
Others clung to conspiracy theories that the events of Sept. 11 had nothing to do with Muslims or Pakistanis.
"I don't think this was done (by anyone) from our part of the world," said Nosheen Razzak, a radio jockey, from Karachi.
"I don't think it was done by Muslims." (Additional reporting by Asim Tanveer, Aftab Borka and Sahar Ahmed; Writing by Simon Cameron-Moore; Editing by Jerry Norton)
"He deserves to be hanged," spat Mazhar Awais, an observant Muslim who runs a pharmacy in the northwestern city of Peshawar.
"Islam doesn't allow the killing of innocent people. If you're against the U.S. government, it doesn't mean kill Americans."
Many Pakistanis believe al Qaeda and its cohorts have brought dishonour on Islam by killing civilians and fellow Muslims.
But anti-American sentiment runs deep in Pakistan, where President Pervez Musharraf is often cursed for caving in to pressure to join a "war on terrorism" many Pakistanis see as America's, not theirs.
Mohammed, widely known by his initials KSM, has no shortage of admirers.
"What's happening in Guantanamo Bay? What's happening in Iraq and Afghanistan? We believe the U.S. is an aggressor and he's a hero," said Syed Sajjad Ali Shah, a retired government school principal in Peshawar.
Mohammed is on trial with four al Qaeda comrades for conspiring to murder civilians in the 2001 attacks.
They also face 2,973 counts on murder, one for each person killed when hijacked passenger planes slammed into the World Trade Centre, the Pentagon and a Pennsylvania field.
On his first appearance, Mohammed asserted his right to act as his own attorney, declared his wish to be a martyr, and chanted an Islamic verse in Arabic, before pausing to cheerfully translate its meaning into English.
His bravado resonated among Pakistanis looking for a hero to stand up against U.S. hegemony and Muslim rulers dependent on American support.
"He's a beacon of light for Muslims. It's the time to say no to the U.S. and the West. Otherwise history won't forgive us," said Dr. Tariq bin Wahab in the southern central city of Multan.
"We have to get rid of U.S. agents like General Musharraf who have sold our country for his vested interests."
Others were sickened by Mohammed's posturing in court.
"He's a killer; he's not a martyr," said Sameena Gul, a human rights activist in Islamabad.
Mobeen Ansari, a college student in Karachi, struck a similar note.
"I think he's a criminal and the 9/11 incident has just caused hatred," he said.
More dispassionately, some saw the U.S. military trial becoming a public relations disaster for Washington, as few people will believe it could be fair.
"He's been charged (with) a global terror act, so they should hold a global level trial. It cannot be a military trial," said Muhammad Akram, a 45-year-old lawyer in the southern city of Karachi.
Others clung to conspiracy theories that the events of Sept. 11 had nothing to do with Muslims or Pakistanis.
"I don't think this was done (by anyone) from our part of the world," said Nosheen Razzak, a radio jockey, from Karachi.
"I don't think it was done by Muslims." (Additional reporting by Asim Tanveer, Aftab Borka and Sahar Ahmed; Writing by Simon Cameron-Moore; Editing by Jerry Norton)
Thursday, June 5, 2008
Thursday's Asia ADR Recap: Spreadtrum
Stocks in India snapped a three-day down trend on Thursday but not without experiencing extremes in volatility that saw the benchmark Sensex Index swing 500 points intraday. Traders appear to be putting aside any negative sentiment created by the fuel price hike and snapping up stocks they deem to be undervalued. The Sensex Index had plunged more than 900 points over the past three trading sessions.
"There is a lot of volatility in the market. Unless it gains some stability, it is difficult to take a call on the direction. Nevertheless, valuations are attractive at this stage," said Jignesh Shah of ABN Amro Bank.
The Bombay Stock Exchange's Sensex Index slipped 254.93 points, or 1.64%, to 15,769.72. Here's a look at how some India-based American depositary shares traded in the U.S. on Thursday.
Stifel Nicolaus & Company said it will keep its hold rating on shares of Infosys Technologies(INFY - Cramer's Take - Stockpickr) but raise its estimates for the Indian information technology firm. In a note to clients a Stifel analyst said due to the Indian government's approval of a one-year extension of the software technology park tax exemption, it is raising its EPS estimates for 2009 from $2.47 to $2.54 and for 2010 from $2.79 to $2.82. American depositary shares of Infosys, which trade on the Nasdaq, surged 5.7% to $49.37.
Stifel Nicolaus & Company also reiterated its buy rating for U.S.-based information technology provider Cognizant Technology Solutions(CTSH - Cramer's Take - Stockpickr) and set its price target at $41. Stifel raised its EPS estimates for 2009 from $1.74 to $1.93 and for 2010 from $2.15 to $2.16, citing the software technology park tax exemption. Cognizant has a large exposure to the Indian technology market. Shares of Cognizant moved up 3.5% to $36.78.
"There is a lot of volatility in the market. Unless it gains some stability, it is difficult to take a call on the direction. Nevertheless, valuations are attractive at this stage," said Jignesh Shah of ABN Amro Bank.
The Bombay Stock Exchange's Sensex Index slipped 254.93 points, or 1.64%, to 15,769.72. Here's a look at how some India-based American depositary shares traded in the U.S. on Thursday.
Stifel Nicolaus & Company said it will keep its hold rating on shares of Infosys Technologies(INFY - Cramer's Take - Stockpickr) but raise its estimates for the Indian information technology firm. In a note to clients a Stifel analyst said due to the Indian government's approval of a one-year extension of the software technology park tax exemption, it is raising its EPS estimates for 2009 from $2.47 to $2.54 and for 2010 from $2.79 to $2.82. American depositary shares of Infosys, which trade on the Nasdaq, surged 5.7% to $49.37.
Stifel Nicolaus & Company also reiterated its buy rating for U.S.-based information technology provider Cognizant Technology Solutions(CTSH - Cramer's Take - Stockpickr) and set its price target at $41. Stifel raised its EPS estimates for 2009 from $1.74 to $1.93 and for 2010 from $2.15 to $2.16, citing the software technology park tax exemption. Cognizant has a large exposure to the Indian technology market. Shares of Cognizant moved up 3.5% to $36.78.
shares gain in early trade
NEW YORK (CNNMoney.com) -- Stocks rallied near midday Thursday, with the Dow up over 100 points, as investors welcomed a surprise dip in weekly jobless claims, strong May sales from Wal-Mart Stores and a merger in the telecom sector.
The Dow Jones industrial average (INDU), the broader Standard & Poor's 500 (SPX) index and the Nasdaq composite (COMP) all gained at least 1% over 2 hours into the session.
Stocks rose modestly at the open, but picked up the pace as the morning wore on, thanks to the mix of economic and company news. Meanwhile, gas and oil prices continued to move higher and the dollar retreated versus the euro after several days of gains.
The better-than-expected retail sales results from discounters such as Wal-Mart and Costco fueled Thursday's rally, said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. However, he noted that the improved sales were a result of the economic stimulus checks being mailed out, rather than a bigger indication of the health of the consumer.
On the upside, "a lot of people thought consumers were going to have to hoard their checks because they have to pay their mortgage and $4 a gallon for gas," Rovelli said. "So I guess there is some reassurance that the consumer isn't dead, at least at the lower end of the retail picture."
Stocks were mixed Wednesday after reports that Moody's could lower the credit ratings of bond insurers Ambac and MBIA trumped upbeat economic news and lower oil prices.
Verizon buys Alltel. The Dow component said it's buying the rural wireless carrier from a private equity group for $28.1 billion in a deal that will create the largest U.S. wireless carrier. Verizon shares jumped over 5%. (Full story).
Jobless claims drop. The number of Americans filing new claims for unemployment fell 18,000 last week to 357,000, versus forecasts for an unchanged reading. The report was a positive amid hopes that the economy can avoid a recession. However, the four-week moving average, seen as a more reliable indicator, rose to a more than four-year high. Friday brings the big monthly non-farm payrolls report.
Housing market fallout continues. A report from the Mortgage Bankers' Association showed that the number of homes in foreclosure surpassed 1 million in the first quarter, a record number. (Full story).
Wal-Mart and other chain stores. The world's largest retailer reported higher-than-expected May sales at stores open a year or more, saying it felt the benefit of the first wave of economic stimulus checks having been mailed out. Wal-Mart (WMT, Fortune 500) shares gained more than 3%.
Costco (COST, Fortune 500) also benefited from the economic stimulus checks, with the warehouse club posting a bigger-than-expected rise in May sales. (Full story).
Airline woes continue. Continental (CAL, Fortune 500) said it would cut 3,000 jobs from its workforce of 45,000 and ground 67 planes amid soaring fuel prices and the struggling economy. On Wednesday, United parent UAL Corp. (UAUA, Fortune 500) also announced it would cut jobs and ground planes.
Gas hits new record. The national average price for a gallon of regular unleaded gas rose to $3.989 from $3.983 the previous day, AAA reported. It was the 28th record in 29 days.
Oil prices rise. U.S. light crude oil for July delivery rose 80 cents to $123.10 a barrel on the New York Mercantile Exchange, after having slid for the past few sessions.
Other markets: The dollar slipped versus the euro and the yen, after rising for the past few sessions.
Treasury prices fell, lifting the yield on the 10-year note to 4.01% from 3.97% late Wednesday. Bond prices and yields move in opposite directions.
COMEX gold for August delivery fell $11.30 to $872.50 an ounce
The Dow Jones industrial average (INDU), the broader Standard & Poor's 500 (SPX) index and the Nasdaq composite (COMP) all gained at least 1% over 2 hours into the session.
Stocks rose modestly at the open, but picked up the pace as the morning wore on, thanks to the mix of economic and company news. Meanwhile, gas and oil prices continued to move higher and the dollar retreated versus the euro after several days of gains.
The better-than-expected retail sales results from discounters such as Wal-Mart and Costco fueled Thursday's rally, said Dave Rovelli, managing director of U.S. equity trading at Canaccord Adams. However, he noted that the improved sales were a result of the economic stimulus checks being mailed out, rather than a bigger indication of the health of the consumer.
On the upside, "a lot of people thought consumers were going to have to hoard their checks because they have to pay their mortgage and $4 a gallon for gas," Rovelli said. "So I guess there is some reassurance that the consumer isn't dead, at least at the lower end of the retail picture."
Stocks were mixed Wednesday after reports that Moody's could lower the credit ratings of bond insurers Ambac and MBIA trumped upbeat economic news and lower oil prices.
Verizon buys Alltel. The Dow component said it's buying the rural wireless carrier from a private equity group for $28.1 billion in a deal that will create the largest U.S. wireless carrier. Verizon shares jumped over 5%. (Full story).
Jobless claims drop. The number of Americans filing new claims for unemployment fell 18,000 last week to 357,000, versus forecasts for an unchanged reading. The report was a positive amid hopes that the economy can avoid a recession. However, the four-week moving average, seen as a more reliable indicator, rose to a more than four-year high. Friday brings the big monthly non-farm payrolls report.
Housing market fallout continues. A report from the Mortgage Bankers' Association showed that the number of homes in foreclosure surpassed 1 million in the first quarter, a record number. (Full story).
Wal-Mart and other chain stores. The world's largest retailer reported higher-than-expected May sales at stores open a year or more, saying it felt the benefit of the first wave of economic stimulus checks having been mailed out. Wal-Mart (WMT, Fortune 500) shares gained more than 3%.
Costco (COST, Fortune 500) also benefited from the economic stimulus checks, with the warehouse club posting a bigger-than-expected rise in May sales. (Full story).
Airline woes continue. Continental (CAL, Fortune 500) said it would cut 3,000 jobs from its workforce of 45,000 and ground 67 planes amid soaring fuel prices and the struggling economy. On Wednesday, United parent UAL Corp. (UAUA, Fortune 500) also announced it would cut jobs and ground planes.
Gas hits new record. The national average price for a gallon of regular unleaded gas rose to $3.989 from $3.983 the previous day, AAA reported. It was the 28th record in 29 days.
Oil prices rise. U.S. light crude oil for July delivery rose 80 cents to $123.10 a barrel on the New York Mercantile Exchange, after having slid for the past few sessions.
Other markets: The dollar slipped versus the euro and the yen, after rising for the past few sessions.
Treasury prices fell, lifting the yield on the 10-year note to 4.01% from 3.97% late Wednesday. Bond prices and yields move in opposite directions.
COMEX gold for August delivery fell $11.30 to $872.50 an ounce
Subscribe to:
Posts (Atom)