Morning Market Report 10/20/2014

The KUIK Morning Market Report for Monday, October 20:
Markets are mixed.
Index Direction Change Units Time Change
Dow Down                    (71) points           16,310 6:58 AM
S&P500 Up 0.1% percent             1,889             2.34
Nasdaq Composite Up 0.3% percent             4,271            12.49
30 Year Treasury Down                      (2) Basis Points               2.95 Annual Yield
IBM posted sharply lower earnings in its third quarter as sales fell across several divisions and the tech giant unveiled a deal to transfer its semiconductor operations to Globalfoundries. This is the 10th quarter that IBM has not increased revenues. Under the deal with Globalfoundries, IBM will pay the  company $1.5 billion to take over chip manufacturing, and it will continue to produce processors used in IBM systems. IBM is off 7% to $169.46 a share.
Dallas Federal Reserve  President Richard Fisher said today that he will support ending the central bank’s bond-buying program on schedule next week. In an interview on CNBC, Fisher said he was not troubled by last week’s market volatility and did not think inflation was trending lower.
The European Central Bank said today it has started buying covered bonds as part of a stimulus program to boost the eurozone’s flagging economy. Covered bonds are backed by a pool of loans such as residential mortgages, and are considered the safest type of debt that banks sell. The program is part of a package of stimulus measures announced in September that included interest rate cuts to fresh record lows and planned purchases of asset-backed securities.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
http://www.marketwatch.com/story/ibm-to-transfer-chip-ops-as-revenue-drops-again-2014-10-20-74852644
http://www.marketwatch.com/story/feds-fisher-supports-ending-qe3-next-week-2014-10-20
http://www.marketwatch.com/story/ecb-starts-buying-covered-bonds-as-part-of-stimulus-plan-2014-10-20
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