US open: Under worst scenario stocks could fall 20pc, Citi warns
Posted on: 21 Sep 2012 by Polly York

-Stocks could fall 20% under worst fiscal cliff scenario -Citi
-’Little if any probability’ lawmakers would allow worst scenario-Citi

Dow Jones Industrial: 0.33%
Nasdaq Comp.: 0.57%
S&P 500: 0.39%

‘It´s a jungle out there,’ that must be what analysts at Deutsche Bank thought this morning when they told their clients to buy Amazon.com (along with Google). Why? It´s the only large-cap company in their universe which has a manageable plan to grow revenues ten-fold over the next decade they say.

That´s pretty amazing stuff (no pun intended) and threatens to steal the show from Apple, another tech giant which is grabbing headlines today after the launch of its new iPhone 5.

Here again Deutsche Bank analysts are playing a prominent role, after having raised their target for the company´s shares to 850 dollars from 775 dollars before.

Analysts at Citi have upgraded their view on shares of Mastercard to buy.

Smiths Electric Vehicles has withdrawn its IPO in favour of private financing options.

Of interest, under a worst-case scenario mapped out by analysts at Citi, whereby big tax hikes and spending cuts are allowed to take effect at the beginning of next year- equity prices could fall by 20%. Along with that, oil prices would drop by $20 a barrel, the dollar might depreciate by 5% and unemployment would rise to at least 9.5% through 2014, from 8.1% now.

Fortunately, the analysts note that there is ‘little if any probability’ that lawmakers would allow the worst-case fiscal cliff scenario to play out.

Meanwhile over at the Fed

The President of the Federal Reserve Bank of Atlanta, Dennis Lockhart, is scheduled to give a speech this evening.

Ahead of those words his peer over at the San Francisco Federal Reserve has been quoted as having said that when Operation Twist ends then they may go on to do outright Treasury purchases.

No economic data is slated for release today.

Oil futures bounce back

Front month West Texas crude futures are now rising by 1.46% to the 93.51 dollar level on the NYMEX.

10 year US Treasuries are now falling by 7/32 dollars, with yields at 1.79%.

S&P 500 – Risers
Metropcs Communications Inc. (PCS) $12.01 +7.33%
Expedia Inc. (EXPE) $60.17 +5.39%
Darden Restaurants Inc. (DRI) $57.20 +4.54%
AutoNation Inc. (AN) $43.37 +4.41%
International Paper Co. (IP) $35.83 +3.26%
Motorola Solutions Inc (MSI) $51.42 +3.23%
PulteGroup Inc. (PHM) $17.16 +2.63%
CBS Corp. (CBS) $37.65 +2.57%
D. R. Horton Inc. (DHI) $22.70 +2.30%
Sprint Nextel Corporation (S) $5.56 +2.24%

S&P 500 – Fallers
First Solar Inc. (FSLR) $21.68 -3.93%
Goodyear Tire & Rubber Co. (GT) $12.86 -3.89%
Coach Inc. (COH) $56.83 -3.69%
Genworth Financial Inc. (GNW) $5.65 -3.09%
Adobe Systems Inc. (ADBE) $33.68 -2.46%
Electronic Arts Inc. (EA) $13.22 -1.97%
Dean Foods Co. (DF) $15.96 -1.66%
Alpha Natural Res (ANR) $7.29 -1.62%
Borg Warner Inc. (BWA) $73.08 -1.40%
Monster Beverage Corp (MNST) $54.77 -1.35%

Dow Jones I.A – Risers
AT&T Inc. (T) $38.47 +1.40%
General Electric Co. (GE) $22.67 +1.09%
Home Depot Inc. (HD) $59.90 +1.04%
Pfizer Inc. (PFE) $24.66 +1.02%
Walt Disney Co. (DIS) $53.09 +0.82%
Bank of America Corp. (BAC) $9.26 +0.79%
McDonald’s Corp. (MCD) $93.79 +0.69%
Exxon Mobil Corp. (XOM) $92.05 +0.58%
Johnson & Johnson (JNJ) $69.25 +0.51%
Verizon Communications Inc. (VZ) $45.72 +0.51%

Dow Jones I.A – Fallers
Caterpillar Inc. (CAT) $91.67 -0.94%
Hewlett-Packard Co. (HPQ) $17.63 -0.73%
Coca-Cola Co. (KO) $38.36 -0.72%
Intel Corp. (INTC) $23.06 -0.53%
Alcoa Inc. (AA) $9.22 -0.32%
Cisco Systems Inc. (CSCO) $19.07 -0.21%
E.I. du Pont de Nemours and Co. (DD) $51.85 -0.04%

Nasdaq 100 – Risers
Expedia Inc. (EXPE) $60.17 +5.39%
Avago Technologies Ltd. (AVGO) $35.16 +4.18%
Randgold Resources Ltd. Ads (GOLD) $122.81 +2.27%
Flextronics International Ltd. (FLEX) $6.30 +2.19%
Sears Holdings Corp. (SHLD) $58.52 +1.84%
Fossil Inc. (FOSL) $90.38 +1.78%
Cognizant Technology Solutions Corp. (CTSH) $69.40 +1.68%
Liberty Interactive Corp (LINTA) $18.82 +1.62%
Infosys Technologies Ltd. (INFY) $48.63 +1.61%
Oracle Corp. (ORCL) $32.71 +1.39%

Nasdaq 100 – Fallers
Research in Motion Ltd. (RIMM) $6.53 -5.51%
Green Mountain Coffee Roasters Inc. (GMCR) $26.33 -5.42%
Adobe Systems Inc. (ADBE) $33.68 -2.46%
Electronic Arts Inc. (EA) $13.22 -1.97%
Monster Beverage Corp (MNST) $54.77 -1.35%
Sirius Satellite Radio Inc. (SIRI) $2.55 -0.97%
Dollar Tree Stores Inc. (DLTR) $48.97 -0.89%
Vertex Pharmaceuticals Inc. (VRTX) $57.65 -0.83%
Micron Technology Inc. (MU) $6.40 -0.78%
Ross Stores Inc. (ROST) $66.56 -0.75%

Tags: amazing stuff | amazon | cap company | citi | deutsche bank | electric vehicles | federal reserve | federal reserve bank of atlanta | iphone | target