Archives of “general electric” tag

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Dow and S&P close at record levels. NASDAQ erased its earlier declines

  
Analysis, US Market
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Major indices off highs as well

The Dow and S&P indices both closed at record highs after Fed Chair Powell and Fed continue to steer the soft policy course with not a lot of concern for inflation and expectations for stronger growth.

The final numbers are showing:
  • S&P index up 11.41 points or 0.29% at 3974.12. The high reached 3983.87. The low extended to 3935.74.
  • Nasdaq up 53.63 points or 0.4% at 13525.20. The high reached 13595. The low extended to 13272.69
  • Dow rose 189.42 points or 0.58% at 33015.37.  The high reached 33047.58. The low extended to 32782.18
some big gainers today included:
  • Alcoa, +7.72%
  • Celsius, +6.37%
  • Crowdstrike holdings, +6.18%
  • Transmedic, +5.91%
  • Draft Kings, +5.21%
  • General Motors, +5.15%
  • United Airlines, +4.43%
  • Roku, +4.31%
  • AMC, +3.92%
  • Micron, +3.72%
  • Tesla, +3.71%
  • Marriott, +3.56%
  • General Electric, +3.5%
  • Rackspace, +3.5%
  • Boeing, +3.26%
  • Caterpillar, +3.16%
  • American Airlines, +2.82%

big losers today included:

  • Uber, -4.25%
  • First Solar, -2.81%
  • Black Knight, -2.06%
  • Rocket, -2.0%
  • Under Armour, -1.71%
  • Palantir, -1.56%
  • FireEye, -1.49%
  • Rite Aid, -1.46%
  • CVS, -1.35%
  • Dollar Tree, -1.27%
  • Walgreens, -1.08%
  • target, -1.03%
  • Chewy, -1.0%
  • Mastercard, -1.0%
  • Intuit, -0.94%
  • Stryker, -0.93%
  • Snowflake, -0.78%
  • HomeDepot, -0.77%

Eurodollars

  
Analysis, Forex
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I have some questions regarding eurodollars and attempted to answer them myself: Why is GE quoted as interest rates, but de facto acts like a commodity ? Why were GE quotes up (rates on eurodollar deposits down) during the 2008/2020 crises. There was lots of cash demand.

– GE futures prices DO show de facto demand for cash (any fx cash offshore demand)
– GE is priced as rate to par of deposits
– GE reacts to or anticipates FED rates, as FED reacts to cash demand
– the rate of the deposits are not directly driven by supply and demand of global cash, but are driven by “external”/ non-eurodollar-mkt interest rates
– GE quotes can not be understand by the internal supply and demand of the eurodollar mkt conclusion: even GE-quotes are interest rates, GE-quotes act de facto like commodity prices, e.g. currently show huge cash demand.

Does you agree with my answers?

Timeline — from Thomas Edison to the unwinding of GE Capital

  
Analysis, Education
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1890 — Four companies representing inventor Thomas Edison’s interests merge to form the Edison General Electric Company.

1932 — GE Credit Corporation begins to offer credit to customers to buy General Electric appliances.

1981 — Under chief executive Jack Welch, GE Capital begins a dramatic ascent. Between 1986 and 1993 profits double to $1.5bn and assets to $155bn. GE Capital becomes the world’s largest car-leasing company, the world’s largest ship container leasing company and the biggest private mortgage insurer.

2004 — GE Capital buys Dillard’s credit card unit for $1.25bn.

2008 — As the credit markets seize up, GE announces its first fall in quarterly profits for five years. In September, chief executive Jeff Immelt calls Henry Paulson, the then Treasury secretary, to say GE “was finding it very difficult to sell its commercial paper for any term longer than overnight”.

2011 — GE buys MetLife Bank, an online retail banking arm.

2013 — Mr Immelt sets a target that GE Capital should provide no more than 30 per cent of group earnings.

2014 — GE Capital has $7bn of net income, assets of $499bn and more than 35,000 employees. It operates in 40 countries. In the US, GE takes Synchrony Financial, its store credit card arm, public in a $2.88bn initial public offering.

2015 — Mr Immelt announces plans to sell the bulk of GE Capital over the next two years and return the company to its manufacturing roots.

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