CME Group is in talks to buy Dow Jones Indexes, according to The Financial Times, which reports that a deal would cost CME Group $700 million. This Wall Street Journal story cites the advantages of the deal, including cost cutting (as CME Group now pays Dow Jones licensing fees) and protecting the CME Group’s existing business lines. It’s unclear how or if this would affect CME Group’s current exclusive licensing agreement with S&P indexes. A CME Group spokesperson would not comment on anything specific. Do you think the deal will happen? Would it affect your trading? Leave your thoughts in the comments section below.

There was a rosy picture painted for the U.S. dollar, earnings and the economy at large at Dow Jones Indexes‘ 2010 Global Economic Outlook today. Analysts predicted a rebound in global economic activity.  Kevin Logan, an independent global economist, said by the middle of this year, estimates for global GDP growth in 2010 are likely to be double what they were in the middle of 2009.  Analysts said that the dollar would start out the year weak, with a recovery sometime in mid-2010.

Continue reading ‘Recovery in 2010?’ »

I am often amazed at how market analysts and journalists quickly apply cause and effect in the markets with little or no evidence. We have commented here in the past how dangerous it is to attach two seemingly unrelated events. A market can only go up, down or move sideways so there are usually numerous causes you can credit or blame for a market move.

Case in point is this morning’s rally in equities; the Dow Jones Industrial Average is up about 200 points as of mid-morning. In fact it was up by more than 100 points on the first five-minute bar of the day, which would suggest overnight news moving the market.

The early wire stories attributed the move to a drop in crude oil. However, crude oil was actually rallying in the pre open hours and at the time equity markets were spiking higher.

Continue reading ‘Be careful of what you hear’ »