The Financials & Metals Review For the Week of October 17, 2011

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The Financials Review
For the week of October 17, 2011

By Frank LaMantia

For the past few weeks, stocks have been up on hope which in this trader's books does not constitute reason enough for a rally. Today, the market is down but could turn green due to Citibank's higher third quarter profits. The bank showed a $2.2 billion in revenues and does not need as much to cover bad loans. Well Fargo showed a 22% gain in profits but did have a decrease in revenue. The protest on Wall Street, Times Square, and Zuccotti Park has funding of over $300,000 and they have supplies. (1) This is also spreading to other countries. In Rome protesters caused millions in damage to property. Some have good intentions but when masses of people congregate it just takes one to spark a riot.

Kinder Morgan has agreed to buy El Paso Corp. for $21.2 billion which would create the largest pipeline of natural gas in the United States. Barclays PLC has offered to lend Kinder Morgan the funding it needs to transact the purchase. It is estimated to be around $11.5 billion in cash.(2) The euro is down against the dollar as a resolution is postponed until the Oct. 23 summit. The euro is down 0.7% to $1.3790 and was high as $1.3917. It was up 3.8% last week. (3) Earnings and the euro crisis could send the market in either direction quickly so one must be ready to act.

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