- In Asia, Japan +0.5% to 9514. Hong Kong -0.8% to 22420. China +0.1% to 2706. India -0.6% to 18269.
- In Europe, at midday, London -0.3%. Paris -0.6%. Frankfurt -0.1%.
- Futures at 7:00: Dow -0.3%. S&P -0.3%. Nasdaq -0.3%. Crude -0.9% to $100.98. Gold flat at $1542.20.
Friday’s Economic Calendar
The Federal Reserve may expand its annual review of bank capital beyond the 19 largest financial institutions to push rigorous risk-management standards into more banks, according to people familiar with the discussions.
Firms with assets of $50 billion or more would be required to conduct an exam, with boards showing Fed examiners how stock buybacks, dividends, earnings, and new regulations affect capital over several years, said the people, who declined to be identified because the proposal isn’t final. The Fed completed its first annual study of capital plans in March, clearing the way for firms such as Wells Fargo & Co. (WFC) and JPMorgan Chase & Co. (JPM) to boost dividends.
Noted hedge fund manager David Tepper doubts the Federal Reserve will continue its intervention in the markets unless things get considerably worse.
The head of Appaloosa Management and source of the “Tepper Rally” that generated a huge run in the market last September said in an email to CNBC that stocks would have to fall considerably more before the Fed would start another round of quantitative easing, or QE.
“If (the S&P 500 falls) a couple hundred points and financial conditions tightened maybe they would reconsider,” Tepper wrote. “But there is no logic to QE3 now and the only result might be more food and energy inflation.”
The U.S. Securities and Exchange Commission cautioned investors about buying stakes in companies that gain listings on U.S. exchanges through so-called reverse mergers, saying they may be prone to “fraud and other abuses.”
Many of the companies, often overseas operations that access U.S. markets by acquiring publicly traded firms with few or no operations, “either fail or struggle to remain viable” and may use small audit firms that don’t verify financial statements, the SEC said today in an investor bulletin.