Please respond to Sivy on Stocks SIVY ON STOCKS from money.com May 9, 2001 Aluminum shines The economy should come back later this year, and classic cyclical stocks, such as Alcoa, have already begun major upswings. By Michael Sivy Amid all the concern about technology stocks, many investors seem to have forgotten that the traditional business cycle still exists. But while the drop -- and the more recent recovery -- in tech has been the most dramatic
Answer: Sivy on Stocks: Aluminum shines
Margo, Elizabeth Sager has approved a total of 64 hours of vacation to carry-over to 2002 for Genia FitzGerald. The breakdown is as follows. 40 hours - Supervisor approval not needed 24 hours - Approved by Elizabeth Sager (11/15/01) Please make sure Genia's file reflects this change. Should you have any questions, please do not hesitate to contact me. Thanks.
Answer: Vacation Carryover
=09=09=09 C.E. UNTERBERG, TOWBIN =09 =09=09=09 Trader Talk November 9, 2001 =09 =09=09=09 The market soared on the wings of Icarus today? =09 =09=09=09 Market Summary =09 =09=09=09 The market soared on the wings of Icarus today? the European Cent= ral Banks cut their interest rates after we cut ours earlier this week. Wee= kly initial jobless claims were down 46,000, and retail sales were up 2.3%.= The Dow was up 167, the NASDAQ up 51, and the S&P up 20?The market flew to= high to fast and burnt its wing on the sun?The minutes were released from = the FOMC showing the 50 point basis cut was a unanimous decision and laying= the Fed's uncertainty bare. Profit-takers swooped in and the market fell b= ack to earth with the Nasdaq down 9.76 points or 0.53% at 1827.77, the Dow = closing up 33.08 points or 0.35% at 9587.45, and the S&P up 2.73 points or = 0.25% at 1118.53. Tech's winners today were AOL (AOL Time Warner) up 5.7%; = SUNW (Sun Micro) up 5.4%; MU (Micron) up 3.9%, otherwise it was all no chan= ge or red change: Semi Capital: AMAT* (Applied Materials) down 2.4%; KLAC (= KLA-Tencor) down 3.5%; NVLS* (Novellus) down 1.8%; IBM and DELL didn't go v= ery far but HWP (Hewlett Packard) down 4.3%; AAPL (Apple) down 4.5%; GTW (G= ateway) down 3.0%?Outside tech: Autos: GM (General Motors) up 2.4%; F (Ford= ) up 3.0%; DCX (Daimler-Chrysler) up 1.4%?Energy: DUK (Duke Energy) up 4.9%= ; ETR (Entergy) up 3.7%; ED (ConEd) up 1.1%?In the red: BioTech: AMGN (Amge= n) down 3.9%; GENZ (Genzyme) down 2.0%; BGEN (Biogen) down 2.3% -John D=
Answer: C.E. Unterberg, Towbin 11/09/01TraderTalk
Here is your conversation with my revisions marked (deletions struck through, insertions in bold). Hope this helps but feel free to call or write with any questions or comments: A: The CFTC regulates futures contracts and certain kinds of option contracts. SP: What's a futures contract? A: It is a contract for the sale of a certain kind of commodity through a regulated exchange. SP: How is the contract different than a non-futures contract? A: Ahem, just for your information, we call the non-futures contracts forward or over the counter contracts. The big difference is that the forward contract does not must go to delivery while futures contracts do not. SP: I though the futures contracts went to delivery. I remember getting all messed up on the gas side with delivery of NYMEX futures gas at the Henry Hub, and what about those stories of a guys getting a load of soy beans dumped in their front yards? A: Well, er, yes they do sometimes go to delivery, but they are not really supposed to relatively few of them go to delivery. They are supposed to more frequently (actually the vast majority of the time) net out as financial transactions. It's that option of settling financially that distinguishes the futures contract. SP: Well lets get to the point, why are physical buy sells so bad? A: That's easy. Because they look like futures contracts. They are not intended to go to delivery. And if you are trading in futures contracts you are supposed to be doing it on a CFTC regulated exchange. SP: So what you are saying is that if we deliberately net out our physical deals and never intend to even try to schedule delivery under them we are trading in futures contracts and could be subject to regulation by the CFTC? A: You've got it. But it's even worse than that - federal law says that a futures contract which is not traded on a regulated exchange is illegal: not only could the CFTC come after you but your counterparties could use that law against you to get out of performing. So you can think of each contract like that as having written a free option. SP: Well how much physicality do we have to have to make it a forward contract? A: What do you mean? SP: Well, if we settled physically one day a month but financially the other 29 days, would we have a futures contract? A: Oh for Christ's sake I've had it. I'm telling you once and for all that physical buy sells are futures contracts and you can't do them now get the hell out of my office!--
Answer:
Forwards vs. Futures