Morning Markets

Wall Street Reacts With Skepticism, Anger on Moves to Reduce Executive Pay (Bloomberg)
The pay cuts are “sheer stupidity,” said Kenneth Langone, co-founder of Home Depot Inc. and a former New York Stock Exchange board member. “The taxpayers have an enormous financial risk in these companies, and very simply stated, I want the best person. If I needed neurosurgery, I would want the finest doctor I could get, no matter what I had to pay for it.”

GM CEO to get raise in compensation (Reuters)
Last year’s comp was $1.71 million, this year will be $5.45 million.

CIT Reaches Tentative Deal with Goldman (CNBC)
The new agreement calls for Goldman to reduce the loan to just over $2 billion, people said. CIT in turn would pay Goldman about $300 million if it files for bankruptcy.

Top employees leave financial firms ahead of pay cuts (WaPo)
So suck it, Feinberg!

Fed Hits Banks With Sweeping Limits Pay (WSJ)
While the Fed didn’t propose pay caps, it said it will review compensation policies at “28 large, complex banking organizations,” which it didn’t identify. It will be a “horizontal review” that in effect compares them to one another. The Fed also proposed that pay of traders and other employees be linked to the risks taken to achieve returns. So if two people generate $1 million in revenue each, one who took more chances could be paid less.

The December NASDAQ 100 was higher overnight as it extends this week’s rally. Stochastics and the RSI are overbought but are neutral signaling that additional short-term gains are still possible near-term. If December extends this month’s rally, weekly resistance crossing at 1783.71 is the next upside target. Closes below the 20-day moving average crossing at 1724.17 would signal that a short-term top has likely been posted. First resistance is Wednesday’s high crossing at 1779.25. Second resistance is weekly resistance crossing at 1783.71. First support is the 10-day moving average crossing at 1747.02. Second support is the 20-day moving average crossing at 1724.17. The December NASDAQ 100 was up 1.75 pts. at 1764.25 as of 6:03 AM CST. Overnight action sets the stage for a steady to higher opening by December NASDAQ 100 when the day session begins later this morning.

The December S&P 500 index was mostly steady overnight as it consolidates above initial support marked by the 10-day moving average crossing at 1084.00. Stochastics and the RSI are overbought and are turning neutral to bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 1066.31 would signal that a short-term top has been posted. If December extends this month’s rally, the 50% retracement level of the 2008- 2009-decline crossing at 1112.80 is the next upside target. First resistance is Tuesday’s high crossing at 1099.00. Second resistance is the 50% retracement level of the 2008-2009-decline crossing at 1112.80. First support is Thursday’s low crossing at 1070.50. Second support is the 20-day moving average crossing at 1066.31. The December S&P 500 Index was steady at 1090.80 as of 6:05 AM CST. Overnight action sets the stage for a mostly steady opening by the December S&P 500 index when the day session begins later this morning.

Comment on this post below.