Friday, July 27, 2007

Morning Note...

From: "Ben Batory"
To: "!Rockbay"
Date: Fri, 27 Jul 2007 09:13:28 -0400
Subject: fri mkts

Futures mixed and creeping back as Europe rallies off its lows.  Credit fears continue, but chatter of an all-out credit crunch seems overdone.  While the markets are not in panic mode, continued weakness is certainly possible.  At least until the credit jitters resolve themselves.  In the short term, hard to gauge if we’ll see a Friday rally or continued selling into the weekend.  Both are possible but it’d be hard to imagine a real rally with legs at this point.  At gunpoint, I’d guess sideways to down heading into the two-day break…

Earnings news is decent this morning – Chevron and Medoc Health reported good numbers.  10-year yield down to 4.8%. 

Q2 GDP rose at a 3.4% annual rate – slightly stronger than expected – and will hopefully give us a lift.  Consumer spending was only up 1.3% however. 

Announced Deals:  MDT buys KYPH for $71/share, Sonae acquires CA FP Portugal unit

Rockbay News: Spanish paper reports Rothmans of Canada may have interest in Altadis, SCC CN target raised at RBC, CEG beats numbers, CEN defends $36/share sale to Pershing Square, CIBC positive comments on RRI and ups target, DB initiates MNDI LN with hold,  WCHV upgrades WEN on valuation, RTR earnings announced, 2 large BOL shareholders to vote against Warburg deal, IFX trading up on earnings, CA FP sells Portuguese unit, CBRY LN extends timetable for sale of US unit, GCO to vote on FL deal Sept 17, China Water earnings, HRZ earnings, Greenlight reports 10% stake in WNG

Vito’s Riddles:  1) What goes up and down but not down and up?  2) What runs around your yard but never moves?  3) What goes up and down but never moves?

Yesterday’s Answer:   What was given to you, still belongs to you, and although you've never lent it to anybody, is used by all the people you know?  Your name.