Tuesday, July 31, 2007

Morning Note...

Futures up this morning on the back of yesterday’s rally.  Further, GM reported good numbers and the core PCE deflator was up on 0.1% for June.  As the Fed’s primary measure of inflation risk, the core PCE deflator number is very bullish, representing the 4th straight monthly increase of only 0.1%.  

Recent TXU lender headlines have re-raised credit concerns, but the arb market seems to be taking it in stride.  

10 year yields 4.81%.  Oil remains above $77.  

Announced Deals:  MRO acq WTO CN (US$6.2B)

Rockbay News: TXU shareholder lawsuits settled but 8:27am CNN article claims some lenders may be considering pulling out of the deal, FL hires LEHM for strategic alternatives, UFS announces reduction of paper making capacity – closes 4 operations, WMB target raised to $40 @ SBSH, CA FP has not formally bid for Turkey’s Migros but has interest, FDG-U CN earnings, DCX GY target raised at ABNA, LEHM positive on SCI on recent pullback, HAR cut to hold at CITI, HC earnings – trading up slightly premkt, WSJ reports current PE credit concerns favor corporate buyers for the first time in years, GSCO remains positive on IFX despite CFO departure, DBAB positive on LDHB MK as SE Asia retail play, CSFB positive on SHLD, CNX to repurchase up to $10mm shares of CXG, AL earnings, WEN trading near $37 on Peltz comments, UBS neutral on WEN – sees Peltz letter as “gamesmanship,” PPS trading up slightly on earnings, DBAB reiterates buy on CVS Caremark,

Vito’s Shark Week Trivia:  What place averages the highest number of shark attacks annually?

Yesterday’s Answer:   Miss Jones is vertically challenged, a la Monat, and can not reach the top floor button in the elevator.  Thus she pushes the highest one she can, and walks the rest of the way up… or, if raining, she uses her umbrella to reach the higher numbers and if someone else is there they push the button for her.