Wednesday, August 1, 2007

Morning Note...

This week’s “rally” was relatively short-lived as yesterday’s late afternoon sell-off took us right back to last Friday’s closing level.  Yesterday’s sell-off was attributed in part to American Home Mortgages saying it could no longer fund mortgages.  Overnight, seems that Europe and Asia “caught up” with our weakness late yesterday.  Appears Europe has leveled off for the moment, however.  

Futures are down again this morning as the WSJ reports that BSC is seeing huge losses in a third fund (trading down $3 premkt…). 

BX initiated with mkt outperform to buy ratings all over the street… AAPL upgraded at CITI… FIG initiated with buy at DBAB… TWX trading in-line on earnings… RNWK trading in-line on earnings…  Cigna and KFT also had positive earnings.

DOW looking to make counter-bid for ICI LN, which already has received a GBP7.8B bid from AKZOY.

ISM survey of national manufacturing conditions comes at 10am today.  Oil up at $78/barrel.  10 year note yields 4.75%.

Announced Deals:  DJ & NWS announce signing of merger agreement

Rockbay News: CITI midly positive on AL earnings, RRI upgraded with $32 tgt at MSDW, CON GY CFO sees no financing risk in Siemens VDO purchase, Chrysler financing package closes with higher than normal discount to debt investors, CA FP denies bidding for Turkey’s Migros, Dolan Media IPO closes noon today, FT reports CBRY LN will spin off US bev business if no suitors found, MNDI LN earnings, CON GY earnings, Imperial to borrow EU14B to finance Altadis purchase, PPS CEO denies buyout rumors, RAJA positive on PPS, MLCO cautious on TXU considering largest shareholder to vote no – discounts theory of banks paying break-up fee, JEFF positive on ALC earnings

Vito’s Discovery Channel “Shark Week” Trivia:  What is the largest shark?  2nd largest?

Yesterday’s Answer:   Florida averages the highest number of annual shark attacks worldwide.