Tuesday, August 7, 2007

Morning Note...

Nice market rally yesterday on speculation today’s Fed policy statement will include some type of “rescue of the debt markets” verbage.  Whether or not that actually happens is anybody’s guess.  The Fed may simply see the past week or so’s action as nothing more than a shakeout in the credit markets and a necessary market correction.  The Fed tends to value high-level macro analysis, and with 4.6% unemployment, increasing consumer spending, and increased industrial production, they may see no need to address current market action at all.  

Futures flat to slightly lower this morning… expect a slow day leading into the 2:15pm Fed statement.  

Oil back down below $72.  10 year note yields 4.73%.

LUM (mortgage) downgraded across the street.  TMA (mortgage) downgraded.  FIG initiated outperform at Keefe.  HMY (gold) multiple downgraded.   BBY CEO bought $500k of stock at 52-wk-low.  NY Post reports NMX selling NYC HQ ahead of sale of the company,

Announced Deals: 

Rockbay News: BEST reiterates Peer Perform rating for CVS, JPMC remains positive n NRG after meeting mgmnt, WSJ notes world banks have lined up to fund Imperial buyout of Altadis – positive on debt mkts, AA upped to Buy at DAVN – valuation call, ANR earnings – trading down premkt on light volume, TXU earnings, Third Point reduces MEE stake by 4%, VMED announces extension of sale process due to debt mkt instability, DCX to become DAI Thursday, UCO & UCLP earnings, ATN earnings,

Overseas:
3045 TT            38.3      +.1       +.26%               1736599
823.HK              16.40    +.08      +.49%               24.15MM
9513 JP             4030     +40       +1.00%             1240000
555.HK              1.01      -.01      -.98%               24.77MM
855.HK              4.18      -.52      -11.06%            30.03MM
ALT SM            48.45    +.09      +.19%               3322445
CA FP                51.6      +.57      +1.12%           2392017
CAC FP              57.44    +.64      +1.13%           220052
CBRY LN            570.5    +4.5      +.8 %               8501975
CON GY             96.71    -1.98     -2.01%            1512227
COU-U CN          9.57      --          --         
CP711 TB          11.3      -.1        -.88%               2174700
DAXEX GY          71.31    +.31      +.44%               1448676
DCX GY             64.26    +.07      +.11%               5084341
LDHB MK            9.15      +.05      +.55%               1662300
MNDI LN            459.75  -.75      -.16%               1841308
REZT SS            49.4      +1.8      +3.78%           369531
SCC CN             29.85    --          --         
SX4P                 473.65  -.35      -.07%  
TOG CN             4.20      --          --         
UKX                  6242.60 +53.50  +.86%             755102
VK FP                195.95  --          --                   366204
XEG CN             86.78    --          --         

Vito’s Trivia:  On this date in Africa in 1998?

Yesterday’s Answer:   August 6th marked the 62nd anniversary of the bombing of Hiroshima.