Tuesday, August 14, 2007

Morning Note...

Futures up this morning on some positive economic news… Total PPI rose 0.6% in July but core PPI rose just 0.1%, which represents the smallest gain in 3 months.  Also, the US trade deficit unexpectedly narrowed to $58.1B in June.  

Most importantly, this morning, no news is good news in the sense that there is no talk of hedge fund blow-ups or subprime issues…  Rather, focus is back on earnings, at least for the moment.

WMT trading lower premkt on earnings, HD trading slightly higher premkt on earnings.  FIG trading lower premkt on earnings.  RFMD upgraded at Citi.  Q upgraded at LEHM.  STJ initiated with buy at THNK.  HOTT announces $40mm buyback. 

MEH seeing competing bid from TPG/Northwest.  Pequot has 8.8% stake and is not convinced TPG deal better than Airtran’s.

TMA is the lastest mortgage casualty – downgrades across the street.   

Announced Deals: 

Rockbay News: DAI initiated with outperform at CSFB, Mobile Satellite Ventures meets FCC standard for next-gen satellite, UFS removed from conviction list due to lack of near-tern catalyst but maintain buy at GSCO, TXU to split into 3 businesses if KKR/TPG takeout falters – begins roadshow to build support, CSFB cautious on CBRY LN – expects update on beverage biz soon, RBS increases stake in AABA NA to 3.25% to show commitment in takeover offer, GSCO raises estimates for HRZ following tender, UFS downgraded from strong buy at RAJA following earnings, German paper reports STM may be interested in IFX, DFS initiated with equal weight at MSDW, Motient changes name to TerreStar.

Vito’s Trivia:  Word trivia… define the bold words.  “His presentation was quite abecedarian.  There was a fair amount of oscitation in the room.”

Yesterday’s Answer:   The Bank of New York was the first company listed on the NYSE in 1792.