Thursday, October 22, 2009

Morning Note

Futures are -17 bps this morning, as the debate goes on about what caused the sell-off late yesterday.  Possible reasons include Dick Bove’s downgrade of Wells Fargo, some not so rosy news in the Fed’s Biege Book, Chinese GDP coming in softer than expectations, emerging markets manipulation of their currencies, or Walmart’s softer pricing for a weak consumer during the holidays.  In any case, it brought flashbacks of last March, where the market was at the whim of the next headline.  Investors continue to question whether the market is ahead of its fundamentals.  At the same-time, market sentiment seems to be changing from “buy the dips” to “protect your profits,” during a solid earnings season.  

Initial Jobless claims came in worse at 531k vs 515k consensus and was revised worse.  Continuing claims came in better 5,923k vs. 5,970k consensus, but was revised worse as well. China’s economy expanded at the fastest pace in a year as stimulus and lending bolstered their economy. Although their GDP still came in light of expectations at 8.9% vs. 9.1% consensus.  There is also chatter in China regarding tightening monetary policy in order to avoid potential asset bubbles. Leading indicators and House Price index come out at 10 am. DOW, DAL, LM, PM, MCD, POT & BG all beat on headline #’s. FITB missed. MI priced its 136 mln share secondary at $5.75 per share.

Barclays Capital ups NETC, Credit Suisse ups MSM, Deutsche Bank ups FCX & NVLS, Janney Montgomery Scott ups CNK & RGC, JPMorgan ups AMB, MI & TNS, Thomas Weisel ups MFLX & MOT, UBS ups FFIV, Wells Fargo ups BGH, MMP, NRGP, NRGY, SPH & SUG, Citi cuts EQIX, JPMorgan cuts AEE, POM & VVC, Piper Jaffray cuts TSCO, UBS cuts CHK & EOG, Wells Fargo cuts EVEP & MWE

Asia & Europe lower.  USD up 25 bps.  Oil -100 bps.  Gold -70bps. 

Brightpoint News:  

Brightpoint PreMarket (yest close/premkt/% change/volume):

S&P 500 PreMarket (last/% change prior close/volume): 
NEW YORK TIMES-A       8.7500  9.50      +8.57% 3400
PNC FINANCIAL SE         44.9600 47.75    +6.21% 104922
CELGENE CORP              54.5800 57.00    +4.43% 82308
KIMBERLY-CLARK            59.6900 62.00    +3.87% 124686
SUNTRUST BANKS          20.7600 21.55    +3.81% 87428
TRAVELERS COS IN        48.0200 49.83    +3.77% 16965
CITRIX SYSTEMS           41.3600 39.87    -3.6 %  1400
VERISIGN INC                24.1400 25.00    +3.56% 500
METROPCS COMMUNI     6.5900  6.80      +3.19% 12826
CONSOL ENERGY            51.0800 49.50    -3.09%  8030
THERMO FISHER            47.3100 48.75    +3.04% 5500
MCDONALDS CORP         58.3300 60.08    +3.0 %  713706
AT&T INC                      25.9400 26.70    +2.93% 1703099
SLM CORP                     10.7400 11.04    +2.79% 92308
AMGEN INC                    59.4000 57.89    -2.54%  190805
EBAY INC                       25.0300 24.41    -2.48%  666096
PROLOGIS                     11.7200 12.00    +2.39% 1858

Today’s Trivia:  This chemical element is one of the lightest metals known. It is used in nuclear reactions, batteries, and as a medicine for the treatment of manic-depressive psychosis. What element is it?

Yesterday's Answer:  Morocco’s name comes from the Arabic name Al-Maghreb, which means "farthest west"

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