Wednesday, January 27, 2010

Morning Note (Tyler)...

Futures flat this morning heading into a busy day around the world.  In the U.S. we hear from the FOMC, where consensus believes a change in rates is unlikely. However, there are more politics afoot as Ben Bernankes’ reconfirmation comes later this week.  It’s well known that politicians are terrible at hitting curve balls, so expect Bernanke and Co. to lob a meatball today at 2:15 pm.  According to Bloomberg radio, the votes are lining up in favor of Bernanke’s 2nd term.  One thing to keep an eye on in the FOMC statement is whether or not the Fed extents the MBS purchase program, which is set to expire in March.  Consensus believes they will use the program on an “as-needed” basis to keep the housing market stable after the sixth straight monthly gain in home prices.

The House Oversight Committee will also take shots at Treasury Secretary Geithner this morning over the AIG situation.  Tonight we will hear the State of the Union Address from President Obama.  Also expect headlines coming from the World economic committee in Davos.  Earnings continue to stream in as well- YHOO (+3%) and BA (+2.5%) beat, CAT missed (down -4.5%).  Also, expect AAPL to reveal its new ‘Tablet’ device today in San Francisco. New Home Sales come out at 10 am.  A lot of moving parts today and it should be interesting to see how it all shakes out.  I’m guessing we won’t have any real market direction until we get the GDP data at the end of the week, until then- stay tuned.

BAC-ML ups ART, FBR ups SASR & VCBI, GS ups AKS, Kaufman Bros up AMZN, KBW ups VPFG, Merriman Curhan Ford ups ZAGG, Rochdale ups BBT, Baird ups DV, UBS ups CBE, BAC-ML cuts ED, HE, VMED & WNS, Citi cuts X, GS cuts BCH, SAN & X, Leerink Swan cuts MCK, UBS cuts CTCM.

Asia and Europe are lower for the sixth straight day.  USD flat.  Oil flat.  Gold -50bps. 

Brightpoint News: 

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

S&P 500 PreMarket (last/% change prior close/volume): 
ROCKWELL AUTOMAT     46.1600 49.50    +7.24% 19216
WHOLE FOODS MKT       27.8000 29.6800 +6.76% 200
ALTERA CORP                21.1900 22.45    +5.95% 296288
GILEAD SCIENCES          44.8700 47.34    +5.5 %  380915
DEVRY INC                     56.1700 59.21    +5.41% 1700
TIME WARNER               44.1600 46.08    +4.35% 3100
MOLEX INC                    20.9000 21.75    +4.07% 700
CATERPILLAR INC           55.8500 53.64    -3.96%  507736
HOST HOTELS & RE       10.9300 10.50    -3.93%  559
MBIA INC                       5.0300  5.22      +3.78% 660
FORD MOTOR CO           11.1900 11.59    +3.57% 1896109
BOEING CO                    57.7100 59.71    +3.47% 130461
BIOGEN IDEC INC            53.0000 51.18    -3.43%  100
AK STEEL HLDG              21.2300 21.92    +3.25% 34130
MCGRAW-HILL COS        34.2300 35.28    +3.07% 490
ANADARKO PETROLE      63.8900 65.83    +3.04% 12469
ALLEGHENY TECH           42.4600 43.72    +2.97% 1520
QLOGIC CORP                18.8900 18.36    -2.81%  1400
YAHOO! INC                   15.9900 16.42    +2.69% 506710

Today’s Trivia:  They were teacher and student, and lived around 300 B.C. in Greece. One was possibly the greatest soldier of ancient times, the other was possibly the greatest thinker. Who were they?

Yesterday's Answer:   At 759 square miles, Jacksonville, FLA is the largest US city in terms of geographic size

Best Quotes:  “Today shapes up to be a very important day. It kicks off with the House Oversight Committee’s hearing on the AIG bailout.  The current and former Treasury Secretaries will be defending themselves from a round of accusations made by Congressional leaders and the TARP Inspector General.  An FOMC meeting will be presided over by a Chairman whose fate hangs in the balance and will be decided in coming days.  The grand finale will be the State of the Union. We are getting ready to retire our copy of Graham & Dodd in favor of Machiavelli’s The Prince.” –BTIG Note

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