Futures are only slightly lower (-15bps) this morning despite worse than expected (aka, “higher”) Initial Jobless Claims for the week ending October 9th. Initial Claims came in at 462k vs. the 445k expectation. Continuing Claims came in at 4.399M vs. the 4.450M expectation. Futures are perhaps buoyed by the “bad news = good news” paradox currently in play, as each bit of recent economic bad news is cited as evidence that ensures the Federal Reserve’s second round of quantitative easing in early November. Thus the USD is currently 65bps lower. In other economic news, the year-over-year PPI reading for September was slightly higher than expectations, at +4% vs. +3.7%/e. In corporate news, internet search engine Yahoo (YHOO; +12%) is trading higher this morning as the Wall Street Journal speculates the company is a prime acquisition target (AOL,
, and Blackstone were cited as possible buyers). Storage giant EMC (+2.5%) is also higher on Financial Times speculation that Oracle may acquire the company. For-profit educator Apollo (APOL; -20%) is trading off on news that it withdrew its 2011 earnings forecast. APOL’s news is also taking down comps CECO, BPI, Silver Lake COCO, CPLA, DV, EDMC, ESI, LOPE, and STRA. Grocer Safeway (SWY; -2.25%) is lower on earnings. Looking ahead, Google reports after the close today. Europe is mixed this morning, and Asia was higher across the board overnight as ’s bank loan risk was deemed appropriate. China also made news overnight in declaring it will buck the global trend and happily allow it’s currency to actually appreciate. Oil is up 50bps and Gold is also up 50bps. Solid summary from the Hedgeye guys this morning – see the quote section below. Singapore
Here are a few interesting blurbs from this morning’s Bloomberg news that you may have missed:
Roubini Sees 35%-40% Odds of
Double-Dip Recession 2010-10-14 07:51:27.235 GMT U.S.
Oct. 14 (Bloomberg) -- “Since second quarter growth in U.S. was only 1.7% and everything’s going to be weaker in the second half of the year, by the fourth quarter economic growth in the U.S. could be as low as 1%,” said NYU Professor Nouriel Roubini at a conference today in Seoul. “The growth rate is so low it’s going to feel like a recession even if technically this is not a recession.”
Fed’s Lacker Says Making Jobs an ‘Imperative’ Risks Inflation 2010-10-14 07:51:50.389 GMT
Oct. 14 (Bloomberg) --
Fed. President Jeffrey Lacker says a Fed policy devoted primarily to reducing unemployment risks damaging Fed’s credibility in containing inflation. Lacker also says inflation is on target and that he does not see material risk of deflation; contrasts with Fed view in Sept. 21 meeting minutes. He also noted that he hasn’t made up his mind whether to support more QE. Richmond
SANT ups SI. SYT higher on Q3 sales. DYP delays 10k. LSTR lower on earnings. TSLA announces agreement to develop electric RAV4 with
. Nomura ups VOD. WEFA cuts MLP. BofAMLCO ups JNPR. DBAB ups TRW, F. UBSS ups DHI, FTR, PHM. JEFF cuts ALKS. JPHQ cuts GGC. MSCO cuts GMR, OSG. Toyota
S&P 500 PreMarket 8:30am (last/% change prior close/volume):
Today’s Trivia: Name the pilot who became the first person to break the sound barrier on this date in 1947. For bonus points, name the type of aircraft he flew.
Yesterday’s Question: For many historians, this date in 1307 marked the origin of the ominous nature of “Friday the 13th.” What happened?
Yesterday's Answer: On Friday October 13th, 1307, King Philip of
rounded up hundreds of Knights Templar (whom he felt had become too powerful) and tortured them into the confession of heresy. France