Style Outperformer:
Large-cap Value (+1.19%)
Sector Outperformers:
I-Banks (+1.69%), Banks (+1.55%) and Oil Service (+1.50%)
Stocks Rising on Unusual Volume:
CVBF, CATY, BLK, WB, JPM, JNS, OII, OLN, DKS, KMX, EOC, KOF, RECN, AMED, BBBB, HURN, SUSQ, CVBF, ZION, AFAM, ARTC, GTIV, UBSI, AMTD, WPPGY, GBCI, SHOO, PVTB, OKSB, FMBI, NITE, ASBC, BRL, IYG, CCK, KNL, AF, ADS, APH and WSO
Stocks With Unusual Call Option Activity:
1) BRL 2) CEPH 3) KBE 4) LFC 5) GSS
Late-Night Headlines
Bloomberg:
- The U.S. Securities and Exchange Commission subpoenaed Wall Street's biggest firms and hedge-fund advisers in a widening effort to crack down on suspected manipulation of Lehman Brothers Holdings Inc.(LEH) and Bear Stearns Cos.(BSC) shares, said three people with knowledge of the matter. The subpoenas mark a new front in the broadest U.S. investigation of Wall Street trading since state and federal regulators targeted mutual-fund abuses in 2003.
- Wells Fargo Leads Drop in Company Bond Risk After Profit Report. Credit-default swaps on the CDX North America Investment Grade Index, a benchmark gauge of credit risk tied to the bonds of 125 companies in the U.S. and Canada, fell 4.5 basis points to 139 basis points as of 3:31 p.m. in New York, according to broker Phoenix Partners Group.
- Cancer Patients in US Outlive Europeans on Technology, Costs. Death rates for all cancers in America continue to decline, according to the National Cancer Institute's Cancer Trends Report 2007. Cancer survival seems to be tied to a country's gross domestic product and its spending on technologies such as computed tomography scanners, the study found.
- Aluminum dropped in London as the biggest jump in inventories since August 2006 signaled demand may be weakening, and a slump in crude oil prices spurred sales of commodities. Stockpiles of aluminum in warehouses monitored by the London Metal Exchange jumped 24,825 metric tons to more than 1.1 million tons, bringing the gain this year to 20 percent.
- Crude oil futures were little changed in New York after a report of an unexpected gain in U.S. supplies pushed prices down more than $4 a barrel. ``Between the bearish DOE numbers and the price drop of the last two days it may be time to back up and re-evaluate whether the market is still bullish or now bearish,'' said Tim Evans, an energy analyst for Citi Futures Perspective in New York.
- EBay Inc.(EBAY), the world's largest Internet auctioneer, fell 6.6 percent in late U.S. trading after reporting that people are paying less for items on its retail sites.
- Barr Pharmaceuticals Inc.(BRL), the maker of contraceptive pills and generic drugs, surged in extended trading on a report it might be acquired by Israeli generic drugmaker Teva Pharmaceuticals Inc.(TEVA).
- Merrill Lynch & Co.(MER), the third- biggest U.S. securities firm, dropped efforts to sell a stake in BlackRock Inc.(BLK) and struck a deal to sell its 20 percent share of Bloomberg LP, according to people familiar with the decision.
- China's banking regulator told policy makers that forcing banks to increase reserves has hurt the industry's ability to repay debt, according to a person with knowledge of the matter.
- China’s economic expansion cooled, handing more ammunition to Chinese officials calling for reduced gains by the yuan as the outlook for exports dims. Gross domestic product grew 10.1% in the second quarter from a year earlier, down from 10.6% in the first. Consumer prices rose 7.1% in June, slowing from 7.7% in May.
- Asian currencies will fall in the second half of the year as faltering demand from
Wall Street Journal:
- With gas prices rising, California residents are softening their long-held opposition to offshore drilling, a new opinion polls suggests. The shift comes as Congress and the Bush administration are escalating a battle over whether to end a two-decade federal ban on drilling off the coasts of California, Florida and the Eastern seaboard.
- Goldman(GS) Is Queried About Bear’s Fall. Manipulation Talk Worried Schwartz; Lehman(LEH) Also Calls.
- The cost of protecting Japanese and Australian corporate bonds from default declined, according to traders of credit-default swaps. The Markit iTraxx Japan index fell 8 basis points to 132 as of 9:09 a.m. in Tokyo, according to prices from Morgan Stanley(MS). The Markit iTraxx Australia index fell 8 basis points to 148 compared with yesterday's close in Sydney, Westpac Banking Corp. prices show.
- Short-Selling Rules Loom for Firms. he federal crackdown on short selling is causing a scramble on Wall Street, with brokerage firms racing to implement new controls before the rules take effect on Monday. The unprecedented get-tough action by the Securities and Exchange Commission means that securities firms will have to fine-tune their back-office operations to comply with the requirements.
CNBC.com:
- New Oil Vix Lets Investors Bet On Market’s Volatility.
- As global demand for oil slows, supply should build. Does that mean the energy bull has run its course? Basically, yes, according to Steve Cortes, founder of Veracruz Research. “The energy trade has really been sold to the investing world as a play on emerging markets due to supposedly insatiable demand for crude and other resources from Asia," Cortes tells Fast Money. "But India and China and other Asian markets are trading disastrously; down nearly 50% for the year. In my view that story doesn't hold water any longer!”
NY Times:
- Car Buyers Downsize, but Spend Big on Options.
paidContent.org:
- Amazon.com (AMZN) is launching its new streaming online movie and video service tomorrow...the new service is called, surprise surprise, Amazon Video on Demand.
Reuters:
- U.S. securities regulators' moves to curb short selling of financial sector stocks may give a boost to a handful of exchange-traded funds (ETFs) that are shorting the financial sector and producing sizzling returns. Funds such as the $2.1 billion UltraShort Financials Proshares, as well as the recently launched $11.8 million Short Financials Proshares and $9.5 million 2x S&P Select Sector Financials of Rydex Investments benefit when the financial sector is suffering. Unlike some hedge funds and other investors who short stocks, these funds take short positions through derivatives such as swaps and options. With the regulators' move set to hamper investors' ability to freely short financial stocks, these funds may see more demand.
Financial Times:
- The cost of borrowing shares for short sales on Wall Street has been rising steeply in recent weeks, hampering the ability of hedge funds and other sophisticated traders to profit from market declines. "It has become much tougher as the number of funds that want access to stock has gone up," says the head of prime brokerage at one Wall Street firm. "And stocks these days get hot much more quickly, which makes it even tougher." The rise in shorting has been largely caused by the growth of hedge funds, which account for most of the activity. Generally, hedge funds borrow shares from money managers such as Fidelity or Barclays Global Investors to make short sales. But even as the demand for shares to borrow has grown, money managers are cutting the number of shares they lend for fear of depressing the market and of not having enough shares on hand to meet their own needs. Hedge fund managers say they are worried about getting calls from brokers or money managers asking for their shares back, which could lead to a so-called "short squeeze" in which bearish investors have to buy stock to cover their short positions.
Guardian:
- US plans to station diplomats in Iran for first time since 1979. Washington move signals thaw in relations.
- The global biofuels sector has launched a ferocious attack on the Opec oil cartel by accusing it of deliberately "misleading" the public about who is responsible for soaring fuel prices. "Since you, as head of Opec, provide no explanation for what in our view constitutes a self-serving and misleading statement that goes counter to any independent analysis of the fuels market today, one can only conclude that Opec views competition with biofuels as a direct threat," says the letter signed by the European Bioethanol Fuel Association, the Renewable Fuels Association in the US, the Canadian Renewable Fuels Association and the Brazilian sugar-cane producers of Unica. The organisations point instead to a recent piece of research from the investment bank Merrill Lynch suggesting that biofuels push crude prices 15% lower than they otherwise would be. They note that petrol prices in Brazil have not risen in two years because of competition from sugar cane-derived ethanol.
The Australian:
- Home Sales in Major Australian Cities Decline 24% in 1Q.
Kyodo News:
-
Late Buy/Sell Recommendations
Citigroup:
- Rated (DNA) Buy, target $91.
- Upgraded (ACE) to Buy, target $63.
Night Trading
Asian Indices are +.75% to +2.0% on average.
S&P 500 futures -.23%.
NASDAQ 100 futures -.31%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Pre-market Stock Quote/Chart
Before the Bell CNBC Video(bottom right)
Global Commentary
WSJ Intl Markets Performance
Commodity Movers
Top 25 Stories
Top 20 Business Stories
Today in IBD
In Play
Bond Ticker
Economic Preview/Calendar
Daily Stock Events
Upgrades/Downgrades
Rasmussen Business/Economy Polling
Earnings of Note
Company/EPS Estimate
- (MMR)/1.05
- (BAX)/.82
- (CCE)/.53
- (KO)/.95
- (CMA)/.54
- (AMTD)/.32
- (BLK)/1.98
- (GPC)/.79
- (HOG)/.76
- (IGT)/.36
- (JCI)/.73
- (SWY)/.52
- (MTG)/-.61
- (NUE)/1.81
- (PNC)/1.16
- (PPG)/1.55
- (SHW)/1.39
- (BBT)/.70
- (TXT)/.96
- (UTX)/1.31
- (CIT)/-2.07
- (SPWR)/.50
- (CHB)/.11
- (FCS)/.17
- (APH)/.58
- (DHR)/1.06
- (JPM)/.44
- (BK)/.75
- (
- (ITW)/.97
- (RS)/2.10
- (SYK)/.72
- (MER)/-1.91
- (COF)/1.31
- (GILD)/.51
- (AMD)/-.54
- (IBM)/1.82
- (GOOG)/4.73
- (BXS)/.42
- (MSFT)/.47
Upcoming Splits
- None of note
Economic Releases
8:30 am EST
- Housing Starts for June are estimated to fall to 960K versus 975K in May.
- Building Permits for June are estimated to fall to 965K versus 978K in May.
- Initial Jobless Claims for this week are estimated to rise to 380K versus 346K the prior week.
- Continuing Claims are estimated to fall to 3180K versus 3202K prior.
10:00 am EST
- The Philly Fed for July is estimated to rise to -15.0 versus -17.1 in June.
Other Potential Market Movers
- The weekly EIA natural gas inventory report could also impact trading today.
Bloomberg:
- Wells Fargo & Co.(WFC), the second-biggest U.S. mortgage lender, rose the most since at least 1980 after reporting profit that topped analysts' estimates and raising its dividend.
- Mortgage applications in the U.S. rose for a third week, led by a gain in refinance applications as mortgage rates dropped.
- Industrial production in the U.S. rose more than forecast in June, led by a jump in production of autos and parts after the end of a supplier strike.
- Cleveland-Cliffs Inc.(CLF), North America's largest producer of iron ore, agreed to buy coal-mining company Alpha Natural Resources Inc. for $10 billion as demand surges for the ingredients used to make steel.
- Crude oil futures fell more than $4 a barrel in New York after a surprise increase in U.S. inventories and as a slowing U.S. economy sapped demand for energy. Supplies rose 2.95 million barrels to 296.9 million barrels last week, an Energy Department report showed. Stockpiles were forecast to drop 2.2 million barrels, according a Bloomberg News survey. Fuel demand averaged 20.3 million barrels a day in the past four weeks, down 2 percent from 2007, the department said. ``This report is very bearish both in the absolute numbers and in light of the expectations,'' said Kyle Cooper, an analyst at IAF Advisors in Houston.
- Some Federal Reserve policy makers in June said an increase in the benchmark U.S. lending rate ``would be appropriate very soon,'' minutes released in Washington today showed.
- The dollar increased the most against the euro in almost two weeks as declining crude oil prices and better-than-estimated earnings at Wells Fargo & Co. pushed U.S. equities higher.
- U.K. unemployment jumped the most in June since the aftermath of the last recession in 1992 as the economic slowdown forced housebuilders and banks to cut jobs and stop hiring.
- Lehman Brothers Holdings Inc.(LEH), the securities firm shaken by speculation it's losing clients, ranked highest among fixed-income dealers by market share and service quality, according to a Greenwich Associates survey.
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- William Ackman, the activist hedge- fund manager, increased his $2 billion bet on Target Corp.(TGT) as shares of the second-largest U.S. discount retailer declined 38 percent in the past year, according to two people with knowledge of the matter.
Wall Street Journal:
- Spain Girds for More Pain as Housing Stalls. Supply Glut Coupled With Recession Fears Prolong Slowdown.
NY Times:
- A
- Massachusetts officials expect to gain millions of dollars in revenue as gay couples come to the state to marry. About 32,200 couples will travel to Massachusetts to wed over the next three years, creating 330 permanent jobs and adding $111 million to the economy from weddings and tourism.
MilitaryTimes:
- Iraq surge over, evaluation period begins.
Reuters:
- AOL talks with Microsoft(MSFT) and Yahoo(YHOO) heat up.
Die Zeit:
- The