Portfolio Manager's Commentary on Investing and Trading in the U.S. Financial Markets
Tuesday, June 02, 2009
Stocks Higher into Final Hour on Falling Credit Market Angst, Lower Long-Term Rates, Less Economic Fear
Today's Headlines
Bloomberg:
- Herb Allison, nominated to run the Treasury’s office overseeing the U.S. financial rescue, owns $1 million to $5 million of stock in Bank of America Corp., one of the biggest federal aid recipients. Allison is also paid about $3,600 a month from a Merrill Lynch & Co. annuity, the firm where he worked for almost three decades, and was later bought by Bank of America.
- Emerging Markets Most Costly Since ’07 on Fund Flood.
- US stocks may extend their rally if the S&P 500 breaches the 945 level, according to a technical analyst at UniCredit SpA. “A crossing of 945 will attract more mid-term orientated investors into the market,” Volker Bien said. UniCredit’s first medium-term target level for the S&P 500 is 980 should the measure close above 945.
Wall Street Journal:
CNBC:
NY Times:
WebWire:
Market News International:
- The European Central Bank doesn’t exclude cutting its benchmark interest rate by a further quarter points and may use additional non-standard policy measures, citing “well-informed” sources. Another official said expanding the bank’s use of non-standard policy tools is also a possibility. The ECB has a “genuine willingness to consider all options” and “could easily go further” in response to changing market conditions, the official said.
Atlanta Business Chronicle:
Financial Times:
- Many managers hope the end of the hedge fund bubble will help create better times ahead.
JLM Pacific Epoch:
Xinhua News Agency:
- China’s crude-oil stockpiles for both emergency and commercial use rose by 1 million metric tons to 38.6 million tons in April from March.
- General Motors Corp.(GMGMQ), the bankrupt US carmaker, is considering opening a plant in Malaysia, citing the head of the manufacturer’s Southeast Asian division.
Bear Radar
Style Underperformer:
Mid-cap Value (+.28%)
Sector Underperformers:
Semis (-3.06%), Coal (-2.05%) and Gaming (-1.99%)
Stocks Falling on Unusual Volume:
BCS, MRVL, WNR, ATHR, HES, SNP, CLDX, ALTR, NTAP, JNPR, KLAC, MTZ, CAH, GNI and CAM
Stocks With Unusual Put Option Activity:
1) CMCSK 2) CX 3) DDUP 4) EP 5) NSC
Bull Radar
Style Outperformer:
Small-cap Growth (+.86%)
Sector Outperformers:
Airlines (+5.63%), Education (+3.04%) and HMOs (+1.70%)
Stocks Rising on Unusual Volume:
UNFI, CVLT, ULTI, SA, BG, PEP, AA, CCE, BMA, PHH, OVTI, DDUP, CISG, HOGS, FUQI, CBEY, QSFT, CMED, GOLD, BLUD, KNXA, APWR, OSIP, SHLD, ISRG, HWCC, NUVA, TBSI, KNDL, NTG, STI, CHU, ROS and AXR
Stocks With Unusual Call Option Activity:
1) DDUP 2) CHKP 3) QLGC 4) BCS 5) BKC
Links of Interest
Market Performance Summary
Style Performance
Sector Performance
WSJ Data Center
Top 20 Biz Stories
IBD Breaking News
Movers & Shakers
Upgrades/Downgrades
In Play
NYSE Unusual Volume
NASDAQ Unusual Volume
Hot Spots
Option Dragon
NASDAQ 100 Heatmap
Chart Toppers
Real-Time Intraday Quote/Chart
HFR Global Hedge Fund Indices
Monday, June 01, 2009
Tuesday Watch
Late-Night Headlines
Bloomberg:
- The cost of protecting Asia-Pacific corporate and government bonds from default fell, according to traders of credit-default swaps. The Markit iTraxx Asia index of 50 investment-grade borrowers outside
- The four-week flood of money into developing-nation stock funds that drove the MSCI Emerging Markets Index to an eight-month high is sending the strongest sell signal since equities peaked in October 2007. Inflows totaled $12 billion, or 3.5% of developing-nation fund assets, the most since the 22-country benchmark hit its record high 19 months ago, said EPFR Global, which tracks $410 trillion in investments worldwide. The only other time since 2001 that funds attracted as much cash, in February 2006, the MSCI gauge lost 8.4% in four months. A slower-than-estimated economic recovery in
Wall Street Journal:
NY Times:
CNNMoney:
Politico:
LA Times:
Pensions&Investments:
- Prefab homes sprout green designs, improve affordability.
Reuters:
Financial Times:
Chosun Ilbo:
-
Yonhap:
-
Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (BDN), raised target to $9.
- Reiterated Buy on (ALTR), target $21.
CSFB:
- Reiterated Buy on (BRCM), boosted estimates, raised target to $29.
Morgan Keegan:
- Rated (GD) and (LMT) Outperform.
Night Trading
Asian Indices are +.50% to +1.75% on average.
S&P 500 futures -.06%.
NASDAQ 100 futures -.10%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Pre-market Stock Quote/Chart
Global Commentary
WSJ Intl Markets Performance
Commodity Futures
Top 25 Stories
Top 20 Business Stories
Today in IBD
In Play
Bond Ticker
Economic Preview/Calendar
Earnings Calendar
Who’s Speaking?
Upgrades/Downgrades
Rasmussen Business/Economy Polling
Earnings of Note
Company/EPS Estimate
- (UNFI)/.34
- (BCSI)/.21
- (BOBE)/.39
- (PAY)/.16
- (HOV)/-1.51
Economic Releases
10:00 am EST
- Pending Home Sales for April are estimated to rise .5% versus a 3.2% gain in March.
Afternoon
- Total Vehicle Sales for March are estimated to rise to 9.4M versus 9.3M in April.
Upcoming Splits
- None of note
Other Potential Market Movers
- Treasury Secretary Geithner Visiting China, the Fed’s Fisher speaking, weekly retail sales reports, KeyBanc Capital Markets Industrial/Automotive/Transportation Conference, Goldman Lodging/Gaming/Restaurant/Leisure Conference, (CAH) investor day, RBC Capital Markets Energy/Power Conference, (THC) investor day, (MDT) analyst meeting and the Cowen Display Conference could also impact trading today.
BOTTOM LINE: Asian indices are higher, boosted by automaker and commodity stocks in the region. I expect