Late-Night Headlines
Bloomberg:
- The cost of default protection on Australian corporate bonds fell from a record high, credit- default swaps show. It also fell in Japan. The Markit iTraxx Australia Series 9 Index was about 23 basis points lower at 185 at 9:54 a.m. in Sydney after earlier trading at 195 basis points, ABN Amro Holding NV prices show. The Markit iTraxx Japan index fell 21 basis points to 159 as of 9:05 a.m. in Tokyo, according to prices from Morgan Stanley.
- Samsung Electronics Co., the world's second-largest chipmaker, made a $5.85 billion hostile bid for SanDisk Corp.(SNDK) to widen its lead in the market for semiconductors that store pictures and music in cameras and mobile phones. Samsung offered $26 in cash for each SanDisk share, the Suwon, South Korea-based company said today in a statement. That's 73 percent more than SanDisk's latest closing price, leading the stock to jump 56 percent in after-hours trading.
- Morgan Stanley’s(MS) third-quarter profit fell less than estimated as revenue from stock trading and an asset sale cushioned a drop in the firm's investment banking and fixed-income businesses. ``We are very convinced and confident in the broker-dealer model,'' Morgan Stanley Chief Financial Officer Colm Kelleher said in a telephone interview. ``The market unfortunately is based on rumor and fear.'' On a conference call with analysts, he said Morgan Stanley's risk of losses from Lehman and AIG were ``not material.''
- Barclays Plc, the U.K.'s third- biggest bank, will acquire the North American investment-banking business of bankrupt Lehman Brothers Holdings Inc. for $1.75 billion, two days after abandoning plans to buy the entire firm. Barclays is paying $250 million in cash for the Lehman businesses and $1.5 billion for the securities firm's New York headquarters and two data centers, the London-based bank said in a statement on its Web site today. The operations employ about 10,000 people.
- Emerging-market stocks plunged the most in 11 years, currencies fell and the cost of insuring developing-nation bonds surged as rising lending rates and tumbling commodities prompted investors to sell riskier assets. The MSCI Emerging Markets Index fell 4.7 percent to 786.99 at 4:17 p.m. New York time, the lowest level since October 2006. The measure earlier tumbled 6.3 percent for the biggest drop since October 1997. The measure lost 34 percent in 2008 before today, compared with a 19 percent decline for the Standard & Poor's 500 Index.
- Gold fell as investors sold commodities to raise cash and cover losses in other markets. Silver fell to a two-year low and platinum dropped the most since at least 1986. Platinum futures for October delivery plummeted $107.70, or 9.2 percent, to $1,068.50 an ounce in New York.
MarketWatch.com:
- Offshore oil and gas exploration gets newfound attention from both parties.
Daily Herald:
- Home Depot(HD) plans price cuts to bring back shoppers.
Reuters:
- The U.S. House of Representatives passed legislation on Tuesday lifting a longstanding congressional moratorium on offshore drilling.
Financial Times:
- Russia authorities halted trading on the country's stock exchange on Tuesday after it plunged 17 per cent in a broad-based sell-off. "This is a good old-fashioned panic", said Steven Dashevsky, head of research at Unicredit in Moscow. "It doesn't feel like there is anyone domestically that can put the brakes on." Margin calls on local investors who have used stocks as collateral for loans continued to drive sales, as emerging market funds faced growing redemptions.
- The growth prospects of the global hedge fund market – worth almost $2,000bn (£1,400bn) – are in doubt. Funds are being forced to de-lever and sit on large cash balances as the prime brokers they largely depend on for financing face severe pressure. The collapse of Bear Stearns and Lehman Brothers has forced hundreds of hedge funds that used the banks as their prime brokers to look elsewhere for their funding and support. It has also put pressure on funds to rein in the amount of leverage they employ, limiting their ability to outperform broader indices and causing investors to question the fees they charge. About 100 hedge funds that used Lehman as their prime broker had positions held via the bank frozen on Monday as administrators took charge of the London business and the US holding company filed for bankruptcy.
Guardian:
- Google(GOOG) shows first Android phone in London.
Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (ADBE), target $50.
Piper Jaffray:
- Rated (CKEC) Buy, target $6.
- Rated (NCMI) Buy, target $14.
Night Trading
Asian Indices are -.25% to +2.0% on average.
S&P 500 futures +.57%.
NASDAQ 100 futures +.53%.
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)
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WSJ Intl Markets Performance
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Top 25 Stories
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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
- (GIS)/.88
- (DBRN)/.29
- (CKR)/.19
- (MLHR)/.55
Economic Releases
8:30 am EST
- The Current Account Deficit for 2Q is estimated to widen to -$180.0 billion versus -$176.4 billion in 1Q.
- Housing starts for August are estimated to fall to 950K versus 965K in July.
- Building Permits for August are estimated to fall to 928K versus 937K in July.
10:35 am EST
- Bloomberg consensus estimates call for a weekly crude oil drawdown of -3,500,000 barrels versus a -5,828,000 barrel decline the prior week. Gasoline inventories are expected to fall by -3,500,000 barrels versus a -6,462,000 barrel decrease the prior week. Distillate supplies are estimated to fall by -1,900,000 barrels versus a -1,252,000 barrel fall the prior week. Finally, Refinery Utilization is expected to fall by -2.0% versus a -10.41% decline the prior week.
Upcoming Splits
- None of note
Other Potential Market Movers
- The weekly MBA mortgage applications report, (BRCD) analyst meeting, Goldman Sachs Communications Conference, UBS Global Paper/Forest Products Conference, Jeffries Shipping/Logistics/Offshore Services Conference, CSFB Chemical Conference, Bank of America Investment Conference, Merrill Lynch Global Real Estate Conference, RBC Financial Institutions Conference and the BMO Capital Markets Real Estate Conference could also impact trading today.
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