morning review - 101810

8/8/2019 Morning Review - 101810

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Nicholas Colas (Chief Market Strategist): 212 448 6095 or [email protected]

Christine Clark: 212 448 6085 or [email protected]

Beth Reed: 212 448 6096 or [email protected]


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U.S. EQUITIES

The KBW Bank Index sank 2.4% as financial stocks continued to be hit by a wave of concern over the potential fallout from the foreclosure crisis. S&P Equity Researchdowngraded BAC (-4.9%) to Hold from Strong Buy, saying the bank was not as prepared for the crisis as JPM (-4.1%), for example. In earnings news, GE fell 5.0%

after topping profit estimates but posting quarterly revenue that fell short of expectations, while MAT (-6.5%) also beat on the bottom line but missed top line estimates

due to lower gross margins. On the plus side, GOOG soared 11.2% after it handily beat Street earnings estimates after the bell on Thursday.

Important Conferences/Corporate Meetings Today:

Citi Greater China Investor Conference Beijing, China

Important Earnings Today (with Estimates) From

Source: Thomson ONE

Three Day (High 1181.00; Low 1162.50):Prior Day SPX (High 1181.20; Low 1167.12; Close 1176.19):

S&P Futures

One Day (High 1180.00; Low 1163.00): AAPL: $4.05 BRO: $0.28C: $0.05

HAL: $0.55 HAS: $1.04 IBM: $2.75

LNCR: $0.47 MMR: $-0.25STLD: $0.09

VMW: $0.21 ZION: $-0.51Source: Bloomberg


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FIXED INCOME

Source: Bloomberg

Todays Important Economic Indicators/Events (withConsensus):

Treasury International Capital (9:00am EST)

Industrial Production (9:15am EST): 0.2%

o Capacity Utilization: 74.8%

NAHB Housing Market Index (10:00am EST)

Dennis Lockhart Speaks at 12:30pm EST

Source: Bloomberg

The Treasury budget rounded out fiscal year 2010 with a $1.29 trillion debt, which equals 8.9% of GDP, compared with last years $1.42 trillion gap that made up 10.0%of GDP. Longer-term Treasuries declined Friday on speculation the Fed will implement monetary easing, as the 30-year bond yield touched a 1-month high. Meanwhile,

Fed Chairman Ben Bernanke said that high unemployment and subdued inflation appear to be a case for further central bank action, though he emphasized the need

to proceed with caution, as monetary easing has costs and limitations that must be weighed to determine whether and how aggressively such policies should be

used.


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Top Online Social Networking Stories

Latest Popular Digg.com Business News

Where Are All the Homebuyer Tax Credits? - http://blog.turbotax.intuit.com/deductions-and-credits/where-are-all-the-homebuyer-tax-credits/10072010-3728 Why Brazil Is Right to Auction Off the Amazon Rainforest - http://www.fastcompany.com/1694802/brazil-auctioning-off-pieces-of-the-amazon-to-timber-companies CVS Pharmacy to pay $75 million civil fine for problem in sale of meth ingredient - http://www.chicagotribune.com/business/sns-ap-us-cvs-meth-fine,0,5776576.story Americas Most Stolen Products - http://www.walletpop.com/blog/2010/10/14/americas-most-stolen-products/

Calculated Risk

Retail Sales increase in September - http://www.calculatedriskblog.com/2010/10/retail-sales-increase-in-september.html

Bernanke: Appears to be a case for further action - http://www.calculatedriskblog.com/2010/10/bernanke-appears-to-be-case-for-further.html

The New York Times

From a Main House, a National Foreclosure Freeze - http://www.nytimes.com/2010/10/15/business/15maine.html?_r=1 The Mortgage Morass - http://www.nytimes.com/2010/10/15/opinion/15krugman.html

The Big Picture

The PermaBear to English Translation Guide - http://www.ritholtz.com/blog/2010/10/the-permabear-to-english-translation-guide/ Mortgage Market Breakdown by Equity/Delinquency - http://www.ritholtz.com/blog/2010/10/mortgage-market-breakdown-by-equitydelinquency/

Economists View

United in Our Delusion about Taxes - http://economistsview.typepad.com/economistsview/2010/10/united-in-our-delusion-about-taxes.html

Bespoke Investment Group

Google Trading Up in Earnings - http://www.bespokeinvest.com/thinkbig/2010/10/14/google-goog-trading-up-on-earnings.html Long End of the Yield Curve Keeps Getting Steeper - http://www.bespokeinvest.com/thinkbig/2010/10/14/long-end-of-the-yield-curve-keeps-getting-steeper.html Sovereign Debt Default Risk - http://www.bespokeinvest.com/thinkbig/2010/10/14/sovereign-debt-default-risk.html

Zero HedgeMeet Danielle and Jim Plus 9: The Squatters Who Reclaimed Their Foreclosed Home Over the Weekend - http://www.zerohedge.com/article/meet-danielle-and-jim-

plus-9-squatters-who-reclaimed-their-foreclosed-home-over-weekend


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