morning review - 083110

8/8/2019 Morning Review - 083110

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Nicholas Colas (Chief Market Strategist): 212 448 6095 or [email protected] Clark: 212 448 6085 or [email protected]

Beth Reed: 212 448 6096 or [email protected]

U.S. EQUITIES

In the latest news from an increasingly busy M&A market, MMM (-1.7%) announced plans to buy COGT (+24.4%) for $10.50 a share, representing analmost 18% premium. Additionally, PARs (-2.0%) board of directors determined HPQs $30 per share offer to be a superior proposal compared with abid from DELL (+1.1%). Shares of HPQ were up 1.5% after the company said its board approved an additional $10 billion for stock repurchase plans.CMCSA dropped 1.5% on news the Justice Department is reviewing its purchase of GEs NBC Universal, although reportedly the acquisition is not likely tobe stopped.

Important Conferences/Corporate Meetings Today:Morgan Stanley Global Industrials Conference

Three Part Advisors Midwest IDEAS Investor Conference Chicago, IL

Important Earnings Today (with Estimates) From

Source: Thomson ONE

Three Day (High 1072.75; Low 1037.25):Prior Day SPX (High 1064.40; Low 1048.79; Close 1048.92):

S&P Futures

One Day (High 1072.75; Low 1046.00):

DG: $0.38 DSW: $0.47Source: Bloomberg


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FIXED INCOME

Source: Bloomberg

Todays Important Economic Indicators/Events (with Consensus): S&P Case-Shiller HPI (9:00am EST) Chicago PMI (9:45am EST): 56.0 Conference Board Consumer Confidence (10:00am EST): 51.0 State Street Investor Confidence Index FOMC Minutes Farm Prices

Source: Bloomberg

Treasuries gained Monday, erasing last weeks losses, ahead of several key economic reports later this week including the Friday jobs report which isexpected to show the U.S. eliminated jobs in August for a third consecutive month. The benchmark 10-year note yield fell 12 bps to 2.53% after hitting a19-month low of 2.4158% last week. German bonds, headed for their best monthly returns in nearly 2 years, were also higher following the Bank ofJapans statement regarding growing uncertainty about the U.S. economy.


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Top Online Social Networking Stories

Latest Popular Digg.com Business Stories:Facebook Faces Class Action Lawsuit Over Like Buttons - http://mashable.com/2010/08/27/facebook-class-action-suit/U.S. Stocks Fall for Third Week, Longest Decline Since February - http://www.businessweek.com/news/2010-08-28/u-s-stocks-fall-for-third-week-longest-

decline-since-february.html

Calculated RiskPersonal Income, Spending Increase in July - http://www.calculatedriskblog.com/2010/08/personal-income-spending-increase-in.htmlAnother Housing Tax Credit? - http://www.calculatedriskblog.com/2010/08/another-housing-tax-credit.htmlEmployment report Preview: Will the unemployment rate spike higher? - http://www.calculatedriskblog.com/2010/08/employment-report-preview-

will.htmlPetruno: Time to let home prices fall? - http://www.calculatedriskblog.com/2010/08/petruno-time-to-let-home-prices-fall.htmlThe Big PictureHistory of US Interest Rates: 1790-Present - http://www.ritholtz.com/blog/2010/08/history-of-us-interest-rates-1790-present/Are Wall Street Analysts Contrary Indicators? - http://www.ritholtz.com/blog/2010/08/are-wall-street-analysts-contrary-indicators/Los Angeles TimesForeclosures of million-dollar-plus homes on the rise - http://www.latimes.com/business/realestate/la-fi-luxury-foreclosures-20100829,0,479624,full.storyNew York TimesPolicy Options Dwindle as Economic Fears Grow - http://www.nytimes.com/2010/08/29/weekinreview/29goodman.html?_r=1In Defense of Home Ownership - http://www.nytimes.com/2010/08/28/your-money/mortgages/28money.htmlBespoke Investment GroupLabor day Week Performance - http://www.bespokeinvest.com/thinkbig/2010/8/27/labor-day-week-performance.htmlPick a Stock. Any Stock. - http://www.bespokeinvest.com/thinkbig/2010/8/27/pick-a-stock-any-stock.htmlThe Becker-Posner BlogIs the Federal Government Broke? (Posner) - http://www.becker-posner-blog.com/2010/08/is-the-federal-government-broke-posner.htmlHow Dismal is the Fiscal Future for America and Europe? (Becker) - http://www.becker-posner-blog.com/2010/08/how-dismal-is-the-fiscal-future-for-

america-and-europe-becker.html


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