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8-26-08

S&P 500 futures vs fair value: -0.7. Nasdaq futures vs fair value: +1.8.

Futures suggest a flat start to the trading day as a drop in oil prices is unable to lift the market.  Anadarko Petroleum (APC) authorized a share repurchase program up to $5 billion, which at its current price represents roughly 18% of outstanding common shares. 

On a related note, Coach (COH) established a share repurchase program of up to $1 billion.  In earnings news, American Eagle (AEO) topped estimates by a penny for its second quarter, but issued downside guidance for the third quarter. In commodity trading, crude prices are down 1.3% to $113.60 per barrel as the dollar rallies 1.0%.

 
In reaction to strong earnings/guidance: DAKT +11.9%, CHS +10.4%, BIG +3.8%... M&A news: SRVY +7.0% (declares proposal from a strategic buyer to be a superior proposal, shareholders to receive $17.50 per share in cash)... Select mortgage/financial names modestly rebounding: RDN +5.7% (expands field sales force by ~30% to date), ABK +5.0%, FNM +5.0%, FRE +4.9%, LEH +1.3%... Select airlines ticking higher on lower crude and strength in dollar: LCC +5.4%, JBLU +3.6%, UAUA +2.5%, AMR +2.4%, CAL +1.6%... Other news: CLNE +9.8% (Cramer makes positive comments on MadMoney), SATC +9.4% (announces they will deliver 20MW of 500kilowatt PowerGate Plus grid-tie commercial photovoltaic inverters as part of new agreement), NVAX +3.7% (announces 'favorable' results from Phase I/IIa pandemic influenza vaccine program), ELN +3.5% (continued strength following yesterday afternoon's 7% surge), MDRX +3.4% (Cramer makes positive comments on MadMoney), COH +2.8% (establishes new $1 bln share repurchase program), APC +2.4% (announces $5 bln share repurchase program), ASML +1.8% (still checking)... Analyst comments: CRM +2.6% (upgraded to Buy at Citigroup).

Futures are showing little direction this morning as they trade around unchanged levels. Newsflow has been extremely slow as investors await a batch of economic data this morning and FOMC Minutes this afternoon.

One piece of data already released was the S&P/CaseSchiller Home Price Index, which declined 15.9% y/y in Jun, slightly better than expectations of a decline of 16.2%. Oct crude oil ($115.82 +0.71) has shown some direction this morning, however, initially declining to $112.36 on a stronger dollar, which hit a new 6-month and fresh 2-year high against the euro and pound, respectively, before regaining its losses around 8:00ET.

Dow futures are currently +5; Nasdaq futures are currently -1.0; S&P futures are currently -0.1. 


The Bond mkt did little overnight on extremely thin volume as traders lacked conviction following yesterday's strong rally. But treasuries began selling off modestly at the open of pit trading at 8:20ET. The 10-yr is currently -04/32 to 3.801%. Looking ahead on the Fed calendar, FOMC Minutes from the Aug 5 meeting, where it left rates steady at 2.00%, are due out at 14:00ET.

In
Europe, mining and metals stocks led mkts lower for a second consecutive session. FTSE is currently -1.2%; DAX is currently +0.1%; CAC is currently -0.5%. In Asia, mkts declined, led lower by financial cos on speculation of increased credit mkt losses. Nikkei closed -0.8%; Hang Seng closed -0.2%; Shanghai Composite closed -2.6%... Notable pre-market Calls include Upgrades: CRM at Citi; Downgrades: BRCM at Oppenheimer, NT at Lehman; Initiations: V (Outperform) at William Blair... On the Economic calendar, APSG, BGP, DY, HAIN and JCG are confirmed to report today after the close... On the Economic calendar, Aug Consumer Confidence (consensus 53.0; prior 51.9), Jul New Home Sales (consensus 525K; prior 530K) and the Aug Richmond Fed Manufacturing Index (consensus -10; prior -16) are all due out at 10:00ET.

SMF Traders ETF Positions
 
 
Late Day Sector ETF Leaders:
Nat gas- UNG +5.3%, Energy- XLE +1.7%, IYE +1.5%, Oil HLDRS- OIH +1.6%, Heating Oil- UHN +1.4%, Gas- UGA +1.4%, Steel- SLX +1.0%, Utilities- XLU +1.0%

Late Day Sector ETF Laggards:
Base Meals- DBB -1.9%, Clean Energy- PBW -1.8%, Solar Power- TAN -1.7%, KWT -1.3%, Homebuilders- XHB -1.6%, Semis- IGW -1.1%, SMH -1.0%

Posted: 8/26/2008 8:55:52 AM by StockMarketFunding | with 0 comments


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