Morning Review - 083010

8/9/2019 Morning Review - 083010

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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

Shares of TIF (-3.2%) were down despite a solid earnings report that showed higher profit and an increase in same-store sales. The jeweler also raised itsfull-year outlook. Meanwhile, JCG dropped 7.2% after posting earnings outlooks for the 3rd quarter and full year that trailed analysts expectations. InM&A news, HPQ (-0.6%) raised its bid for PAR (+24.7%) to $30 a share from $18, trumping DELLs (+1.2%) latest offer of $24.30 a share. Despite weakerdemand for PCs, INTC (+1.1%) lowered its 3rd quarter revenue forecast to $10.8-$11.2 billion from its previous estimate of $11.2-$12.0 billion. BA (+3.0%)again delayed delivery of its first 737 Dreamliner by several weeks, though its shares were up on the day.

Important Conferences/Corporate Meetings Today:None

Important Earnings Today (with Estimates) From

Source: Thomson ONE

Three Day (High 1063.75; Low 1037.00):Prior Day SPX (High 1065.21; Low 1039.70; Close 1):

S&P Futures

One Day (High 1063.75; Low 1037.25):

DCI: $0.64 WINN: $0.13Source: Bloomberg


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FIXED INCOME

Source: Bloomberg

Todays Important Economic Indicators/Events (with Consensus): Personal Income and Outlays (8:30am EST)

o Personal Income: 0.3%o Personal Consumption Expenditures: 0.3%o Core PCE Price Index: 1.4%

Source: Bloomberg

Treasuries tumbled Friday, pushing 10-year note yields up the most since May after Fed Chairman Ben Bernanke said the central bank will do what isneeded to stimulate the recovery. The benchmark 10-year note yield rose 17 bps intraday to 2.64%. Meanwhile, 2-year note yields had their biggestweekly gain since late April after touching a record low 0.4542% on August 24th. Last weeks 2-, 5- and 7-year debt auctions all drew record low yields asinvestors took refuge amid a flurry of weak economic data.


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Top Online Social Networking Stories

Latest Popular Digg.com Business Stories:Facebook now worth $33 billion - http://www.telegraph.co.uk/technology/facebook/7963608/Facebook-now-worth-33-billion.htmlTreating Customers as Online Equals Boosts Business, Research Finds - http://www.sciencedaily.com/releases/2010/08/100824082226.htmAisle by Aisle, an App That Pushes Bargains - http://www.nytimes.com/2010/08/17/technology/17app.html?_r=3&scp=1&sq=shopkick&st=cse

Calculated RiskBernanke: The Economic Outlook and Monetary Policy - http://www.calculatedriskblog.com/2010/08/bernanke-economic-outlook-and-monetary.htmlAnalysis: Bernanke paves the way for QE2 - http://www.calculatedriskblog.com/2010/08/analysis-bernanke-paves-way-for-qe2.htmlQ2 real GDP revised down to 1.6% annualized growth rate - http://www.calculatedriskblog.com/2010/08/q2-real-gdp-revised-down-to-16.htmlAre lenders procrastinating on foreclosures? - http://www.calculatedriskblog.com/2010/08/are-lenders-procrastinating-on.htmlThe Big PictureHistory of US Interest Rates: 1790-Present - http://www.ritholtz.com/blog/2010/08/history-of-us-interest-rates-1790-present/No One Left to Sell CDOs To? Sell to Yourself! - http://www.ritholtz.com/blog/2010/08/no-one-left-to-sell-cdos-to-sell-to-yourself/Google Trends A fresh look at search frequency - http://www.ritholtz.com/blog/2010/08/google-trends-a-fresh-look-at-search-frequency/WeakonomicsWhat Fat Ladies in Bikinis Taught Me About Investing - http://weakonomics.com/2010/08/25/what-fat-ladies-in-bikinis-taught-me-about-investing/Bespoke Investment GroupBullish Sentiment Drops to Lowest Levels Since March 2009 - http://www.bespokeinvest.com/thinkbig/2010/8/27/bullish-sentiment-drops-to-lowest-levels-

since-march-2009.html

Robert Reichs BlogWhy Boehners Blaming Bureaucrats - http://robertreich.org/post/1016548049/why-boehners-blaming-bureaucratsThe Two Stories of This Terrible economy, Yet Obama and the Dems Wont Tell Theirs - http://robertreich.org/post/1020104902/the-two-stories-of-this-

terrible-economy-yet-obama-and

The Baseline ScenarioDemocracy in America - http://baselinescenario.com/2010/08/26/democracy-in-america/#comments


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