The Latest Posts
October 25, 2014
NYSE MAC Desk
Jul 15 2014 | 10:09 AM

From The Trading Floor: Equities are trading in positive territory this morning after two bellwethers in the banking sector reported better than expected 2nd quarter earnings

  • July New York Fed Empire Report rises to 25.6, higher than the estimates 17

  • Retail Sales increased 0.2% during June after rising a revised 0.5% for May. The consensus estimate for June was 0.6%

  • US. June Import Price Index rose 0.1% for June month over month, slightly lower than the 0.4% estimated. On a year over year basis, the Import Price Index increased 1.2% which was better than the 1.1% estimated.

  • Business Inventories  for the month of May came in at 0.5% pretty much on target

  • JPMorgan reports Q2 adjusted EPS $1.46, consensus $1.29. Reports Q2 GAAP revenue $24.5B, consensus $23.76B

  • Goldman Sachs reports Q EPS $4.10, consensus $3.05. Reports Q2 revenue $9.13B, consensus $7.97B.

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Posted by: Charles Brown
Managing Director, The Capital Markets Desk
NYSE MAC Desk
Jul 14 2014 | 9:50 AM

From The Trading Floor: Futures are trading in positive territory this morning boosted by increased M&A activity and positive 2nd quarter earnings. 

  • Quiet day on the economic calendar

  • Citigroup reports Q2 EPS $1.24 ex-items, consensus $1.05. Reports Q2 revenue $19.3B, consensus $18.93B. Excluding CVA/DVA, revenues were $19.4B.

  • Aecom Technology has agreed to purchase rival URS (NYSE:URS) for $4B in cash and shares, forming a company with roughly double the amount of turnover than the next closest competitor in the industry.

  • Shire says it has received a new $53B takeover proposal from AbbVie (NYSE:ABBV) and it is willing to recommend the new offer to shareholders.

  • Whiting Petroleum will acquire Kodiak Oil & Gas (NYSE:KOG) creating North Dakota's largest Bakken shale producer. During the first quarter, combined output of the two companies was more than 107k barrels of oil...

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Posted by: Charles Brown
Managing Director, The Capital Markets Desk
NYSE MAC Desk
Jul 11 2014 | 9:56 AM

From The Trading Floor: The markets are taking a bit of a wait and see attitude today with a general lack of economic reports before an avalanche of earnings are to be released next week

  • U.S. municipal bond funds had some of the biggest outflows since January after investors pulled out $790M in the week ending July 9. $691M of the outflows were in the high-yield sector, being withdrawn due to default concerns of Puerto Rican debt. Adding to the worries is Puerto Rico's newest law which allows for public corporations to restructure their debt

  • Reynolds American may announce its purchase of Lorillard (LO) as early as July 14, Bloomberg reports. Many rumors have been circulating in the past few weeks regarding big tobacco M&A, as shrinking U.S. demand for cigarettes puts pressure on companies to team up.

  • Unilever (UL) has sold its Slim-Fast brand to private-equity firm Kainos Capital. The company acquired Slim-Fast for $2.3B...

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Posted by: Charles Brown
Managing Director, The Capital Markets Desk
Market Drivers
Jul 10 2014 | 5:10 PM

U.S. markets sold off to start the week as investors took some profits off the table in advance of earnings season. Markets also received some cautious news from overseas when the parent company of Banco Espirito Santo (Portugal’s largest bank) failed to make a bond payment and the central bank’s solvency assurance to investors was ill received. Overall economic news flow has been light. Here are three things that have been driving the market this week.

Earnings Kickoff

Q2 earnings season kicked off this week, with the estimated earnings growth rate for the S&P 500 currently at 4.9% (according to Factset). This is below the 6.8% rate that was expected back on March 31st, but still more optimistic than Q1 projections were. There are some concerns that the market may be overvalued a bit after the strong first half U.S. equities have enjoyed, and the rising forward 12 month P/E ratio (which stands at 15.7). It will be interesting to see if the trend of downward...

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Posted by: Ronald Bohlert
Managing Director, Global Corporate Client Group
NYSE MAC Desk
Jul 10 2014 | 10:18 AM

From The Trading Floor: Worry over financial stress in Europe has spread to the US. as investors look for safe haven assets

  • Fewer Americans than forecast filed applications for unemployment benefits last week, a sign the job market continues to strengthen. Jobless Claims declined by 11,000 to 304,000 in the week ending July 5th
  • Consumer Comfort for the week ending July 6th increased slightly to 37.6 from 36.4 the previous period.
  • Wholesale Inventories grew by 0.5% for May, lower that the revised 1.0% the previous month
  • In Europe, stocks from the euro zone's periphery led declines. Portugal's PSI 20 Index fell by around 3 percent amid concerns about the health of the financial group Banco Espirito Santo.
  • Following in the footsteps of Germany and the UK, Italy and France reported declines in industrial production in May of 1.2% and 1.7%, respectively

  • Exports from China rose 7.2% in June,...

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Posted by: Charles Brown
Managing Director, The Capital Markets Desk