Morning Report: September 28, 2011

Ahead of the Bell: Dow futures are trading up 69 points and S&P futures are trading up 7 points on speculation policy makers will contain Europe’s debt crisis, prompting investors to cash in on three straight trading sessions of gains. Although, traders are concerned cracks are emerging in the plan to rescue the regions debt laden countries. German Chancellor, Angela Merkel, said parts of the 109 billion euro bailout plan for Greece could be reopened, depending on the outcome of an audit by a team from the IMF, EU and the ECB.

  • On the economic calendar today, the government will report its durable goods orders, which will be out before the market opens. Economists are forecasting that orders stayed the same in August, after rising 4% the prior month, while transportation orders and durable goods orders are expected to be up 0.2%. Boston Federal Reserve Bank President, Eric Rosengren will be speaking at the Swedbank Economic Outlook Seminar in Stockholm. Later in the afternoon, Federal Reserve Chairman, Ben Bernanke will be speaking on Lessons from Emerging Market Economies on the Sources of Sustained Growth at the Cleveland Clinic Ideas for Tomorrow Speaker Series. Companies reporting earnings include Family Dollar. The dollar is up against the Japanese yen and down against the euro and British pound. Crude oil is currently trading at $84 a barrel. Gold is trading at $1,656.   
  • Yesterday, stocks rose, after Greece made progress in meeting requirements for more international aid, and Germany vowed continued support for the country.
  • On CNBC today, Joseph Dear, Chief Investment Officer of the California Public Employees Retirement System (CalPERS), talked about managing market risk. Dear said there is a 25% chance of a recession and rising because of uncertainty around our political situation, which is completely frozen. Dear also said there is a lot of hope for something good happening but, the European crisis is very volatile, as you have to get 17 countries to agree on a plan. Dear does not believe the recent rally is sustainable, as you cannot predict what will happen in Europe. Dear has a 7 ¾ % return target over the next few years, but with low interest rates is makes the target harder to achieve. Finally, Dear does not see the economy improving over the next five years, and he is looking at alternative investments, he already has a large equity position.
  • Happy Wednesday, have a nice day.

Tuesday’s Close

DJIA up 146.83 pts/+1.33%/11,190.69

S&P up 12.43 pts/+1.07/1,175.38

Nasdaq up 30.14 pts/+1.20/2,546.83

Wednesday’s Futures

Dow Futures up 69.00 pts/+0.57%

S&P Futures up 7.30 pts/+0.56%

Nasdaq Fut up 11.58 pts/+0.48%

Overseas Markets

FTSE +0.09%

CAC 40 +0.48%

NIKKEI 225 +0.07%

HANG SENG -0.66%

Overseas:  World stock markets were up today. European and Asian markets are trading higher on hopes the ECB, EU, and IMF will resolve Europe’s debt crisis.

Economic Reports:  Durable Goods Orders expected to be 0.2% at 8:30 a.m.

Top Headlines:    

  • Reports indicate Anadarko Petroleum Corp. (APC) is considering selling its Brazilian assets which could be worth about $5 billion. 
  • American Express (AXP) said it has signed a deal with Chinese social-networking firm Tencent Holdings to develop a way users of Tencent's online service can buy goods on websites outside of China.
  • Apple Inc., (APPL) said it will introduce a new version of the iPhone at an October, 4 event, the first time since Steve Jobs resigned as chief executive officer.
  • Google Inc., (GOOG) plans to build data centers in Taiwan and Singapore to provide more secure and faster service in the region.
  • Amazon.com Inc., (AMZN) said it will hosts a press event today to announce a new tablet device.
  • MBA reports mortgage applications were up 9.3% versus up 0.6% last week.  The 30-year mortgage rate fell to 4.25% from 4.29 percent the week before..      

Commodities/Currency:

Gold:up $6.10 to $1,657.85

Oil:down $0.05 to $84.44

EUR/USD 1.3667 +0.0079

USD/JPY 76.3950  -0.3400

GBP/USD 1.5669 +0.0038

Volatility Index (VIX): As of the close of business Tuesday, September 27, the VIX is down 1.32 at 37.71

Companies Reporting Quarterly Earnings:     

None as of yet.

Today’s Opening and Closing Bells:

Ethisphere to Select 2011 World’s Most Ethical Companies and Host Ethics Drives Performance Conference will ring the open bell.

PTGi (Primus Telecommunications Group) (PTGI), Chairman, President and CEO Peter D. Aquino will ring the closing bell.