General News:
– Unemployment claims rose unexpectedly to 324,000 when 311,000 was expected. Continuing claims were 2.523 million versus an expectation of 2.500 million.
– Wall Street Journal reports that the Fed may not change rates, but keep a hawkish bias.
– Bloomberg and Financial Times are writing about the danger of CDO risk spreading throughout the market in the wake of the Bear Stearns hedge fund blowup. The worry is that the market will re-price down and create massive losses for fixed-income holdings at pension funds and other hedge funds.
– CNN is discussing a $1 trillion mortgage payment reset this year, which is expected to add to the housing troubles.
– Reuters is reporting that there is heavy foreign interest in the Blackstone IPO.
– Air fares are expected to fall for the first time since summer 2004.
– The general strike in Nigeria is setting off oil supply worries, pushing oil prices to near $70/barrel.
Asia/Europe:
Asia:
– Consumer electronic shipments in Japan fell 0.6% year over year in May, which represents the first drop in six months. The drop is blamed on the soft video business.
– Japan’s trade surplus rose 9.3% while exports rose 15.1% year over year.
– Chinese 3-year rates were up and traders are expecting a rate hike.
– Hong Kong’s jobless rate was unchanged at a 9-year low rate.
Europe:
– The German Foreign Minister says that the export outlook for the rest of 2007 looks strong even though the euro has weakened export momentum.
– German construction orders fell 0.5%.
– French consumer spending was 0.8%, 0.5% was expected.
– UK exports rose to 0 from -8 while prices fell to 16 from 25.
Corporate News:
– Luxotica (LUX) will be purchasing Oakley Inc. (OO).
– McMoRan (MMR) will purchase properties from NewField.
– Integra Bank Corp. (IBNK) announced a share buyback program.
– American Greetings (AM) reports strong numbers.
– Winnebago Industries (WGO) boosted its dividend payouts and announced a share buyback.
Favorable Comments:
– Advanced Micro (AMD) upgraded at Stifel
– Albemarle (ALB) and Panera Bread (PNRA) upgraded at Matrix.
– Corp Office Props (OFC) and Saul Centers (BFS) upgraded at Ferris Baker Watts.
– Duke Realty (DRE) upgraded at UBS.
– JP Morgan (JPM) upgraded at Keefe Bruyette.
– Manhattan Assoc. (MANH) upgraded at Cantor Fitzgerald.
– MBIA (MBI) upgraded at Citigroup.
– Nvidia (NVDA) upgraded at Lehman Brothers.
– RenaissanceRe (RNR) upgraded at Bernstein.
– Sybase (SY) upgraded at Banc of America.
– Symantec (SYMC) upgraded at Robert W. Baird.
– Thermage (THRM) upgraded at Needham.
– Tutogen Medical (TTG) upgraded at Roth.
Negative Comments:
– Alltel (AT) downgraded at Lehman Brothers.
– Buffalo Wild Wings (BWLD) downgraded at Merriman.
– Cheesecake Factory (CAKE) downgraded at Bear Stearns and CIBC.
– China Telecom (CHA) and China Unicom (CHU) downgraded at Credit Suisse.
– Coley Pharma (COLY) downgraded at Merriman and CE Unterberg.
– Compuware (CPWR) downgraded at Banc of America.
– Dresser-Rand (DRC) downgraded at UBS.
– Equity Inns (ENN) downgraded at BB&T and Robert W. Baird.
– Esco Tech (ESE) downgraded at Robert W. Baird.
– General Electric (GE) downgraded at Hilliard Lyons.
– Gladstone Commercial (GOOD) and HRPT Properties (HRP) downgraded at Ferris Baker Watts.
– Headwaters (HW) downgraded at JP Morgan.
– Home Depot (HD) downgraded at Piper Jaffray.
– Photronics (PLAB) downgraded at Matrix.
– Prudential (PRU) downgraded at Citigroup.
– United Industrial (UIC) downgraded at Kaufman Bros.