Monday's Brew - Oct 16
Enjoy your fresh morning coffee with our summary of the market outlook for the day and a medley of important information you should find useful. Please see our weekly update, "The Greek's Week Ahead," for the market moving calendar for Monday.
OVERSEAS
European shares reached a five-year peak on Monday, while the yen rose after Russia said it had started buying the Japanese currency for its foreign reserves. The Nikkei average rose almost 1 percent to a five-month closing high. Russian confidence in the Japanese currency could imply a comfort level that the North Korean nuclear crisis is not a mushrooming concern. China has already begun inspecting trucks crossing its border, supporting the new U.N. resolution. However, the markets will likely closely watch North Korea's response to the new choking measures. We suspect it may respond harshly to the boarding of its ships, especially by the Japanese or Americans. It has already issued hard-line rhetoric, threatening physical response and announcing that the sanctions were effectively a declaration of war. Control of the situation rests in the hands of China and Russia.
ECONOMIC & OTHER MARKET MOVING NEWS
A Federal Reserve report today showed manufacturing in New York state unexpectedly accelerated this month, as costs of energy and raw materials eased and shipments increased. The Fed Bank of New York's general economic index rose to 22.9, from 13.8 in September. The New York Fed's index was expected to fall to 11.2, according to the median forecast of economists surveyed by Bloomberg News. The shipments index increased to 22.5 from 20.6. Inventories increased to 2.5 from minus 4. Manufacturing costs declined as the index of prices paid for raw materials decreased to 30.8, the lowest since March 2005, from 41 in September. An index of manufacturing employment rose to 19.4, from 12.5 in September. The New York Fed's gauge of new orders declined to 11.8 this month from 14 in September. However, the index measuring the outlook for six months from now fell to 30.2 from 35.2.
STOCKS
Oshkosh Truck (OSK) said it will acquire JLG Industries (JLG) for about $3 billion in cash, a 34 percent premium for the company based on Friday's closing price. Wachovia Corp. (WB), the fourth largest U.S. bank, said on Monday that third-quarter profit rose 13 percent on stronger loan demand, but revenue fell short of forecasts as lending margins declined. Wachovia shares were down about 2%. Commerce Bancorp (CBH) reported EPS fell to 41 cents from 45 cents, in line with estimates. Commerce shares were down roughly 1.2% in early trading.
We again refer you to "The Greek's Week Ahead" for the information you need to know for today's trade. We hope you enjoyed "Today's Morning Coffee" and wish you a great day trading.
OVERSEAS
European shares reached a five-year peak on Monday, while the yen rose after Russia said it had started buying the Japanese currency for its foreign reserves. The Nikkei average rose almost 1 percent to a five-month closing high. Russian confidence in the Japanese currency could imply a comfort level that the North Korean nuclear crisis is not a mushrooming concern. China has already begun inspecting trucks crossing its border, supporting the new U.N. resolution. However, the markets will likely closely watch North Korea's response to the new choking measures. We suspect it may respond harshly to the boarding of its ships, especially by the Japanese or Americans. It has already issued hard-line rhetoric, threatening physical response and announcing that the sanctions were effectively a declaration of war. Control of the situation rests in the hands of China and Russia.
ECONOMIC & OTHER MARKET MOVING NEWS
A Federal Reserve report today showed manufacturing in New York state unexpectedly accelerated this month, as costs of energy and raw materials eased and shipments increased. The Fed Bank of New York's general economic index rose to 22.9, from 13.8 in September. The New York Fed's index was expected to fall to 11.2, according to the median forecast of economists surveyed by Bloomberg News. The shipments index increased to 22.5 from 20.6. Inventories increased to 2.5 from minus 4. Manufacturing costs declined as the index of prices paid for raw materials decreased to 30.8, the lowest since March 2005, from 41 in September. An index of manufacturing employment rose to 19.4, from 12.5 in September. The New York Fed's gauge of new orders declined to 11.8 this month from 14 in September. However, the index measuring the outlook for six months from now fell to 30.2 from 35.2.
STOCKS
Oshkosh Truck (OSK) said it will acquire JLG Industries (JLG) for about $3 billion in cash, a 34 percent premium for the company based on Friday's closing price. Wachovia Corp. (WB), the fourth largest U.S. bank, said on Monday that third-quarter profit rose 13 percent on stronger loan demand, but revenue fell short of forecasts as lending margins declined. Wachovia shares were down about 2%. Commerce Bancorp (CBH) reported EPS fell to 41 cents from 45 cents, in line with estimates. Commerce shares were down roughly 1.2% in early trading.
We again refer you to "The Greek's Week Ahead" for the information you need to know for today's trade. We hope you enjoyed "Today's Morning Coffee" and wish you a great day trading.
posted by The Greek | 10:34 AM
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