Tuesday, October 11, 2011

Morning Journal 10/11/11


News on Stocks in Our Portfolios—courtesy of Seeking Alpha

04:15 PM Automatic Data Processing (ADP) acquires privately held recruitment process outsourcing firm The RightThing for an undisclosed sum. ADP says the purchase will broaden its HR business process outsourcing capabilities as well as enhance its existing applicant tracking and talent management process. Comment!

03:56 PM Department stores and mass merchants such as M and TGT should be the "haves" among retailers this year, owing to better-than-expected back-to-school sales and potential help from moderating gas prices, Citigroup says. But clothing retailers such as ANF and ANN will be "have-nots," due to a "mediocre" back-to-school season and denim as a challenging category. Comment!


02:26 PM General Dynamics (GD +2.9%) gains after one of its subsidiaries, C4 Systems, was awarded a $65M networking support contract by the U.S. Navy's Space and Naval Warfare Systems Center to provide support, maintain and add new capabilities to the the Navy's Wideband Networking Waveform system. Comment!

11:46 AM Caterpillar (CAT), up 4.3%, leads a charge of global large-caps higher as investors pile into a sector particularly hard hit on recession fears. Dearborn Partners' Paul Nolte says the jury is still out on if the double-dip recession baking itself into stock prices will occur. "The economic data recently has been a little bit better than expected... the question is whether it's going to be enough to avoid a recession and get us going on a better growth path." Comment!

11:27 AM Teva Pharmaceutical (TEVA +2.2%) moves higher this morning after the FTC approved its merger with Cephalon (CEPH +0.4%) over the weekend. As part of the approval, Teva is required to divest two abbreviated new drug applications for fentanyl citrate lozenges, a generic version of Actiq, and cyclobenzaprine ER capsules, the generic version of Amrix. Comment!

10:42 AM Luxembourg's Cargolux Airlines says negotiations with Boeing (BA +3.5%) restarted after the carrier called off delivery of 747s last month over the reported shortcomings in the performance of GE-built engines. Comment!

10:03 AM Microsoft (MSFT) Windows chief Steven Sinofsky says Windows 8 will require less memory (DRAM) than Windows 7, which itself attempted to be less memory-hungry than the oft-criticized Windows Vista. This will make it easier for Windows 8 to run on CPUs featuring ARM (ARMH) cores, but is likely to worsen Micron's (MU) DRAM woes. Comment!

09:22 AM Sonoco Products (SON) agrees to buy packaging maker Tegrant for $550M from P-E firm Metalmark. The deal will give Sonoco access to the faster-growing markets of medical devices, pharmaceuticals, and health and beauty products. (PR) Comment!

Economics

This Week’s Data

Other


Update on global PMI (short):
http://www.investmentpostcards.com/2011/10/08/global-pmi-scorecard-sept-2011-growth-accelerating-despite-eurozone-sinking/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+wordpress%2FVYxj+%28Investment+Postcards+from+Cape+Town%29

The latest ECRI weekly index reading (it’s down):
http://advisorperspectives.com/commentaries/dshort_100711.php

A not very optimistic view from Satyajit Das (medium):
http://www.minyanville.com/businessmarkets/articles/global-economy-global-financial-crisis-currency/10/10/2011/id/37289

Chart porn on unemployment:
http://www.ritholtz.com/blog/2011/10/huge-employment-chart-roundup/

Small business optimism increased slightly in September (short):
http://www.calculatedriskblog.com/2011/10/nfib-small-business-optimism-index.html

Shipping activity remains strong (short):
http://scottgrannis.blogspot.com/2011/10/shipping-activity-shows-strong-gains.html

Politics

Domestic


The nexus of Wall Street and Washington (short):
http://www.zerohedge.com/news/two-political-parties-prices-1188644055

International

Now He wants to apologize to Japan for dropping the big one (short):
http://www.powerlineblog.com/archives/2011/10/the-world-apology-tour-revisited.php