Wall Street News Summary 06-29-11

Today's Wall Street News Summary highlights the passage of Greek austerity legislation against the backdrop of massive Greek protests opposing the measure and the Hellenic Republic's government. The day also offered data on home sales and mortgage activity, as well as oil and gasoline inventory. On the corporate front, Bank of America and BJ Wholesale Club headed the wire.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: NYSE: BAC, NYSE: BJ, NYSE: KSU, NYSE: CSX, Nasdaq: SYMC, Nasdaq: DELL, Nasdaq: ADSK, NYSE: AZO, NYSE: GIS, NYSE: AYI, AMEX: API, NYSE: AM, Nasdaq: CJJD, Nasdaq: DSWL, NYSE: FDO, NYSE: FC, NYSE: GIS, NYSE: KBH, NYSE: LNN, NYSE: MON, Nasdaq: RLOG, NYSE: UNF, Nasdaq: VIMC, NYSE: ICE, Nasdaq: ETFC, Nasdaq: SCHW, Nasdaq: AACC, NYSE: AMG, NYSE: AMP, Nasdaq: AMTD, Nasdaq: BGCP, NYSE: BK, NYSE: BLK, NYSE: CIT, Nasdaq: CLMS, NYSE: CME, NYSE: CNS, Nasdaq: COWN, Nasdaq: DHIL, Nasdaq: DLLR, Nasdaq: DUF, Nasdaq: ECPG, Nasdaq: EF, NYSE: EFX, Nasdaq: EPHC, NYSE: EVR, Nasdaq: EZPW, Nasdaq: FBCM, Nasdaq: FCFS, NYSE: FII, NYSE: FMD, NYSE: FNF, Nasdaq: FNGN, Nasdaq: FXCM, NYSE: GBL, Nasdaq: GCAP, Nasdaq: GDOT, Nasdaq: GFIG, NYSE: GHL, Nasdaq: GLCH, NYSE: GS, Nasdaq: IBKR, Nasdaq: INTL, Nasdaq: INTX, NYSE: ITG, NYSE: IVZ, NYSE: JEF, NYSE: JMP, NYSE: JNS, NYSE: KBW, NYSE: KCG, NYSE: LAZ, NYSE: LM, Nasdaq: LPLA, AMEX: LTS, NYSE: MA, NYSE: MCO, NYSE: MF, NYSE: MGI, Nasdaq: MKTX, Nasdaq: MRLN, NYSE: MS, Nasdaq: MSCI, NYSE: MTG, Nasdaq: NEWS, NYSE: NFP, NYSE: NNI, Nasdaq: NTRS, Nasdaq: NTSP, NYSE: OCN, NYSE: OPY, Nasdaq: OXPS, Nasdaq: PICO, NYSE: PJC, NYSE: PMI, Nasdaq: PNSN, Nasdaq: PRAA, NYSE: RJF, Nasdaq: SEIC, NYSE: SF, NYSE: SFE, NYSE: STT, NYSE: SWS, Nasdaq: TROW, NYSE: V and Nasdaq: VRTS.

Wall Street News Summary

Greece Passes Austerity Measures
The Greek Parliament voted for the five-year austerity plan pushed upon them by the IMF and EU, despite incensed protests by the Greek people outside the building. It was a $40 billion value creating measure, raising taxes and cutting spending. The passage of the legislation allows the IMF/EU to release the next tranche of aid to Greece to allow it to remain solvent. It’s not over though, as Thursday brings a vote on the implementation procedures of the austerity measures. Meanwhile, Greeks are increasingly opposing their government, which they do not believe is representing their interests.

Mortgage Activity Eases
The Mortgage Bankers Association (MBA) produced its weekly Mortgage Activity Report Wednesday in the premarket. This week’s data, covering the period ending June 24, showed mortgage activity eased despite rate improvement. The MBAs Market Composite Index dropped by 2.7% on a seasonally adjusted basis, while contracted 30-year fixed rate mortgage rates dropped moderately.

Pending Home Sales Turn Around in May
The Pending Home Sales Index was reported for the month of May at 10:00 AM this morning. The data, produced by the National Association of Realtors (NAR), showed the Pending Home Sales Index rose 8.2% on a month-over-month basis, to a level of 88.8 in May. Pending Home Sales is a forward looking measure, which measures contract signings, so more good news for housing. Also, each region reflected the improvement seen overall.

Oil & Gasoline Inventory Data
The EIA Petroleum Status Report, released at 10:30 AM, showed both crude oil and gasoline stores experienced draws from inventory in the period ending June 24. Crude oil inventory fell by 4.4 million barrels and remains at a level above the upper limit of the average range for this time of year. These draws do not include draws from the strategic petroleum reserve. Total Motor Gasoline inventory decreased by 1.4 million barrels and fell to the middle of the average range for this time of year.

Federal Reserve Governor Sarah Bloom Raskin is giving a speech on rebuilding the American economy in Washington D.C. at 12 PM ET.

Farm Prices, which covers all agricultural products, will be reported at 3:00 PM.

Wall Street was in focus, as Bank of America (NYSE: BAC) came to a settlement agreement and has set aside $14 billion dollars to reimburse those harmed by mortgage backed securities it and its subsidiaries (Merrill Lynch) sold. Of this amount, $8.5 billion will be immediately paid out to heavy hitter investors like PIMCO.

BJ Wholesale Club (NYSE: BJ) agreed to be taken private today by Leonard Green & Partners and CVC Capital Partners at a price of $2.8 billion. That translates into $51.25 per share for shareholders of BJ.

Meeting with Wall Street analysts or shareholders, Kansas City Southern (NYSE: KSU), CSX (NYSE: CSX), Symantec (Nasdaq: SYMC), Dell (Nasdaq: DELL), Autodesk (Nasdaq: ADSK) and Autozone (NYSE: AZO).

The earnings schedule highlights data from General Mills (NYSE: GIS), Acuity Brands (NYSE: AYI), Advanced Photonix (AMEX: API), American Greetings (NYSE: AM), China Jo Jo Drugstores (Nasdaq: CJJD), Deswell Industries (Nasdaq: DSWL), Family Dollar Stores (NYSE: FDO), Franklin Covey (NYSE: FC), General Mills (NYSE: GIS), K.B. Home (NYSE: KBH), Lindsay (NYSE: LNN), Monsanto (NYSE: MON), Rand Logistics (Nasdaq: RLOG), UniFirst (NYSE: UNF) and Vimicro International (Nasdaq: VIMC).

Article should interest investors in Intercontinental Exchange (NYSE: ICE), E*Trade Financial (Nasdaq: ETFC), Charles Schwab (Nasdaq: SCHW), Asset Acceptance Capital (Nasdaq: AACC), Affiliated Managers (NYSE: AMG), Ameriprise Financial (NYSE: AMP), TD Ameritrade (Nasdaq: AMTD), BGC Partners (Nasdaq: BGCP), Bank of New York Mellon (NYSE: BK), BlackRock (NYSE: BLK), CIT Group (NYSE: CIT), Calamos Asset Management (Nasdaq: CLMS), CME Group (NYSE: CME), Cohn & Steers (NYSE: CNS), Cowen Group (Nasdaq: COWN), Diamond Hill Investment (Nasdaq: DHIL), Dollar Financial (Nasdaq: DLLR), Duff & Phelps (Nasdaq: DUF), Encore Capital (Nasdaq: ECPG), Edelman Financial (Nasdaq: EF), Equifax (NYSE: EFX), Epoch (Nasdaq: EPHC), Evercore Partners (NYSE: EVR), EXCorp. (Nasdaq: EZPW), FBR Capital Markets (Nasdaq: FBCM), First Cash Financial (Nasdaq: FCFS), Federated Investors (NYSE: FII), First Marblehead (NYSE: FMD), Fidelity National Financial (NYSE: FNF), Financial Engines (Nasdaq: FNGN), FXCM (Nasdaq: FXCM), Gamco Investors (NYSE: GBL), GAIN Capital (Nasdaq: GCAP), Green Dot (Nasdaq: GDOT), GFI Group (Nasdaq: GFIG), Greenhill (NYSE: GHL), Gleacher (Nasdaq: GLCH), Goldman Sachs (NYSE: GS), Interactive Brokers (Nasdaq: IBKR), INTL FCStone (Nasdaq: INTL), Intersections (Nasdaq: INTX), Investment Technology (NYSE: ITG), Invesco (NYSE: IVZ), Jefferies (NYSE: JEF), JMP Group (NYSE: JMP), Janus Capital (NYSE: JNS), KBW (NYSE: KBW), Knight Capital (NYSE: KCG), Lazard (NYSE: LAZ), Legg Mason (NYSE: LM), LPL Investment (Nasdaq: LPLA), Ladenburg Thalmann (AMEX: LTS), Mastercard (NYSE: MA), Moody’s (NYSE: MCO), MF Global (NYSE: MF), Moneygram (NYSE: MGI), MarketAxess (Nasdaq: MKTX), Marlin Business Services (Nasdaq: MRLN), Morgan Stanley (NYSE: MS), MSCI (Nasdaq: MSCI), MGIC Investment (NYSE: MTG), NewStar Financial (Nasdaq: NEWS), National Financial Partners (NYSE: NFP), Nelnet (NYSE: NNI), Northern Trust (Nasdaq: NTRS), NetSpend (Nasdaq: NTSP), Ocwen Financial (NYSE: OCN), Oppenheimer (NYSE: OPY), optionsXpress (Nasdaq: OXPS), PICO (Nasdaq: PICO), Piper Jaffray (NYSE: PJC), PMI Group (NYSE: PMI), Penson Worldwide (Nasdaq: PNSN), Portfolio Recovery (Nasdaq: PRAA), Raymond James (NYSE: RJF), SEI Investments (Nasdaq: SEIC), Stifel Financial (NYSE: SF), Safeguard Scientifics (NYSE: SFE), State Street (NYSE: STT), SWS (NYSE: SWS), T. Rowe Price (Nasdaq: TROW), Visa (NYSE: V) and Virtus Investment Partners (Nasdaq: VRTS).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Global Market Demise and I Know Why

Thursday’s global market demise had plenty good reason why investors might head for the door. The NIKKEI narrowed 0.34%, the DAX was down 1.8% and the FTSE fell 1.7%. On any given day there are a slew of reasons why stocks and the broader market might rise or fall, so looking across the globe for a common denominator can be difficult. However, we’re relatively confident we’ve identified the culprit for you.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relevant tickers: NYSE: DB, NYSE: STD, Nasdaq: ITUB, NYSE: UBS, NYSE: WBK, NYSE: LYG, NYSE: BCS, NYSE: CS, NYSE: AIB, NYSE: BLX, NYSE: NBG, NYSE: RY, NYSE: BFR, NYSE: IRE, NYSE: BMO, NYSE: CM, NYSE: ING, NYSE: C, NYSE: DIA, NYSE: SPY, Nasdaq: QQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: NYX, Nasdaq: NDAQ, NYSE: ICE, Nasdaq: ETFC, Nasdaq: SCHW, Nasdaq: AACC, NYSE: AMG, NYSE: AMP, Nasdaq: AMTD, Nasdaq: BGCP, NYSE: BK, NYSE: BLK, NYSE: CIT, Nasdaq: CLMS, NYSE: CME, NYSE: CNS, Nasdaq: COWN, Nasdaq: DHIL, Nasdaq: DLLR, Nasdaq: DUF, Nasdaq: ECPG, Nasdaq: EF, NYSE: EFX, Nasdaq: EPHC, NYSE: EVR, Nasdaq: EZPW, Nasdaq: FBCM, Nasdaq: FCFS, NYSE: FII, NYSE: FMD, NYSE: FNF, Nasdaq: FNGN, Nasdaq: FXCM, NYSE: GBL, Nasdaq: GCAP, Nasdaq: GDOT, Nasdaq: GFIG, NYSE: GHL, Nasdaq: GLCH, NYSE: GS, Nasdaq: IBKR, Nasdaq: INTL, Nasdaq: INTX, NYSE: ITG, NYSE: IVZ, NYSE: JEF, NYSE: JMP, NYSE: JNS, NYSE: KBW, NYSE: KCG, NYSE: LAZ, NYSE: LM, Nasdaq: LPLA, AMEX: LTS, NYSE: MA, NYSE: MCO, NYSE: MF, NYSE: MGI, Nasdaq: MKTX, Nasdaq: MRLN, NYSE: MS, Nasdaq: MSCI, NYSE: MTG, Nasdaq: NEWS, NYSE: NFP, NYSE: NNI, Nasdaq: NTRS, Nasdaq: NTSP, NYSE: OCN, NYSE: OPY, Nasdaq: OXPS, Nasdaq: PICO, NYSE: PJC, NYSE: PMI, Nasdaq: PNSN, Nasdaq: PRAA, NYSE: RJF, Nasdaq: SEIC, NYSE: SF, NYSE: SFE, NYSE: STT, NYSE: SWS, Nasdaq: TROW, NYSE: V and Nasdaq: VRTS, NYSE: LEN, NYSE: CAG, NYSE: WLP, NYSE: DFS, Nasdaq: CSCO, Nasdaq: ORCL, NYSE: ACN, Nasdaq: CYAN, Nasdaq: FINL, NYSE: HRB, NYSE: MU, NYSE: RAD, Nasdaq: TIBX.

Global Market Demise – We Know Why

After taking back significant ground at the close, the Dow (NYSE: DIA, NYSE: DOG) was still down 0.5% and the S&P 500 Index (NYSE: SPY, NYSE: SDS) was short 0.3%. The slide in American stocks followed declines in Asia and Europe. After searching for drivers, I lean heavily towards Europe this time, given its degree of decline versus Asia. If the declines were equal between Asia and Europe, I would have pinned President Obama with the blame, and considered that his statement Wednesday evening with regard to nation building at home (versus in Afghanistan) took away a degree of certainty global markets have grown quite used to regarding the United States’ willingness to police the world. However, it looks as though this was not the case, despite my feeling that it should be considered overseas. We have evidence of it in Libya and now Afghanistan.

Given that the decline started before American markets opened, we can rule out the possibility of new labor market data in the U.S. driving it. Weekly Initial Unemployment Insurance Claims increased by 9K in the latest reported period, taking new benefits filers up to 429K. That certainly didn’t help matters, but it is not the source of the day’s demise either.

Thus, the day’s dastardly driver must have originated in Europe, and we can be fairly certain of that thanks to the decline of the euro as well. Europe’s most significant market moving news derived from the European Banking Authority (EBA). The EBA warned area banks to be more realistic about their Greek debt holdings. In other words, most of Europe’s financial institutions with exposure to Greece have not accounted adequately for the possibility of a Greek default. You can bet they have not even pondered a Portuguese pitfall.

The EBA will be announcing results to its latest stress testing of 91 European banks around July 13. The regulator said it had given its banks guidance to “address inconsistencies and excessive optimism” on sovereign exposures. If that did not feel like a slap to the face, we suppose European investors might still get it when they reach home this evening to their portfolio perusing wives.

The EBA test will consider how its banks might fair through a two-year recession. What’s new about the situation is that previously European politicians and also regulators like the EBA have not even given sovereign default a note of consideration. Given the latest uproar around the release of the current tranche of support to Greece, and debate about how well Greece is managing austerity (you should be envisioning rioting now), it would seem default is becoming digestible among despots. Its repercussions had neither been accounted for completely by trusting investors, and so the day drew market ire and capital withdrawal. More bad breath was borne from the mouth of the European Central Bank head, Jean-Claude Trichet. The ECB chief raised alarm in Europe when he said financial stability for the region was “flashing red.”



The day’s earnings included Lennar (NYSE: LEN), ConAgra Foods (NYSE: CAG), WellPoint (NYSE: WLP), Discover Financial Services (NYSE: DFS), Cisco Systems (Nasdaq: CSCO), Oracle (Nasdaq: ORCL), Accenture (NYSE: ACN), Cyanotech (Nasdaq: CYAN), Finish Line (Nasdaq: FINL), H&R Block (NYSE: HRB), Micron Technology (NYSE: MU), Rite Aid (NYSE: RAD), TIBCO Software (Nasdaq: TIBX), Deutsche Bank (NYSE: DB), Banco Santander (NYSE: STD), ITA (Nasdaq: ITUB), UBS (NYSE: UBS), Westpac Banking (NYSE: WBK), Lloyds Banking Group (NYSE: LYG), Barclays (NYSE: BCS), Credit Suisse (NYSE: CS), Allied Irish Bank (NYSE: AIB), Banco Latinamericano (NYSE: BLX), National Bank of Greece (NYSE: NBG), Royal Bank of Canada (NYSE: RY), BBVA Banco Frances (NYSE: BFR), The Bank of Ireland (NYSE: IRE), Bank of Montreal (NYSE: BMO), Canadian Imperial Bank of Commerce (NYSE: CM), ING Groep (NYSE: ING), Citigroup (NYSE: C), SPDR Dow Jones Industrial Average (NYSE: DIA), SPDR S&P 500 (NYSE: SPY), PowerShares QQQ Trust (Nasdaq: QQQ), ProShares Short Dow 30 (NYSE: DOG), ProShares Ultra Short S&P 500 (NYSE: SDS), ProShares Ultra QQQ (NYSE: QLD), NYSE Euronext (NYSE: NYX), The NASDAQ OMX Group (Nasdaq: NDAQ), Intercontinental Exchange (NYSE: ICE), E*Trade Financial (Nasdaq: ETFC), Charles Schwab (Nasdaq: SCHW), Asset Acceptance Capital (Nasdaq: AACC), Affiliated Managers (NYSE: AMG), Ameriprise Financial (NYSE: AMP), TD Ameritrade (Nasdaq: AMTD), BGC Partners (Nasdaq: BGCP), Bank of New York Mellon (NYSE: BK), BlackRock (NYSE: BLK), CIT Group (NYSE: CIT), Calamos Asset Management (Nasdaq: CLMS), CME Group (NYSE: CME), Cohn & Steers (NYSE: CNS), Cowen Group (Nasdaq: COWN), Diamond Hill Investment (Nasdaq: DHIL), Dollar Financial (Nasdaq: DLLR), Duff & Phelps (Nasdaq: DUF), Encore Capital (Nasdaq: ECPG), Edelman Financial (Nasdaq: EF), Equifax (NYSE: EFX), Epoch (Nasdaq: EPHC), Evercore Partners (NYSE: EVR), EXCorp. (Nasdaq: EZPW), FBR Capital Markets (Nasdaq: FBCM), First Cash Financial (Nasdaq: FCFS), Federated Investors (NYSE: FII), First Marblehead (NYSE: FMD), Fidelity National Financial (NYSE: FNF), Financial Engines (Nasdaq: FNGN), FXCM (Nasdaq: FXCM), Gamco Investors (NYSE: GBL), GAIN Capital (Nasdaq: GCAP), Green Dot (Nasdaq: GDOT), GFI Group (Nasdaq: GFIG), Greenhill (NYSE: GHL), Gleacher (Nasdaq: GLCH), Goldman Sachs (NYSE: GS), Interactive Brokers (Nasdaq: IBKR), INTL FCStone (Nasdaq: INTL), Intersections (Nasdaq: INTX), Investment Technology (NYSE: ITG), Invesco (NYSE: IVZ), Jefferies (NYSE: JEF), JMP Group (NYSE: JMP), Janus Capital (NYSE: JNS), KBW (NYSE: KBW), Knight Capital (NYSE: KCG), Lazard (NYSE: LAZ), Legg Mason (NYSE: LM), LPL Investment (Nasdaq: LPLA), Ladenburg Thalmann (AMEX: LTS), Mastercard (NYSE: MA), Moody’s (NYSE: MCO), MF Global (NYSE: MF), Moneygram (NYSE: MGI), MarketAxess (Nasdaq: MKTX), Marlin Business Services (Nasdaq: MRLN), Morgan Stanley (NYSE: MS), MSCI (Nasdaq: MSCI), MGIC Investment (NYSE: MTG), NewStar Financial (Nasdaq: NEWS), National Financial Partners (NYSE: NFP), Nelnet (NYSE: NNI), Northern Trust (Nasdaq: NTRS), NetSpend (Nasdaq: NTSP), Ocwen Financial (NYSE: OCN), Oppenheimer (NYSE: OPY), optionsXpress (Nasdaq: OXPS), PICO (Nasdaq: PICO), Piper Jaffray (NYSE: PJC), PMI Group (NYSE: PMI), Penson Worldwide (Nasdaq: PNSN), Portfolio Recovery (Nasdaq: PRAA), Raymond James (NYSE: RJF), SEI Investments (Nasdaq: SEIC), Stifel Financial (NYSE: SF), Safeguard Scientifics (NYSE: SFE), State Street (NYSE: STT), SWS (NYSE: SWS), T. Rowe Price (Nasdaq: TROW), Visa (NYSE: V) and Virtus Investment Partners (Nasdaq: VRTS).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Stock Market Drivers 06-01-11

Wednesday's stock market drivers were concentrated in more soft economic data, especially from the United States. ADP offered a very low forecast for Nonfarm Private Payroll growth for May. ISM produced a Manufacturing Index that illustrated a significant slowdown in segment expansion. Across China, India and the United Kingdom, economic reports echoed the U.S. message for a softening manufacturing sector. This report offers more data on the global economy and corporate wire as well.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers include NYSE: GM, NYSE: M, Nasdaq: GOOG, Nasdaq: AMSC, NYSE: MRO, NYSE: NBL, NYSE: SEE, Nasdaq: DELL, NYSE: MRK, NYSE: EMC, NYSE: AXP, NYSE: BAC, NYSE: MCD, Nasdaq: CSCO, NYSE: BAC, OTC: AXAHY.PK, NYSE: MWE, Nasdaq: TRGP, NYSE: CHD, Nasdaq: CWTR, NYSE: ESL, Nasdaq: JOSB, NYSE: NQ, Nasdaq: ADGE, Nasdaq: ATAI, Nasdaq: CEDU, Nasdaq: CPRT, Nasdaq: DAKT, NYSE: DG, NYSE: REX, Nasdaq: GAME, Nasdaq: VRA, NYSE: VIP, Nasdaq: WEST, AMEX: SGS, Nasdaq: MATR, Nasdaq: RADA, NYSE: RTSA, Nasdaq: FCVA, NYSE: KV-B, Nasdaq: TLVT, Nasdaq: OREX, Nasdaq: LZEN, AMEX: LEI, Nasdaq: SYMS, Nasdaq: HMNF, Nasdaq: SGRP, Nasdaq: LTRX, Nasdaq: HOLI, Nasdaq: AUTH, Nasdaq: KIPS, Nasdaq: SPU, Nasdaq: NAII, Nasdaq: ENMD, NYSE: NLS, Nasdaq: VRNG, Nasdaq: INOC, Nasdaq: GOLF, Nasdaq: PERF, Nasdaq: SQNS.

Stock Market Drivers

Debt Ceiling Politics
After soundly defeating a bill to raise the debt ceiling sans any tax cuts, House GOP members are off to the White House today to have a heart to heart with the President. Republicans are expected to demand trillions in spending cuts from the Obama Administration in exchange for consolation on the debt ceiling hike.

ADP Private Employment Data
ADP (NYSE: ADP) published its estimate today for a 38K private nonfarm payroll increase in May. It’s a miniscule increase, especially when compared to the still mediocre gain of 177K ADP saw for April. The Labor Department reports on total nonfarm payrolls and unemployment Friday. The DOL’s April report showed private nonfarm payrolls increased by 268K. This latest estimate is especially concerning, given recent economic red flags.

Challenger Announced Job-Cuts
Challenger Gray & Christmas’ tally of announced layoffs showed little change in May, with planned firings marking 37,135, up just slightly from the 36,490 declared in April. For the year-to-date, announced layoffs are down 21%.

US Manufacturing Lull
ISM reported its Manufacturing Index this morning, and it offered concerning data. The ISM’s Purchasing Managers Index fell 6.9 points to 53.5 in May. While a reading above 50 still signifies economic expansion, the deceleration of expansion is at this point clear and deep.

Global Manufacturing Lull
The U.K., China and India all reported slower manufacturing activity in May. The HSBC India Manufacturing Purchasing Managers Index eased to 57.5, from 58 in April. Two separate surveys in China, one government tally and the other produced by HSBC (NYSE: HBC), both showed a moderation of manufacturing expansion. Both China and India are attributing a controlled deceleration to inflation fighting efforts the two nations’ central banks have been engaged in. The U.K.’s CIPS/Markit Purchasing Managers Index posted its fourth consecutive drop in overall activity, and its New Orders Index dropped below 50 in May, marking contraction.

Construction Spending
The Census Bureau reported construction spending increased 0.4% in April, against a March revision. April spending was still 9.3% short of the prior year period. This year’s activity is weighed by lower public construction spending, down 7.5% against the prior year and 1.9% short of March. Total private construction was up 1.7% in April, though still down 10.3% against the prior year period. Clearly new home construction is mired by the heavy inventory flood of distressed properties that remains in the market.

Mortgage Activity
The Mortgage Bankers Association reported a 4.0% decrease in its Market Composite Index for the week ending May 27. The Purchase Index was about unchanged while the Refinance Index fell 5.7%, despite a drop in fixed mortgage rates.

Greece Gets Lift on German Comments
Berlin corrected a newspaper report that previously stated the IMF might not be committed to any future aid package for Greece. German officials said the IMF and EU were committed to together provide additional funding to Greece. A team from the EU, IMF and European Central Bank (ECB) are in Athens now deciding whether to release a tranche of 12 billion euros to Greece next month. It seems clear Greece will continue to find support for now.

Timothy Geithner is testifying today before the House Financial Services Committee on the state of the international financial system.

The Bank of Japan kicks off its international conference on monetary policy.

The International Council of Shopping Centers (ICSC) reported a 2.8% year-over-year increase in same-store sales for the May 28 ending period. Redbook noted sales increased 3.6% for the same period.

Corporate Wire

GM (NYSE: GM) reported its May US sales slipped 3.5% against the prior year, where economists were looking for growth. GM predicted the total US industry annualized sales rate for May should range from 12 to 12.1 million. Reuters reports economists were looking for about 12.6 million. GM shares are down more than 2% on the news.

Macy’s (NYSE: M) reported its same-store sales rose 7.4% in May, meeting the company’s own aggressive expectations. However, the shares are down a half of a percent today on its failing to satisfy a greedy market.

American Superconductor (Nasdaq: AMSC) shares are down 20% at midday, after the company delayed its 10K on its review of revenue from customers in China. Before the day started, the shares had shed 63% of their value year-to-date. The company said it would be reversing recognition of a material amount of revenue over several quarters of data.

Marathon Oil (NYSE: MRO) made a $3.5 billion acquisition of Texas located oil and natural gas fields. As of May 1 the fields were producing 7K barrels of oil equivalent per day, but Marathon expects to boost production to 80K per day by 2016.

Noble Energy (NYSE: NBL) reported an oil discovery in the deep water of the Gulf of Mexico. The project is the first to receive a permit since the disaster at the BP (NYSE: BP) rig. It’s kind of funny that NBL shares are down about 1.9% on the news. Perhaps the market would have preferred the project be a no go.

Sealed Air (NYSE: SEE) said it will buy Diversey Holdings for $4.3 billion. The deal takes SEE into commercial cleaning and sanitation businesses. SEE shares were down 3% on the news.

A New York court is holding a hearing today on Google’s (Nasdaq: GOOG) settlement with publishers over digitizing books; the court had rejected the settlement.

Presenting at the Sanford C. Bernstein Strategic Decision Conference: Dell (Nasdaq: DELL), Merck (NYSE: MRK), EMC (NYSE: EMC), American Express (NYSE: AXP), Bank of America (NYSE: BAC) and McDonald’s (NYSE: MCD). Cisco Systems (Nasdaq: CSCO) is presenting at the Bank of America Merrill Lynch tech conference (NYSE: BAC). Meeting investors or analysts today, AXA SA ADR (OTC: AXAHY.PK), Mark-West Energy Partners (NYSE: MWE) and Targa Resources (Nasdaq: TRGP). Splitting today, Church & Dwight (NYSE: CHD).

The corporate earnings wire includes Coldwater Creek (Nasdaq: CWTR), Esterline Technologies (NYSE: ESL), Jos. A. Bank Clothiers (Nasdaq: JOSB), NetQin Mobile (NYSE: NQ), American DG Energy (Nasdaq: ADGE), ATA Inc. (Nasdaq: ATAI), ChinaEdu (Nasdaq: CEDU), Copart (Nasdaq: CPRT), Daktronics (Nasdaq: DAKT), Dollar General (NYSE: DG), REX American Resources (NYSE: REX), Shanda Games (Nasdaq: GAME), Vera Bradley Designs (Nasdaq: VRA) and Vimpelcom (NYSE: VIP).

The day’s most active stocks include – Gainers – Westinghouse Solar (Nasdaq: WEST), Stream Global Services (AMEX: SGS), eLoyalty (Nasdaq: MATR), Rada Electronics (Nasdaq: RADA), iPath Short Extended Russel 20 (NYSE: RTSA), First Capital Bancorp (Nasdaq: FCVA), KV Pharmaceutical (NYSE: KV-B), Telvent (Nasdaq: TLVT), Orexigen Therapeutics (Nasdaq: OREX), Lizhan Environmental (Nasdaq: LZEN), Lucas Energy (AMEX: LEI), Syms (Nasdaq: SYMS), HMN Financial (Nasdaq: HMNF), SPAR Group (Nasdaq: SGRP), Lantronix (Nasdaq: LTRX), Hollysys Automation (Nasdaq: HOLI), Authentec (Nasdaq: AUTH), Kips Bay Medical (Nasdaq: KIPS) – Losers – SkyPeople Fruit Juice (Nasdaq: SPU), Natural Alternatives (Nasdaq: NAII), EntreMed (Nasdaq: ENMD), Nautilus (NYSE: NLS), Vringo (Nasdaq: VRNG), Innotrac (Nasdaq: INOC), Golfsmith International (Nasdaq: GOLF), Perfumania (Nasdaq: PERF), Sequans Communication (Nasdaq: SQNS).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Market News - Data Disaster Strikes

A positive start to global trading was promptly dampened this morning by a trio of dire economic data points. Home prices effectively double-dipped today, reaching a new low for the housing recession. Consumer confidence collapsed thanks to expensive gasoline prices that plagued the month of May. Chicago area business expansion, or the manufacturing base of the nation, dropped sharply. The Dow is still up about a half of a point, but there are three solid hours of trading time for that to change.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: NYX, NYSE: ICE, Nasdaq: NDAQ, NYSE: NOK, NYSE: WMT, NYSE: EJ, NYSE: LGF, NYSE: PVH, Nasdaq: CRIC, Nasdaq: ELTK, NYSE: LAS, Nasdaq: XING, NYSE: FTE, NYSE: NLC, NYSE: TEX, Nasdaq: TRGL, NYSE: ENB, Nasdaq: USTR, Nasdaq: LECO, Nasdaq: SHOO, Nasdaq: YONG, Nasdaq: AGYS, NYSE: CV, Nasdaq: ELTK, Nasdaq: FCEL, NYSE: FBP-PB, Nasdaq: SQNS, Nasdaq: ZNWAZ, Nasdaq: RBNF, Nasdaq: FTWR, Nasdaq: MERU, Nasdaq: HEAT, Nasdaq: BOVA, Nasdaq: FTLK, Nasdaq: INOC, AMEX: AXK, AMEX: CGL-A, Nasdaq: NBIX, AMEX: KBX, NYSE: ASH, NYSE: ARL, Nasdaq: VLYWW, Nasdaq: TBET, Nasdaq: TTHI, Nasdaq: RITT, NYSE: NOK, Nasdaq: CBLI, Nasdaq: DHRM, NYSE: RLD, Nasdaq: BKOR, Nasdaq: MPET, Nasdaq: CBPO, Nasdaq: CFBK, AMEX: URG, NYSE: CEU, NYSE: LAS, Nasdaq: FCVA, AMEX: YMI, Nasdaq: ECTY, Nasdaq: FCCO, AMEX: URZ, AMEX: UEC, AMEX: ORS, Nasdaq: URRE.

Market News - Data Disaster Strikes

Consumer Confidence

The Conference Board’s measure of consumer confidence dropped precipitously at the end of May, acting as the final, yet most sure nail, in hammering down earlier enthusiastic stock trading. The metric of the consumer mood had stagnated after showing months ago that the recovery would not be a smooth one. However, over the past several months, the index had inched ahead. This latest measure marked a 5.2 point collapse, and really raises significant concerns about how deeply high gasoline prices have impacted consumer spending. At 60.8, the monthly mark missed by far the economists’ consensus set at 66.5, as tallied by Bloomberg. The index represents a disappointing state of affairs, and one worse than an already concerning state in April.

Home Prices

The S&P Case Shiller Home Price Index for March marked a new recession level low, effectively recording a double-dip in housing prices. For the first quarter, housing prices fell 5.1% against the prior year, taking prices back to their mid-2002 levels. 12 of 20 Metropolitan Statistical Areas (MSA) hit new lows, and 18 were down from February.

Midwestern Economy

The Chicago Purchasing Managers Index (PMI), reported today for the month of May, showed the pace of business expansion slowed in the Midwest this month. The Business Barometer Index fell to a mark of 56.6, from 67.6 in April. While a reading above 50 still marks economic expansion, the rapid drop in pace reinforces our concerns about economic slippage and downturn.

Investor Confidence

State Street’s (NYSE: STT) Investor Confidence Index gained in May. Amid many varied economic concerns, somehow global investor confidence still managed to improve this last month. Global confidence improved 6.8 points to an index reading of 104.1. The U.S. market was no drag either, as confidence in North American markets increased 7.7 points to 106.3. Even Europe gained 5.2 points to 79, though that absolute level of confidence illustrates recent months of decline.

Greece Uncertainty Cleared

Global markets got a boost this morning thanks to European official commentary regarding the possibility of its issuing additional aid to Greece. The euro gained on the news and markets across the board rose, including U.S. stocks ahead of the later reported poor economic data here at home.

Debt Limit Vote Today

A vote today to raise the debt limit is expected to fail, as it will include no cost cuts. The move to vote on the “clean” bill is a Republican political effort to paint the Democrats in a bad light. Tomorrow, the President meets with the entire GOP representation of the House.

Commodities and Currency

Oil is gaining today on a weakening relative dollar, which is weighed on by the debt dilemma in the States and the day’s European confidence building. WTI Crude Futures are up 1.75% to $102.35. Gold is about flat, while Wheat Futures are down about 3.8% in Chicago. The euro has gained 0.6% on the dollar, to $1.4374.

Corporate Wire

Nokia (NYSE: NOK) issued an earnings warning and its shares are down 15% as a result through midday. Nokia cited intense competition and tough pricing.

Wal-Mart (NYSE: WMT) had its South African acquisition of Massmart approved subject to certain conditions, though no further information was given. Wal-Mart was also in the news because it filled two open top executive spots in China after being hit by surprise resignations earlier this month.

The Corporate earnings wire includes news from E-House (China) Holdings (NYSE: EJ), Lions Gate Entertainment (NYSE: LGF), Phillips Van Heusen (NYSE: PVH), China Real Estate Information (Nasdaq: CRIC), Eltek (Nasdaq: ELTK), Lentuo International (NYSE: LAS), Qiao Xing Universal Resources (Nasdaq: XING). Holding meetings or calls, look for reports from France Telecom (NYSE: FTE), Nalco Holding (NYSE: NLC), Terex (NYSE: TEX), and Toreador Resources (Nasdaq: TRGL). Splitting shares today 2:1 Enbridge (NYSE: ENB), United Stationers (Nasdaq: USTR) and Lincoln Electric (Nasdaq: LECO); 3:2 Steve Madden (Nasdaq: SHOO).

Most Active Stocks

Biggest Gainers: Yongye International (Nasdaq: YONG), Agilysys (Nasdaq: AGYS), Central Vermont Public Service (NYSE: CV), Eltek (Nasdaq: ELTK), FuelCell Energy (Nasdaq: FCEL), First BanCorp Preferred (NYSE: FBP-PB), Sequans Communications (Nasdaq: SQNS), Zion Oil & Gas (Nasdaq: ZNWAZ), Rurban Financial (Nasdaq: RBNF), FiberTower (Nasdaq: FTWR), Meru Networks (Nasdaq: MERU), SmartHeat (Nasdaq: HEAT), Bank of Virginia (Nasdaq: BOVA), Funtalk China (Nasdaq: FTLK), Innotrac (Nasdaq: INOC), Accelr8 Technology (AMEX: AXK), Cagle’s (AMEX: CGL-A), Neurocrine Biosciences (Nasdaq: NBIX), Kimber Resources (AMEX: KBX), Ashland (NYSE: ASH).

Biggest Losers: American Realty Investors (NYSE: ARL), Valley National Bancorp (Nasdaq: VLYWW), Tibet Pharmaceuticals (Nasdaq: TBET), Transition Therapeutics (Nasdaq: TTHI), RIT Technologies (Nasdaq: RITT), Nokia (NYSE: NOK), Cleveland BioLabs (Nasdaq: CBLI), Dehaier Medical Systems (Nasdaq: DHRM), RealD Inc. (NYSE: RLD), Oak Ridge Financial (Nasdaq: BKOR), Magellan Petroleum (Nasdaq: MPET), China Biologic Products (Nasdaq: CBPO), Central Federal (Nasdaq: CFBK), UR Energy (AMEX: URG), China Education Alliance (NYSE: CEU), Lentuo Int’l (NYSE: LAS), First Capital Bancorp (Nasdaq: FCVA), YM BioSciences (AMEX: YMI), Ecotality (Nasdaq: ECTY), First Community Corp. (Nasdaq: FCCO), Uranerz (AMEX: URZ), Uranium Energy (AMEX: UEC), Orsus Xelent (AMEX: ORS), and Uranium Resources (Nasdaq: URRE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Pre-Market Report - Fed Minutes, ISM Nonmanufacturing, ICSC Sales Data

Wake Up Call

Tuesday's focus should be on the Fed Minutes release and ISM Nonmanufacturing Index. Also look for weekly same-store sales data this morning and within this pre-market report. The corporate newswire highlights EPS from K.B. Home (NYSE: KBH) and International Speedway (Nasdaq: ISCA).

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: NYSE: EFC, Nasdaq: GEDU, NYSE: SSL, Nasdaq: DELL, NYSE: ANF, NYSE: CRM, NYSE: UBS, Nasdaq: EDS, Nasdaq: ISCA, Nasdaq: VRNT, NYSE: ZEP, Nasdaq: ANGO, NYSE: KBH, Nasdaq: LAYN, Nasdaq: MIND, NYSE: MBT, Nasdaq: LEDS, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: NYX, NYSE: ICE, Nasdaq: NDAQ

Pre-Market Report

In the early AM, look for the International Council of Shopping Centers' (ICSC) Weekly Same-Store Sales Report. Last week's data covering the period ending March 26 showed same-store sales increased just 0.2% on a week-to-week basis, but that was an improvement from the prior week's 0.1% weekly sales decline. On a year-to-year basis, sales increased 2.6%, which compared to the prior week's 3.0% annual growth. Redbook reported a 2.6% yearly gain, versus the 2.4% gain it reported the week before. Look for the latest data before the opening bell Tuesday.

ISM's Nonmanufacturing Index for March will be published at 10:00 AM Tuesday. Bloomberg says economists are looking for a mirror image of February, with the index sticking at 59.7, which by the way was its six-year high. Economists' forecasts range from 57.7 to 68.8. Any reading above 50 still signifies economic expansion for the all important services sector of the American economy.

The Federal Open Market Committee (FOMC) releases its meeting minutes for its March gathering at 2:00 PM. Fed chatter is getting less predictable as we approach an inflection point, where the Fed will move from dovish to hawkish, barring new economic downtown. That is a possibility that is not out of the question. As it becomes less predictable, the FOMC releases have the ability to shock an uncertain marketplace.

Several Fed-Heads are due to speak Tuesday. Look for Atlanta Fed President Dennis Lockhart's morning address at the Atlanta Bank's Financial Markets Conference. During the lunch hour, catch Minneapolis Fed President Narayana Kocherlakota's address at her bank's workshop on homeownership. Philadelphia Fed President Charles Plosser is up to moderate a panel on weathering the financial crisis at 1:30 PM at the Atlanta Fed event.

In overseas news, look for markets to be closed in China, Hong Kong and Taiwan. The Reserve Bank of Australia has a meeting scheduled for Tuesday. GFMS will publish its 2011 copper survey.

On the corporate wire, look for IPO lockup curbs to expire on Ellington Financial (NYSE: EFC) and Global Education (Nasdaq: GEDU). Sasol (NYSE: SSL), Dell (Nasdaq: DELL) and Abercrombie & Fitch (NYSE: ANF) will be speaking with analysts and investors. Salesforce.com (NYSE: CRM) takes part in the Cloudforce Paris 2011 event and the UBS Investment Bank Bus Tour Tuesday (NYSE: UBS).

The day's EPS schedule highlights news from Exceed (Nasdaq: EDS), International Speedway (Nasdaq: ISCA), Verint Systems (Nasdaq: VRNT), Zep (NYSE: ZEP), Angiodynamics (Nasdaq: ANGO), K.B. Home (NYSE: KBH), Layne Christensen (Nasdaq: LAYN), Mitcham Industries (Nasdaq: MIND), Mobile Telesystems (NYSE: MBT), Semileds (Nasdaq: LEDS) and some others.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

Business News: Jobs Data, FDO, CEPH, QE3, Mortgages, Japanese Autos, Canadian Inflation, Oil Inventory

Today's Coffee

Today's Business Summary highlights economic data and business news from: ADP on Private Payrolls, Challenger on Job Cuts, the Mortgage Bankers Association on Mortgage Activity, Fed indications toward QE3 completion, Family Dollar's strong quarter, Cephalon's intriguing trading and its hostile bid from Valeant Pharmaceuticals, logistical issues at Japanese automakers, Obama's energy push, the EIA Petroleum Status Report, Canadian inflation, the repercussions of Japan's disaster, Salesforce.com's acquisition and more.

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

Relative Tickers: Nasdaq: CEPH, NYSE: VRX, NYSE: FDO, NYSE: TM, NYSE: HMC, Nasdaq: NSANY, NYSE: BP, NYSE: F, NYSE: GM, NYSE: WMT, NYSE: JPM, NYSE: TSN, NYSE: AYI, Nasdaq: AETI, NYSE: AMN, Nasdaq: AMCF, AMEX: BNX, Nasdaq: CWS, OTC: CDELB, Nasdaq: DSCI, AMEX: DRJ, Nasdaq: DRYS, Nasdaq: DIET, AMEX: LZR, NYSE: ES, Nasdaq: ENMD, AMEX: EVK, Nasdaq: VIFL, NYSE: GMR, Nasdaq: GAI, AMEX: GRZ, NYSE: GU, AMEX: INV, Nasdaq: JOSB, Nasdaq: LACO, NYSE: LNN, Nasdaq: MERR, NYSE: MOS, Nasdaq: PTIX, NYSE: SIG, NYSE: UNF, Nasdaq: UNTK, Nasdaq: VCGH, AMEX: WTT, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD, NYSE: NYX, NYSE: ICE, Nasdaq: NDAQ

Business News: ADP and Challenger Jobs Data, FDO, CEPH, QE3, Mortgages, Japanese Autos, Canadian Inflation, Oil Inventory

By "The Greek"

ADP Private Employment Report

ADP published its best estimate today for March Nonfarm Payrolls, seeing a 201K net increase in private market jobs. The result was just slightly less than the revised February net addition of 208K jobs. ADP reports that the result was in line with consensus expectations for ADP's data and for the government's data, due on Friday. The pace of job increase was significantly better through the first quarter of 2011, versus the last quarter of 2010.

Challenger Announced Corporate Layoffs

After a spike up in February, Challenger, Gray & Christmas reported that Announced Corporate Layoffs fell 18% in March, to 41,528. First quarter job cuts, at 130,749, were the lowest measured since 1995. Job cuts were still much improved from the prior year period, down 39%. However, the public sector saw job cuts increase by 17%, as municipalities and federal government budget cutbacks force layoffs. That said, even government layoffs were down from a year ago, falling by 62%.

Mortgage Activity Eases

As rates moved back up on easing concerns about the Middle East and Japan, mortgage refinancing activity led overall mortgage activity lower. For the period ending March 25, the Market Composite Index of mortgage activity fell 7.5% on a seasonally adjusted basis. The Refinance Index dropped 10.1%, as contracted rates on fixed rate mortgages of 30-year and 15-year durations increased to 4.92% (from 4.8%) and 4.16% (from 4.02%), respectively. Purchase activity also eased, but by just 1.7% on a seasonally adjusted basis, as the spring buying season is getting underway.

Fed Men Support Completion of Quantitative Easing

Two Federal Reserve Bank Presidents, Boston's Eric Rosengren and Chicago's Charles Evans, voiced support for the full completion of the Fed's $600 billion quantitative easing program scheduled to last through June. The argument by some Fed men that the economy is on "firmer footing," and so might not need the full program, is coming into question of late, given new economic data and developments in the marketplace and global economy. The duo of Fed Presidents intimated that it was likely still too early to pull stimulus and that it appears the target figure of $600 billion is appropriate.

Obama Pushing Energy Today

President Obama is delivering a speech today to promote energy independence in the wake of disruptions abroad which highlight the vulnerability of supplies. The goal is to reduce oil imports by one-third over the next decade through the development of alternative fuels and energy. In a teaser last night, the President said, "Let's actually have a plan. Let's, yes, increase domestic oil production, but let's also invest in solar and wind and geothermal and bio-fuels and let's make our buildings more efficient and our cars more efficient."

Japan Might be Bigger Problem than Experts Suggest

Reports that the nuclear situation could drag out like the BP (NYSE: BP) oil spill did have many quick-to-speak market strategists looking foolish today. Japan's nuclear experts are now saying that it could take a substantial amount of time to stabilize Fukushima. As this catastrophe drags out, it weighs on the world's third largest economy. Uncertainty is a heavy weight for markets to bear, and it appears gurus were wrong in their overlooking what is a very complex and unique situation in Japan.

Portugal Says A-Okay for 2011

Despite bearing a downgrade by credit rating bully S&P on Tuesday, Portugal's Secretary of State for Treasury and Finance, Carlos Costa Pina, said Portugal is in position to meet its bond obligations for 2011, especially the redemptions of long-term debt that will take place in April and June. Costa Pina suggests his country will do all it can to avoid taking foreign aid, as it is viewed internally as a great burden on both public and private sector growth. Indeed, Greece also tried to avoid taking help, but the markets forced it to by pressuring its cost of borrowing beyond its ability. The recent government turnover only increased uncertainty in Portugal and pushed bond yields higher. The outlook is not a bright one for Portugal and so credit-rater S&P is probably right, but after the fact as is proving a trend on Water Street (i.e. US MBS).

Canada Contributes to Inflation Fears

Canada reported its industrial product and raw materials prices increased more than expected in February. The North reported that industrial product prices increased 0.7% in February, against expectations for a 0.3% increase. The gain followed a 0.4% rise in January and a 0.8% increase in December. Prices were up 3.4% year-to-year. The Raw Materials Price Index rose 1.8% in February, and was three times more than economists foresaw.

EIA Petroleum Status

With Saudi Arabia on its horse to make up for the supply disruption from Libya, oil inventory increased again by 2.9 million barrels in the latest week. However, for the period ending March 25, total motor gasoline inventory again dropped precipitously, by 2.7 million barrels this time. The Saudis are saying they will send more oil conducive to gasoline refining to make up for the loss of high quality oil usually delivered from Libya. Indeed, US interests are at stake in Libya, as the price of gasoline is growing intolerable to American consumers.

Corporate News Wire

Family Dollar (NYSE: FDO) reported a penny better quarterly EPS than analysts had forecast on average (even after their adjustment higher in early March), and FDO forecast annual income ahead of analysts' estimates. As a result, its shares are higher today, but down from their premarket scramble. Family Dollar sees full year EPS at $3.13 to $3.23, ahead of the analysts' consensus for $3.12.

Cephalon (Nasdaq: CEPH) is trading at a $75 and change today, above the $73 per share hostile takeover bid by Valeant Pharmaceuticals (NYSE: VRX), Canada's largest drugmaker. Valeant's bid marked a 24% premium to CEPH's closing price Tuesday. Valeant is an aggressive acquirer, and it looks like the market is anticipating Cephalon's playing hard to get might work in its shareholders' favor. Or, investors may be indicating the possibility of a bidding war. Otherwise, if the deal were accepted, CEPH's shares would be trading at a slight discount to the bid price.

Salesforce.com (NYSE: CRM) is adding a social media aspect through its acquisition of private firm Radian6, announced Wednesday. The deal, costing $326 million in cash and stock, is seen as an asset to the cloud software writer's clients ability to track customer trends on social media sites.

Japanese automakers Toyota (NYSE: TM), Honda (NYSE: HMC) and Nissan (Nasdaq: NSANY) are experiencing logistics issues tied to car parts deliveries from shutdown plants in Japan. Toyota has reportedly told its US dealers to stop ordering certain parts, for fear it will run out. Meanwhile, testing for radiation at foreign locations poses threat to further taint the Japanese automakers' brands and deliveries.

Wal-Mart (NYSE: WMT) is holding an international conference today for the investment community. The J.P. Morgan (NYSE: JPM) Global Protein Conference highlights a presentation by Tyson Foods (NYSE: TSN). The earnings schedule highlights reports from Acuity Brands (NYSE: AYI), American Electric Technologies (Nasdaq: AETI), Ameron International (NYSE: AMN), Andatee China Marine Fuel Services (Nasdaq: AMCF), Banks.com (AMEX: BNX), China Wind Systems (Nasdaq: CWS), Citadel Broadcasting (OTC: CDELB), Derma Sciences (Nasdaq: DSCI), Dreams (AMEX: DRJ), DryShips (Nasdaq: DRYS), Ediets Com (Nasdaq: DIET), Emergent (AMEX: LZR), EnergySolutions (NYSE: ES), Entremed (Nasdaq: ENMD), Ever-Glory (AMEX: EVK), Family Dollar (NYSE: FDO), Food Technology Services (Nasdaq: VIFL), General Maritime (NYSE: GMR), Global-Tech Advanced Innovation (Nasdaq: GAI), Gold Reserve (AMEX: GRZ), Gushan Environmental Energy (NYSE: GU), Innovaro (AMEX: INV), Jos. A. Banks (Nasdaq: JOSB), Lakes Entertainment (Nasdaq: LACO), Lindsay (NYSE: LNN), Merriman (Nasdaq: MERR), Mosaic (NYSE: MOS), Performance Tech (Nasdaq: PTIX), Signet Jewelers (NYSE: SIG), Unifirst (NYSE: UNF), UniTek Global (Nasdaq: UNTK), VCG Holding (Nasdaq: VCGH), Wireless Telecom (AMEX: WTT) and others.

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.