Russell 3000 Sheds Nearly $2 Trillion in Cap Value

July 2, 2008

By Murray Coleman

Last June, gas prices at the pump were well below $3 a gallon and a rampaging mortgage meltdown wasn’t even a reality yet.

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It’s Still All About Oil

July 2, 2008

Hickey and Walters (Bespoke) submit:

Earlier in the week we highlighted a chart of the intraday performance of oil and the S&P 500 last week, which showed how each up (or down) move in oil was met with an opposite move in the S&P 500. Looking at the relationship between oil and the S&P 500 this week shows that it’s still all about oil.

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It’s Still All About Oil

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Have the Financials Found Their Bottom?

July 2, 2008

Bill Luby submits:

Halfway through Wednesday’s session, my screen is once again filled with red. The indices look as if they are poised to take a run at yesterday’s lows.

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Have the Financials Found Their Bottom?

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02 Jul 2008 15:58:00 - Top 5 Stocks up on Unusual Volume

July 2, 2008

Intraday Unusual Volume - Top 5 Up

Symbol	Volume % Change	Price % Change	News
SMSC	459%	27.67%	news
MHGC	286%	11.41%	news
APOL	264%	54.86%	news
MYGN	257%	52.82%	news
GMXR	246%	81.47%	news

02 Jul 2008 15:58:00 - Top 5 Stocks up on Unusual Volume

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Euro Rallies Ahead of ECB Meeting Thursday

July 2, 2008

Kathy Lien submits:

The Euro is rallying ahead of Thursday’s ECB monetary policy meeting telling us that the market expects ECB President Trichet to say something hawkish. A 25bp rate hike has already been discounted by currency traders, but with the annualized pace of Eurozone producer prices growing by the fastest pace on record, consumer spending in Germany doubling expectations and the German unemployment rate falling to a 14 year low, the ECB may have to reconsider their plans to raise interest rates by only 25bp this year.

The ECB is a central bank that hates surprises and because of that, they always like to prepare the markets weeks if not months in advance of any pending move. That is why they have been telling us that a 25bp rate hike, which would be their first since 2007 is the appropriate expectation for the upcoming monetary policy meeting. They have also been warning that they are not planning a series of rate hikes. However the ECB may have to backtrack on these words given the recent economic reports.

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Euro Rallies Ahead of ECB Meeting Thursday

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Tech M&A Down 40%, LBOs Down 92%

July 2, 2008

Eric Savitz (Barron’s) submits:

A down turn in stock prices and the virtual shut-down of the LBO business has resulted in a sharp reduction in tech sector M&A activity, according to a new report by The 451 Group.

In Q2, according to 451 analyst Brenon Daly, overall tech M&A fell 40% from a year earlier, to $148 billion from $241 billion. More stark was the drop in private equity deals, which fell to just $7 billion in the quarter, down from $85 billion one year earlier, a 92% decline. The number of tech LBOs worth more than $1 billion fell to 2 this quarter, from 8 a year earlier.

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Tech M&A Down 40%, LBOs Down 92%

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Thursday’s Payrolls Number - How Bad Will It Be?

July 2, 2008

Kathy Lien submits:

Non-farm payrolls for the month of June are due for release this Thursday, but with the Federal Reserve no longer looking to cut interest rates, will the degree of payroll growth actually have meaningful impact on the U.S. dollar?

The NFP number is being released at the exact same time that ECB President Trichet begins his press conference (3 Potential Outcomes to the ECB Meeting), which means that we could see unusual volatility tomorrow morning. The ECB press conference and the NFP report will either neutralize each other or be a toxic combination for the US dollar.

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Thursday’s Payrolls Number - How Bad Will It Be?

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Wednesday Options Outlook: CHK, YHOO, QID, SNDK, ARM, HOV

July 2, 2008

Rebecca Engmann Darst co-authored this article.

Chesapeake Energy Corp (CHK)
– Chesapeake Energy Corp staged an aggressive 6.7% advance to $71.85 after announcing a joint
venture in the Haynesville Shale area with Plains Exploration valued at
$3 billion. The market has placed great store in any promising news out of the
Haynesville Shale field, and recent activity reports have been bullish not just
for Chesapeake share price action and call activity, but for other companies
(such as PetroHawk) with a presence in the region. Today’s news pushed
Chesapeake call volume to a new 52-week high before the noon hour –
besting the record set back on June 19 and making Chesapeake one of our
top-volume movers. Call volume at the July 70 and 75 calls showed traders
looking to cash out of positions at the lower strike after the value of this
position rose as much as 121% overnight, but the action in 75 calls consisted primarily
of buyers, well in excess of open interest. A 20,000-lot long position at the
July 55 put line was also conspicuous. Speculative call activity extended into
the August contract with strikes 75, 80 and 85 all trading in excess of open
interest.