December 18, 2012
In After Hours Trading
President Obama proposed raising the cap on tax increase to above $400,000 from $250,000 and to accept certain spending cuts. Both the President and House Speaker Boehner are getting closer to a deal. The new number for tax revenues to be raised is $1.20 billion the exact middle of where President Obama and House Speaker wanted to be, $1.6 billion and $800 million.
DMND (-.03), SHFL (-.02), STEI (+.02).
What’s Happening This Morning
US futures: (S&P +6.00, DJI +43, NDX +17.80 with fair value lower) Asia higher ex Hong Kong and Europe higher. Copper and gold higher with WTI Crude Futures higher. $ is lower vs Euro, lower vs. Pound and flat vs. Yen. US ten-year Treasury Yield +.0105. Prices as of 7:55 a.m. EST.
Earnings Expected
Earnings due after the close ORCL HEI APOG AIR. Due tomorrow morning before the open FDS JEF SAFM.
Rags & Mags: Inside Wall Street
We are big fans of www.247wallst.com summary of the newspapers each day. Going forward we will link to their website so you can read their summary, Media Digest
Reported Earnings This Morning
FDS ( ), JEF ( ), SAFM (+.13).
Data Points
Yesterday saw 2036 stocks rise and 1003 fall on the NYSE. NASDAQ saw 1717 rise and 766 fall. The S&P 500 now back below its 50 day moving average and above the 200 day moving average. The 10 day spread moving average of breadth is now positive again, barely, and we remain with the buy signal but a turn may be forthcoming. We are back to invested on the Madison Market Timing Indicator.
Economics
Due out this week housing starts, Q3 GDP, existing home sales, leading indicators, personal income and Michigan Confidence.
Politico
Dallas Federal Reserve President Fisher speaks on the economy at 1:15 p.m. EST.
Conference & Analyst Meetings
Analyst Meetings OREX MED.
Conference of Note
Lazard Capital Med Tech Conference.
M & A News
ARB to be acquired NLSN for $48 a share.
Key Upgrades and Downgrades
| Firm | Upgrades | Downgrades |
|---|---|---|
| JP Morgan | ||
| Goldman Sachs | SIRI CJES | |
| Morgan Stanley | ||
| Deutsche Bank | ||
| Citigroup | ||
| Barclays | ||
| Wachovia/Wells Fargo | HRZN | |
| Credit Suisse | ||
| Banc of America | ||
| UBS | ||
| Lazard | ||
| Merrill Lynch | ||
| Jefferies | ||
| Cantor Fitzgerlad | UNIS | IRWD |
| Dahlman Rose | ||
| Sterne Agee | ||
| Stifel Nicolaus | ||
| Societe Generale | ||
| Keefe Bruyette | ||
| Friedman Billings | ||
| Robert W. Baird | ||
| Needham | CUB |
