Moenning�s Daily State of the Markets: 10/07
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Was That A Washout?
Yesterday afternoon�s Fisher-induced plunge had the look and feel of a classic washout. Stocks opened higher, reversed lower on oil prices, and then took a dive after Mr. Fisher called inflation a �virus� that could not be allowed to �infect the blood supply� of the economy. But perhaps his most damaging (and hawkish) comment was that he didn�t want to see a replay of 1970�s style inflation. Even bonds took notice this time, and the rout was on. But during the final whoosh, a rebound took hold and it appeared that maybe, just maybe, we have seen the worst of the current decline.
This morning all eyes are on the jobs report. And although the numbers are clearly tainted by the Government�s decision to change some of the calculations, the report was stronger than expected. Stocks have improved slightly on the news and point to a higher open while bonds spiked to their highest level since April.
Stocks "In Play" This Morning:
MSFT � In discussions with TWX to form alliance of internet units
FCX � Lehman raised estimates based on Copper price forecast
HAL, NOV � Lehman says to overweight oil services and drilling
SBUX � Burger King to introduce high end coffee: BK Joe
BNI, NSC � Bear Stearns upgrades rails
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: SBUX, NSC
To see Mr. Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
Yesterday afternoon�s Fisher-induced plunge had the look and feel of a classic washout. Stocks opened higher, reversed lower on oil prices, and then took a dive after Mr. Fisher called inflation a �virus� that could not be allowed to �infect the blood supply� of the economy. But perhaps his most damaging (and hawkish) comment was that he didn�t want to see a replay of 1970�s style inflation. Even bonds took notice this time, and the rout was on. But during the final whoosh, a rebound took hold and it appeared that maybe, just maybe, we have seen the worst of the current decline.
This morning all eyes are on the jobs report. And although the numbers are clearly tainted by the Government�s decision to change some of the calculations, the report was stronger than expected. Stocks have improved slightly on the news and point to a higher open while bonds spiked to their highest level since April.
Stocks "In Play" This Morning:
MSFT � In discussions with TWX to form alliance of internet units
FCX � Lehman raised estimates based on Copper price forecast
HAL, NOV � Lehman says to overweight oil services and drilling
SBUX � Burger King to introduce high end coffee: BK Joe
BNI, NSC � Bear Stearns upgrades rails
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: SBUX, NSC
To see Mr. Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
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