Big Board Buzz: Earnings, Secondaries & Jobs

The S&P 500 and the NASDAQ are down 3 days in a row (the first time since the March 9th low); the S&P is now down 5 percent from its recent high one week ago.

April PPI was a bit hotter than expected, while weekly jobless claims was a little higher than expected; we are still well north of 600,000 claims per week.

Secondaries keep coming:

a) MGM priced 143 million shares at $7. They will use the money to pay down debt. Here's the problem: they were originally talking about only 81 million shares, and the stock closed yesterday at $8.70.

b) Hedge fund Fortress Investment Group also is raising $125 million

c) Cliffs Naturalpriced 15 million shares at $21 a share. Again, the stock closed at $23.18.

3) Wal-Martreported earnings in line with expectations, with second quarter guidance in line with expectations.

4) Kohl'sreported earnings slightly above consensus; more importantly second quarter guidance is roughly in line with consensus, while full year guidance of $2.19-$2.42 is higher than previous guidance of $2.00-$2.30. Like many retailers, Kohl's is doing a very good job of keeping inventory lean, which is helping margins.

5) An IPO: Digital Globe (DGI), a satellite imagery company, priced 14.7 million shares at $19, above the price range of $16-$18 that was discussed.

6) AIGto spin off American International Assurance, its Asian life insurance unit in Hong Kong, in an IPO for $5-$10 billion in the first quarter of 2010, according to the WSJ. They had been seeking to sell a stake in the company, but were apparently not successful.

7) Barclaysup 6 percent, Deutsche Bankup 1 percent as Morgan Stanley upgrades both banks this morning. The broker sees earnings benefiting from a steep yield curve.




Questions? Comments?