Morning Market Levels:

  • S&P futures are down -6 points to 1,276
  • Europe: DJ Euro Stoxx -0.5%, FTSE -0.2%, CAC -0.5%, DAX -0.1%, Spain -0.8%, Italy -1.4%
  • Asia: Japan 1.4%, Hong Kong 1.7%, India 3.0%, Australia 0.1%
  • USD (DXY) down 0.00%
  • Gold down -0.51% to $1,737.8
  • Silver down -0.73% to $35.0
  • Copper down -1.26% to $364.6
  • Crude down -1.54% to $92.5
  • Corn down -0.58% to 647.8
  • Wheat down -0.70% to $639.5
  • 10yr Treasury yields are up, trading at 2.35%
  • S&P current trading at 12.94x current year P/E

Today’s Top Stories:

  • Global Rally Yesterday on EU Vote: in Brussels the Heads of State and Government (HoSG) agreed on a second Greek rescue package, including a 50% haircut to Greek debt, a larger contribution from the public sector totally EU 130bn http://bit.ly/sVRtOW
  • Govt Supercommittee Failing: After two months of near daily negotiations, the gulf between Democrats and Republicans on the deficit-cutting supercommittee remains deep http://politi.co/syQzQO
  • Goldman Comments on Oct Weakness: “The Goldman Sachs Analyst Index (GSAI) edged down further in October to 42.4 following a big drop in September. Both the headline and the underlying detail—weakness in new orders, relatively rapid inventory accumulation, and a slight contraction in employment—paint a weaker picture than most of the recent economic indicators. The price-related indexes all dropped, reflecting falling commodity prices, subdued wage growth, and limited pricing power” (Goldman Research)
  • MS Buys Fortress Stock: Morgan Stanley (NYSE:MS) announced shortly after today’s market open that it beneficially owns 5% of the outstanding common stock of Fortress Investment Group (NYSE:FIG)http://bit.ly/rqakCe
  • Yesterday Lazard Posted Strong IB: M&A looks extremely strong driving much of the beat vs. analyst expectations, M&A advisory posted revenue of $199mn http://bit.ly/sixORg
  • Macquarie Cuts Outlook: Macquarie Group Ltd. took an axe to full-year guidance on the back of a 305 million Australian dollar (US$326 million) net profit, down 24% from a year ago and below analysts’ expectations http://on.wsj.com/uGjNws
  • Third Avenue Reduces Catalyst Paper Position: Third Avenue Management disclosed that it reduced its beneficial ownership in the outstanding common shares of Catalyst Paper Corporation (CTL.TO) from 32.3% to 30.4% due to “instructions from various investment advisory clients” http://bit.ly/v2wgxH

M&A Watch:

  • Yahoo said to be exploring potential tax-free way to dispose stake in China’s Alibaba Group, WSJ says; stake valued at $14b (BBG)
  • Walt Disney to buy 49% stake in Russia’s Seven TV from UTH Russia; Interfax news agency says Disney is paying $300mn (BBG)
  • Hertz Global, which has been trying to buy Dollar Thrifty for ~18 mos., withdraws exchange offer (BBG)