Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.

International Monetary Fund [oct 25]

Today’s Top Stories:

  • Tilson’s Recommended Readings: For anyone looking to break into the hedge fund industry, here is a good resource for MUST-READS for any to-be hedge fund analysthttp://bit.ly/vUqV8c
  • EU P/E Multiples Lowest Since 1980s: expect stocks to go higher about 10-15% given that equity risk premium priced into market is near 2009 peak and P/E valuations near their lowest levels since the 1980?shttp://bit.ly/tV5RBD
  • Italy is Insolvent: The International Monetary Fund may be forced to classify Italy as insolvent during the first half of 2012… IMF economists described a debt-to-GDP ratio of 120 percent as “the maximum level considered sustainable for a market access country” (BBG)
  • Corporate Credit: CDX.IG, HY and LCDX tightened -5.5bp, -45bp (+$1.5) and -22bp (+$0.75) yesterday. Closing marks were 127bp, 723bp ($91.75) and 441bp ($92.75)
  • Investors Leave Stocks & Go To Bonds: Worldwide, investors have taken $34 billion out of equity funds this year and put $75 billion into bonds http://bit.ly/tPUbAL
  • Strong Holiday Sales: ace of holiday sales seems pretty decent as evidenced by updates from ShopperTrak (raised its sales forecast from +3% to +3.7) http://bit.ly/trH0mW
  • BAC’s Mortgage Problems: is close to settling a U.S. Justice Department investigation into whether its mortgage lender unit Countrywide Financial violated fair-lending practices (Dow Jones)
  • Earnings this AM: NKE +3% great quarter, WAG -3% misses top and bottom line, TEVA +0.5% announces $3B sh buyback, ORCL -10% big miss across almost all segments, JBL -7% in-line EPS but revs and guidance light

Economic Calendar:

  • Wednesday: Existing Home Sales
  • Thursday: Chicago Fed Survey, GDP, Personal Consumption, Initial Jobless Claims, U. of Mich Confidence, Leading Indicators, House Price Index
  • Friday: Durable Goods Orders, Personal Income, New Home Sales

M&A Watch:

  • Weekly M&A Trends: Announced M&A volumes improved by 55.1% to $50.2 billion. 4Q11 volumes are averaging 9% below the 3Q11 average weekly volume http://bit.ly/shSgxN
  • DFG getting bought by Tokio Marine in cash deal = $2.7B
Disclosure: I do not have a position in any stocks mentioned in this article, do not have a plan to initiate a position within the next 72 hours.
Disclaimer:  The information, opinions, material, and any other content provided in this article is for informational purposes only and is not to be used or considered an offer or solicitation to buy or sell securities, investment products, financial instruments, or to participate in any particular investment strategy. The information, opinions, material, and any other content provided in this article does not constitute as a recommendation or as advice to buy or sell securities, investment products,  financial instruments, or to participate in any particular investment strategy.
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