Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.  Stocks are rallying again this morning with the Shanghai Index up over 3% in a biggest single day gain in almost a year.  Earnings today: ASML, INFY, AA.

Morning Market Levels:

  • S&P futures are up 8 points to 1,198
  • Europe: DJ Euro Stoxx 1.3%, FTSE 0.2%, CAC 1.3%, DAX 1.2%, Spain 1.0%, Italy 1.7%
  • Asia: Japan -0.4%, Hong Kong 1.0%, India 2.6%, Australia -0.6%
  • USD (DXY) down -0.77%
  • Gold up 1.57% to $1,689.7
  • Silver up 2.49% to $32.9
  • Copper up 2.32% to $336.9
  • Crude up 0.17% to $86.0
  • Corn up 1.24% to 652.8
  • Wheat down -0.15% to $660.0
  • 10yr Treasury yields are up, trading at 2.22%
  • S&P current trading at 11.95x current year P/E

Today’s Top Stories:

  • Europe EFSF Update: After the close yesterday Slovakia’s parliament failed to pass the July 21st EFSF changes. This was anticipated, another vote will come as early was Wednesday http://bit.ly/oByU04
  • Soros and others write letter: “as concerned Europeans we urge eurozone leaders to unite” http://on.ft.com/r14U1d
  • Obama Jobs Package Update: Votes Tuesday night fall well short of passing in the Senate failing at 50-49, two democrats wound up voting against the bill http://bit.ly/nfDtlS
  • City of Harrisburg, PA files Bankruptcy: After a vote by the city council the city filed for bankruptcy protection (Bloomberg)
  • Housing & Mortgages: The Mortgage Bankers Associate said it forecasts home lending to fall 25% in 2012 to $900bn (Bloomberg)
  • Regions (RF): Fairholme sold more than half of its Regions holdings http://bit.ly/neHnDS
  • Forest Oil (FST): SAC Capital disclosed that  the firm added to its position in Forest Oil Corporation http://bit.ly/r40KDa
  • Volcker Rule (banks): “Bottom line under its current form the rule would have reasonably negative consequences to the US banks and financial system via less market liquidity, higher funding costs and higher trading costs/lower returns for investors” (Nomura Research)
  • Financials Trading Color: “Since the rally began, Big Banks have outperformed. C has outperformed GS by 12% and Street seems most comfortable w/ C vs peers heading into earnings” (UBS Research)
  • 3Q11 S&P Earnings Preview: “team expect a modest upside surprise of 2% to 3Q consensus estimates, resulting in operating EPS of about $25. The trailing four quarter total of $94 would represent a new peak EPS for the S&P 500 (above the previous peak of $91 established in 2Q 2007), and is on pace for the team’s full-year 2011 EPS estimate of $96” (Goldman Research)

Economic Calendar:

  • Wednesday: n/a
  • Thursday: Trade Balance, Initial Jobless Claims
  • Friday: Import Price Index, Retail Sales, U. of Mich Confidence

M&A Watch:

  • Research In Motion shareholder Jaguar Financial says more investors support campaign to urge BlackBerry maker to sell itself, seek merger partner or divide into separate companies (Bloomberg)
  • 99 Cents Only Stores to be acquired by Ares Management, Canada Pension Plan for $1.6bn in cash (32% premium to the stock price) http://bit.ly/mWQET5
  • Avenue Capital, Blackstone’s GSO Capital unit among investors that own debt in Eastman Kodak and said to be seeking to profit from potential sale of digital-imaging patents (Bloomberg)
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.