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

Morning Market Levels:

  • S&P futures are down -28 points to 1,222
  • Europe: DJ Euro Stoxx -4.7%, FTSE -3.1%, CAC -4.5%, DAX -5.3%, Spain -3.8%, Italy -5.9%
  • Asia: Japan -1.7%, Hong Kong -2.5%, India -1.3%, Australia -1.5%
  • USD (DXY) up 1.06%
  • Gold down -1.29% to $1,692.8
  • Silver down -4.16% to $32.9
  • Copper down -4.25% to $347.8
  • Crude down -2.74% to $90.6
  • Corn down -2.05% to 633.8
  • Wheat down -1.99% to $615.8
  • 10yr Treasury yields are up, trading at 2.02%
  • S&P current trading at 12.61x current year P/E

Today’s Top Stories:

  • Danske Bank Cuts: said it will cut 2,000 jobs during quarterly earnings this morning
  • Barclays Investment Banking Results: Barclays announced investment banking revenue of GBp 389mn, down 25% vs. last quarter and down 22% vs. last year http://bit.ly/tIe9cI
  • MF Global Missing Money: Federal regulators have discovered that hundreds of millions of dollars in customer money has gone missing from MF Global in recent days, prompting an investigation into the brokerage firm, which is run by Jon S. Corzine, the former New Jersey governor, several people briefed on the matter said on Mondayhttp://nyti.ms/sR5EGz
  • Nomura Earnings & Cuts: posted a 3Q $590mn loss, said it would cut $1.2bn in expenses
  • Hanawalt out with 13F Holdings: After market close today, Hanawalt Associates released its Q3 2011 13F holdings filing. The fund has a long-term and deep value oriented strategy focus with an average market cap of $65 billion per holding http://bit.ly/uoMqQF
  • Credit Suisse Earnings: big miss driven by poor investment banking results, fixed income is the worst absolute number in 3Q outside of BAC and UBS, bank plans restructuring measures
  • Pershing Square Buys CP: After market close on Friday, Ackman’s Pershing Square Capital disclosed that it held beneficial ownership of 12.2% of the outstanding common stock of Canadian Pacific Railway Limited (NYSE:CP). Ackman believes shares are undervalued and represent an attractive investment http://bit.ly/syoWLb
  • Citi Research Thoughts: “With risk materially reduced, the balance sheet strengthened and profitability improving, the current risk/reward on the shares is attractive. We think that pressure on the shares is overdone, with a disconnect between the valuation of 0.6x TBV and our forecasts of return on tangible equity (ROTE) of 9% in 2012 and ability to generate a double-digit ROTE for the core Citicorp” (Credit Suisse Research)

Economic Calendar:

  • Tuesday: ISM Manufacturing, Construction Spending
  • Wednesday: ADP Employment, FOMC Rate Decision
  • Thursday: Initial Jobless Claims, ISM Non-Manufacturing, Factory Orders
  • Friday: Nonfarm Payrolls, Unemployment Rate

M&A Watch:

  • US judge barred HRB from buying TaxACT
  • ADBE acquires Auditude. Terms not yet disclosed
  • H&R Block barred by federal judge from proceeding with proposed $287.5m acquisition of TaxAct products’ maker as it would diminish competition (BBG)