Every morning the Street of Walls team puts out an update on market levels, today’s top stories, and active M&A deals.
Today’s Top Stories:
- Citi Global Strategy: “Asked equity strategists around the world for 10 contrarian and 10 momentum investment ideas for 2012. Contrarians underweight defensives, overweight financials; momentum ideas are more mixed: US Underweight Autos, while Japan Overweight Information and Communication” (Citi)
- David Einhorn’s New Position: He disclosed that he added two new positions in Q4, which include DELL and Xerox http://bit.ly/xVNztd
- BAC Earnings: BAC reported 4Q11 EPS of $0.15. The most recent consensus was $0.16. Operating revenues declined 8% on both a y-o-y and sequential quarter basis. Relative to our expectations, fee income and net interest income (smaller balance sheet) were below our forecast
- Marathon Asset Adds AM: Marathon Asset Management disclosed a 15.98% stake in the outstanding common stock of American Greetings Corporation (NYSE:AM) http://bit.ly/wc4bEl
- Credit Suisse Global Strategy: “We raise our year-end target for the S&P 500 to 1,400 (8% above current levels) from 1,340 – and see a significant likelihood of an overshoot near term, on the back of the following factors: 1) The ECB’s 3-year LTRO is a potential game changer: it is printing money; could be exceptionally large; could drive the euro to levels required to stop the recession (c€/$1.10); is driving the three-year bond yield to levels consistent with temporary debt sustainability in Italy and Spain; and, critically, it is a form of debt mutualisation (as the haircuts applied to collateral are too low) that is less emotive for the German public than QE or the SMP” (CS)
- Goldman 4Q IB Results: Net revenues in Investment Banking were $857 million for the fourth quarter of 2011, 43% lower than the fourth quarter of 2010 and 10% higher than the third quarter of 2011http://bit.ly/yR3BFC
- Hedge Funds May Sue Greece: edge funds have been known to use hardball tactics to make money. Now they have come up with a new one: suing Greece in a human rights court to make good on its bond paymentshttp://nyti.ms/zBj8E7
- JPM Center of MF Global Failure: n late October, as MF Global Holdings Ltd teetered toward bankruptcy, Jon Corzine phoned his close-knit circle of Wall Street friends for help http://reut.rs/wDFEg7
- One million homeowners getting mortgage help: About one million American homeowners would get writedowns in the size of their mortgages under a proposed deal with banks over shady foreclosure practices, U.S. Housing and Urban Development Secretary Shaun Donovan said on Wednesday http://reut.rs/yCUK70
M&A Watch:
- Weekly M&A Trends: M&A volumes increased 44% while equity and debt underwriting rose substantially http://bit.ly/yZJ4HN
