VMware (VMW +4.9%) pops on a bullish note from Morgan Stanley. Following a meeting with management, the firm professes greater confidence the virtualization leader can deliver $10B in 2016 revenue (the 2012 consensus is for $4.59B), and is reiterating a $130 PT. [View news story]
Schlumberger (SLB +1.7%) isn't seeing signs of a slowdown in international activity, despite increasing concerns over a shaky global economy, CEO Paal Kibsgaard says following its solid Q2 results. "Absent a future setback to the world economy, we're expecting 10% international growth" in operations this year, he said during a conference call. [View news story]
Expecting is one thing. Getting the 10% is another.
The number of U.S. businesses and consumers filing for bankruptcy fell by 14% to 632,130 in H112, and could end the year at the lowest level since before the 2008 financial crisis, according to the American Bankruptcy Institute's Samuel Gerdano. He attributes the decline to low interest rates, which have been kept at rock-bottom levels by the Fed since the crisis began. [View news story]
European markets continue to grind higher following the summit, with today's vibe similar to that of last October's summit conclusion. Europe wasn't solved then (as it wasn't last night), but it didn't stop a sizable rally over the next few months. Stoxx 50 +3.5%, Germany +3.1%, Italy +4.3%. VGK +2.9% premarket. [View news story]
The Eurogroup gives its thumbs up to the election result and "looks forward to the swift formation of a new Greek government that will take ownership of the adjustment program to which Greece and the Eurogroup earlier this year committed themselves." The Troika is expected to return to Athens upon formation of the new government to "exchange views" on the way forward. (full statement, .pdf) [View news story]
The Eurogroup gives its thumbs up to the election result and "looks forward to the swift formation of a new Greek government that will take ownership of the adjustment program to which Greece and the Eurogroup earlier this year committed themselves." The Troika is expected to return to Athens upon formation of the new government to "exchange views" on the way forward. (full statement, .pdf) [View news story]
Facts from CNN Meanwhile, the clock is ticking on some key deadlines. The government must identify additional budget cuts by the end of June to comply with the terms of its bailout program. If it fails to do so, analysts say the European Central Bank could cut off funding to Greek banks, which have already been drained of cash as deposits flee the country. In addition, Greece is facing a €3.9 billion bond redemption in August. Also, US is slowing. Bad economic numbers last week. Is this a good reason to buy stocks?
I Told You So: Facebook's Ugly IPO Debut [View article]
Actually I would say that FB held its own. Its a down market and its very ugly period. Look at some of the other social flies and they for some reason are good? One...LNKD price 99.00 PE 649.16, Oh give me a thousand shares of that one!
As Chesapeake (CHK) confirms its $3B bridge loan has turned into $4B, Sanford Bernstein notes if CHK’s debt pile amounts to more than 4X its trailing four quarters of EBITDA, it would trigger a cascading bond default. Given anticipated producing asset sales decreasing EBITDA, along with lower natural gas prices, "the ratio has the potential to approach, if not exceed" the threshold by Q3 or Q4. [View news story]
Trend-Topping Tuesday: Too Tough To Turn The Tide? [View article]
Whipsaw Wednesday: Down And Up We Go [View article]
Will We Hold It Wednesday: S&P 1,440 Edition [View article]
VMware (VMW +4.9%) pops on a bullish note from Morgan Stanley. Following a meeting with management, the firm professes greater confidence the virtualization leader can deliver $10B in 2016 revenue (the 2012 consensus is for $4.59B), and is reiterating a $130 PT. [View news story]
Schlumberger (SLB +1.7%) isn't seeing signs of a slowdown in international activity, despite increasing concerns over a shaky global economy, CEO Paal Kibsgaard says following its solid Q2 results. "Absent a future setback to the world economy, we're expecting 10% international growth" in operations this year, he said during a conference call. [View news story]
Fed Has Economic, Political Cover To Launch Bullish QE3 [View article]
The number of U.S. businesses and consumers filing for bankruptcy fell by 14% to 632,130 in H112, and could end the year at the lowest level since before the 2008 financial crisis, according to the American Bankruptcy Institute's Samuel Gerdano. He attributes the decline to low interest rates, which have been kept at rock-bottom levels by the Fed since the crisis began. [View news story]
European markets continue to grind higher following the summit, with today's vibe similar to that of last October's summit conclusion. Europe wasn't solved then (as it wasn't last night), but it didn't stop a sizable rally over the next few months. Stoxx 50 +3.5%, Germany +3.1%, Italy +4.3%. VGK +2.9% premarket. [View news story]
Can Europe Pull Germany From Fantasy Land? [View article]
The Eurogroup gives its thumbs up to the election result and "looks forward to the swift formation of a new Greek government that will take ownership of the adjustment program to which Greece and the Eurogroup earlier this year committed themselves." The Troika is expected to return to Athens upon formation of the new government to "exchange views" on the way forward. (full statement, .pdf) [View news story]
The Eurogroup gives its thumbs up to the election result and "looks forward to the swift formation of a new Greek government that will take ownership of the adjustment program to which Greece and the Eurogroup earlier this year committed themselves." The Troika is expected to return to Athens upon formation of the new government to "exchange views" on the way forward. (full statement, .pdf) [View news story]
Meanwhile, the clock is ticking on some key deadlines.
The government must identify additional budget cuts by the end of June to comply with the terms of its bailout program. If it fails to do so, analysts say the European Central Bank could cut off funding to Greek banks, which have already been drained of cash as deposits flee the country. In addition, Greece is facing a €3.9 billion bond redemption in August.
Also, US is slowing. Bad economic numbers last week. Is this a good reason to buy stocks?
Greece forks over €18B to recapitalize its four largest banks, allowing them to regain access to ECB funds after the central bank refused to backstop the illiquid banks last week. [View news story]
Whipsaw Wednesday: You're Lucky They Don't Charge You To Take Your Money [View article]
I Told You So: Facebook's Ugly IPO Debut [View article]
As Chesapeake (CHK) confirms its $3B bridge loan has turned into $4B, Sanford Bernstein notes if CHK’s debt pile amounts to more than 4X its trailing four quarters of EBITDA, it would trigger a cascading bond default. Given anticipated producing asset sales decreasing EBITDA, along with lower natural gas prices, "the ratio has the potential to approach, if not exceed" the threshold by Q3 or Q4. [View news story]