This Week in Stocks: 6/30 - 7/06/07

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Jobs Numbers

http://www.briefing.com/Investor/Public/Calendars/EconomicCalendar.htm

 

[weatherweenie]

U.S. Payrolls Rose 132,000 in June; Unemployment Rate at 4.5%

By Joe Richter
July 6 (Bloomberg) -- Employers in the U.S. added 132,000 workers to payrolls last month, wages grew and the unemployment rate held near a six-year low, signaling the job market will continue to sustain American consumers.
The increase in employment followed a 190,000 gain in May that was larger than previously reported, the Labor Department said today in Washington. The jobless rate held at 4.5 percent for a third month.

 

[tsptalk]

Once again the reports themselves are so untrustworthy with May's revision from 157K to 190K. This month's 132K was a good number but what will it be revised to next month.

 

[Bullitt]

A fluke just like yesterday's oil inventories. I'm not expecting too many more upside surprises in oil inventories for the rest of the summer.

 

[Bullitt]

I'm not saying the Stock Market is corrupt, but this caught my attention.

22,000 Call Options in Hilton (HLT) traded on 7/3 which was a holiday shortened trading day. That activity represents 8x the average daily Call Options trading volume. About 5,200 August 40 calls were purchased alone on Tuesday. The August 40 Calls blasted off for a 600% one day gain on 7/5 when the news of the buyout by BX went public! I'm sure the market maker who works HLT is out for blood after taking a hit this hard. I understand that there will always be insiders and greed to some capacity but someone should be going down for this one.

The whole scene reminds me Gorden Gekko telling Charlie Sheen, "Tomorrow, start by buying 500 July 50 Calls in Anacott Steel..."

 

[ATCJeff]

I'm not saying the Stock Market is corrupt, but this caught my attention.

22,000 Call Options in Hilton (HLT) traded on 7/3 which was a holiday shortened trading day. That activity represents 8x the average daily Call Options trading volume. About 5,200 August 40 calls were purchased alone on Tuesday. The August 40 Calls blasted off for a 600% one day gain on 7/5 when the news of the buyout by BX went public! I'm sure the market maker who works HLT is out for blood after taking a hit this hard. I understand that there will always be insiders and greed to some capacity but someone should be going down for this one.

The whole scene reminds me Gorden Gekko telling Charlie Sheen, "Tomorrow, start by buying 500 July 50 Calls in Anacott Steel..."

I do know they were talking about a possible buy on Fast Money Tuesday afternoon on CNBC.

 

[Frixxxx]

The whole scene reminds me Gorden Gekko telling Charlie Sheen, "Tomorrow, start by buying 500 July 50 Calls in Anacott Steel..."

The point is, ladies and gentleman, that greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind. -- Gekko


I love that movie!:nuts:

 

[Birchtree]

Then you will like the sequel: Money Never Sleeps. Due out sometime next year.

 

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After Hours

Updated: 07-Jul-07 09:50 ET
Weekly Wrap

Last Update: 06-Jul-07 16:31 ET


The major indices logged big gains in the holiday-shortened week, driven by leadership from the technology sector, some supportive economic data and another wave of big-ticket buyout activity.
The gains came despite a jump in oil prices above $72 and the yield on the benchmark 10-Year Treasury note rising from 5.03% on Monday to as high as 5.20% on Friday.
Trading volume was relatively light, however, with many fund managers and traders away on vacation. The major U.S. stock exchanges and bond market closed early on Tuesday and remain closed on Wednesday in observance of Independence Day.
The Labor Department's June employment report on Friday highlighted the flow of incoming data for the week, painting a picture of solid job growth that has been accompanied by rising wages. While the latter proved unsettling to the bond market, the stock market took some solace in the view that the combination supports a pickup in economic activity and continued strength in consumer spending.
The latest employment results were in line with analysts' expectations in just about every respect. Nonfarm payrolls rose 132,000 (consensus 125,000), the unemployment rate was 4.5% (consensus 4.5%), hourly earnings rose 0.3% (consensus +0.3%) and the average workweek was 33.9 hours (consensus 33.9). Upward revisions to payroll numbers for April and May added to the understanding that the labor market is looking solid.
In other economic news, the Institute for Supply Management's manufacturing index for June showed increased activity and added to optimism about the economy.
Unlike recent weeks, the M&A news was indeed a bullish catalyst as we saw a return of some big-money transactions. Specifically, Canada's largest phone company, BCE Inc. (BCE), received a $49 billion offer from an investor group led by the Ontario Teachers Pension Plan and Providence Equity Partners that qualifies as the largest private equity deal ever.
On a related note, the Blackstone Group (BX) made a $26 billion offer to acquire Hilton Hotels Corp. (HLT); meanwhile, the Carlyle Group plans to buy Manor Care (HCR) for $6.3 billion while Apollo Management is going to take Huntsman Corp. (HUN) private for $6.3 billion as well.
AT&T (T) for its part is going to buy Dobson Communications (DCEL) for $2.8 billion and Kraft (KFT) is going to spend $7.2 billion for Group Danone's biscuit business.
Separately, KKR & Co., the private equity firm responsible for the historic leveraged buyout of RJR Nabisco in 1988, said it plans to go public. The announcement, which was not unexpected, comes just days after rival Blackstone Group made its highly-anticipated public debut on the New York Stock Exchange.
There were only three companies on the earnings calendar. None of the reports had a bearing on the overall market. Things will pick up on the earnings front next week when Alcoa (AA) kicks off the second quarter reporting season with its results after the close on Monday.
--Richard Jahnke, Briefing.com

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