Morning Coffee with TradingMarkets

  • December 5, 2007
  • David Penn

Good Morning!

Markets Rising Worldwide…Goldman’s Cohen Likes Stocks in 08…BlackRock to the Rescue, Blackstone on the Run…Is WaMu’s Killinger the Next CEO to Go?…Fannie’s $7 Billion Stock Sale…Mortgage Applications Spike On Lower Mortgage Rates, Refinancings

Futures strongly positive an hour before the open, as markets around the world move higher.
A little over a week away from the Fed’s December meeting and the conversation is not about whether the Fed will cut rates but is about how much they will cut. The jobs report at the end of the week is among the key factors traders are looking at, with strong jobs growth likely to result in the classic “good news is bad news” scenario that could dash hopes for a lower Fed funds rate in December.

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TradingMarkets 5 Business Stories You Need to Know

Goldman’s Cohen is Bullish on 2008 – Reuters

“Reacceleration” expected next year by Goldman’s chief equity strategist. Cohen’s 12-month forecast suggests an S&P 500 at 1650, overweighting of technology stocks.

BlackRock To Assist Florida Fund – Bloomberg

Head of investment pool for local municipalities resigns as the cavalry is called in manage fund for the near-term. BlackRock says fund has “indeterminate” value.

Will Killinger Survive WaMu? – Wall Street Journal

So far, so good, for executives at Washington Mutual as they work to ride out the mortgage-related losses that have begun to cost other CEOs their jobs.

Subprime Rate Freeze Rollout Continues – Bloomberg

Five year rate freeze recommended by Federal regulators and lenders as part of a plan to limit the damage of mortgage resets. Finalized plan expected to be announced soon.

Fed To Offer Rate Cut Plus? –Bloomberg

Other measures to increase amount of credit available to corporations and consumers are expected to be on the table along with a cut in the Fed funds rate when the Federal Reserve Board meets next week.

For more stories as they happen, go to our Breaking News section.

TradingMarkets 7 Stocks You Need to Know for Today

Here are 7 stocks for traders for today from TradingMarkets.com:

For a list of today s highest PowerRating stocks, click here.

TradingMarkets 5 Top PowerRatings Stocks for Today

Company
 Symbol PowerRatings
Oilsands Quest BQI 9
Franklin Bank FBTX 8
FLOWERS.COM FLWS 8
Middleby MIDD 8
Overstock.com OSTK 8

View More Stocks

TradingMarkets Tracking the Wizards

Institutions Take to Alternative Investments – FINalternatives

Allocations to hedge funds expected to rise worldwide over the next two years according to survey. Hedge fund allocations expected to be highest in North America and Europe where surveyed investors are more bullish than their Pacific Rim counterparts.

Dreyfus Plans Commodities Fund – New York Times

Outperformance of commodities over stocks and bonds in 2007 suggests demand for commodity exposure will remain strong. UBS AG said to be among those looking to invest in new fund.

Requiem for a Trader –New York Times

Fast life and fast living characterized the final years of hedge fund manager Seth Tobias. Frequent CNBC commentator found dead in swimming pool of Florida mansion on Tuesday.

View Portfolios of Prominent Investors

TradingMarkets Playbook

There remains a great deal of anxiety in the market, even as stock prices have tended to move sideways into December rather than downward, as the constant drone of subprime fallout persists. As we wrote a few days ago, sideways might be better than up right now, as the market avoid getting too overbought too soon. We are still showing a lower level of top-rated, near-term opportunities in the market right now, meaning traders are likely to be rewarded for their patience. For now, a market that holds is likely to be a market that moves higher.

David Penn is Senior Editor at TradingMarkets.com.

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