Stocks Rock, Bank of America Subpoenaed, Record Global Confidence

• September 16, 2009
• Dave Goodboy

The stock market was rocked higher today on the back of better than expected industrial production figures and Bloomberg’s Global Confidence maintaining its record level. The indexes reacted by surging higher, pushing the VIX fear index near yearly lows intraday. Spooky news of New York’s Attorney General issuing subpoenas for 5 Bank of America executives regarding the Merrill Acquisition failed to stifle the bullish fervor. The DJIA surged higher by +108.30 to 9791.71, the Nasdaq added +30.51 to 2133.15 and the broad based S&P 500 moved higher by +16.13 to 1068.76.

General Electric
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PowerRating): Climbed 6.25% or $1.00 to $17.00 after it was heard that they are planning on offering a benchmark offering of 6 year notes.

American Capital Ltd
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PowerRating): Agreed to sell Axygen BioScience to Corning sending shares surging 32.68% or 84 cents to $3.41.

Warner Music
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PowerRating): Citigroup upgraded the world’s 3rd largest record company to “buy” triggering shares to climb 7.27% or 33 cents to $4.87.

Amazon.com
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PowerRating): Bank of America raised its rating to “buy” on the company causing shares to advance 8.56% or $7.15 to $90.70.

Oil added $1.58 to $72.36, gold surged higher for another day climbing $13.90 to $1020.00 and the VIX fear index approached yearly lows intraday before closing up 1.15% to 23.69.

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Market Snapshot

Dow +108.30 9791.71 NASDAQ +30.51 2133.15 S&P 500 +16.13 1068.76

Economic News

Core PPI (Aug): Consensus: 0.1%, Prior: -0.1% PPI (Aug): Consensus: 0.8%, Prior: -0.9% Retail Sales (Aug): Consensus: 1.9%, Prior: -0.1% Retail Sales ex-auto (Aug): Consensus: 0.4%, Prior: -0.6% Empire Manufacturing (Sep): Consensus: 15.00, Prior: 12.08 Business Inventories (Jul): Consensus: -0.8%, Prior: -1.1% Core CPI (Aug): Consensus: 0.1%, Prior: 0.1% CPI (Aug): Consensus: 0.3%, Prior: 0.0% Net Long-Term TIC Flows: Consensus: NA, Prior: -31.2B Capacity Utilization (Aug): Consensus: 69.1%, Prior: 68.5% Industrial Production (Aug): Consensus: 0.7%, Prior: 0.5% Crude Inventories (09/11): Consensus: NA, Prior: -5.91M Building Permits (Aug): Consensus: 596K, Prior: 564K Housing Starts (Aug): Consensus: 580K, Prior: 581K Initial Claims (09/12): Consensus: 555K, Prior: 550K Continuing Claims (09/05): Consensus: 6114K, Prior: 6088K Philadelphia Fed (Sep): Consensus: 8.0, Prior: 4.2