Looking for a Friday bounce
"All of us must rid ourselves of the illusion that we can buy our way out of the problems of today by mortgaging the future." - Edward Heath
Morning News of Note:
- MSFT TWX GOOG: Microsoft Is in Talks To Buy a Stake in AOL As Google Looms Demonstrating its growing concern about Google Inc., Microsoft Corp. has entered talks with Time Warner Inc. about taking a substantial stake in the media giant's America Online unit, said people familiar with the matter. The conversations have centered on whether AOL would switch to using Microsoft's search engine instead of Google's, these people said, as well as other areas of potential cooperation. AOL and Google shared about $380 million in revenue last year derived from displaying ads on AOL's search results. (Full Story) WSJ
- MasterCard IPO: MasterCard Says IPO May Raise $2.45 Billion Credit-Card Giant Expects First-Quarter '06 Net Loss As a Result of Stock Offering MasterCard Inc., in its first disclosure of details about an initial public offering of stock, said it wants to raise as much as $2.45 billion in the IPO early next year. The credit-card giant also said it expects to report a first-quarter 2006 net loss -- and possibly even a full fiscal 2006 loss -- as a result of the offering. The Purchase, N.Y., company filed its first document with the Securities and Exchange Commission outlining the basics of its 61.5 million offering of Class A stock. (Full Story) WSJ
- US Economy: NABE survey of 202 economists; 30% said high energy prices are top threat to US economy vs 11% six mo's ago and 6% a yr ago; 20% said terrorism is biggest treat, 13% said govt spending and deficits; 65% said monetary policy about right; 90% said Fed will cont to raise rates; 48% think rates should go oup; 75% see fiscal policy as too stimulative; 77% think budget deficit should be reduced, but 12% think it will be; few economists think there is a natl housing bubble; most think there are bubbles in local mkts; +75% said they would buy a home even at today's prices, 17% said they'd buy investment property
- Video Games: MSFT anncd co to offer 15 games titles w/ Xbox 360 in US and EU // NTDOY unveiled new game controller as part of Nintendo Revolution game console; joystick/wand controller uses motion sensors to see players actual movement and position in space; about size and shape of a tv remote control // Capcom (Japan) CFO Tamio Oda said may cost 40% more to develop games for next gen gaming consoles
Market Comments: The market got a big bounce at the open, and even a very negative Michigan sentiment survey didn't knock it down. Some of this may be related to the fact that today is options expiration day, so let's see how it progresses.
I'll also be watching some of the recent fallen leaders that I have talked about, to see if they can bounce back also.
long GOOG, MSFT, TWX