Monday Morning Musings
Good morning. The market opened slightly to the downside this morning, following on Friday's weakness, but has since moved back into positive territory.
Oil and gas prices are weaker, which is weighing on the energy stocks. But semis are moving higher, along with financials. Most other sectors are mixed.
Personal income came in BTE (+0.5% vs. +0.3%), though personal spending was a bit weak at +0.1% (vs. +0.3%). I think holiday sales will be fine this year, as the market has been doing better, yields are moving lower, and gas prices have fallen. Also, there is a good correlation between back-to-school sales and holiday sales in a given year, and BTS sales were solid this year.
In other news and notes:
- APCC to be acquired by Schneider Electric ($31)
- WMT sees October SSS +0.5%; below forecast
- BEAV beats EPS by a penny; stock up
- VZ beats EPS; stock lower
- Fed's Lacker says economy can stand further tightening
- UBS raises their S&P 500 target to 1500
- TSY acquired by GE Capital for $17/sh