Friday, July 15, 2011

Google Blows Past Estimates

There are lots of stocks on the move this morning, but the biggest mover is Google (GOOG), which is up $65 (12%) after a big earnings beat. I don't think that expectations were that high for GOOG, given all the rumors about how much hiring they were doing. But they beat EPS numbers by nearly $1, and grew earnings +35% vs. year-ago, a pretty nice growth rate for a company of its size.

In the oil patch, BHP Billiton (BHP) said it will acquire Petrohawk Energy (HK) for a huge 65% premium. That news has ingnited the natural gas group. I am pleased that one of our holdings, Chesapeake (CHK) is up 7% in sympathy.

Also, Carl Icahn's company has made an unsolicited offer for Clorox (CLX) for $76.50. The stock is up 7% on the news, but I doubt the board will accept this offer. My guess is that it would have to be a lot higher for them to take it seriously.

This morning we will get the results from another round of bank stress tests in Europe. The big question is what their exposure to the PIIGS countries looks like, and how they would be affected by any sort of default. Bank stocks are flat here in the U.S., despite Citi beating estimates this morning, and JPM beating estimates yesterday.

Asian markets were mixed overnight; the dollar is slightly lower today; the 10-year yield is flat near 2.92%; and the VIX is up slightly to 20.87.

Oil prices are higher above $97, and gold prices are flattish near $1588.

I'll wait to update my daily trading comment until I see how the market finishes today--



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