Ahead of Wall Street - December 7, 2011 - Ahead of Wall Street
December 07 2011 - 3:58AM
Zacks
Wednesday, December 7, 2011
With nothing else on the docket today, Europe will remain the
dominant news, with markets looking for a favorable outcome out of
the Friday EU summit meeting. I would expect the overall air of
tentativeness of the last two days to continue in today’s trading
session as well.
Germany poured cold water on hopes raised by a late Tuesday
afternoon press report indicating the possibility of greater
financial firepower at the disposal of European officials through
two bailout funds. The German official ‘clarified’ today that the
European Financial Stability Facility (EFSF) and the second
permanent European Stability Mechanism fund set to get started in
2013, will not run simultaneously. Indication of two simultaneous
bailout funds in a Financial Times report on Tuesday had helped
raise market hopes.
This disappointment aside, Germany was able to reassure the
markets by showing strong demand for one off its bond auctions this
morning. Please recall that under-subscription to a German bond
auction a few days back had raise fears that the Euro-zone crisis
was affecting Germany’s financial profile. Today’s successful
auction satisfies those concerns. We also have Tim Geithner, the
U.S. Treasury Secretary, visiting France today and making
reassuring comments about the outlook for the
Euro-zone.
In corporate news, Talbots (TLB), the women
retailer, is reportedly being acquired by private equity investors
for $212 million. We also have a solid earnings report from
Men’s Wearhouse (MW); the company also raised it
outlook for the current quarter.
Sheraz Mian
Director of Research
MENS WEARHOUSE (MW): Free Stock Analysis Report
TALBOTS INC (TLB): Free Stock Analysis Report
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