Lackluster Market Expected - Analyst Blog
March 06 2012 - 4:17AM
Zacks
We will likely get another lackluster trading session today
given the absence of anything meaningful on the economic calendar.
The major item on the calendar coming up is the February jobs
report coming out on Friday. We will get a preview of the Friday
report in Wednesday’s ADP reading. The jobs report is the key
catalyst that will give this market a clear directional thrust
going forward.
In addition to waiting for the jobs report, today’s market
action will also likely show some anxiety about the
Thursday deadline for Greece’s private creditors to agree to the
bond swap. This deal will help the Greek government bring down its
debt load by about €100 billion and pave the way for the second
bailout by the IMF/EU/ECB troika.
Greece has the legal capacity to force a deal on the bondholders
should the overall participation rate falls below certain threshold
levels. The more likely scenario is that Greece will be required to
invoke ‘collective action clauses’ to force a bond swap later this
week and the broader market will generally view the development
favorably. Investors want the second bailout to go through so that
they can put Greece behind them and look at the bond-swap deal as
the means to that end.
In corporate news, Nutrisystem (NTRI) reported
a bigger-than-expected quarterly loss, though the home delivery
weight-loss company’s revenue came ahead of expectations. Shares of
Yahoo (YHOO) will also be in the news following
reports by a tech blog indicating that the company’s new CEO is
contemplating a major restructuring initiative. Pipeline major
El Paso (EP) had to delay the shareholder vote on
its pending merger with Kinder Morgan (KMI) to
allow more time for its shareholders to weigh criticism of the deal
by a Delaware judge.
EL PASO CORP (EP): Free Stock Analysis Report
KINDER MORGAN (KMI): Free Stock Analysis Report
NUTRI/SYSTEM (NTRI): Free Stock Analysis Report
YAHOO! INC (YHOO): Free Stock Analysis Report
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