The RealMoney contributors are in the business of trading and investing all day on the basis of ongoing news flow. Below, we offer the top five ideas that RealMoney contributors posted today and how they played those ideas.TheStreet.com brings you the news all day, and with RealMoney's "Columnist Conversation," you can see how the pros are playing it on a real-time basis. Here are the top five ideas played today. To see all that RealMoney offers, click here for a free trial.
Inflation ExpectationsBy Tom Graff
8:08 a.m. EDT JPMorgan is out with a fascinating survey of inflation expectations. Unlike the more widely followed surveys, this one was given to investment professionals around the world and asked them about inflation views for the U.S., the U.K. and the euro zone. These kinds of surveys are more pertinent to traders, because they get more directly at the question of what's priced into markets. The results are very interesting:
- A majority of investors expect "above-target" inflation in the U.S. and U.K. Views for the eurozone are mixed.
- U.S.-based investors expect more U.S. inflation than foreign investors do. That speaks volumes about foreign willingness to participate in the U.S. Treasury market.
- Smaller investors and those primarily investing in equities are most worried about inflation. Bond investors are less worried. What that's telling you is that people who are primarily charged with following interest rates (and thus inflation) are more sanguine. Those for whom inflation is typically a secondary concern have higher expectations.
Morning PrepBy Ken Wolff
8:12 a.m. EDT We are trading down on the backs of disappointing earnings from Amazon ( AMZN) and Microsoft ( MSFT). The PowerShares QQQ Trust ( QQQQ) is currently down from $39.35 to $38.97, and usually in a bull market, gaps down get bought.
BDKBy Jim Cramer
9:46 a.m. EDT Outlook doesn't matter? Black & Decker ( BDK) with terrible outlook but fantastic cost cuts. People care about firings. They are well received by this market. ... It is almost like, "Let's reward the managers with the guts to cut." Positions: None
What Is the Bull Case?By Tim Melvin
9:11 a.m. EDT I keep asking the market bulls exactly what is it is that is fueling their enthusiasm for stocks. Universally I am told that they are looking out into the future or across the valley, as more than one person has said. What is it they see out there? Jobs growth? A return of consumer spending? An upturn in the quality of big bank balance sheets? A healthy economy? Lower taxes? I wonder what they see and just how far out it is they foresee these wonderful things happening. I sit here and see revenues falling off a cliff, profits declining faster than stock prices, unemployment rising and real estate prices continuing to fall. There are weak economic conditions around the globe and no real sign of things getting better anytime soon.
CIT Revises Its OfferBy Tom Graff
9:46 a.m. EDT There are conflicting reports on whether CIT ( CIT) is more or less likely to file for bankruptcy. The Wall Street Journal says CIT "does not intend" to file if the tender offer succeeds. It seems to me that would go without saying, but I also suspect there are many holders of the bonds maturing in August that also hold other CIT bonds. These holders may reason that they don't want to see cash go out the door to the detrement of their other holdings. Meanwhile, Bloomberg is keying on a different part of the new filing, namely that even if the tender succeeds, it might be that "the $3 billion loan facility doesn't provide the liquidity the company is seeking" and thus the firm has to file. CIT bonds are about unchanged. Everything three years and longer is in the $55 area. Positions: None
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