Ahead of Wall Street - March 6, 2012 - Ahead of Wall Street
March 06 2012 - 3:42AM
Zacks
Tuesday, March 6, 2012
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 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 to 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.
Sheraz Mian
Director of Research
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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