Tuesday, July 14, 2009

Tuesday Premarket

AlphaNinja - Will we build on yesterday's low-volume rally? Futures say no, pointing to a flat open. Dell (DELL) warned that margins will be weak, and aggregate producer Martin Marietta (MLM) cut guidance as well. As expected, Goldman Sachs(GS) beat the hell out of estimates, and the stock is trading down slightly in a "sell the news" manner. The questions is what do people want to pay (in terms of P/E, cash flow multiple, etc) for a black-box trading operation, which is what Goldman has become? Exxon(XOM) and Freeport McMoran (FCX)are trading up, as oil and copper futures look to reverse losses of the last few weeks.

More to follow on this. Steve Rattner, co-architect of the administration's illegal theft of Chrysler and GM by way of dismantling bankruptcy law, steps down. To be replaced by a former union boss.

While enjoying TARP money instead of having to resort to raising equity, Goldman execs sold $700m of their shares last fall.

They may be the largest lender to main street USA, but that doesn't mean CIT equity and bond investors will be bailed out.

Business Week to be sold. For a dollar. $1.

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