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Einhorn Bearish on Chipotle, Bullish on GM, Cigna

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Today's financial recap and tomorrow's financial outlook.

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Overnight in the US, the Reserve Bank of Australia eased its main interest rate by 25bps to 3.25%, not what many economists had been expecting. The Aussie dollar fell to 1.0263 versus the US dollar.

A rumored Spanish bailout does not appear to be in the cards for the near future, according to Spanish Prime Minister Mariano Rajoy. A Reuters story this morning said that Spain is prepared to ask for a bailout, but that Germany is cautioning against this path as it decides whether or not the bond purchase program from the ECB is legally allowed within its mandate. This did not please the market, causing a sell-off from the highs of the day to negative territory. However, the Spanish IBEX was unfazed and closed up 1.07%.

David Einhorn's presentation at the Value Investing Congress caused some waves among stocks that he recommended buying and going short. Einhorn recommended longs in General Motors (GM) and Cigna (CI), and a short in Chipotle (CMG). Chipotle ended the day down 4.6%.

US total vehicle sales for the month of September rose to a seasonally-adjusted 14.87 million from last month's 14.46 million. This was ahead of analyst estimates of 14.50 million. Notably, Honda (HMC) sales rose 31%, beating estimates of a gain of 26%, while Ford (F) sales fell 0.1% compared to estimates calling for a gain of 2.3%.

Tomorrow's Financial Outlook

The ADP private payrolls report is a preview for the monthly nonfarm payrolls report. It will be released tomorrow morning at 8:15 a.m. ET. Economists are forecasting a decline from last month's gain of 201,000 jobs to a gain of 140,000 jobs. Last month the report showed a dramatic increase from 163,000 to 201,000, well ahead of estimates of 140,000. Also in the morning, the ISM will release non-manufacturing at 10:00 a.m. ET. Because the US economy has migrated to more of a service industry, the employment sub-index for this report can act as a good preview of Friday's jobs report.

Overnight, China will release non-manufacturing PMI, and in the morning, Europe will release the final revision to its services PMI report as well. Economists are expecting no change from the first revision two weeks ago.

In earnings, Monsanto (MON), Family Dollar (FDO), Marriott (MAR) and OCZ Tech (OCZ) will report earnings

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No positions in stocks mentioned.

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