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Uncut Thoughts: Home Depot, Hilton...

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The markets may want, and "need", the Fed to have dry powder this afternoon.

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Here are some random thoughts heading into the afternoon hours:

  • The tape caught a bounce on the second round of Fed Injections. From where I'm sitting, I want the Fed far less active and far more decisive, when it does act.

  • Another reason the arbitrage spreads are growing on names like Hilton (HLT) is that the bet isn't "Deal or No Deal"; there is the option of repricing somewhere in the middle.

  • Would repricing an agreed upon transaction be either "unfair" or "impossible"? Ask Home Depot (HD), who is no longer getting $10.3 bln for HD Supplies. For that matter, ask the holders of 3.1 mln shares of HD, who thought they'd tendered their shares for a price between $39 to $44.

  • Simply tremendous eyes by Dr. J regarding there being something rotten in Denmark, regarding Home Depot and the Dutch Tender, and alerting Minyans to the put-action.

  • What, specifically, concerns me about the Fed acting twice this morning? The outstanding Prof. Cooper touched on it earlier; he doesn't want to be long going into the weekend. Based on the price action during the last two Fridays, no one does. The markets may want, and "need", the Fed to have dry powder this afternoon.

  • Speaking of Fridays: as I type the S&P 500 is up about five points from last Friday's close of 1433. It feels much, much worse, doesn't it?
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No positions in stocks mentioned.

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