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Minyanville's Market Recap: Stocks Continue To Gain, Morgan Disappoints

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Morgan Stanley reported below-expected results. Financials seemed to flame out, but stocks overall added to their gains.

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Stocks extended their gains a day after the Fed rate-cut. The Dow Industrials rose +76.17 points to 13,815, the S&P 500 rose 0.61 points to 1529, and the Nasdaq Composite rose 14.82 points to 2,666.

The sentiment was positive around the world as equity markets in Europe and Asia all ended in positive territory. Markets continued to digest the Fed's actions. Plenty of commentary occurred at the 'Ville. Click here to read Professor Cooper's On A Fed Day You Can See Forever, and have a look at Professor Macke's The Fed Script. Also you can read plenty more by our Minyanville professors on our News & Views page.

In the U.S, economic data released this morning seemed to add to the bullish tone. Core CPI figures on a month-over-month basis came in as expected at +0.2%, and CPI month-over-month fell -0.1% vs. 0.0% cons. August building permits, however, declined coming in at 1307 k vs. 1348 k cons.

After leading the surge yesterday, Financials did little to show any leadership today. Morgan Stanley (MS) started off the morning by providing some sobering news. The company reported 3Q EPS of $1.44 (including contributions from the spin-off of Discover Financial) vs. $1.54 cons. Revenues came in at $7.96 bln vs. $8.23 bln cons. Nonetheless, the stock took off after the opening bell. Toddo didn't believe it and proceeded to buy October puts. For more on his views, please read his article, Random Thoughts: Positive Tech Bids, Banks Dip Into The Red.

The housing sector did little to show much follow-through today. Dr. J suggested yesterday on the Buzz in taking profits on Hovnanian (HOV) after its 28% one-day surge. The move proved to be a wise call as Hovnanian's stock gave back over a third of its gains losing -10.9%. Other home-building stocks performed poorly as well. Meritage Homes (MTH) lost -0.47%, Toll Brothers (TOL) fell -1.36%, and Ryland Group (RYL) lost -2.63%. For more color into the housing sector, please read Professor Katsenelson's Pointing The Housing Blame At A New Target, The Homeowner.

Please click on our Buzz Bits for more in-depth summaries of what happened on the Buzz real time!

Below is a recap of the idea flow on today's Buzz & Banter. Please note that stocks may appear on both bullish and bearish categories due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: ANDE, GOOG, VMW, NOK, PPA, BX, FIG, SPNC, BIDU, UTX, CSC, CREE

Some bearish trade or investment ideas: LVS, WYNN, JPM, BSC, ASTI, NILE, SU, SPX, MS, NWK, CROX, BCSI, CF

Here's a preview of what's to come for Thursday's trading session. Click here for the full trading radar.

Economics

8:30 Initial Claims: 319 k prior.
10:00 Leading Indicators: 0.0% cons
12:00 Philadelphia Fed: 2.0 cons

Earnings

Before: AM, BSC, CCL, CC, CAG, FDX, GS, NSSC, PIR, PRGS, SCHL, SCS, AGE

After: COMS, CHAP, CSC, DMND, DDMX, EGLS, IHS, NKE, NINE, OPTM, ORCL, QTWW, SNX, TEK, THO

Alright, Minyans! Take a break and watch Hoofy and Boo's new video if you haven't had the chance. Ya'll have a goodnight!
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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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