Gill, Dalton, Walsh (212) 829-5483
Trader Commentary
Industrials started off strong w/ the positive payroll numbers but than lost some of their momentum with the ISM numbers. The auto’s led the group Friday with the S&P 500 Auto closing up 3.09%. TWI announced after the close Friday they will implement a price increase for the aftermarket on OTR tires. Look for more clarity out of that space Wednesday at the Credit Suisse Automotive &Transport Conference.
Look for some weakness this am in the mining stocks off the Australian Labor Party retaining power. Without majority support it is likely that the mining tax will be reviewed again as the lack of clarity over the resource tax will continue to hang on the mining stocks . Independent Rob Oakesshott said today that he persuaded the government to agree to a tax summit to be held by June 2011 to discuss and review the proposed tax legislation. Look for more strength in the steels as the price hikes continue. ArcelorMittal intends to raise prices for hot-rolled steel 5% to around Eur620 a ton due to recent rises in raw material costs. It will be interesting to see how this translates to the recovering auto sector. K+S AG trading lower on talk that company will guide lower this am. Barring any fertilizer take over speculation I would look for some profit taking in some of the fertilizers and chemical stocks this am off this.
AMR, BEAV, BZ, F, HDNG
Disclaimer: Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal. ***All eco data from Bloomberg and DJ
