Monday, October 5, 2009

Quick Notes for the Day - October 5

ISM Index Rises Above 50 - The Institute for Supply Management released the ISM non-manufacturing index report this morning with a 50.9% number for September. This was the first time the service sectors of the economy had expanded since May 2008. The index had been at 48.4% in August. A number above 50% marks grow in the economy.

Goldman Sachs Upgrades Major Banks - Analysts at Goldman Sachs got more optimistic about large US banks Monday raising their coverage view on the sector to attractive from neutral. Among specific names, they upgraded Wells Fargo to buy and Comerica to neutral. They added Capital One to their conviction buy list, which also includes J.P. Morgan Chase and Bank of America. "The market has failed to recognize the dramatic improvement in earnings power at the large banks versus the regionals," they wrote, adding that, "We believe this difference in earnings power has not been fully reflected in share prices."

UK PMI Rises to Two Year High - Britain's services sector grew at its strongest pace in two years in September, according to the CIPS/Markit purchasing managers index released Monday. The index jumped to 55.3 from 54.1 in August. For the third quarter, the index averaged 54.2 which was its best quarter since the third quarter of 2007, Markit said.

ECB's Trichet Says Emerging Currencies Should Rise - Some emerging economies should let their currencies strengthen versus the euro and the U.S. dollar, European Central Bank President Jean-Claude Trichet told Bloomberg Television Monday on the sidelines of the International Monetary Fund and World Bank annual meetings in Istanbul. Without identifying individual countries, Trichet said some currencies "have in the medium run to appreciate vis-a-vis the dollar and the euro."

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