Friday, December 21, 2007

Research in Motion & Merril Lynch reports send stocks higher

Research in Motion (RIMM, up 12) & Merrill Lynch (MER, up $1.50) reports brought out buyers. RIMM (maker of the BlackBerry) had a great third quarter and MER is expected to get a $5B infusion of capital after facing large write downs from losing bets on subprime mortgages. The investment is expected from Singapore state-owned investment agency, Temasek Holdings. I still remember their old ads, "Merrill Lynch, Merrill Lynch is bullish on America!" It turns out those ads were made in Mexico.

Dow is up 153, advancers are 4-1 ahead of decliners and NAZ is up 31. NYSE had record volume in the first 1/2 hour due to "quadruple witching" marking the simultaneous expiration of contracts for stock index futures, stock index options, stock options & single stock futures. The Treasury bond yield is 4.11%, little changed in recent days.

Circuit City (CC) reported a larger than expected loss, down $1.40. With witching and going into the end of month (also year end), the rest of today's market is up in the air.

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