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US stock market, economy and companies update (September 17, 2012)

Contributed by Trade The News

- Markets seem hung over after last week's quantitative easing bender, as the Fed-fueled run up to nearly five year highs in the S&P500 and DJIA turns into a morning in the red today. There have been few catalysts to trade off of today and volume is pretty light. News media are focused on the Occupy Wall Street anniversary and the terrible anti-Japanese protests in China, not to mention ongoing protests in the Middle East. China filed a WTO case challenging US anti-dumping measures on kitchen appliances, paper and other goods, just days after American officials said the Obama administration plans to file its own WTO case this week accusing China of subsidizing exports of automobiles and auto parts. The euro is well bid, and FX markets are waiting for Tuesday's BOJ meeting to see whether it follows the Fed and increases its stimulus measures. Front-month WTI crude close out last Friday back below the $100 handle and has been unable to retake this key level in early trading.

- Shares LDK Solar are down more than 4% this morning after the firm reported yet another quarter of huge losses and trimmed its FY12 revenue outlook. Patent holder VirnetX is taking another run at Apple. The company's claim that Apple's various devices infringed on its intellectual property rights was thrown out last month when the ITC upheld a judge's previous decision to dismiss the case. The firm said that it refilled the charges last week, but with share up a mere 2%, few invests seem to feel the company has a chance.

- Deal news has been relatively muted this morning. Waste Connections said it would acquire privately-held R360 environmental solutions for $1.3B in cash. Danaher reached a deal to acquire IRIS International for $19.50/shr (approx 45% premium to prior close), in deal valued at approx $338M. Loews formally dropped its offer for Canadian retailer RONA and said that it would grow organically in the country instead.

***Looking Ahead***
- 11:00 (EU) ECB member Coene speaks at Panel Discussion in Vienna
- 11:00 (US) Fed to purchase $4.50-5.50B in Notes
- 11:30 (US) Treasury to sell $32B in 3-Month and $28B in 6-Month Bills
- 12:00 (AT) ECB's Nowotny speaks at Panel Discussion in Vienna
- 14:00 (US) Fed to sell $7.00-8.00B in Notes

***Economic Data***
- (BR) Brazil Sept FGV Inflation IGP-10 M/M: % v 1.0%e
- (CA) Canada July Int'l Securities Transactions: C$B v C$7.9B prior
- (US) Sept Empire Manufacturing: v -2.00e
- (CA) Canada Aug Existing Home Sales M/M: % v 0.0% prior
- (PL) Poland Aug YTD Budget Level (PLN): B v -24.3B prior; Budget Performance: % v 69.6% prior