MORNING COFFEE

Moody’s downgrades Greece.  Moody’s has followed both S&P and Fitch and lowered the debt rating on Greece as the country struggles to emerge from its economic crisis.  Moody’s noted the the government’s long term credit strength was “eroding materially”.  Moddy’s lowered the rating from A1 to A2.  It also issued a negative outlook.

Homeowners fall behind on payments.  The number of homeowners that fell behind on their mortgage payments, including the most credit worthy continues to climb.  This was the sixth straight quarterly increase in delinquent mortgages.  Those that fell behind on prime loans more than doubled.

Healthcare rallies on Senate bill.  Healthcare  stocks rallied yesterday as the Senate got the 60^th vote to approve the controversial healthcare bill.   The bill omits the provision for a government-run insurance plan, which would have put insurance companies at a disadvantage.

Banks pay to play.  A new report released asserts that banks that spent more on lobbying wre more likely to receive more government bailout funds.  The report also found that banks that had executives serving on Fed boards were more likely to receive TARP funs.

Stimulus money goes to Democratic districts.  A recent report shows that stimulus money meant to help boost the economy is not being distributed evenly.  The report shows that Democratic districts were far more likely to receive funds than Republican districts.  Critics says the Democrats are using the funds unfairly to buy votes.

Earnings

Jabil Ciruits (JBL) reported earnings after the bell of 0.32 which beat estimates.

·       

       Futures: Dow +0.35% to 10378. S&P +0.4% to 1112.50. Nasdaq +0.6%.
Treasurys: 30-year -0.45% to 116-11. 10-year -0.28%. 5-year -0.13%.
Euro flat vs. dollar. Yen +0.15%. Pound -0.1%. Loonie +0.4%.
Crude -0.7% to $73.23. Gold -0.3% to $1,093.

·     Asia: Nikkei +1.9% to 10378. Hang Seng +0.7% to 21092. Shanghai -2.3% to 3051. BSE +0.6% to 16692.

·     Europe at midday: FTSE +1.1% to 5350. CAC +0.7% to 3899. DAX+0.4% to 5953.