December 11, 2012 Update

DJIA:13,169 NASDAQ:2,986 10-YR TRS: 3/32, yield 1.616% Oil:$85.56 EURO:$1.2941 YEN:82.36 

Micro

• SPZ: trading up in a tight spread from an anticipation of a Bernanke rally as the two-day Federal Reserve policy meeting begins today, and from investor optimism that the US will finally act toward avoiding the fiscal cliff. 
• Earnings: Dollar General Corp (NYSE:DG) Q3 EPS of $0.63 beating forecast by $0.03, Magellan Health Services Inc. (NASDAQ:MGLN) Q4 forecast EPS at $1.02, The Pantry Inc. (NASDAQ:PTRY) Q4 EPS forecast at $0.12.
• Dividends: OfficeMax (NYSE:OMX) declared $0.02 quarterly dividend payable 2/28, Spectrum Pharmaceuticals (NASDAQ:SPPI) declared $0.15 special quarterly dividend payable 12/28.
• The US government announced they will sell their remainder of AIG (NYSE:AIG) shares.
• The Blackstone Group (NYSE:BX) is rumored to be in the process of raising over $2B towards its first Asian real-estate fund, where they are looking to take advantage of cheap property values in a rapidly growing economy.
• Crude-oil futures trading up premarket ahead of FOMC meeting, as gold experiences the opposite effect- trading down premarket. 
• SPX Corp (NYSE:SPW) is rumored to have began talking with Gardner Denver (NYSE:GDI) in hopes of acquiring GDI.

Macro

• Asian Markets: trading mostly in an upward direction from the hope that the US will avoid fiscal cliff, although Australian equities closes at their lowest level in more than 16 months. 
• European Markets: in the green as optimism about the fiscal cliff ripples overseas, and from better than expected German economic data.  
• Many expect that the Federal Reserve will announce a new round of monthly purchases $45 billion of Treasuries at today’s Federal Open Market Committee, which will begin at the end of this year- just in time to replace the Operation Twist bond-buying program, which will expire in 2013. 
• An earthquake with a 7.2 magnitude has hit Indonesia approximately 129 miles northwest of Saumlaki in the Tanimbar chain. 

Yesterday’s Notable Winners 

• Nexen (NYSE:NXY) +13.82% (+$3.25) to $26.77 after the Canadian government approved the CNOOC’s takeover bid.
• Intermec Inc. (NYSE:IN) +23.18% (+$1.85) to $9.83 from confirming that Honeywell (NYSE:HON) will acquire the company for a 25% premium to Friday’s close. 
• Celldex Therapeutics (NASDAQ:CLDX) +25.54% (+$1.41) to $6.93 from investor optimism about a new progressive breast cancer treatment. 

Yesterday’s Notable Losers 

• Diamond Foods (NASDAQ:DMND) -10.12% (-$1.50) to $13.31 after loosing money as a result from the accounting-scandal probe.
• Priceline.com (NASDAQ:PCLN) -5.03% (-$33.14) to $625.96 from a downgrade by Deutsche Bank.
• Zogenix (NASDAQ:ZGNX) -50.85% (-$1.20) to $1.16 after FDA turned down approval for a treatment that would supposedly aid those suffering from chronic back pain.

On Debt and Value 

What if we all woke up this morning to a world without debt? Imagine an existence in which all student loans, mortgages, and car payments were forgiven, and the feeling of obligation compelling you to bring your coworker coffee each morning vanished while you suddenly became unconcerned about the wellbeing of your parents. While this may sound incredible to some, I wonder if such a carefree lifestyle would really make us happier. Whether or not we choose to acknowledge it, there is no denying the fact that we co-exist intertwined in a cycle of systematic indebtedness to each other, society, and to ourselves. Although the constant pressure of owing or being owed, in either emotional or financial terms, may cause us to stress, I argue that value is actually created from debt. It is not until we appreciate what someone or something borrowed has done to help us that we realize its worth. Trade is stemmed from barter- the act of owing a person something in exchange for something else. Even the value of our currency is dependent on our country’s debt to GDP levels. Think about it, how would a worker value their salary if it wasn’t owed to them as a product of the fruits of their labor?