Senator Reid said he is disappointed by the lack of progress in the fiscal cliff negotiation yesterday. As long as there is uncertainty about the outcome of the fiscal cliff negotiation, stocks are unlikely to make a sustained bull move.
Costco (COST) same-store sales increased by 6.0% and the company will pay a special dividend of $7 per share. The unusually low borrowing costs in the debt market makes this type of corporate activity possible and increasingly likely from cash rich corporations. Knight Capital Group (KCG) is up today on speculation it may be acquired by Getco for $3.50 per share.
Yesterday’s total option volume of 13.2 million contracts resulted in net open interest growth of 1.50 million calls and 1.96 million puts. Top five new positions opened include, 26k Hewlett Packard Co (HPQ) Jun-13 17 puts, 22k Anadarko Petroleum Corporation (APC) Mar-13 80 calls, 21k Cisco Systems Inc (CSCO) Jan-12 20 calls, 20k International Paper Co (IP) May-13 39 calls and 18k Cisco Systems Inc (CSCO) Feb-13 20 calls.
In Monster Beverage (MNST), the stock was up 13% yesterday that the FDA does not see a potential problem with taurine and guarana, two of the main additives to Monster drinks. In options, there was an opening buyer of 6,500 Dec 50 and 52.5 calls.