Halftime Report for 7.3.2012

The private equity division of J.P. Morgan Chase (JPM) agreed to buy M*Modal, a voice recognition company for $820 million. JPM was trading up .19% at $36.06, and M*Modal rose 8.28% to $14.00.

As we move into Independence day, markets are keeping a lookout for Friday’s nonfarm payrolls data and the possibility of monetary easing after a wave of poor economic data.

Auto stocks rallied ahead of Total vehicle sales, due to be released at 3:00 PM CDT. Analysts estimate sales of 13.9 million, a decrease from the first third of the year with sales in the $14-15 million range. Ford Motor Co. (F) rose 3.46% and General Motors Co. (GM) rallied 6.39% in anticipation of the number.

Grain prices continued to rise with corn hitting a 10-month high after concerns about global drought conditions. Yesterday the FDA downgraded the outlook of both corn and soybeans.  Corn futures rallied 16 cents to $6.6820, soybean futures rose 27 points to $15.2120 and wheat futures were up 17.60 cents to $7.90 a bushel.

Crude oil surged on geopolitical worries about Iran. WTI crude futures were trading up $3.53 at $87.28.

Energy stocks loved the rise in oil prices as Exxon Mobil Corp. rose .92% and Chevron gained 1.29%.

Gold surged up over $23 to $1620.80 after poor economic data hinted that the Fed may step in and use QE3.

David Cornes holds a degree in economics from the University of Montana.