Weekly Recap - Week ending 17-May-13

The bulls did their thing again this week, overcoming any concerns about the Fed tapering its asset purchases soon to drive a 2.0% gain in the S&P 500.  This week's gain leaves the S&P 500 up 4.3% for the month in what has been a clear decoupling from the "sell in May and go away" couplet.

The week started on a bit of a nervous -- and flat -- note after a weekend article in the Wall Street Journal indicated the Fed has mapped out a strategy for tapering its asset purchases.  That view lost its punch, however, with the added indication that the timing of instituting that plan is still uncertain.  In brief, the article didn't really tell the market anything it didn't already presume based on prior views communicated in the FOMC Minutes.

Still, the headline itself was enough to cause a pause in the buying action and to overshadow what was a better-than-expected retail sales report for April.

When Tuesday rolled around, buyers were back in action, emboldened by the bullish view of noted hedge fund manager David Tepper of Appaloosa Management.  In a CNBC interview before the market opened, Mr. Tepper, who correctly called the market's direction in September 2010, said he is still definitely bullish on the market since all of the evidence in front of him -- an improving economy, attractive valuation, and central bank support -- tells him to be.  Mr. Tepper added that the market should not be overly concerned about the Fed tapering and he suggested short sellers will need a shovel to dig out of their graves if the Fed allows the market to party like it's late-1999 again by not tapering its asset purchases.

Market participants took Mr. Tepper's view and

4:35PM Sun Communities announces $350 mln senior secured revolving credit facility (SUI) 56.12 +0.97 : Co announced that it has entered into a senior secured revolving credit facility in the amount of $350.0 million which has a built in accordion allowing up to $250.0 million in additional borrowings. The Facility has a four-year term with an option to extend for one additional year and bears interest at a floating rate based on Eurodollar plus a margin that is determined based on the Company's leverage ratio calculated in accordance with the Facility, which can range from 1.65% to 2.90%. Based on the Company's current leverage ratio, the margin will be 1.65%.The Facility replaces the Company's $150.0 million revolving line of credit which was scheduled to mature on October 1, 2014. The Facility is secured primarily by a first priority lien on all of the Company's equity interests in each entity that directly or indirectly owns all or a portion of the properties constituting the borrowing base and collateral assignments of the Company's senior and junior debt positions in certain borrowing base properties. At the time of the closing, there were no borrowings under the Facility, excluding the $4.0 million of letters of credit issued in the normal course of the Company's business.

4:34PM Acquity Group: Accenture (ACN) announces acquisition of Acuity Group for $13.00 per outstanding ADS (AQ) 82.24 +1.63 : Accenture (ACN) and Acquity Group Ltd. (AQ) have entered into a definitive agreement under which Accenture will acquire Acquity Group. Accenture has agreed to pay $13.00 per outstanding American Depositary Share, each of which represents two ordinary shares ($6.50 per ordinary share), or a total of approximately $316 million, in cash for Acquity Group. The acquisition is subject to Acquity Group shareholder approval as well as other customary closing conditions.

4:33PM Fulton Fincl CFO to retire at year end (FULT) 11.74 +0.17 : Charles J. Nugent, senior executive vice president and chief financial officer (CFO) of Fulton Financial Corporation (FULT), has informed the corporation of his plan to retire, effective December 31, 2013. Fulton Financial has engaged an executive search firm to identify candidates to succeed Nugent as chief financial officer.