Good morning. Happy Thursday.
The Asian/Pacific markets closed mixed. Japan rallied 1.3%, and Australia, Malaysia and Singapore also did well. China, India, South Korea and Taiwan dropped. Europe is currently mixed, but there are no big winners or losers (except Greece which is down 1.1%, but it doesn’t count). Futures here in the States point towards a down open for the cash market.
The dollar is up. Oil is up, copper down. Gold and silver are down.
We all see the news. AAPL released earnings yesterday. The numbers were great, but they company isn’t growing like it used to, and Wall St. prices stocks for growth of the future, not a snap shot of today. The stock is down almost 9% (46 points) and is now close to a 1-year low.
Dover’s (DOV) Q4 profits dropped 43%…the stock has not traded premarket yet.
Baxter’s (BAX) did well with earnings but then guided below analyst expectations. The stock has not traded premarket.
Bristol Myers Squibb (BMY) posted good earnings on down sales…the stock is up fractionally.
Mellanox (MLNX) is down 20% before the open.
Swift Transportation (SWFT) is up 12%.
Netflix (NFLX) is up 37% before the open. This is on top of a near-100% rally off its Sept low.
Union Pacific (UNP) is up 2.5%
United Continental (UAL) posted a big loss. The stock hasn’t traded premarket.
Raytheon’s (RTH) profits jump 14%.
Nokia (NOK) is down 5%…it swung to a profit but missed its sales forecast, and it suspended its dividend.
3M (MMM) did well with earnings and then maintained its 2013 guidance. The stock is up 0.41%
Xerox (XRX) is up almost 3%…earnings related.
Southwest (LUV) is up 1%.
Precision Castparts (PCP) is down 1.2% after stating their earnings and sales rose but rose less than expected.
McCormick (MCK) posted decent headline results…the stock has not traded premarket.
Stanley Black & Decker (SWK) posted a big jump in earnings.
Lockheed Martin (LMT) forecast higher earnings for this year.
Yesterday the market couldn’t get much traction despite big moves from GOOG and IBM. Today it will have to deal with AAPL taking a 10% haircut.
Besides AAPL the market will have to deal with being tired. The S&P has rallied six straight days, but I can’t see all the movement has been robust and full of energy. In fact the total net change over the six days is only 25 points, and the intraday ranges have been small.
I like the market. The trend is up on all time frames, but in the very near term, we have to be more cautious. More after the open.
headlines at Yahoo Finance
headlines at MarketWatch
today’s upgrades/downgrades
this week’s Earnings
this week’s Economic Numbers
0 thoughts on “Before the Open (Jan 24)”
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The macro picture is mixed. There is some short term hope in a debt ceiling agreement,but offsetting is the sequestration writedown, the Obama care taxes, the return of the payroll tax. Questions about global growth in every major economy seem real. Caution is the name of the game, ride an index and decorate with a few low PE stocks like MRK, JPM, AFL. Holding some high grade corp bonds, BUT inflation is coming even if Ben does not seek it yet. Lots of cash and eyeing an entry to Precious Metals and Dividend stocks shortly? No heroics here.
Hi Jason,
Loved your article on the Dow Theory, I think you are right on the money with your view.
Wow…did not realize that you and family had moved to Costa Rica. Recognize that’s its your privacy, but many of us might want to know what prompted the move and is it peramnent? Maybe in your next blog?
Regards,
Gerry