Good morning. Happy Wednesday.
It’s a big day for the market. It must prove the mini rally we’re in has legs or else it could fail fast. Monday’s gap can fill, but weakness beyond that tells us the Nov 24 gap up which remains unfilled is likely to fill too.
The cash market will get off on a positive note but not an ideal one. The last thing we want is a gap up. It’d be better to open flat, sell off to fill Monday’s gap, and then rally. A gap up is exactly what we don’t want. Anayways, 30 min before the open, Nas 100 futures are up 10 (0.82%) to trade at 1227 and SPX futures are up 9.5 (1.1%) to trade at 899.
The Asian/Pacific markets had a great day. Hong Kong and India closed up better than 5%, Taiwan better than 4% and Indonesia, Japan, Singapore and Seoul more than 3%.
Trading in Europe is mixed. Only the Swiss market has moved more than 1% from its unchanged level (it’s down 1.2%). France is flat, Germany up 0.2% and London down 0.4%.
The British pound has fallen to a record low against the euro.
China’s exports fell for the first time in 7 years.
China is urging its troubled state-owned airlines to cancel or defer new aircraft purchases amid the global economic turmoil — a move that could hurt American and European aircraft makers.
A deal to bailout the Big 3 automakers is close. Supposedly there will be a government “car czar” that will have the authority to force the automakers into bankruptcy if they don’t meet his standards. The automakers are expected to completely restructure their businesses to ensure their survival. Blah blah blah. What industry will be bailed out next?
Rio Tinto (RTP) is cutting 14,000 jobs worldwide and reducing capital investment as part of new measures to reduce its debt amid waning demand for iron ore and other metals.
Kodak (EK) has withdrawn its full-year 2008 operating profit and sales forecast because of the weak economy and strong dollar.
Toyota (TM) said it would further reduce production at several factories in North America, as the global slowdown continues to cut into the automaker’s sales abroad.
Nortel (NT) is seeking advice for possible bankruptcy as sales decline.
Equity Media has filled for chapter 11 bankruptcy and was delisted by Nasdaq.
MDS (MDZ), a Canadian life sciences company, cut its 2008 revenue outlook and said charges will leave it with a full-year loss. They are also suspending their share buy back plan.
Wright Medical (WMGI), an orthopedic device maker, said its Q4 sales results would likely be closer to the low end of its outlook and set 2009 guidance below Wall Street forecasts.
International Speedway (ISCA) has maintained its fiscal 2008 outlook but forecasted 2009 profit below expectations due to declining attendance and corporate sponsorship.
According to the Wall Street Journal, AIG (AIG) owes Wall Street firms about $10 billion for speculative trades that went bad.
Electronic Arts (ERTS) says it expects revenue for fiscal 2009 to be below their previous estimates.
Praxair (PX) has lowered earning guidance.
Agrium (AGU) affirmed its estimate of second-half earnings and also said it shut in production at its Fort Saskatchewan nitrogen facility and further pared output at other major nitrogen and phosphate plants in North America.
ADC Telecom’s (ADCT) Q4 loss widened.
Hatteras Financial (HTS), a Winston-Salem real estate investment trust, priced its public offering of 8.2 million common shares 4% below Tuesday’s closing price.
Sony (SNE) will issue bonds for the first time in 3 years.
Gold is up 2.98% and silver is up 3.67%
Crude oil is up 1.83 to trade at 43.90
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| UPGRADES | ALU, BMY, FORR, AWR, HE, ASR |
| DOWNGRADES | V, PAYX, MA, HOKU, ESLR, ADP, ASTI, ERTS, STI, LRN, GGB, NUE, PSE, HTLD, KNX, SINA, FTI, BJ, FLIR, WSO, NKE, IFX, CTRN, AXYS, GE, ERIC, CYT, ADCT |
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| EARNINGS | |
| before the open | BWY, MGAM, POWL |
| during trading | none |
| after the close | ARAY, FCEL, GEF, NCS |
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ECONOMIC RELEASES
10:00 Wholesale Inventories
10:35 Crude Inventories
14:00 Treasury Budget
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