Before the Open (Jul 11)

Posted on by Jason Leavitt

Good morning. Happy Friday.
Well this is it. After 18 months we are heading home from Costa Rica tomorrow. It’s been fun (most of the time, when the power was on, when internet worked). It’s been an experience. My wife loved her teaching job (no standardized test, just teaching), and the kids liked school too. We went on many excursions, and even though they’re young, we hope they remember the time here. At the very least, they’ve soaked in a happy environment. But it’s time to go home. At this time tomorrow we’ll be on a flight back to Colorado.

The Asian/Pacific markets closed mostly down. India and Indonesia dropped more than 1%; Korea and Taiwan dropped 0.7%. Singapore did well. Europe is currently mostly up. Italy, Greece and Prague are up more than 1%; Spain is also doing well. Futures here in the States point towards a slight up open for the cash market.
The dollar is up. Oil and copper are down. Gold and silver are up small amounts.
So far this week we have three down days and one up day. The S&P is down 1% for the week – the biggest down week since early-April. The last six weeks have been up, down, up, down, up, down (assuming we don’t get a big rally today), but since the up weeks have been much bigger than the down, the market is up nicely over this time.
In the near term I’ve been cautious – because I don’t see many good set ups to be had, and because I have so many things to do here in CR before leaving.
Long term I think the market is in good shape, and as long as we don’t get a lot of internal deterioration, I’d expect prices to move up again once this mini pullback plays out.
For now I’m laying low and just hoping everything goes smoothly on our flight back.
Stock headlines from barchart.com…
Whirlpool (WHR -1.35%) will acquire a majority interest in Indesit for $15.06 per share.
Imperial Tobacco (ITYBY +0.37%) confirms talks with Reynolds (RAI -0.65%), Lorillard (LO +0.13%) over asset acquisition. Reynolds and Lorillard are close to a merger agreement, according to FT.
Infosys (INFY +1.13%) reporte Q1 EPS of 84 cents, better than the consensus of 76 cents.
Taco Bell (YUM -0.91%) plans to launch a new high-end menu, according to Business Insider.
Rent-A-Center (RCII -1.59%) fell over 8% in after-hours trading after it reported preliminary Q2 adjusted EPS between 36 cents and 38 cents, well below consensus of 48 cents.
Aspen Insurance (AHL -1.02%) said that it sees Q2 diluted operating EPS of $1.30-$1.35, above consensus of $1.22.
Carlson Capital reported a 12.4% passive stake in TRI Pointe Homes (TPH -3.80%) .
Gap (GPS -1.09%) reported that June net sales increased 1% compared with last year.
Earnings and Economic Numbers from seekingalpha.com…
Today’s economic calendar:
2:00 PM Treasury Budget
Notable earnings before today’s open: FAST, INFY, WFC
Notable earnings after today’s close: CUDA, EOPN, PSMT, VOXX
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (Jul 11)”

  1. Jason, you and your family are in my prayers for a safe trip home.
    Ostensibly, that was a nice recovery yesterday, but if you’re a bull, “da boyz” left clear clues that need to be watched.
    You’ll note the 1340 high was 1969.8. Give it two more points, let’s say 1972 to make it clean.
    If we get above that, breathe easy. As usual, if they break above it, expect a pullback of possibly 10 points, from which they need to bounce it.
    Overnight the futures went after that high but have since fallen off, so I’ll lay out where it needs to bounce if we don’t proceed higher from the bell:
    Support at 1960 extends down to 1958. If 1958 is broken, it’s almost a sure thing that they’re targeting mid-lo 1940s.
    Futures were +5.75 and recently got as low as -.5. At 920 am, they are unchanged.

          1. Concur.
            Holding above 1965 will be better, still have the resistance 1969-1972. Til then, can go either way. 1959 remains lower do or die line. They showed that this morning.

          4. With spx dji, we’re right on the line, moving bullish. Vix was bearish, now turning bullish as well. May have been the pullback after the move up. Watch nasdaq — staying green throughout all this.

  2. Safe trip home Jason. Don’t forget to pay the exit tax ($ 29.00) before you check in. I paid for mine at the hotel – the exit tax line was long when we got to the airport. Then another long line at the check-in for the flight. Made the flight with 15 minutes to spare.
    I’m sure that you will be happy to be back in Colorado.

  4. Jason says –since early april
    instos game plan then as now was to sell the junk prior to earnings
    and buy those that beat
    this move has been corrective only and with more volitility to come
    especially on after hours tech earnings
    this nonsence goes on for next 2 to 3 weeks
    but good fun for 24 hour daytraders

    1. Interesting development in the last few minutes. All my indicators are bullish with the exception of bonds (which have been bearish for stocks all day.)

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