Good morning. Happy Tuesday.
The Asian/Pacific markets closed mixed. China rallied 2.5%, and Australia followed with a 1.4% gain. Taiwan and New Zealand also did fine. Japan dropped 1.3%. Singapore and Taiwan also fell. Europe is posting solid, across-the-board gains. Greece is up almost 10%. Spain and Italy are up more than 2%; London, France, Austria, Belgium, Amsterdam, Norway and Russia are up more than 0.9%. Futures here in the States point towards an up open for the cash market.
The dollar is down. Oil and copper are up. Gold is down, silver up. Bonds are down.
Big news comes the Pacific region (Australia) and the Europe (Greece). The Reserve Bank of Australia cut its interest rate 25 basis points to a new record low of 2.25%. The Australian stock market rallied 1.43%. Greece’s new government proposed swapping outstanding debt for new growth bonds, running a permanent budget surplus and targeting wealth tax evaders. The Greek stock market is up almost 10%.
This news comes on the heels of the US market taking out a support level but then quickly reversing and posting a solid gain on above-average volume. The US indexes, for all their movement, all their ups and downs, all the gaps and sudden reversals, remains stuck in a range.
My favorite long groups remain gold and silver. At the beginning of January I posted that not only were the groups my favorites, I also posted they may give us some longer term holds…trades we can get into and ride for several months, as opposed to quicker 10-15% targets. So far so good.
I’m warming up to oil. Many stocks bottomed well before oil bottomed last Thursday.
Along with oil, solar stocks will move in sympathy. FSLR broke out yesterday, and if oil continues up, there will be more.
Also along with oil, marine transports will get a boost if oil has indeed bottomed.
Has oil bottomed? We can’t be sure. For now I’m playing this like it’s a bounce within a downtrend. Oil has a lot of work to do if it wants to turn me into a believer.
Yesterday was a very good day for the market. Today we’ll see if they US can piggy-back off the strength in Asia and Europe. Until the ranges get broken, no big bets! More after the open.
Stock headlines from barchart.com…
Archer-Daniels Midland (ADM +3.30%) reported Q4 EPS of $1.00, better than consensus of 96 cents.
AutoNation (AN -0.47%) reported Q4 EPS of $1.03, stronger than consensus of 91 cents.
Office Depot (ODP +0.39%) surged 13% in pre-market trading after the WSJ reported that the company is in advanced merger talks with Staples (SPLS +0.53%) .
Dow Jones reported that the NYSE said it will suspend trading in RadioShack (RSH -14.29%) immediately and begin the delisting proceedings.
MDU Resources (MDU +0.84%) reported Q4 adjusted EPS of 35 cents, weaker than consensus of 39 cents, and then lowered guidance on fiscal 2015 adjusted EPS to $1.05-$1.20, below consensus of $1.42.
Neil Dana reported a 9.3% passive stake in GoPro (GPRO +4.80%) .
Advent Software (ADVS -1.10%) rose over 6% in after-hours tradng after SS&C (SSNC -1.41%) announeced it will acquire the company for $44.25 per share, or $2.7 billion.
Cliffs Natural Resources (CLF +8.57%) jumped 11% in after-hours trading after it reported Q4 EPS of $1.00, more than seven times consensus of 13 cents.
Rent-A-Center (RCII +2.19%) slumped over 13% in after-hours trading after it reported Q4 adjusted EPS of 50 cents, below consensus of 63 cents, and then lowered guidance on fiscal 2015 EPS to $2.05-$2.30, less than consensus o $2.48.
Reinsurance Group (RGA +1.62%) reported Q4 adjusted EPS of $2.99, well above consensus of $2.11.
OppenheimerFunds reported a 6.11% passive stake in Targa Resources Partners (NGLS +4.59%) .
Anadarko (APC +1.25%) reported adjusted Q4 EPS of 37 cents, well below consensus of 85 cents.
Hartford Financial (HIG +1.70%) reported Q4 EPS of 96 cents, beter than consensus of 93 cents.
Owens-Illinois (OI +3.73%) reported Q4 EPS of 46 cents, right on consensus, although Q4 revenue of $1.60 billion was slightly below consensus of $1.65 billion.
Torchmark (TMK +1.98%) reported Q4 net operating EPS of $1.00, right on consensus.
Earnings and Economic Numbers from seekingalpha.com…
Today’s economic calendar:
Auto sales
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales
10:00 Factory Orders
Notable earnings before today’s open: ACI, AET, AGCO, AN, ARG, ARRY, AXE, BHE, BP, CARB, CBR, CEVA, CHD, CNC, EMR, ETN, GCI, GLPI, HCA, HCLP, HRC, HW, IMS, JLL, LPT, LYB, MHO, MNK, NOV, NYT, PNR, R, SC, SPR, ST, TECH, UPS, WDR
Notable earnings after today’s close: AEC, AFL, AJG, ATO, ATW, AXS, CALX, CBL, CENT, CHRW, CMG, DIS, ENTR, EQR, EW, EXP, FISV, GILD, HCSG, IACI, JKHY, LSCC, MANH, MWA, MYGN, NSR, OCLR, OMCL, PACB, PLNR, QNST, RNG, RNR, RSYS, SLGN, SPA, TTWO, ULTI, UNM, VASC, WNC, WRB, WYNN
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers
0 thoughts on “Before the Open (Feb 3)”
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Has oil bottomed?… I think you are correct Jason.. playing this like it’s a bounce within a downtrend.
Yea we will see 60 oil in the next few weeks and then back to the mid 40’s.
Bulls get crushed by dead cats.. I know I been there!
my dead cats gruesome and awesome are daytraders
when australia a commodity export nation has to cut rates because of slugish domestic growth,then you know that the world is not a place of prosperity and increased demand
instead its a place of doom and gloom and artifical markets based on world central banks QE ponsi ATTEMPTS
THAT WILL END IN DOOM AND GLOOM
Gold may be going up but gold stocks are not the place to be in this currency war
usd dollar may have peaked and euro bottomed or close to it
stocks are going lower but may be in a small wave 2 of 3 up and are to choppy to trade, because of ecb and japan QE,
only very quick 2 hour or so daytrades are of any use and then be prepared to leave money on the table
NAS 100 still has a island reversal top and lower H/L ‘s
does the banking index tell you this is a world of prosperity and bullishness