Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets closed mixed. China rallied 3%, followed by Hong Kong (up 1.3%), Australia (up 0.8%) and Taiwan (up 0.6%). Indonesia fell 3.5%, and India dropped 1%. Europe is up across-the-board. Germany and Greece are up more than 1%; France, London, Amsterdam, Stockholm and Italy are also doing well. Futures here in the States point towards an up open for the cash market.
S&P Select – Week in Review
The dollar is up. Oil is down, copper is up. Gold and silver are up. Bonds are up.
We enter this new week with the indexes being in good shape but the breadth indicators are not fully supportive of a rally attempt, and we still don’t have a very good trading list to work from. Despite the S&P and Nasdaq hitting new highs last week, the strength is not broad-based. Something has to give. If the market’s breadth doesn’t improve, the upside will be limited both in terms of price and duration. This has been the case for a couple months, and all we’ve mostly gotten is a range.
We have an FOMC meeting and announcement on Wednesday. No fireworks are expected…this meeting has never been targeted as a potential starting point for raising rates, and with consensus shifting to later months, nothing will happen in this April meeting.
Earnings seasons picks up this week. We’ve seen some big moves in both directions recently, so unless a stock is long term hold, I wouldn’t advise holding into a report. Sometimes earnings season is a non-issue and stocks can be held. This isn’t the case this season.
The long term trend remains up. My bias remains to the upside, but I’m not entirely convinced. We need breadth to improve. More after the open.
Stock headlines from barchart.com…
Helmerich & Payne (HP -1.21%) was upgraded to ‘Buy’ from ‘Neutral’ at Goldman Sachs.
Citigroup raised its price target for Disney (DIS +0.49%) to $125 from $110 and keeps a ‘Buy’ rating on the stock.
Eaton Vance (EV -0.83%) was downgraded to ‘Sell’ from ‘Neutral’ at Citigroup.
Essex Property Trust (ESS -0.32%) was upgraded to ‘Buy’ from ‘Hold’ at Jefferies.
Perrigo (PRGO -4.33%) was downgraded to ‘Neutral’ from ‘Buy’ at UBS.
C.H. Robinson (CHRW +0.04%) was downgraded to ‘Sell’ from ‘Neutral’ at UBS.
Six Flags (SIX +2.41%) was downgraded to ‘Neutral’ from ‘Buy’ at Goldman Sachs.
SeaWorld (SEAS +1.66%) was upgraded to ‘Buy’ from ‘Neutral’ at Goldman Sachs.
Allscripts (MDRX -1.18%) was upgraded to ‘Neutral’ from ‘Underweight’ at Piper Jaffray.
Roper Industries (ROP -0.08%) reported Q1 EPS of $1.55, above consensus of $1.52.
Laboratory Corporation of America Holdings (LH +0.44%) reported Q1 EPS of $1.73, better than consensus of $1.63.
Applied Materials (AMAT -1.67%) slid nearly 7% in pre-market trading after the compnay scrapped its planned $9.39 billion takeover bid of rival Tokyo Electron Ltd. on opposition from the U.S. Department of Justice.
Marvell (MRVL -1.51%) dropped 5% in after-hours trading after it lowered its Q1 revenue guidance to $710 million-$740 million from $810 million-$830 million, well below consensus of $816.25 million.
Paulson & Co. reported an 11.7% passive stake in Synthesis Energy (SYMX -6.09%) .
Earnings and Economic Numbers from seekingalpha.com…
Today’s economic calendar:
9:45 PMI Services Index Flash
10:30 Dallas Fed Manufacturing Outlook
1:00 PM Results of $26B, 2-Year Note Auction
Notable earnings before today’s open: ACW, BPOP, CYOU, HAE, LH, MCY, ONB, OSIS, PDS, PLT, QSR, ROP, SILC, SOHU, STNG, TEN
Notable earnings after today’s close: AAPL, ABX, ACC, AFG, AGNC, ALSN, AMKR, ARE, AVB, BRX, BXP, CDNS, CHDN, CHRW, CMP, CR, CUDA, DAC, GGP, GIG, HIG, HMST, HT, IPHS, JJSF, JLL, MSA, OLN, OMI, OSTK, PCL, PMCS, PRE, RCII, RE, RTEC, SIMO, SSNC, SSW, SWFT, TCS, UDR, UHS, WCN, WNC, WRB
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers
0 thoughts on “Before the Open (Apr 27)”
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The muddle continues at the Fed, any increase (+.25?) would prove that they are still alive, but they know whatever they do will persuade the market the tide is coming in. I recall when the Fed never said a word to anyone. Of course that was 60 years ago, CAn that be right? At the end of 2015 the market will be at one of its cycle points ~7.5 yrs, and do some kind of a correction. For now? We rise for a ride into June before a correction into the fall, then a rise to year end. Buy the right stocks, Shanghai, India including other international, and one can survive.
Great day to all. Sailing a little since it maybe spring?
the fed is bankrupt and knows it and wants to get out from under
the fed also knows that it works for the big insto banks and is owned by them
the fed also knows it does not work for the govt or the economy or the tax payer
the fed also knows the big banks have ordered it to put up interest rates so the instos can get a better rate
the fed also knows that it is loosing its status as reserve currency in sept when china issues CIG’S
to compeate with the SWIFT means of internation payments system–this will allow world payments to be made in chinees yaun–this will be the first step to china becoming the reserve currency and the end of usa
the fed also knows their is a current currency war and when the euro gos up the german dax shares go down
–i would not be buying the china share index but would prefer the hong kong
Thanks for your comments whidbey.
i have be elected as president of the fat complacent bulls to combat the nasty bears,exhilerated on bearomite that are pushing sharemarkets up to make a final killing
any share sale has a bull and bear attached to it
currently the equity markets are being traded by the big instos as a commodity
after all with world QE what else could a share be but just a commodity and its exhausting into highs
the insto bears pull their sell orders to force prices higher so as they can sell or short it
once the insto bears have a gut full from taking the opposite side to the buy bulls they will force
a correction and the market exhaustion will turn into a massive implosion
thats how it works
their how been some good intraday trades with volitility
but i would prefer a trending crash followed by a market wipe out to zero