Before the Open (Apr 4)

Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets closed with a lean to the upside, but movement was minimal. Singapore, Malaysia, New Zealand and India closed up; Japan lost ground. Europe currently leans to the upside. France, Germany, Turkey and Denmark are up more than 1%; London, Belgium, the Netherlands, Switzerland and Spain are also doing well. Greece is down more than 1%. Futures in the States point towards a slight up open for the cash market.
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LB Weekly – the indexes, the breadth indicators, a look at the big picture
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The dollar is flat. Oil is up, copper is down. Gold and silver are down. Bonds are up.
I don’t have anything to add to the report published over the weekend. My conclusion was the following:
The market is doing well, but there’s a little trouble brewing under the hood – not the kind of trouble that spells doom, the kind of trouble that tells us to be careful in the near term.
Some indicators have reached extreme levels – levels not seen in a couple years. Other indicators are diverging from the price action – a sign breadth is declining and the rising indexes aren’t fully supported.
I like the market and think the bulls deserve the benefit of the doubt, but I’d be a little defensive in the near term.
Here’s a link to the report.
Alaska Air (ALK) is buying Virgin America (VA).
Tesla (TSLA) continues to rally. Orders for their Model 3 have topped 276K.
SunEdison (SUNE) is likely to file for bankruptcy. Amazing – the stock was trading in the 30’s last summer.
Be defensive out there. More after the open.
Stock headlines from barchart.com…
Tesla’s (TSLA +3.40%) rose over 4% in pre-market trading after pre-orders for its Model 3 reached more than 276,000 by Saturday morning.
Edwards Lifesciences (EW +1.94%) climbed nearly 8% in pre-market trading after studies showed that the company’s latest aortic valve has a lower risk of death or stroke than surgery.
Virgin America (VA +0.88%) surged 35% in pre-market trading after Alaska Air Group agreed to buy the airline for $2.6 billion.
Express Scripts Holding (ESRX +0.61%) was upgraded to ‘outperform’ from ‘Market Perform’ at Cowen.
Intel (INTC +0.31%) was downgraded to ‘Neutral’ from ‘Outperform’ at Exane BNP Paribas.
Time Inc. (TIME -0.06%) is considering a bid for Yahoo’s core Internet assets in a partnership with a private equity firm, according to Reuters.
Facebook (FB +1.72%) said it has withdrawn from the bidding for rights to live-stream NFL games next season.
Visa (V +1.45%) could double over the next four years says Barron’s.
Cheniere Energy (LNG -0.18%), Enterprise Products Partners (EPD -1.75%), and Spectra Energy Partners (SEP -2.74%) are well positioned to weather the collapse in energy prices, according to Barron’s.
Endo International (ENDP +1.88%) may rebound more than 50% over the next 2 years, according to Barron’s.
Manitowoc (MTW +0.69%) may see its stock price rise as new CEO Barry Pennypacker tries to reduce costs and improve margins, according to Barron’s.
SunEdison (SUNE -20.37%) fell sharply in after-hours trading Friday after WSJ reported that the company is in discussions for a bankruptcy filing, a report that also dragged its yieldcos lower, Terraform Global (GLBL) and Terraform Power (TERP). Separately, S&P affirmed its B- corporate credit rating on Terraform Global (GLBL) and said the outlook is stable.
Earnings and Economic Numbers from seekingalpha.com…
Today’s Economic Calendar
8:30 Gallup US Consumer Spending Measure
10:00 Labor market condition index
10:00 Factory Orders
10:15 Fed’s Rosengren: “A View on Cybersecurity and Financial Stability from the CEO”
12:30 PM TD Ameritrade IMX
5:15 PM Fed’s Kashkari: “Too Big to Fail”

Today’s Earnings here
Other
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (Apr 4)

  1. Today is a buy-in day for IRAs etc. Tomorrow the crazies are coming back. But…. we are living in a block-chain world where banks maneuver to avoid currency problems. If you do not understand bit coin ops, you need to know, and soon. The world of money is getting ready to change radically. UDN could move when $ declines. Have we lived too long? just could be bit coin is nerve wracking. What about gold/silver?? I own some. A mistake or what? Losing money today.

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