Before the Open (May 3)

Good morning. Happy Tuesday.
The Asian/Pacific markets closed mixed. Hong Kong, Malaysia and Taiwan dropped more than 1%; India and Singapore were also weak. Australia and China rallied more than 1%; New Zealand also did well. Europe is currently down across the board. The Netherlands, Turkey, Spain and Italy are down more than 2%; France, Germany, London, Austria, Belgium, Norway, Sweden, Switzerland, the Czech Republic, Denmark, Finland and Portugal are down more than 1%. Futures here in the States point towards a moderate gap down open for the cash market.
The dollar is down. Oil and copper are down. Gold is up, silver is down. Bonds are up.
Yesterday the S&P gained 16.13 points. Today it’ll give back almost the entire gain at the opening bell. Such is life when the market has weak-ish internals and is making noise that it wants/needs to correct. Anyone who has a strong opinion flip-flops back and forth between being happy and being frustrated…and then a month later when the indexes are unchanged, they wonder why they were active at all. At any given time, there are typically a small handful of groups which do well. Everything else is on par with the market.
Right now I’m operating under the belief the market will continue correcting with time and then move up…or correct with a price decline, which will eventually reverse.
Because of this I don’t have a strong interest in going short. I’d rather manage what I have and get ready for the next up leg than miss the beginning of the up leg by being distracted with shorts. If I’m wrong, oh well. I’d rather be wrong once than wrong every time the market kind of/sort of looks like it wants to roll over.
Stock headlines from barchart.com…
American International Group (AIG +1.38%) slid more than 3% in pre-market trading after it reported Q1 operating EPS of 65 cents, well below consensus of $1.00.
Mylan NV (MYL +2.40%) climbed 5% in pre-market trading after it reported Q1 adjusted EPS of 76 cents, higher than consensos of 75 cents.
Texas Roadhouse (TXRH +3.29%) gained nearly 3% in after-hours trading after it reported Q1 adjusted EPS of 55 cents, better than consensus of 54 cents.
Owens-Illinois (OI +0.81%) rose over 4% in after-hours trading after it reported Q1 adjusted EPS of 48 cents, higher than consensus of 40 cents, and then raised guidance on 2016 fiscal year adjusted EPS to $2.25-$2.35 from a March 1 estimate of $2.10-$2.25, above consensus of $2.19.
Community Health Systems (CYH -17.51%) sank over 10% in after-hours trading after it reported Q1 adjusted EPS continuing operations of 27 cents, well below consensus of 74 cents.
Tenet Healthcare (THC -0.16%) rallied nearly 5% in after-hours trading after it reported Q1 adjusted EPS of 45 cents, above consensus of 34 cents.
Beacon Roofing Supply (BECN +0.30%) jumped over 7% in after-hours trading after it reported an unexpected Q2 adjusted profit of 3 cents, better than consensus of a -21 cent loss.
Edison International (EIX +1.03%) slipped over 1% in after-hours trading after it reported Q1 core EPS of 82 cents, below consensus of 88 cents.
Integrated Device Technology (IDTI +2.18%) gained 3% in after-hours trading after it said it sees Q1 revenue of $186 million-$196 million, above the midpoint of consensus at $188.3 million.
Advanced Energy Industries (AEIS +2.94%) rose nearly 4% in after-hours trading after it reported Q1 adjusted EPS of 56 cents, higher than consensus of 47 cents, and said it sees Q2 adjusted EPS continuing operations of 60 cents-70 cents, above consensus of 54 cents.
Fabrinet (FN +1.00%) rallied over 10% in after-hours trading after it reported Q3 adjusted EPS of 56 cents, higher than consensus of 53 cents, and said it sees Q4 adjusted EPS of 59 cents-61 cents, above consensus of 55 cents.
PVH Corp. (PVH +1.37%) is up over 2% in after-hours trading after Greenlight Capital reported a new stake in the company.
Aegion (AEGN +1.04%) reported Q1 adjusted EPS of 12 cents, better than consensus of 8 cents, and said it plans to cut 900 workers, or 14.5% of its workforce.
Yelp (YELP +2.43%) is up over 5% in after-hours trading after Greenlight Capital reported a new stake in the company.
Rogers Corp. (ROG +2.27%) climbed 5% in after-hours trading after it reported Q1 adjusted EPS of 85 cents, well above consensus of 63 cents.
Monday’s Key Earnings
AIG (NYSE:AIG) -3.2% AH stung by weak investment results.
Anadarko Petroleum (NYSE:APC) -1.3% AH as the rout in the oil sector continues.
SYSCO (NYSE:SYY) +5.5% after beating expectations.
Today’s Economic Calendar
Auto Sales
8:30 Gallup US ECI
8:55 Redbook Chain Store Sales
10:30 Fed’s Mester speech
7:00 PM Fed’s Lockhart: Economic Outlook and Monetary Policy
Today’s Earnings here
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers