Before the Open (May 9)

Good morning. Happy Monday. Hope you had a good weekend.
The Asian/Pacific markets closed mixed. China dropped 2.8%; Indonesia and Malaysia fell more than 1%. India and Singapore rallied more than 1%. Europe is currently mostly up. Germany, France, Belgium, Sweden, Switzerland, Turkey, Denmark and Hungary are up more than 1%. Futures here 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 up. Oil is up; copper is down. Gold and silver are down. Bonds are up.
Things get more interesting now. We seem to be at an inflection point. Several indicators have fallen enough to support a rally attempt, so I’m thinking the market bounces or the S&P quickly drops to 2000, which would only be the 38.% retracement level.
If the market does bounce, it’ll be a perfect time for us to gauge the market’s breadth to determine whether the move is just a bounce within a topping pattern or the beginning of the next leg up.
If you haven’t like the action over the last six weeks, go find something else to do. A rally followed by six weeks of consolidation is perfectly normal and healthy. In fact over time the market spends more time moving in a range than moving directionally. Establish a trading system for making money in both, and you won’t be frustrated when one switches to the other. That’s it for now. No need for comments beyond the weekly report posted over the weekend.
Stock headlines from barchart.com…
Tyson Foods (TSN +1.31%) rose nearly 3% in pre-market trading after it reported Q2 adjusted EPS of $1.07, higher than consensus of 96 cents, and then raised guidance on full-year adjusted EPS to $4.20-$4.30 from a prior estimate of $3.85-$3.95, above consensus of $4.06.
Altria Group (MO +0.14%) was upgraded to ‘Buy’ from ‘Hold’ at Argus Research with a price target of $68.
LabStyle Innovations (DRIO +3.45%) was rated a new ‘Buy’ at Rodman & Renshaw with a 12-month price target of $12.
Silver Wheaton (SLW +2.74%) reported Q1 EPS of 10 cents, below consensus of 12 cents.
LendingClub (LC +3.65%) slumped 16% in pre-market trading after CEO Renaud Laplanch resigned following an internal review of $22 million in near-prime loans to a single investor.
Flotek Industries (FTK +1.13%) was upgraded to ‘Buy’ from ‘Speculative Buy’ ay Seaport Global Securities with a 12-month price target of $13.
Comerica (CMA unch) was upgraded to ‘Outperform’ from ‘Market Perform’ at Raymond James.
Kronos Worldwide (KRO +4.38%) reported a Q1 EPS loss of -3 cents, a smaller loss than consensus of -13 cents,
Apollo Education Group (APOL +1.47%) climbed nearly 2% in after-hours trading after Apollo Education shareholders approved a $10 a share offer from a group led by Apollo Global Management.
Beazer Homes (BZH +0.42%) gained over 1% in after-hours trading after the chairman of the company, Stephen Zelnak, disclosed a purchase of 55,000 shares May 4-5.
NorthStar Realty Finance (NRF +2.28%) jumped almost 6% in after-hours trading after Colony Capital said it is in exclusive negotiations with NorthStar Asset Management Group and NRF for a tri-party all stock “at the market” business combination.
NorthStar Asset Management Group (NSAM +1.01%) surged over 15% in after-hours trading after Colony Capital said it is in exclusive negotiations with NSAM and NorthStar Realty for a tri-party all stock “at the market” business combination.
Today’s Economic Calendar
5:10 Fed’s Evans speech
10:00 Labor market condition index
12:30 PM TD Ameritrade IMX
1:00 PM Fed’s Kashkari speech
Today’s Earnings here
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers