Good morning. Happy Wednesday.
The Asian/Pacific markets closed mixed. Japan, Singapore and South Korea did well; New Zealand was weak. Europe currently leans to the downside. Poland and Turkey are up, but Russia, Greece, Switzerland and Denmark are down; and the Czech Republic is down more than 2%. Futures here in the States point towards a positive open for the cash market.
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My podcast – with Chat With Traders
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The dollar is down. Oil and copper are up. Gold and silver are up. Bonds are mixed and flat.
The market keeps chugging along. Volume is not high. The ranges are not big. The energy level is low. Still, at yesterday’s high the S&P was 95 points off its May low, and although a few breadth indicators are starting to diverge from the underlying price action, for the most part, the indicators support the strength.
The biggest supporters of the rally are sentiment and the market’s reaction to news.
News lately (over the last month) has been more bad than good, yet the market has continued up. This is bullish.
Sentiment has been negative. Whether it’s the AAII bulls or other sentiment indicators, investors are bearish, which sets the stage for prices to continue up.
Personally I’ve traded a lot less lately because my oil, gold and silver positions are doing well. More after the open.
Stock headlines from barchart.com…
Fiat Chrysler Automobiles NV (FCAU +3.85%) rose nearly 3% in pre-market trading after it was said to habe started talks on a partnership with Uber Technologies.
Lending Club (LC -7.38%) climbed over 3% in pre-market trading after a report that its former CEO and chairman has spoken to buyout firms and banks about a possible takeover of the company.
Lululemon (LULU -0.89%) reported Q1 EPS of 30 cents, below consensus of 31 cents, and said it expectd Q2 EPS of 36 cents-38 cents, below consensus of 39 cents.
Dave & Buster’s Entertainment (PLAY +0.94%) rallied over 3% in pre-market trading after it reported Q1 adjusted EPS of 72 cents, higher than consensus of 59 cents, and then boosted its full-year revenue forecast to $983 million-$995 million from a March 29 estimate of $967 million-$987 million.
Verint Systems (VRNT +2.55%) slid over 1% in after-hours trading after it reported Q1 adjusted EPS of 46 cents, above consensus of 40 cents, but reported Q1 adjusted revenue of $249 million, below consensus of $250.7 million
Ardmore Shipping (ASC -0.61%) dropped over 8% in after-hours trading after it proposed a 7.5 million share public offering of common stock.
Lending Club (LC -7.38%) gained over 2% in after-hours trading after it was raised to ‘Market Perform’ at KBW.
VeriFone Systems (PAY +1.33%) sank 30% in after-hours trading after it reported Q2 adjusted EPS of 47 cents, weaker than consensus of 52 cents, and then cut its fiscal 2016 adjusted EPS estimate to $1.85 from a March 10 view of $2.21-$2.24.
Duluth Holdings (DLTH -1.95%) dropped over 3% in pre-market trading after it reported Q1 sales of $68.6 million, below consensus of $69.7 million.
HealthEquity (HQY +2.26%) climbed over 4% in after-hours trading after it reported Q1 adjusted EPS of 15 cents, better than consensus of 13 cents, and then raised guidance on full-year adjusted EPS to 47 cents-49 cents from a March 22 view of 45 cents-47 cents.
Oxford Industries (OXM -0.47%) slipped over 7% in after-hours trading after it reported Q1 adjusted EPS continuing operations of $1.26, below consensus of $1.33, and then lowered its fiscal 2017 adjusted EPS view to $3.60-$3.80 from a March 23 estimate of $3.75-$3.95.
Flexion Therapeutics (FLXN -3.83%) tumbled over 11% in after-hours trading after it announced a $60 million offering of common stock.
Tuesday’s Key Earnings
Dave & Buster’s (NASDAQ:PLAY) +4.8% AH after strong sales growth.
Valeant Pharmaceuticals (NYSE:VRX) -14.5% slashing its 2016 forecasts.
VeriFone (NYSE:PAY) -27.6% AH missing EPS estimates, weak guidance.
Today’s Economic Calendar
7:00 MBA Mortgage Applications
10:00 Job Openings and Labor Turnover Survey
10:00 Quarterly Services Report
10:30 EIA Petroleum Inventories
1:00 PM Results of $20B, 10-Year Note Auction
Today’s Earnings here
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers
2 thoughts on “Before the Open (Jun 8)”
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Crude up to 51, Ignoring. Draghi is buying bonds in the EU. UK is staying out out of EU. The facts are this runup is OK, but it will not last so stops. Yellen is scared inflation is worsening. It is. live well it does not last..
it is possible the sell of is starting ,with only central bank buying
the dow diverged and did not confirm the spx and the nas 100 is a different chart
soverign corporate and bank debt is a worry to as is the economy and no one beleives the ponsi can be held together by see through central banks
with few bulls a panic sell could happen and that to me seems a more likly event unless floods of money come into usa–its all about the carry trade and currency where the real volitility is