{"id":6934,"date":"2013-08-20T07:33:10","date_gmt":"2013-08-20T12:33:10","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=6934"},"modified":"2013-08-20T07:33:10","modified_gmt":"2013-08-20T12:33:10","slug":"before-the-open-aug-20-4","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=6934","title":{"rendered":"Before the Open (Aug 20)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mostly down. Indonesia dropped 3.2%, Japan and Hong Kong more than 2%, Malaysia, Singapore and South Korea more than 1%. Europe is currently down across the board. Spain and Greece are down more than 2%; Austria, Belgium, France, Amsterdam and the Czech Republic are down more than 1%. Futures here in the States point towards a positive open for the cash market.
\n<\/span>
\nThe dollar is down. Oil and copper are down. Gold is up, silver down. <\/span>
\nThe market dropped yesterday for the 4th consecutive day marking the first time this year the Dow has suffered such a losing streak. <\/span>
\nIn all cases, the long term trends remain solidly up, but things have definitely taken a turn down in the near term. <\/span>
\nA week ago the market was correcting with time, not price. The indicators we falling, and price was holding up. But now prices are catching up with the internal deterioration. <\/span>
\nSeveral indicators are moving to extreme levels. The NYSE AD line, for example, is at a level that has produced bottoms in the past (see first chart below). The NYSE new lows is spiking. It could certainly spike further, but we need to at least recognize a bottom is likely approaching (see second chart below). <\/span>
\n\"\"
\n\"\"
\nIf the market does not bounce soon, I’m afraid we could hit a little downside air pocket causing the market to plunge. This would entail the S&P dropping 80-100 points in just a couple days. Said another way, if the bulls aren’t motivated to step up and buy stocks at these lower prices, look out below. <\/span>
\nStock headlines<\/strong> from barchart.com…<\/span>
\nTarget (TGT -0.50%) and Wal-Mart (WMT -0.72%) were both downgraded to “Neutral” from “Positive” at Susquehanna.<\/span>
\nDick’s Sporting (DKS +1.20%) reported Q2 EPS of 71 cents, weaker than consensus of 74 cents.<\/span>
\nJC Penney (JCP -1.34%) reported a Q2 EPS loss of -$2.16, a bigger loss than consensus of -$1.01.<\/span>
\nBest Buy (BBY +1.19%) jumped 11% in pre-market trading after it reported Q2 EPS of 32 cents, well ahead of consensus of 12 cents.<\/span>
\nHome Depot (HD -0.23%) reported Q2 EPS of $1.24, better than consensus of $1.21.<\/span>
\nRobert Kopple reported a 19.99% stake in Cardero Resource (CDY +13.33%) .<\/span>
\nPerfect World (PWRD +2.49%) reported Q2 adjusted EPS of 33 cents, better than consensus of 30 cents.<\/span>
\nAegean Marine (ANW +1.11%) reported Q2 adjusted EPS of 13 cents, below consensus of 17 cents.<\/span>
\nFacebook (FB +1.97%) was initiated with a “Buy” at Janney Capital with a price target of $50.<\/span>
\nUrban Outfitters (URBN +0.45%) rose nearly 7% in after-hours trading after it reported Q2 EPS of 51 cents, stronger than consensus of 48 cents.<\/span>
\nBob Evans (BOBE -0.36%) reported Q1 EPS ex-charges of 58 cents, better than consensus of 57 cents, and raised its quarterly dividend to 31 cents from 27.5 cents.<\/span>
\nEarnings<\/strong> from seekingalpha.com…<\/span>
\nNotable earnings before today’s open: BBY, BKS, DAKT, DKS, GLOG, HD, JCP, MDT, TJX, TSL<\/span>
\nNotable earnings after today’s close: ADI, GSM, INTU, LZB, VELT, VNET<\/span>
\nOther<\/strong>
\ntoday’s upgrades\/downgrades<\/a> from briefing.com<\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n