{"id":7852,"date":"2014-08-01T07:38:42","date_gmt":"2014-08-01T12:38:42","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=7852"},"modified":"2014-08-01T07:38:42","modified_gmt":"2014-08-01T12:38:42","slug":"before-the-open-aug-1-4","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=7852","title":{"rendered":"Before the Open (Aug 1)"},"content":{"rendered":"

Good morning. Happy Friday. Happy Employment Numbers Day.<\/span>
\n The Asian\/Pacific markets closed down across-the-board. Australia, India and New Zealand dropped more than 1%. Hong Kong, China and Singapore also did very poorly. Europe is currently down across-the-board. Germany, London, Spain, Austria, Belgium, Amsterdam, Norway, Sweden, Russia and Greece are all down at least 1%. Prior to the employment numbers release, futures here in the States pointed towards another big gap down open for the cash market.
\n<\/span>
\n The dollar is flat. Oil and copper are down. Gold is up slightly, silver is down.<\/span>
\n The uptrend is officially over. The market has been iffy for a while. I’ve been conservative and advising everyone to adjust their trading and be content with small gains. Little by little over the last month the market deteriorated, but with the Dow and SPX trading near their highs last week, I held out calling a top. The trend had been up for so long, I wanted to give the bulls the benefit of the doubt. No more. Many stocks had already broken down; now the indexes are broken. There will be rallies (the market’s biggest up days occur within downtrends), but for now the path of least resistance is down. I’m not saying we’re headed for a bear market, but a correction that lasts more than a week or so should be in the works. <\/span>
\n Here are the employment numbers\u2026<\/span>
\n unemployment rate: 6.2% (was 6.1% last month)
\n nonfarm payrolls: +209K (+235K was forecasted)
\n private payrolls:
\n average workweek: unchanged 34.5 hours
\n hourly wages: up 1 cents to $24.45
\n labor participation rate drops to 62.9% (was 62.8% last month)<\/span><\/span><\/span><\/span><\/span><\/span>
\n May revised up from 224K to 229K.
\n June revised up from 288K to 298K.<\/span><\/span>
\n On the news, S&P futures went from being down 10 to down 3.<\/span>
\nStock headlines<\/strong> from barchart.com…<\/span>
\n Procter & Gamble (PG -1.07%) reported Q4 EPS of 95 cents, better than consensus of 91 cents.<\/span>
\n Live Nation (LYV -2.68%) reported Q2 EPS of 11 cents, below consensus of 15 cents.<\/span>
\n Boyd Gaming (BYD -2.40%) reported Q2 adjusted EPS of 5 cents, weaker than consensus of 8 cents.<\/span>
\n DaVita (DVA -1.23%) reported Q2 adjusted EPS of 95 cents, stronger than consensus of 89 cents.<\/span>
\n Insight Enterprises (NSIT -4.47%) reported Q2 EPS ex-items of 74 cents, better than consensus of 72 cents.<\/span>
\n ON Semiconductor (ONNN -2.84%) reported Q2 EPS of 20 cents, better than consensus of 19 cents.<\/span>
\n Fluor (FLR -2.89%) reported Q2 EPS of $1.02, higher than consensus of 99 cents.<\/span>
\n Mohawk (MHK -1.54%) reported Q2 EPS ex-items of $2.21, better than consensus of $2.20.<\/span>
\n Genpact (G -0.17%) reported Q2 adjusted EPS of 27 cents, better than consensus of 26 cents.<\/span>
\n Montpelier Re (MRH +0.10%) was downgraded to ‘Hold’ from ‘Buy’ at Deutsche Bank.<\/span>
\n Tesla (TSLA -2.46%) climbed 4% in after-hours trading after it reported Q2 EPS of 11 cents, nearly three times consensus of 4 cents.<\/span>
\n Western Union ({=WU reported Q2 EPS of 36 cents, right on consensus, although Q2 revenue of $1.41 billion was slightly below consensus of $1.42 billion.<\/span>
\n Outerwall (OUTR +2.40%) reported Q2 core EPS of $1.42, higher than consensus of $1.36.<\/span>
\n LinkedIn (LNKD -3.55%) jumped over 5% in after-hours trading after it reported Q2 adjusted EPS of 51 cents, better than consensus of 39 cents, and then raised guidance on fiscal 2014 adjusted EPS to approximately $1.80, higher than consensus of $1.64.<\/span>
\n Expedia (EXPE -2.77%) rose over 4% in after-houre trading after it reported Q2 EPS of $1.03, much higher than consensus of 76 cents.<\/span>
\n Edison International (EIX -1.76%) reported Q2 adjusted EPS of $1.08, well above consensus of 83 cents.<\/span>
\nEarnings and Economic Numbers<\/strong> from seekingalpha.com…<\/span>
\n Today’s economic calendar:
\n Auto sales
\n 8:30 Nonfarm payrolls
\n 8:30 Personal Income and Outlays
\n 9:45 PMI Manufacturing Index
\n 9:55 Reuters\/UofM Consumer Sentiment
\n 10:00 ISM Manufacturing Index
\n 10:00 Construction Spending
\n 11:00 Global Manufacturing PMI<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n Notable earnings before today’s open: ALE, ARNA, AXL, BKW, CBM, CBOE, CHD, CLX, CPN, CVX, ENB, GVA, GWR, HCN, HLT, HPY, HTCH, IMGN, KCG, MGI, MT, NGLS, NSP, OMG, PG, PNM, RUTH, SPR, TDS, TESO, THRM, USM, WETF, WY, XLS<\/span>
\n Notable earnings after today’s close: none<\/span>
\nOther<\/strong>…<\/span>
\ntoday’s upgrades\/downgrades<\/a> from briefing.com<\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n