{"id":8282,"date":"2015-02-03T08:48:22","date_gmt":"2015-02-03T13:48:22","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=8282"},"modified":"2015-02-03T08:48:22","modified_gmt":"2015-02-03T13:48:22","slug":"before-the-open-feb-3-5","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=8282","title":{"rendered":"Before the Open (Feb 3)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\n The Asian\/Pacific markets closed mixed. China rallied 2.5%, and Australia followed with a 1.4% gain. Taiwan and New Zealand also did fine. Japan dropped 1.3%. Singapore and Taiwan also fell. Europe is posting solid, across-the-board gains. Greece is up almost 10%. Spain and Italy are up more than 2%; London, France, Austria, Belgium, Amsterdam, Norway and Russia are up more than 0.9%. Futures here in the States point towards an up open for the cash market.
\n<\/span>
\n The dollar is down. Oil and copper are up. Gold is down, silver up. Bonds are down. <\/span>
\n Big news comes the Pacific region (Australia) and the Europe (Greece). The Reserve Bank of Australia cut its interest rate 25 basis points to a new record low of 2.25%. The Australian stock market rallied 1.43%. Greece’s new government proposed swapping outstanding debt for new growth bonds, running a permanent budget surplus and targeting wealth tax evaders. The Greek stock market is up almost 10%. <\/span>
\n This news comes on the heels of the US market taking out a support level but then quickly reversing and posting a solid gain on above-average volume. The US indexes, for all their movement, all their ups and downs, all the gaps and sudden reversals, remains stuck in a range. <\/span>
\n My favorite long groups remain gold and silver. At the beginning of January I posted that not only were the groups my favorites, I also posted they may give us some longer term holds…trades we can get into and ride for several months, as opposed to quicker 10-15% targets. So far so good. <\/span>
\n I’m warming up to oil. Many stocks bottomed well before oil bottomed last Thursday. <\/span>
\n Along with oil, solar stocks will move in sympathy. FSLR broke out yesterday, and if oil continues up, there will be more.<\/span>
\n Also along with oil, marine transports will get a boost if oil has indeed bottomed. <\/span>
\n Has oil bottomed? We can’t be sure. For now I’m playing this like it’s a bounce within a downtrend. Oil has a lot of work to do if it wants to turn me into a believer. <\/span>
\n Yesterday was a very good day for the market. Today we’ll see if they US can piggy-back off the strength in Asia and Europe. Until the ranges get broken, no big bets! More after the open. <\/span>
\n Stock headlines<\/strong> from barchart.com…<\/span>
\n Archer-Daniels Midland (ADM +3.30%) reported Q4 EPS of $1.00, better than consensus of 96 cents.<\/span>
\n AutoNation (AN -0.47%) reported Q4 EPS of $1.03, stronger than consensus of 91 cents.<\/span>
\n Office Depot (ODP +0.39%) surged 13% in pre-market trading after the WSJ reported that the company is in advanced merger talks with Staples (SPLS +0.53%) .<\/span>
\n Dow Jones reported that the NYSE said it will suspend trading in RadioShack (RSH -14.29%) immediately and begin the delisting proceedings.<\/span>
\n MDU Resources (MDU +0.84%) reported Q4 adjusted EPS of 35 cents, weaker than consensus of 39 cents, and then lowered guidance on fiscal 2015 adjusted EPS to $1.05-$1.20, below consensus of $1.42.<\/span>
\n Neil Dana reported a 9.3% passive stake in GoPro (GPRO +4.80%) .<\/span>
\n Advent Software (ADVS -1.10%) rose over 6% in after-hours tradng after SS&C (SSNC -1.41%) announeced it will acquire the company for $44.25 per share, or $2.7 billion.<\/span>
\n Cliffs Natural Resources (CLF +8.57%) jumped 11% in after-hours trading after it reported Q4 EPS of $1.00, more than seven times consensus of 13 cents.<\/span>
\n Rent-A-Center (RCII +2.19%) slumped over 13% in after-hours trading after it reported Q4 adjusted EPS of 50 cents, below consensus of 63 cents, and then lowered guidance on fiscal 2015 EPS to $2.05-$2.30, less than consensus o $2.48.<\/span>
\n Reinsurance Group (RGA +1.62%) reported Q4 adjusted EPS of $2.99, well above consensus of $2.11.<\/span>
\n OppenheimerFunds reported a 6.11% passive stake in Targa Resources Partners (NGLS +4.59%) .<\/span>
\n Anadarko (APC +1.25%) reported adjusted Q4 EPS of 37 cents, well below consensus of 85 cents.<\/span>
\n Hartford Financial (HIG +1.70%) reported Q4 EPS of 96 cents, beter than consensus of 93 cents.<\/span>
\n Owens-Illinois (OI +3.73%) reported Q4 EPS of 46 cents, right on consensus, although Q4 revenue of $1.60 billion was slightly below consensus of $1.65 billion.<\/span>
\n Torchmark (TMK +1.98%) reported Q4 net operating EPS of $1.00, right on consensus.<\/span>
\nEarnings and Economic Numbers<\/strong> from seekingalpha.com…<\/span>
\n Today’s economic calendar:
\n Auto sales
\n 8:30 Gallup US ECI
\n 8:55 Redbook Chain Store Sales
\n 10:00 Factory Orders<\/span><\/span><\/span><\/span><\/span>
\n Notable earnings before today’s open: ACI, AET, AGCO, AN, ARG, ARRY, AXE, BHE, BP, CARB, CBR, CEVA, CHD, CNC, EMR, ETN, GCI, GLPI, HCA, HCLP, HRC, HW, IMS, JLL, LPT, LYB, MHO, MNK, NOV, NYT, PNR, R, SC, SPR, ST, TECH, UPS, WDR<\/span>
\n Notable earnings after today’s close: AEC, AFL, AJG, ATO, ATW, AXS, CALX, CBL, CENT, CHRW, CMG, DIS, ENTR, EQR, EW, EXP, FISV, GILD, HCSG, IACI, JKHY, LSCC, MANH, MWA, MYGN, NSR, OCLR, OMCL, PACB, PLNR, QNST, RNG, RNR, RSYS, SLGN, SPA, TTWO, ULTI, UNM, VASC, WNC, WRB, WYNN<\/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