{"id":8670,"date":"2015-06-04T07:44:17","date_gmt":"2015-06-04T12:44:17","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=8670"},"modified":"2015-06-04T07:44:17","modified_gmt":"2015-06-04T12:44:17","slug":"before-the-open-jun-4-5","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=8670","title":{"rendered":"Before the Open (Jun 4)"},"content":{"rendered":"

Good morning. Happy Thursday. <\/span>
\n The Asian\/Pacific markets closed mostly down. Taiwan dropped 2.2% and Australia 1.4%. Indonesia and Malaysia were also weak. South Korea and China did well, although China was extremely volatile. Europe is currently mostly down. Greece is down 3%, and Stockholm, Norway, Amsterdam, London, Spain, Germany, Turkey, Denmark, Finland and Sweden are down more than 0.9%. Futures here in the States point towards a relatively big gap down open for the cash market.<\/span>
\nFREE ebook -> Powerful Stock Setups<\/a> <\/strong>(I wrote one of the chapters)<\/span>
\n The dollar is down. Oil is down, copper is down. Gold and silver are down. Bonds are up. <\/span>
\n Yesterday was an odd day. The price action wasn’t too bad – the SPX moved to a 3-day high and then backed off; the small caps broke out of a range and closed at its highest level in five weeks – but the internals were weak all day. The AD line never got higher than +600 and closed nearly flat. The AD volume line was subdued all day. The TICK spent time above and below 0 – not supportive of the small caps breakout. <\/span>
\n It was a classic example of the market doing whatever it wanted in the very near term, but there’s simply no way the internals can be completely ignored for long. <\/span>
\n At today’s open, virtually all of yesterday’s SPX gain will be gone, and about half of the RUT 1% gain will be wiped out. <\/span>
\n Until the internals improve, the market’s upside will be limited…and sooner or later, we’ll get a correction because the bulls will stop supporting the market. <\/span>
\n Employment numbers come out tomorrow morning. More after the open. <\/span>
\nStock headlines<\/strong> from barchart.com…<\/span>
\n Nordstrom (JWN +0.98%) was downgraded to ‘Neutral’ from ‘Outperform’ at Credit Suisse.<\/span>
\n Energizer (ENR -0.99%) was downgraded to ‘Equal Weight’ from ‘Overweight’ at Morgan Stanley.<\/span>
\n Twitter (TWTR +1.65%) was downgraded to ‘Hold’ from ‘Buy’ at Evercore ISI.<\/span>
\n Ciena (CIEN +0.99%) reported Q2 adjusted EPS of 35 cents, above consensus of 24 cents.<\/span>
\n Diebold (DBD +2.95%) was upgraded to ‘Neutral’ from ‘Underweight’ at JPMorgan Chase.<\/span>
\n Ericsson (ERIC unch) and AT&T (T +1.95%) were both upgraded to ‘Overweight’ from ‘Neutral’ at JPMorgan Chase.<\/span>
\n JM Smucker (SJM -0.30%) reported Q4 EPS of $1.87, well above consensus of 99 cents.<\/span>
\n Joy Global (JOY -0.82%) reported Q2 EPS of 59 cents, better than consensus of 56 cents.<\/span>
\n Verizon Communications (VZ -0.12%) fell over 1% in pre-market trading after JPMorgan Chase downgraded the stock to ‘Neutral’ from ‘Overweight.’<\/span>
\n T-Mobile (TMUS -0.80%) jumped nearly 6% and Dish Network (DISH -1.24%) climbed almost 8% in pre-market trading after the WSJ reported that T-Mobile in in merger talks with Dish Network.<\/span>
\n Arthur J. Gallagher (AJG -0.23%) was initiated with an ‘Overweight’ at Piper Jaffray with a price target of $58.<\/span>
\n Boeing (BA +0.39%) was awarded a $466.5 million government contract for missile guidance repair on the Minuteman III intercontinental ballistic missile.<\/span>
\n Brown & Brown (BRO +0.89%) was initiated with an ‘Overweight’ at Piper Jaffray with a price target of $37.<\/span>
\n Marsh & McLennan (MMC +0.64%) was initiated with an ‘Overweight’ at Piper Jaffray with a price target of $67.<\/span>
\n Hirzel Capital reported a 7.3% stake in Hawaiian Holdings (HA -1.37%).<\/span>
\nEarnings and Economic Numbers<\/strong> from seekingalpha.com…<\/span>
\n Today’s economic calendar:
\n Chain Store Sales
\n 7:30 Challenger Job-Cut Report
\n 8:30 Initial Jobless Claims
\n 8:30 Gallup US Payroll to Population
\n 8:30 Productivity and Costs
\n 9:45 Bloomberg Consumer Comfort Index
\n 10:30 EIA Natural Gas Inventory
\n 4:30 PM Money Supply
\n 4:30 PM Fed Balance Sheet<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span>
\n Notable earnings before today’s open: CIEN, CYBX, JOY, LE, NAV, SJM<\/span>
\n Notable earnings after today’s close: CMTL, COO, DMND, ESL, IDT, PAY, RALY, SEAC, THO, UTIW, VNCE, ZOES, ZUMZ<\/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