Stock futures (/ES) are trading slightly lower this morning. Stocks see-sawed yesterday and once again the small caps (RUT, IWM) and the tech sector (QQQ) were the worst performers. These ‘warning’ signs from small caps have many expecting a pull-back but we may not see a sharp drop in Blue Chips. A clearer signal of a falling economy may be the only catalyst that could send us lower at this point. Fed Chair Yellen’s testimony ended with a whimper on Thursday as there were no surprises from her statements. Option volatility was muted as stocks languished most of the day. Despite the weakness in many equity sectors, the CBOE volatility index (VIX) remains near the $13 level. Look for any signs of this ‘Fear Gauge’ above $15 for confirmation to the downside.
Treasuries are little changed to slightly higher this morning. The 10-year yield is at 2.6% but remains at low levels as fixed income traders may feel that Bonds are entering bubble territory. The Bond Market had its issues yesterday after a weak 30-year auction, which initially sent yields higher but they once again fell into the close. European markets are mostly lower but Japan rose slightly overnight. Investors will get a fresh take on U.S. labor-market conditions from the so-called JOLTS report from the Labor Department at 9 a.m. CT. While the pace of hiring and jobs openings have increased, that data may show that number of quits in March remained below far below pre-recession levels. Earnings are light this morning so focus will remain on economic data and any geopolitical risks out of Ukraine and Russia.
Stock Stories:
Apple (AAPL) – Cool should not cost this much –The tech product giant is reportedly in discussions with headphone maker and music streaming company Beats electronics. Beats is owned b Dr. Dre and a music producer and Apple is supposedly paying more than $3 B. The valuation looks stretched and the company is departing from its historical track record of not purchasing major targets.
Yahoo (YHOO) – Worthless? – The internet company has fallen sharply since the Alibaba IPO was announced. The company owns 24% of the company but will need to sell a portion when it goes public. Yahoo stock is almost being valued as worthless based on early calls on Alibaba’s valuation and may need to acquire some companies that generate revenue.
Major Economic Reports:
9:00 am CT – JOLTS
9:00 m CT –Wholesale Trade
11:00 am CT – Fed’s Fisher Speaks
Notable Earnings:
Friday 5/9:
Before Market: ALU, AMRN, MT, RL
After Market: N/A
Monday – 5/12:
Before Market: GFN, GOGO
After Market: AMBC, ARNA, CVG, MBI, MCK, RAX |
发表于 2014-5-9 08:58
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