Tuesday, December 16, 2014

From Russia with Love

Good morning folks, 
Russia attempted to intervene on their faltering economy and failed to have the impact they were looking for as their market plunged on the heels of raising their interest rate to 17%. They are riding a bear market and it doesn't appear to be coming to an end anytime soon. The world markets are reacting accordingly and I would be surprised if our markets are able to continue avoiding the carnage. The bearish Russia ETF (RUSS)  has gone parabolic and there are legitimate concerns over whether or not Russia can right the ship. Oil continues its plunge and that is wreaking havoc around the world. Sometimes too much of a good thing can have a negative effect. Expect lots of volatility as markets try to decipher how all of this will work out and what the ultimate impact will be. 

The Fed meets today and there is typically a lull in the market until we get a Fed statement that can be dissected and then all the talking heads can try to determine what it actually means for our markets and our economic growth.

Caution is advised >there are bound to be ramifications to all of this that are not yet understood and there are likely shoes that have not dropped but are on the verge. 

Stocks on the Radar
TLM swing started the day off on the right foot will be looking to exit near 8, NVGN pr gapper I would not chase it wait for a setup, PKT pr possible bounce play off new orders gap to fill on the daily, ISIL nice daily fast money pump last night, QTWW very thin insider buying bottom bounce possible continuation or red to green, APDN very thin one recent reverse split to get on the nasdaq weak pr this morning but nice daily, 


TVIX TZA IWM JNUG JDST NDAQ SPY UUP for market sentiment and potential plays


Seeking Alpha 
Today's Markets:
In Asia, Japan -2% to 16755. Hong Kong -1.6% to 22671. China +2.3% to 3021. India -2% to 26781.
In Europe, at midday, London +1%. Paris +0.3%. Frankfurt +0.6%.
Futures at 6:20: Dow +0.3%. S&P +0.2%. Nasdaq +0.1%. Crude -2.5% to $54.54. Gold -0.7% to $1199.10.
Ten-year Treasury Yield -2 bps to 2.1%
Notable earnings before today's open: DRIFDSNAV
Notable earnings after today's close: HEI

CNBC in the news 
IN THE NEWS TODAY
U.S. stock futures reversed early strong gains as the Russian ruble continued its free-fall despite the central bank there hiking interest rates by 6.5 percentage points to 17 percent. Meanwhile, the chief of Germany's Bundesbank expressed skepticism of QE. (CNBC)

The ruble plunged as much as 18 percent in early trading after suffering its worst session in 15 years on Monday. The Russian stock market followed suit, dropping a similar amount Tuesday. (CNBC)

Oil prices continued lower in early trading, with U.S. crude hitting lows not seen since early May of 2009, as global currency turmoil and slowing Chinese factory activity added to concerns about demand. (CNBC)

As the Federal Reserve begins its final meeting of the year today, the CNBC Fed Survey is looking for lower inflation and stronger growth from the plunge in oil prices. But participants still see a summer interest rate hike.

Spanish oil giant Repsol has agreed to buy Talisman Energy (TLM), Canada's fifth-largest independent oil producer, for $13 billion, including debt. Repsol said the purchase would boost its crude production by 76 percent. (AP)

Dow stock General Electric (GE) holds its annual investor meeting today, with the focus expected to be on GE’s expanding presence in oil and gas in the midst of a slump in worldwide energy prices. (Seeking Alpha)

Boeing (BA), also a Dow stock, added $2 billion to its share repurchase program, bringing its buyback to $12 billion. The aircraft maker also raised its quarterly dividend by 25 percent to 91 cents per share. (Reuters)

A third Dow stock, 3M (MMM) today raised its dividend by 20 percent to $1.025 a share, ahead of its 2015 outlook meeting. The company said it’s on track to deliver on its long-term targets. (Reuters)

Coca-Cola (KO), yet another Dow stock, said it does not expect its 2015 earnings growth to be significantly different than this year’s 4-5 percent, adjusted for currency fluctuations. (AP)

Amazon (AMZN) today extended holiday shipping deadlines, allowing customers to get free shipping until Dec. 19 with orders delivered before Christmas. Prime members can wait until Dec. 22. (Business Wire)

Toys R Us is also catering to last-minute shoppers, planning to keep the majority of its stores open for 39 straight hours, from 6 a.m. Dec. 23 until 9 p.m. Christmas Eve. (CNBC)


BY THE NUMBERS
The U.S. government issues its report on November housing starts at 8:30 a.m. ET, with economists looking for a 3.1 percent gain to an annual rate of 1.04 million units, following a 2.8 percent decline in October.

Financial information provider FactSet (FDS) and heavy equipment maker Navistar (NAV) are on a short list of companies issuing quarterly earnings reports this morning, while Darden Restaurants (DRI) and Dave & Buster’s (PLAY) are out with their numbers after today’s closing bell.

Late Monday, VeriFone Systems (PAY) reported earnings and revenue above expectations. But the electronic payment systems maker did issue a current quarter forecast below Street forecasts.
STOCKS TO WATCH
Caesar’s Entertainment (CZR) has decided not to pay $225 million in debt interest, triggering a default on its total debt of $18.4 billion. The casino operator is in the midst of talks with debt-holders about a restructuring.

InterContinental Hotels (IHG) has agreed to buy U.S.-focused Kimpton Hotels & Restaurants for $430 million to boost its exposure to the faster-growing boutique hotel sector.

FedEx (FDX) is buying Pittsburgh-based logistics provider Genco for an undisclosed price. Genco has annual revenue of approximately $1.6 billion.

Archer Daniels Midland (ADM) sold its cocoa business to Singapore-based commodities company Olam International for $1.3 billion.

Vodafone (VOD) is getting $726 million in Canadian trade financing to assist it in buying services from Canada’s BlackBerry (BBRY).
WATERCOOLER
AMC Entertainment (AMC) is trying out a partnership with MoviePass to allow people attend a movie a day for one monthly fee. (NY Times)



BEST of SUCCESS!

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