Wednesday, April 8, 2015

Still Guilty

Good morning folks, 
As I went through my scans last night it appears to me that even though we had that nice good news is bad news bounce the markets are still guilty until proven innocent. We have earnings season kicking off once again with AA reporting after the close. With terms like earnings recession being thrown around by the talking heads on the financial networks one can't help but be a bit skeptical of how earnings will play out this quarter. 

I  personally think that there are going to be some earnings winners and some earnings losers.The strong dollar and weak oil there will likely create more losers than winners. However attaching the word "recession" to this earnings season is a bit dramatic for me.

All we can do is look for opportunities to try and capitalize from. Try to identify good risk reward setups. Look for opportunities in companies you want to own that may become temporarily undervalued because of market weakness and not something company specific. Build your watch lists and see if you can identify where the money is flowing.  Try to determine what sectors are falling out of favor and which sectors are heating up. 

The API had a bearish  inventory build report for oil after the close last night and we will get more inventory data out at 10:30 eastern time. Saudi Arabia has raised their production to 10.3 million barrels a day in March >the highest in 12 years. At the same time we have one of the largest energy company deals happening in 15 years with RDS.A Buying UK based BG group.

Stocks on my radar premarket
EYES pr hot daily gapper, INO grant news decent looking daily gapper can pop and flop so don't chase it,  FEYE after reports of hack in the White House, SYRX possible red to green very thin don't chase it, VJET looking for the nine dolla roll,  

CNBC In the News  

In the biggest energy deal in more than 15 yearsRoyal Dutch Shell(RDS.A) has agreed to buy UK-based BG Group for $70 billion. Shell CEO Ben van Beurden told CNBC the move is as much as about natural gas as oil.
Settling up 3.5 percent in New York, oil prices were lower this morning, after the API said weekly crude stocks rose 12.2 million barrels. The EIA's inventory report is out at 10:30 a.m. ET. Meanwhile, Saudi Arabia reported record output in March. (Reuters)

Oil services company Baker Hughes (BHI) said the average U.S. rig count for March was 1,110, down 238 from February and down 693 from a year ago. (PR Newswire)

The Energy Department is predicting motorists would pay the lowest prices at the pump this summer since 2009, even though falling global oil prices have gained back some ground in recent days. (NY Times)

U.S. stock futures were higher in early trading, after Wall Street's 102-pointDow rally faded by Tuesday's close. The Fed is in focus today, with the 2 p.m. ET release of the minutes from the March policy meeting. (CNBC)

Tesla (TSLA) is upgrading its Model S in the latest move to make the high-end sedan stand out in an increasingly competitive luxury car market. The new base level Model S will be called the 70D. (CNBC)
Google (GOOG) could be working on a teleconferencing platform in the latest push by the U.S. search giant into the enterprise space. Screenshots posted by a Google+ user show the interface for GMeet. (CNBC)

As promised, Time Warner's HBO has rolled out HBO Now, its $15-a-month streaming service, in time for the new season of "Game of Thrones," which debuts Sunday. HBO is taking a pro-active approach to any problems. (Re/code)

McDonald's (MCD) is trying out premium burgers again-adding third-pound sirloin patties to its U.S. menu for a limited time. It's the latest move by the new CEO to revive sales at the struggling fast-food chain. (WSJ)

John Hancock will become the first life insurance company to offer a program for Americans that tracks medical information, and offers lower premiums for healthy behavior. (NY Times)

Popular weight-loss and workout supplements on sale in hundreds of vitamin shops across the nation contain a chemical nearly identical to amphetamine,according to a new study. (NY Times)

Tickets go on sale online this morning for the May 29 opening of the One World Trade Center observation deck. Admission will be free for 9/11 families and first responders. (USA Today)

U.S. officials confirmed to NBC News that Russia was behind a cyberattackon an unclassified White House system last year. The conclusion that Russia was behind the hacking was first reported by CNN.

Armed robbers stole 7,000 ounces of gold from a mine in Mexico operated by Canada-based McEwen Mining (MUX). At current prices, the haul is worth $8.5 million. (Reuters)

The Bank of Japan maintained its massive stimulus program today, and brushed aside speculation of near-term policy easing, even as inflation ground to a halt and growth stalled two years into its radical experiment to revive the economy.
Ahead of this afternoon's Fed minutes, CNBC's Steve Liesman moderates a discussion with Fed Governor Jerome Powell at 8 a.m. ET at the Council on Foreign Relations in New York, and New York Fed President William Dudleygives a speech at 9:30 a.m. ET at a different New York event.

Loan applications to purchase a home rose for the third straight week, but lower interest rates were not enough to spur mortgage refinances.

Family Dollar Stores (FDO) is among the companies out with quarterly earnings this morning, along with Rite Aid (RAD). Meanwhile, Alcoa (AA), Bed Bath & Beyond (BBBY) and Pier 1 Imports (PIR) are out with their numbers this afternoon after the closing bell on Wall Street.

The FTC informed Dollar Tree (DLTR) that it must divest 340 stores before it can complete its $8.5 billion takeover of rival discount retailer Family Dollar. Dollar Tree said it expects almost all of those divested stores to be current Family Dollar locations.

Dave & Buster's (PLAY) beat expectations with earnings and revenue. But revenue guidance from the dining and entertainment chain was on the conservative side.
Lionsgate (LGF) announced a secondary offering, which will see MHR Fund Management sell 10 million common shares in the movie studio. Lionsgate will not receive any proceeds from the offering.

Mattress Firm (MFRM) said certain shareholders would sell more than 1.5 million shares of the mattress retailer's common stock, including some members of management and the board of directors. The company won't receive any proceeds from the sale.

Industrial machinery company Pentair (PNR) cut fiscal first quarter guidance due to a stronger dollar and slower than expected oil and gas industry shipments.

Australia's treasurer would reportedly block any further attempt by Britain's Glencore to buy Rio Tinto (RIO), because of concerns over losing Rio's considerable tax revenue.

Novo Nordisk (NVO) was told by the FDA that the agency had accepted the Danish drug maker's resubmitted application for its insulin drug Tresiba. The drug had originally been rejected by the FDA two years ago.

Seeking Alpha 

Notable earnings before today's open: FDOGPNMSMRADRPM
Notable earnings after today's close: AAAPOGBBBYDDCMGPIRWDFC