Tuesday, May 12, 2015

What happened to Goldilocks?

Good morning folks, 
The follow through of the "Goldilocks jobs report" bounce from last Friday lost a little steam yesterday and it looks as though that will carry over into today. We have red across the board premarket as the European markets took a hit overnight. 

Greece is back in the highlights, we have bond yields surging, concern over rising interest rates and oil continues to rise in the face of bearish commentary from OPEC. There is never a shortage of things to worry about.

There are also some good things happening like VZ buying AOL. I hope this time the AOL purchase works out better for shareholders than the last time they were involved in a buyout. Anyone remember 

America Online And Time Warner

Final cost: $300 billion

One of the top 5 of worst corporate mergers in history!

That merger happened at the peak of the dot com boom right before the dot com bubble burst. Wouldn't if be ironic if we had a repeat and a market correction in the near future? I am not suggesting that that is going to happen but we are certainly a bit long in the tooth with this bull market. Personally, I would welcome a healthy 10 or 15 percent correction. 

Stocks on my Radar premarket
THLD pr gapping a bit premarket possible continuation, WYY earnings last night Revenue beat full disclosure long term hold for me could be a gap and go play, CALL beaten down name popping off earnings can be a pop and flopper so be careful, SPPI active premarket hated name but can have some nice spikes would be a scalp play if I can get the right setup, ZIXI on this weekends video announced share buy back like the daily, CGIX earnings daily kinda hot,  BVXV ipo could be worth watching small float,  PTIE pr 2 roll with conviction possible continuation don't chase 

CNBC in the News
Telecom giant Verizon (VZ) announced today that it's buying AOL (AOL) for $50 per share, or about $4.4 billion. AOL Chairman and CEO Tim Armstrong will continue to run AOL operations once the deal is finalized. He told CNBC, "We've made AOL as big as it can possibly be in today's landscape." | AOL timeline
U.S. stock futures were sharply lower in early trading, as European stocks were plunging on the surge in bond yields and concerns about Greece. Wall Street fell Monday for the first time in three sessions. (CNBC)

Debt talks between Greece and its lenders appear to be making slow, but sure, progress as Athens made a multimillion-euro loan repayment to one of its lenders a day early. (CNBC)

New York Fed President William Dudley, a close ally of Chair Janet Yellen, today applauded an apparent consensus between markets and the U.S. central bank that a rate rise will happen later this year. (CNBC)

Oil prices moved higher this morning, but Goldman Sachs warned that crude's recent rise over the last couple of months may be a short-lived respitefrom what's seen as continued weakness. (CNBC)

A strong earthquake shook Nepal today, sending people in the capital Kathmandu rushing out on to the streets weeks after a devastating quakekilled more than 8,000 people. (Reuters)

Lumber Liquidators (LL) is being denied coverage by its insurers for lawsuits involving the safety of its flooring products. The embattled flooring retailer hassued nine insurance carriers for breach of contract. (CNBC)

Twitter (TWTR) spent more than $86 million in its deals to acquire Periscopeand Niche earlier this year, according to an SEC filing. Periscope is a live streaming app. Niche is a social media talent agency. (Re/code)

The Insurance Institute for Highway Safety put seven midsize sport utility vehicles through small overlap crash tests and the Jeep Cherokee, Dodge Durango, and Hyundai Santa Fe were rated as "marginal." (CNBC)

McDonald's (MCD) plans to expand its all-day breakfast testIn a series of turnaround moves, the fast-food chain will also simplify drive-thru menus, add mid-price sandwiches, and sell lemonade this summer. (CNBC)

The NFL has handed down "deflategate" penalties, including suspending New England Patriots quarterback Tom Brady for four regular-season games without pay "for conduct detrimental to the integrity of the league." (CNBC)

Secretary of State John Kerry arrived in Russia to meet with President Vladimir Putin today about Ukraine, amid damaged relations between Moscow and Washington. (USA Today)

The Trans-Pacific free trade agreement faces its first test in the Senatetoday, in a knife-edge vote that may hold the key to President Barack Obama's diplomatic pivot to Asia. (Reuters)

The regulation relief bill drafted by the Senate Banking Committee chairmanincludes changes to the Federal Reserve system and an easing of mortgage rules for the financial industry. (Reuters)

Economic data is unlikely to be a major factor in today's trading, with only the Labor Department's job opportunities and labor turnover survey, known as JOLTS, and the Federal budget statement for April out today.
The earnings calendar is also on the light side, with International Flavors(IFF) one of the few companies of note out this morning, while GoDaddy (GDDY), McKesson (MCK), and Zillow (Z) due out after today's closing bell.

Gap (GPS) saw April same-store sales fall more than expected. The parent of Gap, Old Navy, and Banana Republic brands also gave a current quarter earnings and revenue outlook that was below analyst forecasts.

Rackspace (RAX) shares were also under pressure in premarket trading, after the cloud computing firm reported earnings in-line with estimates, revenue that missed, and weak forward guidance.

In the third annual Disruptor 50 listCNBC features private companies in 16 industries-from aerospace to financial services to cybersecurity to retail-whose innovations are revolutionizing the business landscape. A number of the CEOs will be interviewed on CNBC all day long.

International supermarket groups Ahold (AHONY) and Delhaize (NEG)-both with large U.S. presences-are confirming they were in the early stages of merger talks to create a $28 billion giant.
General Electric (GE) said it's willing to "explore remedies" to gain approval for its proposed $17 billion acquisition of the power business of France's Alstom, a deal first struck more than a year ago.

BHP Billiton (BHP) has unveiled new cost-cutting measures, as the mining company seeks to stabilize its financial situation in the wake of weak commodity prices.

Pall Corp. (PLL) is near the end of an auction which could see it sold for more than $10 billion, according to the Wall Street Journal. Potential buyers for the maker of filtration systems include Danaher (DHR) and Thermo Fisher Scientific (TMO).

Morgan Stanley (MS) is selling its oil storage and transport business to commodities trading company Castleton for an undisclosed price, but analysts estimated the deal to be valued at slightly more than $1 billion.

A federal judge has ruled that Nomura Holdings (NMR) made false statements in selling mortgage-backed securities to Fannie Mae and Freddie Mac ahead of the 2008 financial crisis.

The government said Metlife's (MET) suit fighting its systemically important financial institution designation should be dismissed. MetLife earlier this year challenged the decision to label the insurer as a SIFI subject to tighter regulatory scrutiny.
Seeking Alpha

Today's Markets:
In Asia, Japan flat at 19625. Hong Kong -1.1% to 27407. China +1.6% to 4402. India -2.3% to 26877.
In Europe, at midday, London -1.9%. Paris -1.8%. Frankfurt -2.2%.
Futures at 6:20: Dow -0.7%. S&P -0.7%. Nasdaq -0.9%. Crude +1.9% to $60.39. Gold +1% to $1194.40.
Ten-year Treasury Yield +12 bps to 2.27%