We are awaiting Mario Draghi's decision on rates for the ECB. This is the first rate decision since the UK left the European union. That decision could have an impact on the strength of the dollar as well as gold and silver. The dollar continued to gain strength yesterday as gold silver and miners suffered their 5 day of declines. Oil started out the morning weak until we received the petroleum inventory numbers and they came in with a bigger draw than anticipated and we had a little bounce.
Technically precious metals and miners look as though they could feel some more pressure in the near term. Oil and energy names don't look as bad but there are much better looking sectors out there for the bulls. The decision from the ECB or Mario Draghi's statement could impact these sectors as well as the dollar.
There are several indexes that look very strong even though we have some overbought conditions. The sectors I find most compelling are the IBB and the SMH. The IBB took out that level of resistance I talked about in yesterdays blog and this morning we got some earnings out of BIIB that crushed while they also announced a 5 billion dollar buy back. While RLYP is being acquired for 32 dollars a share and that could keep the sector in play.
The SMH could pause after Intel's earnings failed to impress the street but on the other hand QCOM had a nice report and is flirting with a 60 dolla holla. The sector is overbought and there are some gaps that could fill on the daily but it has been impressive as it makes new all time highs.
Small caps and midcaps also look impressive which gives us some nice breadth in this market move. I know I sound uber bullish (that will probably be the the kiss of death for the markets) but its hard to deny how impressive the run has been and how sweet some of these sector charts look. Small floaters and reverse splits have been the flavor of the month so far and while these stocks can be very challenging to trade because most the time they really are garbage companies. They can also be extremely lucrative if you can catch them right. These are very high risk opportunities and should be traded as such. You never know when one might be halted for an extended period of time. Make sure you use size that you are comfortable with and don't chase. Wait for a clean setup.
The markets are flashing slightly red this morning and it wouldn't be a huge shock if we were to have a constructive pullback and some more consolidation before making out next significant move. We have Jobless claims and other economic data coming out today that could also impact the markets so we could have an erratic choppy day.
Today's Markets
In Asia, Japan +0.8% to 16810. Hong Kong +0.5% to 22000. China +0.4%to 3039. India -0.7% to 27711.
In Europe, at midday, London -0.3%. Paris -0.2%. Frankfurt flat.
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq flat. Crude +0.3% to $45.87. Gold +0.1% to $1320.10.
Ten-year Treasury Yield +1 bps to 1.59%
Today's Economic CalendarIn Europe, at midday, London -0.3%. Paris -0.2%. Frankfurt flat.
Futures at 6:20, Dow -0.1%. S&P -0.1%. Nasdaq flat. Crude +0.3% to $45.87. Gold +0.1% to $1320.10.
Ten-year Treasury Yield +1 bps to 1.59%
8:30 Initial Jobless Claims
8:30 Philly Fed Business Outlook
8:30 Chicago Fed National Activity Index
9:00 FHFA House Price Index
9:45 Bloomberg Consumer Comfort Index
10:00 Existing Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
8:30 Philly Fed Business Outlook
8:30 Chicago Fed National Activity Index
9:00 FHFA House Price Index
9:45 Bloomberg Consumer Comfort Index
10:00 Existing Home Sales
10:00 Leading Indicators
10:30 EIA Natural Gas Inventory
4:30 PM Money Supply
4:30 PM Fed Balance Sheet
Gainers
- Relypsa Inc (NASDAQ: RLYP) rose 58.3 percent to $31.81 in pre-market trading after Galenica agreed to acquire Relypsa for $1.53 billion in cash.
- Joy Global Inc. (NYSE: JOY) shares rose 17.4 percent to $27.64 in pre-market trading after Komatsu Ltd. agreed to acquire the company for around $2.9 billion.
- TOP SHIPS Inc (NASDAQ: TOPS) shares rose 14 percent to $2.53 in pre-market trading after surging 38.75 percent on Wednesday.
- QUALCOMM, Inc. (NASDAQ: QCOM) rose 8.7 percent to $60.65 in pre-market trading after the company reported stronger-than-expected results for its third quarter on Wednesday. The company reported adjusted earnings of $1.7 billion and operating income of $2.0 billion.
- Camtek LTD. (NASDAQ: CAMT) rose 7.4 percent to $2.63 in the pre-market trading session. Camtek reported Q2 adjusted earnings of $0.04 per share on sales of $27.8 million.
- United Rentals, Inc. (NYSE: URI) shares rose 6.6 percent to $74.46 in pre-market trading after the company posted upbeat Q2 earnings.
- eBay Inc (NASDAQ: EBAY) rose 5.6 percent to $28.50 in pre-market trading as the company reported posted upbeat earnings for its second quarter on Wednesday. Management also announced an extension of the company’s stock-repurchase plan, as the board had approved an additional $2.5 billion in buybacks.
- Biogen Inc (NASDAQ: BIIB) shares rose 5.3 percent to $275.95 in pre-market trading after the company announced stronger-than-expected quarterly results and raised its guidance. The company also announced that its CEO George Scangos will be leaving the company.
- General Motors Company (NYSE: GM) rose 4.7 percent to $32.97 in pre-market trading after the company reported better-than-expected Q2 results and lifted its FY16 earnings outlook.
- Domino's Pizza, Inc. (NYSE: DPZ) rose 4.4 percent to $142.96 in pre-market trading on upbeat Q2 results.
- PulteGroup, Inc. (NYSE: PHM) rose 4.1 percent to $21.25 in the pre-market trading session. PulteGroup reports Q2 earnings of $0.34 per share on home sales of $1.8 billion. PulteGroup also raised its buyback plan by $1 billion to $1.5 billion.
- IMAX Corporation (USA) (NYSE: IMAX) shares rose 3 percent to $31.00 in pre-market trading after the company reported better-than-expected quarterly results.
Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.
Losers
- Blueknight Energy Partners L.P. (NASDAQ: BKEP) shares fell 9.7 percent to $5.80 in pre-market trading. Blueknight Energy Partners reported a 3 million common units public offering. The company expects a Q2 net loss of $19 million to $18.6 million and adjusted EBITDA of $15.78 million to $15.91 million.
- Southwest Airlines Co (NYSE: LUV) fell 5.5 percent to $39.71 in pre-market trading after the company reported weaker-than-expected Q2 earnings and announced plans to buyback $250 million in common stock.
- Dunkin Brands Group Inc (NASDAQ: DNKN) shares fell 3.3 percent to $45.52 in pre-market trading. Dunkin Brands reported better-than-expected quarterly earnings, but the company missed analysts’ sales expectations. The company also lowered its FY16 sales growth target.
- Select Comfort Corp. (NASDAQ: SCSS) shares fell 2.6 percent to $22.90 in the pre-market trading session. Select Comfort reported upbeat quarterly earnings, but the company missed analysts’ sales estimates. The company also raised its buyback plan by $300 million.
- Intel Corporation (NASDAQ: INTC) shares fell 2.4 percent to $34.84 in pre-market trading after the company reported mixed results for its second quarter on Wednesday. The tech giant posted earnings of $0.59 per share, versus the Street’s consensus of $0.53 per share. However, revenue of $13.5 billion, fell short of estimates of $13.529 billion.
- ASML Holding NV (ADR) (NASDAQ: ASML) shares fell 2.2 percent to $105.85 in pre-market trading. UBS downgraded ASML from Buy to Neutral.
ETF's
Volatility OIL Biotech
UVXY XIV VXX TVIX UWTI DWTI GUSH DRIP USO LABD IBB LABU
VMIX VMAX
VMIX VMAX
Gold SILVER Dollar Financials
GLD NUGT JNUG USLV UUP FAS XLF FAZ HYG JNK
Minerals and Miners Utilities RETAIL Transportation
XME GDX GDXJ XLU XRT IYT XTN
DUST JDST
Agriculture SPY
DBA, DAG SPXS SPXL
STOCKS ON MY RADAR PREMARKET
*PR = Press Release
ADXS pr lil gapper premarket flirting with an 8 roll small floater Short interest fairly significant
TNDM pr also flirting with an 8 roll small float
BWEN new order can be a pop and flopper potential 5 test and roll super tiny float
HYGS Very tiny floater new contract announcement not one to chase
Stocks on my radar from this weekends scans
ADXS pr lil gapper premarket flirting with an 8 roll small floater Short interest fairly significant
TNDM pr also flirting with an 8 roll small float
BWEN new order can be a pop and flopper potential 5 test and roll super tiny float
HYGS Very tiny floater new contract announcement not one to chase
Stocks on my radar from this weekends scans
No comments:
Post a Comment