Today's Market News To Trade On: 5 Stocks Moving On News
We do not have economic news out today, but tomorrow and Wednesday will be heavy with housing data. Futures markets in the U.S. are currently higher and there is not bad news coming out of Europe, but who knows, anything is possible these days so if markets opened lower we would not be surprised.
Looking at Asian markets we see markets are higher:
All Ordinaries - up 0.62%
Shanghai Composite - up 0.16%
Nikkei 225 - up 0.26%
NZSE 50 - down 0.23%
Seoul Composite - up 0.94%
In Europe markets are higher:
CAC 40 - up 0.52%
DAX - up 0.80%
FTSE 100 - up 0.79%
OSE - up 0.98%
Technology
Apple (AAPL) was strong Friday, however sold off into the close with the general market to close up only $0.26/share, well off of its highs for the day which was over $540. The market capitalization on Apple is now under $500 billion, meaning that the company has lost over $100 billion in market capitalization over the past few weeks. The stock needs to resume its march higher for the market to move higher, partly because the company makes up such a large percentage of various indices and secondly because it is one of the generals and generals lead the market - either higher or lower. So far we have been correct in our thinking about the movement of Apple indicating where the market would move, so watch for strength here as an indicator for future general market strength in the weeks ahead.
Zynga (ZNGA) finished Friday down $1.11 (13.42%) to close at $7.16/share on volume of 39 million shares. This one was high drama last week as a huge short position was created as the smart money hedged the huge allotment of Friday's IPO shares they received and the rest of the market bought to play a rise in that same IPO…it was a battleground stock with the outcome hinging on the outcome of another company's IPO. The shares were halted twice during the day with what amounted to almost one hour delays each time. Obviously there were troubles at the Nasdaq. Our options trade expired worthless. You win some, you lose some but you should always learn. We did, and this knowledge will be applied to future trades.
Renren (RENN) also took a beating on Friday as confidence eroded and the shares finished at $4.93 down $1.31/share (20.99%). Volume was at 32.5 million and this was another one of those crowded trades where everyone tried to get out of the door at the same time. Safe to say Renren was another victim of IPO Friday, but one has to question the value created with the carnage in the last trading day of last week.
As bad as it was for the social media stocks, Sirius XM (SIRI) made a strong move upwards in an awful market. The shares were up $0.055 (3.01%) closing at $1.885/share on volume of 97.5 million. This was an interesting move off of recent lows which coincided with the company hitting a support level in the low $1.80s level, as we pointed out last week. As a trade, if this one can hold the $1.85/level and build a base we could see purchasing this one as a short-term play.
Telecom
Clearwire (CLWR) was up $0.12 (11.32%) to close at $1.18/share n volume of 18.6 million. The stock had been beaten down lately, even as a major competitor filed for bankruptcy. It was a nice recovery in a bad market, and that is something that cannot be discounted because everywhere we look we see capital fleeing risk assets, yet here we find capital seeking out risk. It might have something to do with if Sprint is going to offer unlimited data plans for a flat fee going forward, maybe the Clearwire infrastructure is necessary to support their network.
By Mathew Smith
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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