Today's Market News To Trade On: News Moving These 5 Stocks
Today the market has to digest Friday's economic news, which came out as the market was on holiday. By now everyone knows that the job numbers were abysmal, and the truth of the matter is that the numbers were not even in the proper neighborhood - let alone the correct side of town. There will not be new economic news out until tomorrow, so we will have the opportunity to see just how bad weak economic news can impact the market.
As many would expect, the U.S. futures are lower this morning. It looks and feels as though today will most certainly be a day in which the market starts red, stays red and finishes red.
Looking at Asian markets we see markets finished lower:
- All Ordinaries - CLOSED
- Shanghai Composite - down 0.90%
- Nikkei 225 - down 1.47%
- NZSE 50 - CLOSED
- Seoul Composite - down 1.57%
In Europe markets are CLOSED
Technology
This morning we will be watching Apple (AAPL) closely. It has been a market leader for months now, and been one of the engines by which the market has consistently drawn strength and comfort from during times such as these. The stock currently sits near a 52-week high and has been up in most down markets, which over the months has led us to believe that new investors and experienced investors alike were buying and holding. So today, with Friday's news it will be interesting to see how strong these hands stay. We think that so long as the shares can stay above the $600/share threshold that the market will be fine and it will be but a minor blip in a larger bull market ... but at the end of the day Apple will not move the entire market, but rather news on how the economic recovery is going.
Sirius XM (SIRI) is another name which has been strong as of late, as John Malone makes a play for control of the company. The stock finished near its highs on Thursday, and it is trading at $2.35/share which is near its recent highs. We have a bit of room to fall in a general market correction, but otherwise this one has been strong and looks to continue higher after recently building a base down in the $2.20 range.
Retail
Bed, Bath & Beyond (BBBY) reported good earnings last week which pushed its shares up to a new all-time high. This is another retailer constantly trading near a 52-week high and putting up great numbers for investors. We continue to think that the consumer will spend at shops which improve themselves or their surroundings, and Bed, Bath & Beyond fits this mold as people buy goods to update their homes as many are forced to stay put until they can move into new and bigger homes.
Telecommunications
AT&T (T) has avoided a strike of 40,000 employees as negotiations continue around a new contract for the union. This is good news for the company as service interruptions and the other headaches which usually accompany a strike may be averted. This will be one to watch, but right now it appears that negotiations will remain cordial and there shall be nothing more to write about it moving forward.
Entertainment
Great Wolf Resorts (WOLF) received a $7/share offer from KSL Partners which is $0.75/share higher than the private equity firm's prior offer of $6.25/share for the company. The prior offer was rejected by Great Wolf's board, but it is becoming more and more apparent that this will end with someone taking the company over and it looks as though this will happen sooner rather than later. Trading in this one could be interesting this morning as day traders move in along with the arbitrage players. With markets looking to open down, this could be one of the few bright spots to play today.
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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