Today's Market News To Trade On: 5 Stocks Moving On News
New highs continue to dominate new lows in this market and that leads us to believe that we are headed higher rather than lower. This is nearly always the case on a day-to-day basis, and that shows strength across the board in the current market. Yesterday's economic news pushed us higher as nearly all of Europe was closed and could not cause any problems for U.S. markets. Today U.S. futures are lower, but marginally so, and we do have economic numbers out today which could easily push those into the green. Economic news to watch today: MBA Mortgage Index, ADP Employment Change (Consensus 170k), Factory Orders (Consensus -1.7%) and Crude Inventories.
Looking at Asian markets we see markets are trading higher:
All Ordinaries - up 0.17%
Shanghai Composite - up 1.76%
Nikkei 225 - up 0.31%
NZSE 50 - up 1.05%
Seoul Composite - up 0.86%
In Europe markets are mostly higher:
CAC 40 - up 0.78%
DAX - up 0.33%
FTSE 100 - down 0.44%
OSE - up 0.22%
Technology
Apple (AAPL) began yesterday higher, but could not take out $600/share, in fact it never really got close enough to even say it tested it. After not being able to accomplish that, shares began to trend lower and then actually finished down $1.85 to close at $582.13. Good news out yesterday for Apple was that the market was left unimpressed by the new Blackberry 10, many of the tech gurus do not think that it will be anywhere near the threat that some of the other models from Apple's other competitors will be putting out in the coming months - one less serious competitor is always good news in the mobile device market.
Sirius XM (SIRI) had earnings out yesterday morning, and the stock opened up strongly only to sell off. The company put out good earnings, but the market seemed uninspired - even though the company was able to up revenue growth into the low double digit rates. One thing investors need to pay attention to is whether the company makes John Malone a friend or a foe - one would prefer that the company did not chase him off for good, just simply delay his actions until he is forced to offer a higher price.
Zynga (ZNGA) traded 41 million shares yesterday as it rose $0.12 (1.5%) to $8.46/share. Investors need to watch Zynga as this might be a play on the Facebook IPO which will supposedly take place in the next few weeks. As these social media plays were coming public they gave each other bounces as not all traders could get into the small floats made available to the public as trading began.
Retail
Herbalife (HLF) held a conference call yesterday to discuss their latest results which was considered a good quarter. David Einhorn, head of Greenlight Capital, grilled management on revenue recognition through hypothetical questions pushing shares down $14.02 (19.94%) to close at $56.30/share. Volume also spiked to over 30 million shares as investors remembered some of Einhorn's other calls in the past. The results were good, but Einhorn spooked investors and got many of the talking heads talking about what analysts who follow the company claim is an old concern with no merit. It will be interesting to watch this one play out as it looks like Einhorn vs. Wall Street again.
Not enough can be said about Home Depot (HD) right now. The stock is at a 52-week high, it has been setting new ones it seems daily and finds itself at multi-year highs. Earnings are due out May 15, and one would expect them to report good earnings as it appears they have the business running smoothly. Right now the company is just running over the competition and until the competition turns it around, Home Depot should continue their winning streak.
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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