Wanted: Strong Close
This morning’s fourth quarter productivity report showed that compensation
costs spiked 6.6% for their biggest increase since 1992, and that seemingly
inflationary news is combining with the Cisco earnings shortfall to give stocks
a negative jolt Wednesday.
Fourth quarter productivity increased 2.4% which was better than the 2.0%
that analysts had expected, but third quarter productivity was revised down to
3.0% from its previous 3.3% rate.
The Dow futures are down 16 points, and the Nasdaq futures are down 50
points.
The S&Ps look to open down 5 points while the yield on the 10-year
Treasury is 5.17%.
Wednesday Movers
Cisco
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CSCO |
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PowerRating) will be the stock to watch as it is trading down to 32 3/16
in pre-market following its 35 11/16 close. A strong close would be constructive
for techs and the broader Nasdaq.
Cisco competitor Juniper
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PowerRating) is trading down to 98 3/8 following its
close of 102 5/32 on Tuesday.
Also looking weak in tech is Broadcom
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PowerRating) which closed Tuesday at 92
17/32 and is trading down to 87 in pre-market activity.
Microsoft
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PowerRating) won a tactical legal battle in that the court will
allow them to discuss some of Justice Jackson’s controversial comments he made
regarding the trial. Whether this could unravel the governments case remains to
be seen, but the pro-Microsoft camp thinks this development is important.
Microsoft closed Tuesday at 62 9/16 and is currently trading down to 61 13/16.