Morning Coffee with TradingMarkets
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Good Morning! |
Wal-Mart, Retailers Rev Up for Black Friday…Futures Rise on Oversold Stock Market…China Index Drops 4%…Bond Market Rallies to Multi-Year Highs…Mortgage Rates Test May Lows…Stocks Tease Lows of August.
Are you ready for some shopping? Discounts are everywhere as early birds line up outside of retailers big and small to celebrate the beginning of the winter shopping season. Chinese stocks stumbled overnight as government works to slow country’s spectacular growth.
And mortgage rates continue to move lower in the U.S. as buyers push the bond market higher. The S&P futures point to a positive open, joining Black Friday shoppers in an early morning buying mood.
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TradingMarkets 5 Business Stories You Need to Know |
Shanghai Composite Falls 4.4% – Wall Street Journal
Analysts blame government efforts to slow lending, growth of mutual funds. Index at its lowest levels since August. Hong Kong Index falls 2.3% in sympathy as fears build of a government engineered slowdown.
Falling Dollar Threatens Airbus – BBC News
BBC News CEO Tom Enders says survival of the European airplane manufacturer is at stake as Euro currency surges to record highs against the U.S. dollar.
Rate Cuts or Recession? – Bloomberg
The bond market is telling the Federal Reserve that they have a choice between further rate cuts and sure recession. Ten-year yields dipped below 4% for the first time in years. But will Bernanke blink?
Banking on Black Friday – Washington Post
The starting date for the traditional day-after-Thanksgiving, shopping day Black Friday creeps earlier as retailers do everything they can to avoid a disappointing kick-off to the winter holiday season.
Dow Theorists Say Sell – CBS Marketwatch
Those who follow the movement of the Dow Jones Industrial and Transportation Averages for their trading clues have concluded that Wednesday’s decline was reason enough to sell.
» For more stories as they happen, go to our Breaking News section.
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TradingMarkets 7 Stocks You Need to Know for Today |
Here are 7 stocks for traders for Thursday from TradingMarkets.com:
- Deere
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PowerRating) beat earnings estimates, reporting that Q4 earnings gained by 52%. DE rallied over 5% on Wednesday despite broad weakness. - Circuit City
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PowerRating) fell over 5% on Wednesday after a downgrade from Neutral to Overweight at JP Morgan. - Ericsson AB
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PowerRating) fell for the second straight day, down 6%, after guiding earnings estimates lower for this quarter. - Freddie Mac
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PowerRating) fell to decades-old lows today, after posting the company’s biggest quarterly loss yesterday. Related company Countrywide Financial
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PowerRating) also continued to tack on losses, dropping nearly 4%. - Leap Wireless
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PowerRating) dropped over 6% on Wednesday after announcing creditor fees stemming from a late filing of Q3 results. - Footlocker
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PowerRating) reported third quarter 2007 losses of 22 cents per share after the bell on Tuesday.
For a list of today’s highest PowerRating stocks, click here.
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TradingMarkets 5 Top PowerRatings Stocks for Today |
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Company
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Symbol | PowerRatings |
| Sangamo Biosciences | SGMO | 10 |
| Valhi | VHI | 10 |
| Multi-fineline Elecronics | MFLX | 9 |
| Trimble Navigation | TRMB | 9 |
| Golar LNG | GLNG | 9 |
| » View More Stocks |
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TradingMarkets Playbook |
Back in August, we anticipated that "as Goldman goes, so goes the market." This time around, the market faces a double-edged sword of anxiety in the form of the mortgage/sub-prime market and the fate of retailers. We have a very, very oversold market and just about everybody fears the worst on all fronts. So it might not take much for an upside surprise at the end of this week to result in a bottom and a potentially higher market going into the end of the month. Look to see whether or not the markets can shrug off Moody’s negative forecast on Freddie Mac and whether or not shoppers can be lured into spending big — as they traditionally have — on the first official shopping day of the winder holiday season.
Black Friday plays for traders? Retail king Wal-Mart
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PowerRating) should be near the top of the list of stocks to watch, along with high and "medium" end retailers like Nordstrom
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PowerRating) and Target
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PowerRating). Other plays might include an electronics retailer like Circuit City
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PowerRating) with its PowerRating of 8. And as long as high-quality, graphics-intensive video games remain high on holiday wishlists, a company like NVidia
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PowerRating), which makes some of the best graphics cards on the market, is another place to look. NVidia stock also has a PowerRating of 8.
Outside of retail, there are a few bright spots in other sectors such as Transportation, where stocks like ESEA and TBSI are both sporting PowerRatings of 10.
David Penn is Senior Editor at TradingMarkets.com.