Morning Coffee with TradingMarkets
 |
Good Morning! |
Buyers Strike Back…Dow, S&P Futures Up Big…Banks Lead Bounce on Turnaround Tuesday…Freddie Mac To Sell $6bln in Preferred…Citi Pays Junk Rate to Defend Dividend…Cyber Monday Sales Top Expectations…European Stocks Up
Market index futures are pointing to a very positive open in the hour before the bell. Be sure to check out the TradingMarkets Playbook below to see how we anticipated the “perfect scenario” and what we are looking for in the days to come. Will the government of Abu Dhabi do for the market what the Fed won’t? Minutes of the last Fed meeting revealed divisions over the idea of further rate cuts–which bond markets have already priced in. But even if Middle Eastern nations start recycling their petrodollars into the equity of American companies, will that be enough to convince investors that there are bargains to be had? So far, so good.
Take the TradingMarkets Path to Professional Trading – Level 1 course and immediately improve your trading. It’s free! Start here.
|
TradingMarkets 5 Business Stories You Need to Know |
Banks Lead Tuesday Bounce – Reuters
News of the investment in Citigroup by the government of Abu Dhabi led investors to banking stocks, which lead the market higher on Tuesday.
Freddie Mac’s $6 Billion Sale – Wall Street Journal
Troubled mortgage buyer looks to sell $6 billion in preferred stock in major fundraising effort. Company is also cutting dividend by 50%.
Minutes Reveal Divided Fed –Wall Street Journal
The recent release of the minutes of the meetings of the Federal Reserve Board’s discount rate meetings reveals dissent on the issue of lowering rates. Half of the regional banks voted in favor of the lower rate.
Abu Dhabi’s Brave New Investment Strategy – New York Times
Traditionally limiting itself to low return investments, Abu Dhabi’s $7.5 billion stake in Citibank reflects a determination to break that mold–and to spend some of those petrodollars.
Home Sales Expected to Drop – BusinessWeek
Existing homes sales believed to plunge to record low as buyers wait out price declines and homebuilders struggle with rising inventories.
For more stories as they happen, go to our Breaking News section.
|
TradingMarkets 7 Stocks You Need to Know for Today |
Here are 7 stocks for traders for today from TradingMarkets.com:
- Dress Barn
(
DBRN |
Quote |
Chart |
News |
PowerRating) missed earnings on Tuesday afternoon, announcing $0.30 EPS versus expectations of $0.32 EPS. - Verigy
(
VRGY |
Quote |
Chart |
News |
PowerRating) beat earnings estimates, with $0.58 EPS over $0.50 EPS. - Amazon.com
(
AMZN |
Quote |
Chart |
News |
PowerRating) rallied more than 5% yesterday on news of strong Cyber Monday holiday sales. - Coldwater Creek
(
CWTR |
Quote |
Chart |
News |
PowerRating) is expected to announce -$0.11 EPS on Wednesday after the market closes. - When Jo-Ann Stores
(
JAS |
Quote |
Chart |
News |
PowerRating) reports quarterly earnings tomorrow afternoon, traders will be watching for
$0.28 EPS. - Freddie Mac
(
FRE |
Quote |
Chart |
News |
PowerRating) looks to sell $6 billion in preferred stock as investors, foreign and domestic, resume making bets on banks. - A charge of $1.4 billion is announced by Wells Fargo
(
WFC |
Quote |
Chart |
News |
PowerRating) as the company cuts back on home equity lending through outside brokers.
For a list of today’s highest PowerRating stocks, click here.
|
TradingMarkets 5 Top PowerRatings Stocks for Today |
|
Company
|
Symbol | PowerRatings |
| Overstock.com | OSTK | 10 |
| GeoEye | GEOY | 9 |
| Oilsands Quest | BQI | 9 |
| Trident Microsystems | TRID | 8 |
| Flotek Industries | FTK | 8 |
| View More Stocks |
|
TradingMarkets Tracking the Wizards |
Renaissance Capital’s Medallion Fund Up 50% – Bloomberg
The first three quarters of 2007 have been very good to the Jim Simons of Renaissance Capital, which has seen its assets double in a year’s time.
Citadel Up 27% Year to Date – Chicago Tribune
Kenneth Griffiin’s Chicago-based hedge fund heads toward its second year of double digit returns. Energy bets and credit market plays are credited for the fund’s outperformance this year.
Kirk Kerkorian Backs Away from Tesoro Bid – Forbes
“Poison pill” defense keeps Kerkorian from following through on tender offer for 16% stake in oil refinery.
|
TradingMarkets Playbook |
As we discussed yesterday, there was a perfect scenario to be had–and we had it. Twice the market tried to sell off, once early in the session and again late in the session. The first time, buyers stepped up to bring the market back to even. The second time, buyers closed the market near the highs. This is a very positive sign.
Today is all about follow-through. It is critically important that we do not give back the gains of yesterday. As we write this in the hour before the open, the S&P 500 futures are up 10 points. It is key that this rally hold and continue throughout the day.
Another note: as we wrote in an article this summer for our website, “Do Stocks Show a Bullish Bias at Month’s End?“, there is an upward bias to the markets in the final days of the month. This bias can be especially strong when the market has been weak.
David Penn is Senior Editor at TradingMarkets.com.