US EQUITIES
DOWNSIDE ALERTS
(-) STP (-21.6%) misses earnings estimates, cuts guidance.
Trading Analysis-
Stock dropped to a negative range of 7.22 to 6.50 and narrowed this downside to the 7.10 to 6.80 area for much of its pre-market action. Buyers have been active in the tighter range, holding a floor at 6.80 to 6.90. Their efforts to gain a bounce beyond 7 to 7.10 have been stymied by a solid ceiling here.
(-) GM (-10%) finance unit GMAC applies to become bank holding company, WSJ reports GM resisting moves to prepare for bankruptcy filing.
Trading Analysis-
Stock dropped to a downside range of 2.52 to 2.50 through much of pre-bell trade, with some rather heavy buying in this area suggesting the potential for a near-term floor.
(-) PAY (-23%) guides below Street for Q4.
Trading Analysis-
Stock tumbled from pre-market starting levels near 5.40 down to recent lows at 4.63. Buyers are pushing in decent upside liquidity at the lows up to 4.70. The 4.75 area is a potential ceiling to watch in the near-term as it has turned back several upside tests. If buyers should break through this possible top then a secondary ceiling lies near 5 to 4.90, levels where sell momentum was heavy before PAY dropped to its lows.
UPSIDE ALERTS
(+,-) C (-5%) Saudi Prince Alwaleed plans to boost stake in Citi back to 5%.
Trading Analysis-
The stock spent much of the first-half of pre-market trade in a plus-side range of 6.55 to its high of 6.93. It turned into the red on the heels of the weak jobs data announced at the mid-point of pre-bell action, dropping on heavy downside liquidity from 6.73 to recent lows at 6.03. Buyers are nibbling down at this new bottom, but thus far they’re only generating enough lift to get back to 6.10 or 6.15.
(+) ABK (+31.5%) up sharply after commuting $3.5 billion in CDO exposure.
Trading Analysis-
Stock has held onto gains this morning, but much of its pre-market trade has been spent on a downward slope from a high of 1.23 to new lows at 0.96. There is some tentative buying in the high 0.90s, but a tough ceiling lies ahead at 1.00, levels where sellers pushed back several advances.
ETF RECAP
Active-volume exchange-traded funds in Wednesday's regular session:
SPDR S&P 500 (SPY): -6.4%
PowerShares QQQ (QQQQ): -5.2%
Select Financial Sector SPDRS (XLF): -10.4%
Ultra Financials ProShares (UYG): -21.9%
IShares Russell 2000 (IWM): -8.2%
iShares MSCI EAFE (EFA): -6.7%
SPDR Gold (GLD): -0.3%
iShares MSCI Emerging Markets Index (EEM): -8.6%
United States Oil Fund (USO): -3.4%
Active-volume extended-hours movers:
SPY, -0.6%
QQQQ, -0.4%
UYG, +1.5%
USO, -4.5%
SSO, -1%
Power Play:
Despite crude's drop toward $50 a barrel, natural gas has been moving higher amid bets a wave of cold weather in the Northeast U.S. will boost heating demand. The United States Natural Gas ETF (UNG) increased 3% Wednesday. This morning, it's down 1% but could continue to draw buying interest as winter approaches.
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