Good morning. Following yesterday's reversal from
1490 level in the
S&P 500, premarket futures are in positive territory. The general sense is if you can't break the market down on yesterday's bad news, then you might as well put some money to work ahead of another rate cut. Sounds too simple to work, but that's the herd mentality.
Like yesterday, we have plenty of earnings reports to look through. In addition, a decline in durable goods and a report showing that jobless claims remain high will further boost confidence in another rate cut. If that wasn't enough, at 10AM we have another report on the status of the housing market with a report on new-home sales and, much like yesterday, virtually no one is expecting good news on that front.
Meanwhile, we have some weakness in Shanghai following fears that China's central bank may further tighten monetary policy.
Premarket gainers: TRCR, IRBT, PCCC, REFR, CTDC, ALXN, FSTR, YTEC, AMKR, MNST, PSUN, PMTI, FLIR, ASIA, HYTM, XING, AKAM, GIGM, ELNK, SOLF, TNH, RNOW, SOHU, EXTR, ARRS, RICK, CTZN, BEAS, CRNT, JASO, IMCL, JDAS, CMG, ESRX, TASR, CLNE, AIXG, GRMN, BIDU, RVBD, CSUN, and DRYS.
Premarket losers: PALM, ALGN, VDSI, SPAR, FORM, HLYS, TGIC, NIHD, SYMC, CMI, FFIV, STAR, SCSS, CELG, FREE, OCNF, NTRI, FFHL, RTN, CDNS, CMCSA, XMSR, FMCN, NVDA, ERIC, and AMZN.
Almost two-thirds of Americans say a recession is likely in the next year and a majority believes the economy is already faltering. Meanwhile, the market action remains fairly sanguine with a Fed cut next week. That would be fine as far as I'm concerned if I also saw my favorite stocks performing in a manner that confirms the bullish optimism, but I haven't seen that this week. The fallout in shares of Vasco Data Security (VDSI) this morning is yet another wake up call. Be careful out there!
