Good morning. Premarket futures point to at least a
positive start following unexpected good news from
Wal-Mart (WMT) which reported better than expected earnings and guidance above estimates. Not a lot of good news is expected this week, so that news has helped lift depressed spirits a bit this morning. Overseas markets were mixed and gold and oil have continued their pullbacks.
Premarket gainers: NKTR, FOSL, JRJC, BIDZ, FSLR, ETFC, MDII, FOSL, AAPL, RIMM, WMT, CFC, TSL, FFHL, CFSG, HOKU, CY, SOLF, SPWR, ESLR, GLW, TBSI, DRYS, DSX, AMTD, JASO, BPHX, MICC, SLT, RBS, GS, GROW, CROX, YHOO, SPWR, CHL, and TASR.
Premarket losers: LMC, DAI, SCON, AFFX, SONA, TKC, HNSN, and ADBE.
At 10:AM a report on pending home sales is expected to show a 2% drop in September. More importantly, we have some big inflation data later this week will affect both trading and prevailing sentiment. The market desperately wants to believe that the Fed is on their side so any good news on the inflation front shouldn't be underestimated.
For today, I suspect few will trust this positive start following yesterday's terrible action. That said, I still expect to see a lot of reflexive bounces out there and short-term trading opportunities as a result. In my view, whether some leadership stocks (especially in tech, solar, & China) are able to hold their initial gains should provide us with an early tell to whether this positive start is another bull trap.
Have a terrific Tuesday!
