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Stocks Headed Higher After Currency Intervention - Crude Dropping On Hopes For Libyan Ceasefire

 March 18, 2011 09:12 AM
 

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial futures up 87 points.

-S&P 500 futures up 9 points.

-Nasdaq 100 futures up 14 points.

-Nasdaq-100 Pre-Market Indicator Up 12.24 at 2,237.48.

GLOBAL SENTIMENT

Nikkei up 2.7%

Hang Seng up 0.1%

Shanghai Composite up 0.4%

FTSE-100 up 0.5%

PRE-MARKET SECTOR WATCH

(+) Large cap tech: mostly firmer

(+) Chip stocks: firmer

(-,+) Software stocks: mixed

(-,+) Internet stocks: mixed

(-,+) Drug stocks: mixed

(+) Financial stocks: firmer

(+) Industrial stocks: firmer

(+,-) Auto stocks: mixed

(+,-) Airline stocks: mixed

(+) Retail stocks: mostly firmer

DOWNSIDE MOVERS

(-) NKE (-6%) continues evening decline that followed earnings miss.

(-) LO (-4.2%) down as FDA weighs restrictions on menthol cigarettes.

(-) EL (flat to mixed) reaffirms earnings guidance that's below Street view.

(-) AN (-3%) downgraded.

(-) AEO (flat) downgraded.

UPSIDE MOVERS

(+) CRA (+29%) sold to Quest Diagnostics for $8 a share.

(+) F (+2.4%) initiated with Buy rating.

(+) RIMM (+1.6%) initiated with Buy rating.

(+) GE (+1.9%) finding some traction after early-week post-quake drop.

MARKET DIRECTION

U.S. stock futures continue to indicate a firmer start at today's bell as Wall Street looks to take part in a broad global equity advance Friday. Markets moved higher in large part in response to Group of Seven action to curb a surging yen though Japan's nuclear situation remains in focus and the situation is still volatile. There are no U.S. economic reports scheduled.

U.S. stocks rose Thursday, snapping a three-day drop. Europe gained Thursday, halting its six-session decline, and is trading higher Friday. Asian stock markets gained, including a 2.7% advance for the Nikkei.

The dollar jumped 2.7% against the Japanese yen to trade at 81.31 yen after the G-7 announced coordinated intervention in currency markets.

"As we have long stated, excess volatility and disorderly movements in exchange rates have adverse implications for economic and financial stability," the G-7 said in a statement.

Global markets are also digesting the latest in the ongoing political upheaval in the Middle East and in Libya after the United Nations Security Council approved a no-fly zone over the North African nation and authorized all necessary measures to protect civilians. Air attacks against Libyan leader Col. Moammar Gadhafi's forces may take place within days, news reports said.

Crude oil futures are dropping rapidly in recent minutes on reports that Libya wants an immediate ceasefire and will abide by the U.N. Security Council resolution.

Libyan foreign minister Moussa Koussa told reporters this morning that the government is stopping all military operations against rebel forces.

Crude oil for April delivery responded by backing down from a high near $103.66 a barrel and is now trading around the $100.50 mark, down about $1.00 from its prior settlement.

No major U.S. economic reports are scheduled for Friday.

Deal news is a supportive factor.

Quest Diagnostics (DGX) and Celera (CRA) announced they entered into a definitive merger agreement under which Quest Diagnostics will acquire Celera for $8 per share, representing a transaction value of approximately $344 million, net of $327 million in acquired cash and short-term investments. CRA is up 29% and among early actives.

Nike (NKE) is an early decliner, continuing its evening slump that followed weaker-than-expected Q3 results.


Rich
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