After almost 9 months of dull consolidation, the market gave birth to a market that eerily resembled that of the financial crisis in 2008. Stocks can be found gyrating on a minute to minute basis, spiking lower only to inexplicably rally some 3% in a matter of an hour.
Look no further than yesterdays trading session. At 3PM the buybots took control of a rapidly weakening stock market and rallied it into the close. The $SPY made a normally 3 to 5 day market move to the upside in less than an hour.
If you traded for downside at 2PM yesterday and took those profits just before 3PM you did wonderfully. Then initiated a long position and sold just before the close....even more wonderful. Which is great if you like that kind of 1 hour trade.
For those looking for something with a little more emotional attachment, this market remains a hair puller. Which is why there is no reason to force any trades in this market. Individual names are still working. Keep it small with stocks you like/ or dislike until the dust settles.
Case in point. A beat down stock like $FCX which I still think is going to zero down the road, bounced over 25% yesterday. I was in the calls earlier in the week. After the bell Carl Icahn jumped aboard. The stock is up another $2 despite a pre-market pull back in the market.
Will Friday end like Monday? A Wild spike in a yet to be determined direction? Or will volatility start to erode and stocks settled down into a tradeable range?
Stay tuned. See you in the chat room. and if your taking today off - have a nice relaxing weekend. You earned it.
U.S. stocks were pointing down Friday after a week of ups and downs amid concerns of China's economy, while Federal Reserve Bank speakers sent mixed messages about what it all means for a rate hike on the home front.
Earlier this week, New York Fed Governor William Dudley said a September rate hike was less likely, citing raised risks related to international development. Then St. Louis Fed President James Bullard said the last ten days shouldn't change the Fed outlook and that it would be a good day when the U.S. hikes rates. He said the U.S. economy is still in good shape. On Thursday, the U.S. GDP growth for Q2 was revised upwards to 3.7% from 2.3% and beat the 3.2% growth expectations.
In economic data out Friday, data on personal income showed it increased 0.4% in July, as expected and at the same pace as in June. Consumer spending meanwhile rose 0.3%, but slightly below the 0.4% increase expected while spending in June was revised upwards to 0.3% from 0.2%. The core PCE price index was up 0.1%, as expected , same as in June.
At 10:00 a.m., the consumer sentiment index for August is seen at 93.3, up from 92.9 and within the consensus range of 92.7 to 95.0.
In equities, Freeport-McMoRan (FCX) continued to gain Friday after announcing further spending cuts and as billionaire investor Carl Icahn late Thursday disclosed holding a near 8.5% stake in the mining and oil company. FCX was up over 15% in recent pre-market trade. Game developer Activision Blizzard (ATVI) also rose, by over 5%, as it is set to replace Pall (PLL) in the S&P 500 at the close of trading Friday.
U.S. PRE-MARKET INDICATORS
-Dow Jones Industrial down 0.68%
-S&P 500 futures down 0.68%
-Nasdaq 100 futures down 0.65%
-Nasdaq 100 pre-market indicator down 0.30%
GLOBAL SENTIMENT
Nikkei up 3.03%
Hang Seng down 1.04%
Shanghai Composite up 4.82%
FTSE-100 down 0.32%
DAX-30 down 0.48%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: unchanged to lower
(-) Chip stocks: unchanged to lower
(-) Software stocks: unchanged to lower
(-) Hardware stocks: lower
(-) Internet stocks: lower
(+/-) Drug stocks: mixed
(-) Financial stocks: unchanged to lower
(-) Retail stocks: unchanged to lower
(-) Industrial stocks: unchanged to lower
(+/-) Airlines: mixed
(+/-) Autos: mixed
UPSIDE MOVERS
(+) CYTX (+6.3%) To sell up to $25 million shares to institutional investors
(+) BIG (+10.8%) Q2 tops estimates, comparable store sales rise 2.8%
(+) UAL (+6.3%) To join S&P 500, replacing HSP
(+) AMGN (+0.8%) FDA OKs cholesterol-lowering Repatha
(+) HK (+3.8%) Announces debt exchanges to deleverage balance sheet
(+) SWHC (+6.4%) Fiscal Q1 tops views, sees Q2, FY mostly above estimates
(+) AHP (+4.1%) Explores strategic options, including sale
(+) SPLK (+3.9%) Q2 beats views, FY outlook above prior view, consensus
(+) SPIL (+1.6%) Rejects ASX bid, exchanges shares with Hon Hai
DOWNSIDE MOVERS
(-) ADSK (-4.0%) Fiscal Q2 revenue misses views, sees guidance below estimates
(-) VMEM (-19.8%) Q2 revenue misses views
(-) FB (-0.2%) Various officers file to sell shares
(-) GME (-2.6%) Sets mixed guidance
(-) BEBE (-12.8%) Posts wider-than-expected fiscal Q4 loss, provides grim Q1 outlook
(-) ARO (-3.2%) Fiscal Q2 misses estimates; Telsey, Mizuho cut price targets on stock
Among the companies with shares expected to trade actively in Friday's session are Freeport-McMoRan Inc. (FCX), United Continental Inc. (UAL), and Activision Blizzard Inc. (ATVI).
Activist investor Carl Icahn on Thursday disclosed a 8.5% stake in Freeport-McMoRan, adding pressure to the beleaguered mining company that hours earlier outlined a major retrenchment in response to the global commodity rout and an ill-timed pair of acquisitions two years ago. According to a regulatory filing, Mr. Icahn wants the company to cut spending and executive compensation, and may seek board representation. Shares jumped 14% to $ $11.58 in premarket trading.
United Continental and Activision Blizzard will join the S&P 500 index. Shares of United Continental rose 6.4% to $ 56.77 premarket, while shares of Activision Blizzard rose 5.8% to $29.56.
Big Lots Inc. (BIG) said second-quarter adjusted profit rose in the latest quarter, as the deep discounter posted another same-store sales increase amid merchandising improvements. Shares of Big Lots climbed 10% to $46.17 premarket.
Mylan N.V. (MYL) said Friday that its shareholders have approved its proposed $35.6 billion takeover of Perrigo Co PLC (PRGO) and that it will launch a formal offer soon. Shares of Mylan rose 1% to $51.98 premarket, while Perrigo's shares rose 1% to $189.99.
Autodesk Inc. (ADSK) swung to a loss in the second quarter on a $214 million tax charge and cut its projections for the year as it continues to transition to a subscription-based model. Shares fell 4.7% to $47.66 premarket.
Aeropostale Inc. (ARO) on Thursday gave a muted guidance for the current quarter, as sales fell 17% in the most recent period.
The Food and Drug Administration approved Amgen Inc.'s (AMGN) cholesterol-lowering drug on Thursday, teeing up a rivalry with a similar treatment that was approved just weeks earlier.
Smith & Wesson Holding Corp. (SWHC) said earnings for the July quarter were better than it expected, and the firearms maker increased its revenue and earnings guidance for the year ending in April 2016.
Luxury hotelier Ashford Hospitality Prime Inc. (AHP) said Friday it is exploring strategic alternatives, including a sale of the company, less than two years after it was spun off from Ashford Hospitality Trust (AHT).
Higher sales again drove Ulta Salon Cosmetics & Fragrance Inc.'s (ULTA) second-quarter profit, topping projections resulting in market share gains across categories, the beauty products retailer said Thursday.
GameStop Corp. (GME) said its earnings rose 2.8% as the videogame retailer's efforts to expand its product lines helped buoy sales but raised costs for the quarter ended in August.
Big-data software company Splunk Inc. (SPLK) on Thursday gave an upbeat guidance for the current quarter and raised its revenue forecast for the year, as revenue jumped 46% in the July quarter.
Zoe's Kitchen Inc. (ZOES) said its second-quarter revenue rose 30% on higher sales at established restaurants, as well as the addition of new locations