Stocks to Open Lower. Stocks to Watch: AAPL, BAC, C, FDX, FSLR, and HOV

Published on Thursday, 17 December 2009 08:44 Written by Christopher Lynn

New York, Dec 16^th (TradersHuddle.com) – Stock futures declined, pointing to a lower opening, on concern the Fed’ s special liquidity measures would expire early next year, as concerns on the weak labor market still linger.

The Dollar rose to the highest level in three months against the euro while stocks and commodities fell. The greenback strengthened on concern that spiraling national debts can hamper the global economic recovery, prompting investors to exit positions from higher-yielding assets to the safety of dollars, Treasuries and the yen.

The Labor Department reported that the number of U.S. workers filing new applications for jobless insurance unexpectedly rose 7,000 to a seasonally adjusted 480,000 in the week ended Dec. 12 from a slightly downwardly revised 473,000 in the prior week. It was the second straight week initial claims rose.

Today Stocks to watch: Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), Citigroup (NYSE:C), FedEx (NYSE:FDX), First Solar (NASDAQ:FSLR), and Hovnanian Enterprises Inc (NYSE:HOV).

In focus this morning is the Citigroup (NYSE:C) stock offering, that surprised investors as the bank priced the $20 billion offering at $3.15 a share, lower than the government’s stake at $3.25, prompting a sell-off in the stock which was down 8% in pre-market. The Treasury followed announcing that it will not divest $5 billion worth of Citigroup (NYSE:C) stock as it planned, due to the lower price in the offering, and that it expects to divest its shares in a 12 month period.

Also before the open, FedEx (NYSE:FDX) reported earnings that beat expectations by $0.04 a share. Revenue and earnings declined as a result of lower yields, primarily due to a substantial decline in fuel surcharges year over year, with shipment growth, particularly in international express and at FedEx Ground, and strict cost controls benefiting results. Trading will be interesting as the overnight leader issued a cautious outlook for its next quarter.

Another stock to watch is First Solar Inc. (NASDAQ:FSLR), as the world’s largest maker of thin-film solar-power modules forecast revenue will climb to at least $2.7 billion next year on rising demand for renewable energy from Germany to China. The forecast topped the average analyst estimate of $2.38 billion.

For the last few trading sessions, Apple (NASDAQ:AAPL) has been able to hold its 50 day moving average around the $195 level, however is evident that the stock is entering a dormant period where momentum buyers will not come in until it breaks a significant level, and value investors still continue to believe that the stock can be bought at a lower price. Technicians will be looking at $197 and $200, as important levels, however all eyes are set on $208; a level which if broken can entice to bring back momentum buyers into the stock. 

Last night, Bank of America (NYSE:BAC) named an insider for its CEO position. Brian Moynihan, the 50-year-old head of the consumer banking unit, will be in charge of repairing the company and replacing the troubled Ken Lewis, who was pushed into early retirement after the bank problems during the financial crisis, including the troubled take over of Merrill Lynch. The Bank’s board finally decided for an insider, after several high profiles outside candidates turned down the job.

Hovnanian Enterprises Inc (NYSE:HOV) reported its earnings after the close on Wednesday. The homebuilder posted a quarterly loss that was narrower than a year ago, but much bigger than expectations, Shares of Hovanian (NYSE:HOV) soared 11.32% ahead of earnings as homebuilders’ stocks showed strength after the housing starts rose 8.9% last month, just shy of expectations, but still signaling that housing is on a steady recovery. After the miss, in after hours, shares of the homebuilder practically erased the trading session gains by tumbling more than 9%.