Pre-market Update – Gapping Lower (AMZN, SOMX, HD, WFR)

Published on Monday, 28 June 2010 08:16 Written by Gerard Lerod

New York, Jun 28^th (TradersHuddle.com) – Despite early market strength, as the bullish bias was setup after world leaders pledged for a reduction in deficits there is relative weakness in some stocks. Some of the notables include:

Amazon.com (NASDAQ:AMZN), which will be opening with a slight bearish tone, as it continues to flirt with breaking key support area around the $120 level. Traders are monitoring Amazon’s price action as they believe that a burst to the downside could push the stock towards the $110 level, at least these are levels being mentioned in the trading floors. The stock also suffered a downgrade to Neutral from Positive at Susquehanna.

Somaxon Pharmaceuticals (NASDAQ:SOMX) will be under some pressure at the open as it filed for a $75 million mixed securities shelf offering, which could put some to the stock that has seen its price decline more than 50% since March of this year.

MEMC Electronics (NASDAQ:WFR) will be starting the trading session under a heavy selling pressure as the company was initiated with a Sell at Goldman Sachs (NYSE:GS). The stock will be opening more than 3% to the downside on this news.

Home Depot (NYSE:HD) is also opening with a slight bearish bias, as pre-market price action is putting the stock lower by 0.26% from its Friday’s close. No new news are affecting the stock today, just the overall hangover from last week’s bad housing data.