Pre-Market Update – Gapping Stocks ( C, HPQ, INTC, DE, DIS )

Published on Friday, 20 August 2010 07:45 Written by Christian Paolinetti

New York, Aug 20^th (TradersHuddle.com) – US stock futures were indicating a significant drop this morning, as the S&P 500 is set to start around the 1,064 area, which is 4 points below last Monday’s low of 1,068. Investors continue to feel jitters about the economy, given that unemployment is not easing and continues to grow.

Here are some notable stocks in pre-market action.

Citigroup (NYSE:C) like other financial stocks broke significant support yesterday at $3.83, and today is showing follow through selling as its trading close to 0.6% below Thursday’s close. There is no catalyst for Citigroup stock today, just key technical selling as the stock broke key areas of support after breaking its uptrend last week. Traders will be looking at support for Citi stock around $3.70 to see if buying materializes there.

Hewlett Packard (NSYE:HPQ) has the risk of establishing a new 52 week low, as today’s pre-market action is not encouraging with its stock trading close to 1% below Thursday’s close. Hewlett Packard set a 52 week low, after the market sold it off last week with the news of the departure of its CEO. Today the stock continues under pressure, even after announcing solid quarterly results that failed to impress the market given that the company had previously pre-announced.

Another stock that should be watch, as its approaching 52 week low territory is Intel (NASDAQ:INTC) that was punished by the market yesterday dropping 3.52%, after the company announced the acquisition of McAfee (NASDAQ:MFE) at a 60% premium offering $48 a share, this when McAfee was trading in the low $30s. Intel is fractionally higher in pre-market price action trying to establish a bounce.

Deere (NYSE:DE) is actually trading higher in pre-market price action by 1.46%, as the company reported earnings two days ago that were up by 47% on strong domestic demand. However, the move in today’s pre-market appears to be suspect as there is really no catalyst this morning and pre-market volume is just 100 shares, making Deere stock a candidate for an opening gap fade.

Another stock that appears to have a suspect move in pre-market action is Walt Disney (NYSE:DIS), as the volume is just 200 shares putting the stock higher in pre-market by 0.63% on no news or event catalyst on a very weak market making Disney another candidate for an opening gap fade.