Futures Lower Ahead of Economic Data. Stocks to Watch: AXP, AAPL, CSCO, COCO, FCX, GENZ, and SNDK

Published on Monday, 30 August 2010 08:25 Written by Christopher Lynn

New York, August 30^th (TradersHuddle.com) – Stock futures edged lower ahead of new data that will provide a snapshot on the health of the consumer and as investors digested M&A news.

Overseas, European shares were higher following Firday’s strong performance at Wall Street, with oil-related shares gaining. Asian markets closer higher, also boosted by the U.S. performance and by The Bank of Japan decision to boost it’s cheap loan program to fight the recent surge in the yen.

On economic news, at 8:30 am July personal income and consumer spending data will be released. Economists expect personal income will be up 0.3% following an unchanged performance in June, while consumer spending should rise by 0.4%.

Today’s stocks to watch: American Express (NASDAQ:AXP), Apple (NASDAQ:AAPL), Cisco (NASDAQ:CSCO), Corinthian Colleges (NASDAQ:COCO), Freeport McMoRan (NYSE:FCX), Genzyme (NASDAQ:GENZ), and SanDisk (NASDAQ:SNDK).

Apple (NASDAQ:AAPL), the maker of iPhones and iPads, is fractionally lower in pre-market trading, Apple underperformed the overall market on the last session, but technically the stock has found good support in the $237 to $240 range, making it difficult for Apple to break down and moved lower.

American Express (NASDAQ:AXP), the credit card issuer, will likely see volatility after the July personal income and consumer-spending data is released. Increased consumer spending along with improvements in personal spending will be bullish for American Express, as it would likely reflect in higher transaction fees and less delinquency.

Cisco (NASDAQ:CSCO), the world’s largest maker of networking gear, gained less than 0.5% in pre-market trading. CNBC reported on a post in TechCrunch that Cisco might have made an offer to buy Skype, the online communication company, before they complete their IPO process. If the rumor is true, this could be a big acquisition for Cisco.

Corinthian Colleges (NASDAQ:COCO), the for-profit post-secondary education Company, fell more than 1% in pre-market trading after having its target price lowered to $4 at RBC Capital Markets. The firm lowered its target price to $4 from $17 following earnings. The firm notes Corinthian posted operating results that were in line with company guidance but noted that various regulatory issues are jeopardizing ~25%+ of its enrollment and revenue base. They remain bearish on the company's long-term prospects and are unaware of any positive near-term catalyst that would modify their view.

Freeport McMoRan (NYSE:FCX), the world’s largest publicly traded copper producer, gained 0.55% in pre-market trading as copper prices continue to move higher to a four-month high, on speculation demand will increase after the Bank of Japan expanded credit support for banks and the Federal Reserve pledged steps to spur economic growth.

Genzyme (NASDAQ:GENZ), the Cambridge based biotechnology company, jumped more than 4% in pre-market trading after it confirmed the receipt of an unsolicited bid for $69 per share in cash from Sanofi-Aventis (NYSE:SNY). Genzyme’s board of directors unanimously affirmed its previous rejection of Sanofi's proposal, and instructed the company to send Sanofi a latter stating that the proposal is identical to the previous offer and no new information or improvment in price was provided, failing to establish a basis for engagement by the board.

SanDisk (NASDAQ:SNDK), the flash memory maker, jumped more than 1.8% in pre-market after Sterne Agee said that its supply chain checks of NAND flash card OEMs showed trends that continue to be healthy, with revenues tracking up 10-15% quarter over quarter. The firm noted that the SanDisk has been pummeled on recent sessions on concern over retail slowdown and TLC pricing.