Pre-Market Update – Gapping Stocks ( AMD, HPQ, SLB, COST, V )

Published on Wednesday, 08 September 2010 07:28 Written by Christian Paolinetti

New York, Sep 8^th (TradersHuddle.com) – The US Stock futures were pointing for a slightly higher open, as investors try to recuperate from yesterday’s strong selling pressure, as economic worries linger with renewed concerns on European banks.

Here are some notable stocks in pre-market action.

Advanced Micro Devices (NASDAQ:AMD) is trading significantly lower in pre-market price action with the stock 1.5% below yesterday’s close. Advanced Micro Devices stock is reacting to the overall downgrade of PC demand and to today’s UBS downgrade of Intel (NASDAQ:INTC), which is dragging the overall semiconductor sector lower.

Hewlett Packard (NYSE:HPQ) is also trading lower in today’s pre-market by more than 1% below yesterday’s close. Hewlett Packard was downgraded by UBS with the firm moving its rating from Buy to Neutral. The price target was cut from $54 to $44, stating weaker than expected consumer PC market, aggressive pricing, and higher integration/M&A risk, as well as the uncertainty with a CEO change. UBS also noted the need for higher capital commitments for tablet/smartphone investments.

Schlumberger (NYSE:SLB) is higher in pre-market action by more than 1.2% from Tuesday’s close, after Goldman Sachs (NYSE:GS) resumed its coverage of the stock. Goldman said that Schlumberger was rated a buy setting a price target of $68, calling the stock a high quality laggard.

Costco (NASDAQ:COST) is also higher in pre-market trading by more than 0.7% as the stock is reacting favorably to a Goldman Sachs upgrade. Goldman moved its rating from Neutral to Buy, raising its price target from $62 to $68. Costco stock just recovered above the 200 day moving average that could now be set as a support reference point.

Lastly, Visa (NYSE:V) continues to struggle to develop a meaningful bounce after its dip below $70, as the stock hit a wall of resistance in the declining 50 day moving average. Today is trading more than 1.2% to the downside, and it appears that it will be re-testing its August low of $68.50. Visa has been under pressure, as economic worries linger in the market place.