Pre-Market Update – Gapping Stocks ( C, F, AAPL, GME, BIDU )

Published on Friday, 09 December 2011 07:34 Written by Danny Miller

  New York, Dec 9^th (TradersHuddle.com) –US stock futures were pointing for a higher open early Friday morning with US investors following overseas action. European stocks turned positive and are rallying today after the eurozone leaders reached a deal for a new intergovernmental treaty that will further integrate their national budgets. With this the nations are looking to save the Euro and manage the sovereign debt issues that were present in several countries.

Investors are clearly placing more importance to the eurozone summit outcome than to the Moody’s downgrade of BNP Paribas, Credit Agricole SA and Société Générale three big French financial institutions.

Here are some stocks to watch in pre-market action.

 Increase volatility continues on the financial sector with big banks rebounding from yesterday’s strong sell-off despite today’s downgrade of three major French financial institutions. Citigroup (NYSE:C)fell over 6% yesterday, and in today’s pre-market price action is trading 1.8% higher with its stock back above $28. Vikram Pandit, Citigroup’s CEO announced earlier this week that the financial giant was going to lay off 4,500 workers representing 2% of its workforce. Citigroup corrected over $10 back In November setting a low of $23.30.

Ford Motor (NYSE:F) continues its positive momentum yesterday after its strong reversal yesterday where it actually recovered close more than $1 in loses. Ford announced yesterday that it was reinstating the dividend, and will be paying 5 cents per share starting on the first quarter of 2012 to all share holders of record on January 31, 2012. The dividend news resulted in a sharp reversal for Ford’s stock from the support level of $9.75 to today’s level just shy of $11.

 Apple (NASDAQ:AAPL) is trading higher in pre-market action with its stock attempting to break out from the tight consolidation trade that has been the norm during the month of December. Apple stock has been supported by its 50 day moving average currently set around the $389 - $390 level. Apple was in the news also, as it presented an appeal for the US judge decision not to block the selling of Samsung’s Galaxy line of smart phones and tablets, which Apple argues were flagrantly copied.

 Gamestop (NYSE:GME) is trading flat ahead of the market open, with its stock practically at the 200 day moving average. Gamestop is trying to capitalize with the overall higher retail sales during the holidays; however the stock continues to suffer over increase competition and an industry moving more towards digital downloads and more online sales. The shift and overall macro trend places a strain of slow growth to the brick and mortar business model from Gamestop that has been able to survive by having an strong trade ins and pre-owned business.

Baidu (NASDAQ:BIDU) macro long term trend continues to deteriorate with consistently lower highs and a 200 day moving average flat lining, as a result of the price action on the last 5 months. Baidu stock is trading back below its 200 day moving average and has developed a downtrend resistance line since it reached its 52 week high around the $160 mark. Last week, Baidu stock attempted to recover its lost ground by rallying more than 11.8% but failed to move past resistance failing at the $135 level.