Pre-Market Update – Gapping Stocks ( FSLR, FDX, RIMM, BBY, BAC )

Published on Thursday, 15 December 2011 07:32 Written by Christopher Lynn

  New York, Dec 15^th (TradersHuddle.com) – US stock futures were pointing for a higher open early Thursday morning as good economic data takes center stage diminishing to some extent concerns over at Europe. The market has had three rough days with significant selling pressure developing on Europe’s inability to its debt crisis under control.

Good economic data in the form of a slower pace of contraction in the manufacturing sector both in China and the eurozone is setting the tone for today’s opening trade.

Here are some notable stocks in pre-market action.

First Solar (NASDAQ:FSLR) is trading lower in pre-market action with the negative momentum in the stock spilling over to today’s session. First Solar stock tumbled 20% in yesterday’s trading session after the company released a lower earnings and revenue guidance. First Solar is trading at a new 52 week low and so far there are no indications of support developing yet.

FedEx (NYSE:FDX) will be releasing its earnings report before the opening bell, so it will definitely be a mover at market open. FedEx is expected to release a report showing a profit of $1.52 per share, which is higher than the $1.16 per share reported a year ago. FedEx earnings are usually used to gauge economic activity, so they will be closely watched by investors trying to get direction on this market.

Research In Motion (NASDAQ:RIMM) will also be releasing earnings today with the report expected after the market close. Research In Motion continues to be defined as a toxic investment by the market with its stock down more than 76% year to date and making frequent new 52 week lows. In yesterday’s trading session RIM, drop another 2.5% to finish the day just barely above the $15 level.

Best Buy (NYSE:BBY) is trying to establish a bounce from the selling developed in the last two days on a disappointing earnings report that showed tepid sales and margin compression. Best Buy stock has lost over 17.5% since its earnings release and it’s close to probe its 52 week low of $22.10 unless buyers step in before that. Best Buy might be helped by reports that holiday sales look better than before, although investors eyed the margin compression year over year as a concern point in their stock valuation.

Lastly, Bank of America (NYSE:BAC) is trading higher in pre-market action, but still without a clear turnaround in its overall downward trajectory. Bank of America logged a multiyear low two weeks ago at $5.03, which continues to be used by traders as a risk reference point. Bank of America stock has had a rough few weeks, as it corrected from a high of $7.43 in early November to the multiyear low of $5.03 representing a drop of 32%.