Stock Futures Lower Ahead of Jobs Report. Stocks to Watch: AAPL, BAC, BP, FB, F, LVS, WYNN
Published on Friday, 01 June 2012 07:34 Written by Christopher Lynn
New York, June 1st (TradersHuddle.com) – Stock futures were pointing to a lower open ahead of the key jobs report amid weakness in overseas markets following a string of weak data, which highlighted that the European debt crisis is hampering global growth. Data around the world has fueled fears that the global economy is slowing down.
In Asia, stocks extended their recent slide, with the Nikkei slumping more than 1% and logging its longest losing streak in 20 years, as lackluster U.S. economic data and weak Chinese industrial activity weighed on exporters. The weaker than expected Chinese data highlighted concerns that the euro zone debt crisis was hampering global growth. The Shanghai Composite edged a gain amid speculation that the weak industrial activity in May might force the Chinese government to push fresh stimulus measures.
In Europe, markets were trading lower after starting the session with gains. Stocks turned lower after the release of several European PMI data points. Both German and French PMI fell sequentially but were slightly better than expected, while the PMI in the U.K. had the big miss. Participants’ focus is all about the U.S. jobs report, while risk aversion is spurring record low yields in 10-year securities in the U.S. Germany, and the U.K.
The euro was falling against the Dollar, trading below the $1.24 level. Crude oil was tumbling 2.25% to $84.58 per barrel. Also in the energy complex, natural gas was falling nearly 3% to $2.35 per MMBtu. Gold was losing 0.67% to $1553.70 an ounce, and silver was slumping 1.37% to $27.395 an ounce. Meanwhile, copper was retreating 1.1%.
On economic data, at 8:30 am, the Labor Department will release its non-farm payroll report, with economists expecting that the U.S. economy added 150,000 jobs. The unemployment rate is expected at 8.1%. At the same time, April personal income and spending data will be released. At 10 am, May ISM and April construction spending figures will be available.
Throughout the session, automakers will release their May sales data.
Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was falling 0.95% to $572.26 in pre-market after in the prior session the stock retreated by 0.25%. The stock received upside momentum earlier in the week amid a potential Apple TV set. There were comments from CEO Tim Cook stating an intense focus on TV and a blog report that stated that Apple would likely unveil a new TV operating system at the company’s WWDC next week. Yesterday, BTIG Research noted that Apple deal with Leap Wireless to sell iPhones into the pre-paid market might be as the firm believes that industry-wide Q2 phone sales have been sluggish as they previously forecast and in addition Apple might already be feeling an incremental lag in iPhone sales ahead of an expected new product launch
Bank of America (NYSE: BAC) was losing 1.9% to $7.21 as European shares were seeing some pressure following weak data in China and Europe. The stock was able to rally more than 2% yesterday, ahead of the jobs report, and moving away from its 200day moving average at the $7.18 area. According to reports, the bank head Equity Strategist and four other key employees have resigned. Year to date the stock has gain 32%.
BP (NYSE: BP), the U.K. energy giant, was jumping more than 2.5% to $37.38 in pre-market despite lower crude oil prices on news that the company is looking to sell its stake on TNK-BP. The company announced plans to quit the TNK-BP deal after hostilities with its Russian partners have deepened the board’s paralysis.
Facebook (NASDAQ: FB), the social media Company, was losing 1.35% to $29.28 in pre-market after the stock had a sharp reversal, jumping 5% in the prior session, settling at $29.60. The stock logged a new low at $26.83. According to reports, Facebook had outages on Thursday. Yesterday, Morgan Stanley’s CEO defended the bank’s action on the IPO and said that investors need to give Facebook shares a little more time.
Ford (NYSE: F), the Dearborn, MI based automaker, will be in focus as it reports its May sales figures. Despite the mixed economic data in the U.S., industry sales are expected to hit 1.4 million cars and trucks during the month of May, which would be the best May performance in five years, as demand remains strong, as consumers had delayed purchases during the recession.
Wynn Resorts (NASDAQ: WYNN), the luxury casino operator, will be in focus after the Macau Gaming Inspection and Coordination Bureau reported May gross gaming revenue increased 7.3% year over year to 26.1 billion patacas, the second highest monthly total ever, Macau gaming revenue is now up 21.3% year to date. Wynn’s 72% of first quarter net revenues and 74% of adjusted EBITDA was generated in Macau.
Rival Las Vegas Sands (NYSE: LVS), the owner and operator of casino resorts and convention centers in the U.S., Macau, and Singapore, will also be in focus on the news. The company generated about 42% of its adjusted EBITDA and about 53% of its net revenues in the last quarter in Macau.
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