Stock Futures Lower after Last Week’s Selloff. Stocks to Watch: AAPL, AN, BAC, BP, DECK, FB, NTAP, NKE
Published on Monday, 04 June 2012 07:35 Written by Christopher Lynn
New York, June 4th (TradersHuddle.com) – Stock futures were pointing to a lower open amid weak overseas markets as participants are still digesting Friday’s dismal jobs report in the U.S. There are reports that European officials are working on a master plan to counter the debt crisis in the region and some speculation by participants that the weak jobs figures in the U.S. might spur fresh Fed action.
In Asia, stocks tumbled, with the broad Japanese market slumping to a 28-year low on fears over a possible euro breakup and after poor U.S. economic jobs data, couple with concerns over Chinese growth slowdown. Meanwhile, the Nikkei has now slid 19% from its high of the year hit on late March, pressured by exporters, and in China, the Shanghai Composite tumbled 2.7%, its steepest single day drop in six months. Also pressuring Chinese stocks was weak services PMI data, which hit a 3-month low.
In Europe, markets were struggling despite reports and market chatter that key European officials are working on a Master Plan to tackle the debt crisis. The plan could take a couple of weeks in the making. The auto sector was seeing weakness amid worries over Chinese growth and after data showed that automakers logged strong sales gains in the U.S. in May, but the sales rate fell short of expectations.
The euro was adding against the Dollar, trading above the $1.24 level. Crude oil was losing 1.72% to $81.80 per barrel. Also in the energy complex, natural gas was falling jumping 1.42% to $2.359 per MMBtu. Gold was climbing 0.18% to $1625.00 an ounce, and silver was slumping 0.15% to $28.47 an ounce. Meanwhile, copper was retreating 1.13%.
On economic data, 10 am April Factory order data will be available.
Today’s Stocks to watch: Apple (NASDAQ: AAPL), AutoNation (NYSE: AN), Bank of America (NYSE: BAC), BP (NYSE: BP), Deckers Outdoor (NASDAQ: DECK), Facebook (NASDAQ: FB), NetApp (NASDAQ: NTAP), and Nike (NYSE: NKE).
Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was adding 0.08% to $561.42 in pre-market after giving up all of its weekly gains on Friday’s session. 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 scheduled to start on June 11th. The worries over job growth in the U.S. and global economic growth woes catch up with the stock late last week.
AutoNation (NYSE: AN), the auto and auto parts retailer, will be in focus in the session after the company reported a 45% increase from last year in new car sales during May. AutoNation said it sold 23,763 units, with 7,260 for Domestic, up 21% versus May 2011; 12,300 for Import, up 78% versus May 2011; and 4,203 for Premium Luxury, up 23% versus May 2011.
Bank of America (NYSE: BAC) was climbing 1% to $7.09 as the stock was able to hold the $7 per share level amid Friday’s market rout after the dismal U.S. jobs report. The stock broke below its 200day moving average at $7.18. This morning European banks were trading higher amid reports of the EU supposedly working on a Master Plan to handle the debt crisis in the euro zone, which threatens to breakup the single currency.
BP (NYSE: BP), the U.K. energy giant, will be in focus in the session on news that the company is moving ahead with its sales of its stake on TNK-BP despite threats by its Russian partners that they could block the deal. The stock will also react to the ongoing slide in crude oil prices, which are getting closer to the $80 per barrel mark amid worries over global growth and the impacts of a weaker euro. There is a holiday in England, so the stock is not trading in London.
Deckers Outdoor (NASDAQ: DECK), the maker of the UGG line of fleece-lined boots, will be in focus after an articles on Barron’s over the weekend indicates that the stock might rally at least 40% as sheepskin prices fall and expands. The stock is down nearly 30% this year over the impacts of a warm winter and concern that one of the hottest brands in the past decade was cooling down.
Facebook (NASDAQ: FB), the social media Company, was losing 1.59% to $27.28 in pre-market, as the stock will likely test its low of $26.83. Facebook continued to be under pressure amid the broad market selloff last week, and with investors shunning risk, it looks difficult for participants to commit to a stock that has done so poorly after its IPO. There are news reports that Facebook was considering granting access to kids, a measure which in theory will bump its user base, but in practical terms there are many kids that already have Facebook accounts, which were helped by parents to setup or circumvented the age limitations. Facebook was initiated with an underperform rating at Bernstein. Last week, Robert W. Baird initiated coverage on the stock with Outperform and a target price of $37 and Credit Agricole initiated coverage with a Buy.
NetApp (NASDAQ: NTAP), the storage and data management solutions provider, will be in focus after a Bloomberg report discusses that its valuation my attract bids from IBM, Cisco, or Oracle. The stock is trading near a record low, with a valuation of $10.7 billion, after it has plunged amid sales disappointment and as it has gained less market share than rival EMC.
Nike (NYSE: NKE), the athletic footwear and apparel giant, will be in focus amid reports that it has hired Goldman Sachs to help the company with the sale of its Cole Haan and Umbro brands.
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