Stock Futures Jump on Spanish Bank Bailout. Stocks to Watch: AAPL, BAC, BBY, BP, FB, GE, NAV, TFM

Published on Monday, 11 June 2012 07:57 Written by Christopher Lynn

New York, June 11^th (TradersHuddle.com) – Stock futures were pointing to a sharply higher open following overseas markets to the upside after euro zone finance ministers agreed to lend 100 billion euros to Spain for its bank rescue fund and after Chinese economic data was better than expected.

In Asia, stocks rallied after the euro zone finance ministers agreed to lend Spain up to $125 billion in order to be use to prop up its struggling banking system. While, encouraging economic data from China also helped boost confidence. The Nikkei climbed nearly 2%, helped by the export sector, and the Shanghai Composite gained 1.1%, as economic data in the country was better than expected.

In Europe, markets were trading higher after the announcement of the bailout to Spain’s struggling banks. Financial shares were seeing a strong bid after euro zone finance ministers approved to lend Spain 100 billion euros for its bank rescue fund. Reports that European leaders were working on euro zone bonds also helped improved sentiment and spurred a buying spree, as investors sought risk. However, some analysts and participants remained cautious over the short-term solution for Spain’s banking bailout, which might deteriorate further the sovereign finances.

The euro was losing against the Dollar, trading above the $1.25 level. Crude oil was gaining 1% to $85.08 per barrel. Also in the energy complex, natural gas was losing 1.04% to $2.275 per MMBtu. Gold was adding 0.02% to $1591.70 an ounce, and silver was climbing 0.37% to $28.575 an ounce. Meanwhile, copper was jumping nearly 2%.

Today’s Stocks to watch: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Best Buy (NYSE: BBY), BP (NYSE: BP), Facebook (NASDAQ: FB), General Electric (NYSE: GE), Navistar International (NYSE: NAV), and The Fresh Market (NASDAQ: TFM).

Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was gaining 0.70% to $584.38 in pre-market, probing its 50day moving average, amid broad upside sentiment being generated on overseas markets after better than expected Chinese data and news of the Spanish bank bailout. The company’s annual Worldwide Developers Conference starts on Monday in San Francisco, with the company expected to unveil details of its new operating system, iOS6. The company might provide hints over new products in the pipeline like an iTV or an iCamera. Last week, the stock climbed 3.4%.

Bank of America (NYSE: BAC) was jumping 2.1% to $7.72 in pre-market, extending its breakout above its 200day moving average. The stock broke above its 200day moving average at $7.18 on Wednesday amid hopes for stimulus around the world, but was weighed down yesterday by the announcement of the Fed’s new capital rules for banks, which are design to avoid another financial crisis in this country. The stock was reacting favorably to the Spanish bank bailout along with the broad financial space. Next key levels of interest are calculated resistance at 7.90 and its 50day moving average around the $8 level.

Best Buy (NYSE: BBY), the consumer electronics goods and appliances retailer, will be in focus this session after a Bloomberg Report speculated that the company might be a target for private equity. The report stated that with founder Richard Schulze’s 20% stake in play, following his resignation from the board, and the company near historic low valuations, it just might be the right time for private equity firms to get involve and take the company private.

BP (NYSE: BP), the U.K. energy giant, was jumping 2.4% to $39.01, as crude oil prices gain on the Spanish banks bailout and after Chinese economic data was better than expected. The stock was in investors’ radar screens following a report over the weekend in the Financial Times. The report stated that BP hopes to reach a deal with U.S. authorities under which it would pay less than $15 billion to settle all criminal and civil penalties arising from the 2010 Gulf of Mexico oil spill disaster. Last week, the company said that it’s moving ahead with its sale of its stake on TNK-BP despite threats by its Russian partners that they could block the deal.

Facebook (NASDAQ: FB), the social media Company, was gaining 0.33% to $27.19 in pre-market after Needham defended the stock, reiterating its Buy rating and $40 price target. Needham believes that shares have overreacted to the downside. Market valuations of other social media companies are much robust than Facebook and the firm believes that the market is underestimating the power FB has with women, who represent 85% of purchasing decisions in the US. They think the company’s recently announced app store is the first step toward monetizing mobile. Last week, the stock logged a new record low at $25.52, but reversed sharply after setting it. Also last week, JMP Securities initiated coverage on the stock with Outperform and a target price of $37.

General Electric (NYSE: GE), the maker of medical devices and wind turbines, was climbing 1.15% to $19.42 on news that the conglomerate is considering to break off parts of its lending business. GE Capital has become one of the largest banks in the U.S., prompting investor concern. The company might take a decision to sell parts of its loan portfolio to reduce the size of the business, but no decision has been made yet, as GE will likely wait until much favorable market conditions for such a sale. The stock was also seeing upside in pre-market amid the news of the Spanish bank bailout and positive Chinese economic data.

Navistar International (NYSE: NAV), the maker of medium and heavy-duty trucks, will be in focus amid reports that Volkswagen was considering taking a stake in the company. Last week, the stock saw sharp volatility after reporting a quarterly loss and lowering its guidance for the year and after news that investor Carl Icahn increased its stake in the truck and engine maker to 11.87% from 9.99%.

The Fresh Market (NASDAQ: TFM) will be in focus after the company announced a secondary offering of about 10.03 million shares of its common stock. Certain existing stockholders will offer the common stock, with no shares being offered by the Company in the offering, which will not receive any of the proceeds from this offering.