Stock Futures Flat Despite Record Spanish Yields. Stocks to Watch: AAPL, BAC, COST, FB, JASO, PIR, SFD, WGO

Published on Thursday, 14 June 2012 08:26 Written by Christopher Lynn

New York, June 14^th (TradersHuddle.com) – Stock futures were holding near the flat line despite bond yields in Spain and Italy spiking following Spain’s downgrades and an Italian bond auction. Spain’s 10-year yield hit a record of 7% after Moody’s cut the rating on the country’s debt by two notches. Participants were awaiting another set of data this morning, which follows a set of weak data from the prior session.

In Asia, stocks fell as the European woes continued to hamper risk appetite and after weak retail sales in the U.S. added to worries of global economic slowdown. The Nikkei fell 0.22%, while the Shanghai Composite lost 1%, erasing most of the prior session’s gain.

In Europe, markets were trading lower as concern over the crisis involving the periphery continue to weigh on stocks. Bond yields in Spain hit a new record high at 7%, a level that is deemed as unsustainable long-term. The higher bond yields came after Spain’s credit rating received a couple of downgrades from Moody’s and Egan-Jones. The high yields in Spain pressured Italian bond yields, causing the country’s 3-year borrowing costs to spike after an auction.

The euro was gaining against the Dollar, trading above the $1.25 level. Crude oil was climbing 0.16% to $82.75 per barrel. Also in the energy complex, natural gas was jumping 1.1% to $2.209 per MMBtu. Gold was adding 0.21% to 1622.80 an ounce, and silver was dropping 0.21% to $28.88 an ounce. Meanwhile, copper was sliding 0.01%.

On economic data, at 8:30 am the Labor Department will release its weekly jobless claims report, while the Commerce Department will release its Consumer Price Index (CPI). At the same time, the first quarter current account balance will also be released.

Today’s Stocks to watch: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Costco Wholesale (NASDAQ: COST), Facebook (NASDAQ: FB), JA Solar (NASDAQ: JASO), Pier 1 Imports (NYSE: PIR), Smithfield Foods (NYSE: SFD), and Winnebago Industries (NYSE: WGO).

Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was losing 0.28% to $570.53 in pre-market. Earlier in the week, Cannacord Genuity bumped its target price to $800 from $775 and the stock traded briefly above its 50day moving average to reverse quickly, as some participants were disappointed on the lack of a blockbuster out of the company’s WWDC. Apple did however unveiled key elements in the conference, including its refreshed line up of MacBook Air and MacBook Pro; the new iOS 6 and Mountain Lion OS were also unveiled in the conference, while the company also announced a new map app, aiming to replace Google map app. The stock has calculated support at $548.50 and resistance at $588.50.

Bank of America (NYSE: BAC) was adding 0.13% to $7.51 in pre-market, despite the euro zone woes, ahead of the weekly jobless claims report in the U.S. The stock continues to trade between its 200 day moving average and its 50day moving average.

Costco Wholesale (NASDAQ: COST), the owner and operator of wholesale membership warehouses, will be in focus after announcing that it’s acquiring the 50% stake it didn’t own of Costco de Mexico from partner Controladora Comercial Mexicana. The transaction is valued at $10,650 million pesos or about $760 million. Additionally, Costco de Mexico issued a special dividend of about $340.85 million, payable 50% to Costco Wholesale and 50% to Controladora Comercial Mexicana. The U.S. Company will use the proceeds of the dividend and additional cash to fund the transaction.

Facebook (NASDAQ: FB), the social media Company, was climbing 0.26% to $27.34 in pre-market. The stock tried to trade above $28 per share in the prior session, but broad market weakness pushed the stock lower to settle at $27.27 in the prior session. Last Week, the stock logged a record low at $25.52, from which it quickly rebounded. Earlier in the week, Needham defended the stock, reiterating its Buy rating and $40 price target. According to Bloomberg, Facebook plans to introduce real-time bidding for advertising; a technology that rivals like Google uses it. The Facebook Exchange, which will debut within weeks, will let advertisers reach specific types of users on the social network based on their browsing history. Prices will be based on the cost per thousand viewers and spots will be sold via third-party technology partners.

JA Solar (NASDAQ: JASO), the China based solar cells manufacturer, was surging 21.51% to $1.13 in pre-market after the company announced a $100 million share repurchase program effective immediately.

Pier 1 Imports (NYSE: PIR), the decorative home furnishings and gifts retailer, will be in focus after the company reported quarterly results that were inline with consensus, while it raised its fiscal 2013 EPS guidance inline with consensus. The retailer said that comparable store sales increased 7.2%. Pier 1 earned $0.16 per share on revenues that climbed 7.9% from a year ago to $361.1 million.

Smithfield Foods (NYSE: SFD), the fresh meat and packaged meat products maker, tumbled 4.3% to $18.73 after the company missed earnings expectations on revenues that were inline with consensus. Smithfield said adjusted earnings were $0.43 per share, excluding $0.06 insurance reimbursement, $0.11 worse than consensus, on revenues that climbed 3% from a year ago to $3.21 billion.

Winnebago Industries (NYSE: WGO), the RV maker, will be in focus after the company beat earnings expectations on revenues that missed consensus. Winnebago earned $0.13 per share, $0.01 better than consensus, on revenues that climbed 14.8% from a year ago to $155.7 million.