Stock Futures Higher on Central Bank Action Hopes. Stocks to Watch: AIR, AAPL, MT, BAC, COF, FB, JBHT, MSFT
Published on Friday, 15 June 2012 07:28 Written by Christopher Lynn
New York, June 15th (TradersHuddle.com) – Stock futures were pointing to a higher open as a report from late yesterday suggested that central banks around the world stand ready to inject liquidity and calm markets if the outcome of the Greek election increase the likelihood of Greece leaving the euro. New data this morning could also increase hopes for Fed stimulus, following the slew of weakening data in the U.S. Look for increased volatility in the session as its a quadruple witching day.
In Asia, stocks gained after a report stated that central banks around the world were ready to inject liquidity on a coordinated way after the Greek elections to prevent market turmoil depending of the outcome. Increased uncertainty and anxiety ahead of the vote in Greece kept trading volumes low. The Nikkei ended flat for the session, as the Bank of Japan left its rates and monetary policy unchanged, while the Shanghai Composite climbed nearly 0.5% in choppy trading.
In Europe, markets were trading higher as participants hoped that central banks would act to help keep markets stability amid the elevated risk of a Greek exit from the euro zone. Financials were among the top performers, with Credit Suisse (NYSE: CS) recovering 2.8% from its 10.5% plunge in the prior session, which followed news that the Swiss National Bank has urged the lender to raise more capital.
The euro was falling against the Dollar, trading above the $1.26 level. Crude oil was jumping 0.79% to $84.57 per barrel. Also in the energy complex, natural gas was climbing 0.40% to $2.505 per MMBtu. Gold was adding 0.33% to 1625.00 an ounce, and silver was gaining 0.87% to $28.655 an ounce. Meanwhile, copper was advancing 0.66%.
On economic data, at 8:30 am the June Empire State Manufacturing Index will be released. At 9:15 am, May Industrial Production and Capacity Utilization figures will be available, and at 9:55 am, the University of Michigan will release its Consumer Sentiment reading for June.
Today’s Stocks to watch: AAR Corp (NYSE: AIR), Apple (NASDAQ: AAPL), ArcelorMittal (NYSE: MT), Bank of America (NYSE: BAC), Capital One Financial (NYSE: COF), Facebook (NASDAQ: FB), J.B Hunt Transport Services (NASDAQ: JBHT), and Microsoft (NASDAQ: MSFT).
AAR Corp (NYSE: AIR), the provider of diverse products and services to the worldwide commercial aviation and defense industries, will be in focus after losing 5% in after hours. The company reported preliminary results for its fourth quarter that missed earnings consensus but beat revenues expectations. Additionally, the company issued downside earnings and revenues guidance for fiscal 2013. AAR Corp said that its board of directors authorized to repurchase up to $50 million of its common stock.
Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was adding 0.26% to $573.01 in pre-market, as the stock continues stuck in a range between $560 and $580, as participants await for key new product announcements later in the year, including the iPhone 5, the likely iTV, the possible iCamera, and a smaller iPad. The stock has calculated support at $548.50 and resistance at $588.50. Its 50day moving average is at $579.95, a level that will also act as resistance.
ArcelorMittal (NYSE: MT), the world’s largest steelmaker, was jumping more than 4% in pre-market, adding to yesterday’s gains after news that the company will cut its European Union output and raise prices in the third quarter, as the steelmaker seeks to restore profit margins amid the slowdown in demand in the region.
Bank of America (NYSE: BAC) was adding 0.52% to $7.70 in pre-market, despite Moody’s cutting the ratings of 11 European banks, as central banks have apparently provided a put for participants to maintain and add positions ahead of the Greek election. Weak economic data in the U.S. also has raised hopes for additional stimulus measures from the Fed. Bank of America continues to trade between its 200 day moving average at $7.19 and its 50day moving average at $7.86, levels that should act as support and resistance, respectively.
Capital One Financial (NYSE: COF), the credit card issuer, will be in focus after reporting May card metrics. The lender said May Domestic Annualized Net Charge-Off Rate was 3.85%, a drop from 4.07% in April; May Delinquency rate was 3.14%, a drop from 3.18% in April (-4 bps m/m change). Its May International Annualized Net Charge-Off Rate was 5.3% and Delinquency rate was 4.83%, both showing improvements from April, as well.
Facebook (NASDAQ: FB), the social media Company, was climbing 1.06% to $28.59 in pre-market amid reports that Microsoft will buy Yammer, the enterprise social network. The company appears to have bottomed last week at $25.52 and its building on the 3.7% jump from the prior session that came after Facebook unveiled a new advertising model that will let advertisers bid for space on a real-time basis.
J.B Hunt Transport Services (NASDAQ: JBHT), the provider of transportation and logistics services in North America, will be in focus after FBR Capital raised its second quarter earnings estimates and target price on the stock to $65 from $63. The firm sees little earnings risk for the company over the next two quarters, while it considered the strong April and May trends in the business.
Microsoft (NASDAQ: MSFT), the world’s largest software publisher, will be in focus after reports suggesting that the company will purchase the enterprise social network Yammer, which launch in 2008, for $1 billion. Year to date, Microsoft shares have climbed 13%.
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