Stock Futures Lower on Global Growth Woes. Stocks to Watch: AAPL, BAC, FB, GOOG, GRPN, SHLD, S, SYY
Published on Monday, 13 August 2012 07:54 Written by Christopher Lynn
New York, August 13th (TradersHuddle.com) – Stock futures were pointing to a lower open after a disappointing Japanese GDP, spurred renewed concerns over the pace of growth in the global economy, which were partially offset by hopes for further policy action from global central banks.
In Asia, most stocks closed lower on the first day of the trading week, as signs of slowing global growth weighed on price action and investors’ sentiment. On Friday, weaker than expected Chinese trade data reignited concerns over the global slumped, with today’s data adding to the worries. Japan’s economy grew 0.3% in the second quarter, well below expectations and slowing down from the 1.3% growth in the first quarter. The Nikkei slid 0.07%, while the Shanghai Composite slumped 1.5%.
In Europe, markets were struggling in very thin trade amid concerns over global economic growth, as some continue to hope for further stimulus measures from central banks around the world. Over the weekend, Germany's Economy Minister reaffirmed his disappointment on the limited progress from Greece.
The euro was gaining against the Dollar, trading above the $1.23 level. Crude oil was climbing 0.70% to $93.52 per barrel. Also in the energy complex, natural gas was slumping 1.08% to $2.74 per MMBtu. Gold was adding 0.23% to $1623.40 an ounce, and silver was dropping 0.22% to $28 an ounce, meanwhile copper was retreating 0.62%.
Today’s Stocks to watch: Apple (NASDAQ: AAPL), Bank of America (NYSE: BAC), Facebook (NASDAQ: FB), Google (NASDAQ: GOOG), Groupon (NASDAQ: GRPN), Sears Holdings (NASDAQ: SHLD), Sprint Nextel (NYSE: S), and Sysco Corp. (NYSE: SYY).
Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was climbing 0.25% to $623.25 in pre-market, as the stock extends its gain from the prior week of 1%. The stock has been trading amid increased expectations on its short-term product refresh cycle, which includes the new iPhone 5, a potential iPad mini in the fall, and a potential iTV sometime next year. Many participants expect that Apple could make a run ahead of September and break above its all-time high of $644.
Bank of America (NYSE: BAC) was climbing 0.52% to $7.78 in pre-market after the Charlotte, NC based company announced that its has agreed to sell its International Wealth Management businesses based outside the U.S. to Julius Baer Group, a Swiss private banking group, for an estimated 1.2% of client assets. As of the end of June, the business had assets for $84 billion; however the final purchase price will depend on these assets at the end of the regulatory process. The offices based in the U.S. will not be affected by the sale and the lender will also keep its Japanese joint venture, Mitsubishi UFJ Merrill Lynch PB Securities. Last week, several news outlets speculated on this sale that could fetch the bank $1 to $2 billion.
Facebook (NASDAQ: FB), the social media Company, was sliding 0.03% to $21.89 in pre-market, after it was able to recoup losses last week, climbing more than 3%. According to Bloomberg, Microsoft plans to keep its stake on Facebook even after the lockup period expires next week. Microsoft sees the investment on the Social Network as strategic and does not have any plans to sell its 1.7% stake in the company or about 26.2 million shares. Facebook has seen pressure amid concerns over additional shares flooding the market after the ban on share sales expires, giving early investors the chance to sell.
Google (NASDAQ: GOOG), the owner of the largest Internet search engine in the world, was jumping 1.48% to $651.48 in pre-market after the company announced that it will be cutting 20% of the workforce of the recently acquired Motorola Mobility. The company said that it would cut 4,000 jobs and take a charge of $275 million, as it shuts down nearly a third of its worldwide offices. Google is attempting to return Motorola Mobility to profitability, while reinventing the company that has lagged behind the smartphone behemoths Apple and Samsung and shoring up its Android business. Additionally, Morgan Stanley upgraded the stock to Overweight from Equal Weight.
Groupon (NASDAQ: GRPN), the daily deals site, was climbing 0.81% to $7.50 in pre-market ahead of reporting its quarterly results after the closing bell. On average analysts expect a profit of $0.03 per share. The highest estimate is $0.05, while the lowest is $0.01. Last quarter, the company posted a 100% upside earnings surprise as it earned $0.02 per share.
Sears Holdings (NASDAQ: SHLD), the holding company that owns and operates the Sears and Kmart retail chains, was surging 9% to $56 in pre-market following positive coverage at Barron’s over the weekend. A report on Barron’s speculated that shares could double if Eduard Lampert, Sears Holdings' controlling investor, is engineering a "slow-motion liquidation" of the retailer.
Sprint Nextel (NYSE: S), the third largest U.S. wireless carrier, was jumping 2.2% to $5.03 in pre-market, extending the stock’s recent rally, after Bank of America Merrill upgraded the stock to a Buy from Neutral.
Sysco Corp. (NYSE: SYY), the food distributor to the hospitality industry, will be in focus as it reports quarterly results later today. On average analysts expect a profit of $0.54 per share on revenues of $11.04 billion. The highest earnings estimate is $0.56 per share, while the lowest is $0.52.
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