Futures Higher amid Central Bank Action Hopes. Stocks to Watch: AAPL, CPB, CSX, FB, F, GM, SFD, WYNN
Published on Tuesday, 04 September 2012 07:17 Written by Christopher Lynn
New York, September 4th (TradersHuddle.com) – Stock futures were pointing to a higher open despite weakness in overseas markets, as Wall Street plays catch up after the long holiday weekend. Participants were awaiting figures showing vehicle sales for August and the reading of the ISM Manufacturing Index. Expectations for global central bank action were lending some level of support.
In Asia, stocks fell on global growth concerns, with expectations for central bank action lending some level of support. The Nikkei lost 0.1%, logging its fourth straight decline, while the Shanghai Composite dropped 0.75%, amid sharp losses from industrial stocks. In the prior session, shares had moved higher on speculation that a much worse than expected August PMI, which was released over the weekend, would be a catalyst for further stimulus. The reading was 49, showing contraction and below the expected figure of 50.
In Europe, markets were trading to the downside amid a negative data points. Both Germany and France PMI readings were below their preliminary figures. Last night, Moody’s cut its outlook on the EU region to Negative from Stable which reflects a sour outlook on the AAA sovereign nations, Germany, UK, France and Netherlands. Adding to the negative tone and woes, the Swiss economy showed an unexpected contraction, impacted by the debt crisis in the region.
The euro was climbing against the Dollar, trading juts above the $1.26 level. Crude oil was gaining 0.73% to $97.17 per barrel. Also in the energy complex, natural gas was dropping 0.79% to $2.777 per MMBtu. Gold was climbing 0.44% to $1692.80 an ounce, and silver was jumping 2.44% to $32.21 an ounce, meanwhile copper was advancing 0.87%.
On economic news, at 10 am, July Construction Spending data and the Institute for Supply Management’s (ISM) manufacturing index will be available. Through out the day, automakers will report their August sales.
Today’s Stocks to watch: Apple (NASDAQ: AAPL), Campbell Soup (NYSE: CPB), CSX Corp (NYSE: CSX), Facebook (NASDAQ: FB), Ford (NYSE: F), General Motors (NYSE: GM), Smithfield Foods (NYSE: SFD), and Wynn Resorts (NASDAQ: WYNN).
Apple (NASDAQ: AAPL), the maker of iPads and iPhones, was climbing 0.41% to $668 in pre-market, as the release of the highly anticipated iPhone 5 gets closer. According to reports, at the event scheduled for September 12th Apple will unveil the new iPhone, which is then expected to begin shipping on September 21st. Meanwhile, the iPad mini is expected to be unveiled about a month later.
Campbell Soup (NYSE: CPB), the maker of branded convenience food products like soup, will be in focus as it reports its quarterly results later this morning. On average analysts expect a profit of $0.38 per share on revenue of $1.06 billion. The highest earnings estimate is $0.40 per share, while the lowest is $0.36. Last quarter, the company earned $0.56 per share, 7.7% above consensus.
CSX Corp (NYSE: CSX), the provider of rail, intermodal and domestic container shipping, was losing 1% to $22.23 in pre-market after Dalhman Rose downgraded the stock to a Hold. The firm cited concern that the sharp drops in export metallurgical coal prices could lead into volume declines in the next three quarters, as some producers could begin to cut production.
Facebook (NASDAQ: FB), the social media Company, was climbing 0.45% to $18.14 in pre-market, attempting a slight rebound from a big drop on Friday’s session, which took the stock to a new all-time low of $18.03. Last Friday, Stifel Nicolaus issued cautious comments, while BMO Capital and Bank of America Merrill slashed their price targets to $15 from $25 and to $12 from $23, respectively. On Thursday, Gene Munster from Piper Jaffray offered positive comments on the stock. He said that prospects for Facebook Long-term are still bright.
Ford (NYSE: F), the Dearborn, MI based automaker, will be in focus as it reports its August sales. Is expected that domestic vehicle sales inch higher to 11.2 million from 11 million in July, while total vehicle sales in the U.S. to climb from 14.1 million in July to an annual rate of 14.3 million. Last week, Credit Agricole initiated coverage on the stock with Outperform. The company also announced last week that its unit Lincoln would be expanding in China, with its cars being available the second half of 2014.
Rival General Motors (NYSE: GM), one of the world’s largest automakers, will be in focus, along with other automakers, as they report their August sales figures. Last week, Credit Agricole initiated coverage on the stock with an Underperform, while reports indicated the company would invest $1 billion in Russia.
Smithfield Foods (NYSE: SFD), the fresh meat and packaged meat products maker, was falling 2.33% to $18.87 in pre-market after its quarterly results missed expectations. Smithfield earned $0.40, $0.05 worse than consensus, on revenues that fell 0.1% from a year ago to $3.09 billion versus consensus of $3.16 billion.
Wynn Resorts (NASDAQ: WYNN), the luxury casino operator, will be in focus after the Macau Gaming Inspection and Coordination Bureau reported that August gross gaming revenue increased 5.5% from a year ago to 26.1 billion patacas. Macau gaming revenue is now up 15.2% year to date. Wynn generated about 72% of second quarter net revenues and 79% of adjusted EBITDA in Macau.
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