S&P 500 (JUN) -3.10 NASDAQ 100 (JUN) -6.50 Dow ($5) (JUN) -8.00
Treasury Bonds
5 yr note 4.98 +0.02 10 yr note 5.03 +0.04 30 yr note 5.15 +0.07
Currencies
US vs Euro 1.3464-0.24%
US vs Yen 0.0082 +0.23%
US vs GBP 1.98 -0.01%
Commodities
Gold (CMX ) 673.30 -1.30
Light Crude (NYM ) 65.96 +0.35
Wake-Up Call
Buyers Remain Reserved
There is a better tone in the futures market this morning than there has been in recent sessions. All that means, however, is that we aren't likely to see stocks trade noticeably lower at the open. The current indications point to a flat to slightly lower open.
The attention on rising interest rates globally continues to hang over the market, as does the sense that stocks are due for a breather.
For what it's worth, there are also reports that North Korea may have fired short-range missiles into the waters off its coast. Aside from the harm done to the fishes, the market doesn't seem too worried about this alleged development.
On the interest rate front, the yield on the 10-year note has hit the psychological 5.00% level. Meanwhile, in an expected act the Bank of England left its benchmark rate unchanged today at 5.50%. New Zealand, however, bumped up its benchmark rate to 8.00%.
The corporate newsflow is largely revolving around the retail sector this morning as a number of companies are posting their same-store sales results for May.
While the same-store sales reports are still rolling in, it is abundantly clear that the results are much better than what was witnessed in April. A rebound was expected for May, though, given the confluence of special factors that impacted the April results.
Costco (COST 55.82) is one of the May standouts, posting a 7.0% gain in same-store sales versus the Briefing.com consensus estimate of +5.9%.
Today's economic data features the weekly initial claims, wholesale inventories and consumer credit reports. None are expected to have any material impact on today's proceedings. For added detail and estimates for the reports, be sure to visit our Economic Calendar page.
Events for Thursday, June 7:
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Earnings: Smithfield Foods (SFD), National Semiconductor (NSM), Quicksilver (ZQK), UTI Worldwide (UTIW), DSW (DSW)
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Economic Data: Initial Claims(309,000 vs 312,000 consensus), Wholesale Inventories, Consumer Credit
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Events: G8 Meeting, BOE Policy Decision, PLXS F07 Analyst Meeting; IM Investor and Analyst Day
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Conferences: CIBC World Markets Alternative Energy 1-on-1 Conference; Citigroup Power, Gas and Utilities Conference; Lehman Brothers 2007 Global Services Conference; Piper Jaffray 27th Annual Consumer Conference
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Fed Speakers: None
Ok...I was so pissed off last night with my predictions that I never do the AMC closing price accuracy. Sucks...
Today the bond markets fell, so did the futures. Normally, the stock market will follow these 2 markets. So today may still be a down day. But based on technicals...
Dow Jones Industrial Index 13,465.67 -129.79
If it's a down day, I say it won't go pass the 13,441 retracement level.1st intraday resistance: 13,481
2nd intraday resistance: 13,500
1st intraday support: 13,460
2nd intraday support: 13,435
5 day interday high(resistance): 13,691
5 day interday low(resistance): 13,438
Direction for 290507: FLAT
NASDAQ Composite Index 2,587.18 -24.05
I think I'll just not say anything about this one...1st intraday resistance: 2,613
2nd intraday resistance: 2,616
1st intraday support: 2,607
2nd intraday support: 2,603
5 day interday high(resistance): 2,627
5 day interday low(resistance): 2,551
Direction for 290507: Up
S&P500 Index 1,517.38 -13.57
Same as DJ. Tests the 68.2% level fails to make an advance. Looking at the bond market, I would say some more downside.1st intraday resistance: 1,520
2nd intraday resistance: 1,522
1st intraday support: 1,517
2nd intraday support: 1,515
5 day interday high(resistance): 1,541
5 day interday low(resistance): 1,514
Direction for 290507: FLAT
The Fear Gauges...
The $VIX...
A huge advance up the 14.3 resistance line - may come down a little, but volatility remains higher than the 9 week average.
The psychology of a shooting star: market opens up, shoots up, but the bulls start to lose and bears take over. Not for long, as the bulls held their support to close higher. So in this case of a volatility index, the positions are switched: the bears are in control now.
Market Direction for 060607: DOWN
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