After weakness in European and Asian markets, stock futures are modestly higher. A big test is ahead to justify pushing the market higher: earnings season. dozens of high profile earnings reports and forecasts will be released in the next three weeks.
Among the companies due to report earnings is Intel. Clues have already been provided about the progress of Intel's quarter by way of AMD's warning last week appearing to indicate that INTC's competitive position may have actually improved. UBS, at least felt that INTC's quarter is "fine", while AMD suffers. However, as recently as Jan 11, THNK said INTC could report revenue at the low end of its guidance with earnings coming in at 23c, short of 25c consensus at that time. Some chartists have made the argument for a bullish cup and handle formation. I have a bit of touble seeing that, but will look more closely, perhaps with an eye imagining that it T/A at my kid's ceramic's class!
With tech in mind, a friend sent me a note that Deutsche Bank downgraded KLA-Tencor (KLAC) and Lam Research (LRCX) to Hold from Buy and Novellus (NVLS) to Sell from Hold. DBAB thinks the sector has hit a cyclical peak and that orders could decline 20% sequentially starting in the first half of 2007.
theflyonthewall.com notes JPMS upgraded both XMSR and SIRI to 'overweight' saying both companies will see more customers from deals with automakers.
Crude oil... down again. Saudi Arabia says it prefers to wait until Feb 1st production cuts take place. If you're short, don't be ashamed, COT data shows a big swing in that direction by fund managers. Somehow, Virginia, I don't think last Friday's print at $51.57 was the bottom.
Nat gas, feebly moving higher by around 14c to 6.74.
Gold, after last week's run, taking a breather at $625.80
Dollar, hit a brick wall at DXY 200 dma last week, EurFX rose back to $1.30 earlier this morning. Up 34 points at 1.2994. NY Manufacturing slid from 22 to 9... looking WEAK and a bad precursor to other manfucturing data out in the next few weeks. Daughter missed the school bus, so will be back later.