Stock futures are in a bit of a fog this morning after another Wall Street rally yesterday that sent the Dow soaring above 13,200. Pac Rim where markets in South Korea, Australia and Singapore closed at records overnight. Investors may run in place today ahead tomorrow's employment data which is expected to show non farm payrolls grew by 100,000 during the month of April and unemployment at 4.5%.
Today's economic data: Productivity and Jobless Claims at 8:30; 1000 ISM Non Manufacturing
GM will be a drag on the Dow: Subprime woes bite General Motors. Yes, the Rescap subprime mess caused GM to sharply miss estimates. Recently there have been few examples of overt trouble among lenders allowing many to rebound, but Rescap stands out as an example of what is likely to happen later in the year to many big names in lending if the Freddie Mac bailout money is allowed to run out. I have rolled most of my put plays (some at a loss) in names like CFC and DSL out to fall options (October and November).
Dow Jones (DJ), one of my long holdings, shares are creeping higher even after the board took no action on Murdoch's $5 bln offer: Wiggle room in Murdoch offer?
Today's Journal (page C1) also notes the downgrade of a number of subprime bonds.
In tech world, JD Uniphase (one of my errant longs) really blew it last night - posting a surprise loss alon with weak guidance. It has been downgraded to Hold at Roth Capital.
Celegene (CELG) has been on my watch list as a possible takeover candidate. It posted earnings this morning that missed by a penny and lighter guidance. The stock is down about 6% this morning following a pre-earnings rally yesterday.
Sunoco (SUN) which I am long in is down $3 after revenues came through lighter than expected on a refinery outage. I'm still holding since my position is a play on consolidation in the group.
Symantech (SYMC) beat the streeet. Analysts have been upgrading this morning and the stock is up 7%.
Will AMD eventually go private?
CBS (CBS) could eventually be writing a big check to Don Imus: Imus Plans Lawsuit. In a weird sort of way Sharpton, et al have likely done Imus a huge favor.