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Need to Know
JUNE 05, 2013
6 gut checks before the stock
market's opening bell
By Shawn Langlois
Good
morning.
If Tuesday can't deliver, what hope does Wednesday have? So far, not much
of one. Stocks were dumped in Japan amid fanned
fears of "Abegeddon" , Europe is waffling, and U.S.
markets are still in shock over the crushing end of the streak.
A fresh batch of economic news is on the way today, which means more
hand-wringing over whether we want stronger or weaker numbers. Whatever
happens, it might not be good, or bad, enough, in light of the (cue
foreboding music ) Hindenburg Omen's clustering and confirming signals .
Not that anybody is worried.
Even the Bears are Bullish - Meredith Whitney, Nouriel Roubini and David
Rosenberg. #stockaction
— Douglas Kass (@DougKass) June 5, 2013
Key market gauges: Abe spoke, investors fled. The Nikkei
dropped 3.3%, reversing early gains after the Japanese
prime minister's blueprint for growth disappointed. The rest of Asia
followed suit. Europe isn't finding much in the way of firm
ground either, as stocks in Spain and Italy reversed course midday.
Meanwhile, in the U.S., futures on the Dow and the S&P are
fading in the wee hours, while gold isn't mounting much of a comeback from
yesterday's decline. Read: Gold futures gain ahead of U.S. data
.
The economy: An appetizer to Friday's jobs report hit early,
with the private sector gaining 135,000 jobs in May. The
government also releases its second of three updates on productivity before
the ISM survey of purchasing managers and the Commerce Department's factory
orders numbers follow at 10.a.m. In the afternoon, the Federal Reserve's
Beige Book, which is prepared ahead of an interest-rate decision, will be
released. The last one said the U.S. economy expanded at a
"moderate" pace. The next meeting of the FOMC is June 18 and 19.
The buzz: Investors -- and voyeurs -- just can't get enough
of that Lululemon invisible pants story. The company is among the top
headlines on Google this morning after it said its sheer black bottoms will be back on shelves
within a few weeks. The stock has rallied nicely for two sessions in a row.
Monsanto is also grabbing clicks on word that a Kansas farmer is suing the company for unleashing an
experimental genetically engineered wheat in an Oregon field that
eventually led to plunging prices around the world.
Oddly enough, and for what it's worth, retail brand Michael Kors
scored the highest in terms of bullish intensity on Twitter this past
week, according to Downside Hedge. Not far behind are Intel , Ford
and Merck .
On StockTwits, Ambarella and Infinity Pharma are two names on
the trending list that we don't typically come across, joining some of the
regulars like BlackBerry and AIG .
Salesforce.com remains in the focus with shares fighting back in the
premarket from yesterday's selloff. The company on Tuesday said it agreed
to acquire ExactTarget . It's "a good fit, but not the best
fit," according to Citi's Walter Pritchard. "We continue to
believe the company is emerging as the leader in the next-generation of
'front office' applications, with marketing a key part of that and ET
strengthening the CRM product portfolio."
The chart of the day: Michael Arold is calling for a bounce and using what he
describes as "one of my favorite short-term market timing tools"
to arrive at that forecast. He says the McClellan Oscillator has been
"extremely reliable," having successfully signaled higher market
moves 11 out of the past 13 times. Beware though, one of the times it
misfired was right before the 2011 flash crash. "The indicator has
what I call 'black swan characteristics' -- it works most of the time, but
the one time it doesn't work, you get killed," he writes. Proceed with
caution.
The
call of the day: The technical stars are
aligning for a 13% haircut in shares of eBay , according to a trio of telling charts rolled out by
Dragonfly Capital's Greg Harmon. "The auction giant has long been
discussed as having some great business and very poor management. Over 2012
the business story seem to have been winning out but now it seems that the
stock is ready for a pullback," he wrote.
Random reads: Gridlock at 27,000 feet, "pyramids of
human excrement" and icy corpses. Mt. Everest, where do I sign up!
A heartwarming interview between a terrorist and his mom .
The PED scandal is set to hit the fan again . You could fill a New
York thimble, maybe, with all the tears to be shed for Alex Rodriguez.
Fill in the blank: "___ in a box." Unless you're an
expectant Finnish mother or completely removed from pop culture, this
video and its 40 million views probably springs to mind. But
it's "baby in a box" that just went
viral.
Let's commemorate the retirement of IKEA's founder with monkey memes .
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