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Need to Know
JULY 09, 2013
5 gut checks before the stock
market's opening bell
By Shawn Langlois
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Pam Anderson on the merits of low expectations
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Good
morning.
Alcoa may have lost its bellwether status , but you
wouldn't necessarily know it from the way global markets are pushing higher
today. Needless to say, Monday's rally and what's shaping up to be another
green session bode well for what we could see in the upcoming earnings
season.
What also bodes well -- as we shift our focus ever so slightly away from
the Fed in the coming weeks -- is that nobody seems to be expecting much in
the way of earnings growth. Lofty profit targets can be a real momentum
killer.
Like Pamela Anderson once said, "with low expectations, it's very easy
to surprise people." Of course, the Baywatch alum was referring to
being a blonde, but her unquestioned wisdom applies to Wall Street, too.
So, cue the upside surprises.
Key market gauges: The Nikkei soared to its highest level
in six weeks, bringing the rest of Asia into positive territory along
with it. With an aid disbursement for Greece providing a
lift, Europe is also on the rise, led by strength in the FTSE 100 . It's
all adding up to what looks like another positive start for U.S. markets,
where futures on the Dow and the S&P are tracking nicely
higher. Read: Indications .
Even gold is getting into the act with a solid move north. A rebound
can't come soon enough for John Paulson. His gold fund has shed 65% so far this year ,
hemorrhaging 23% last month alone. At $300 million, the fund is made up
mostly of Paulson's own money and represents the firm's smallest portfolio.
The buzz:Investors are still chewing on Alcoa's report,
and they're liking what they're tasting. After some overnight swings, the
stock is settling in to a nice uptrend premarket following Monday's better-than-expected numbers .
One analyst says he believes Apple cut its iPhone production by as much as 20% to
line up better with slowing demand for premium smartphones. Apple has been
a top-trender for less. The stock is weakening a touch before the open.
Here's Douglas McIntyre thumbing his nose at the report.
Tesla is on its way to the Nasdaq-100 index starting next week,
replacing Larry Ellison's Oracle , which is heading over to the New York
Stock Exchange. The mostly symbolic, "coming of age" recognition is
helping to push Tesla's stock up more than 3% premarket. In a testament to
good sportsmanship, Eager newb dedicated this
song "to all the Tesla bears" on StockTwits. While
Oracle exits the Nasdaq, some of its tenured salespeople are reportedly exiting the company .
When $AMZN was added to the Nasdaq 100 in 1998,
the stock rallied 9%. Sort of makes $TSLA 's 3% rally seem modest.
— Bespoke (@bespokeinvest) July 9, 2013
Intuitive Surgical will be one of the hardest-hit stocks when trading
starts after the company warned on its second quarter . Barnes
& Noble shareholders are also in for a rude awakening this
morning, with their stock poised to open deep in the red. A day earlier,
CEO William Lynch bailed his post .
The chart of the day: Fawad Razaqzada from GFT tweeted this chart to show just how far he
believes the pound can drop once it moves below $1.48. First stop
$1.45 and then $1.42 after that. Peter Brandt posted a similar outlook
earlier this week, saying that a "massive triangle in the pound should lead to $1.35 ."
The
call of the day:Money Investor took to Seeking
Alpha to alert traders to a short candidate in Vistaprint . This isn't the
first time, either. He initially rang the bear bell back in May, before the
stock tacked on 25%. "I strongly believe that the recent move higher
in shares of Vistaprint is nothing more than a light volume rally driven by
short covering, and the stock is sitting on a ledge ready to fall hard no
matter what management says," the blogger wrote. Read his whole short case .
Random reads: "All you can eat ribs, by the
dumpster." Golden Corral is getting beaten up, rightfully so, after that disgusting viral video . Amid all the
backlash on the restaurant's Facebook page , John David Wimer asks the
important question: "If you're going to throw away that bacon, can I
have it?"
Wife of former New York Mets pitcher Kris Benson gets busted for breaking into his home . Armed and wearing
a bulletproof vest. Bonus: a very meth-y mugshot.
We're number two! We're number two! Gracias, Mexico! The most obese people in the world no
longer live in the United States.
The bidding on JFK's 1957 Jaguar is up to $60,500.
Three-days of clothes-on, platonic, champagne room therapy sessions with
multiple strippers cost this guy $7,400. But he's not paying .
And a
dancing squid , just because:
"Dancing Squid" sushi. Pour soy sauce on it and it makes the
tentacles wiggle. Yum! http://t.co/EU0KSarEjO
— Film Ladd (@FilmLadd) July 9, 2013
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