March 28, 2024

The Market’s all a TWTR

Index & Sector performance 11/4/13

The Market:

A gap higher in the S&P was quickly sold down to 11:30 am EST where the market found support and then rallied to the close making new highs for the day in the final few minutes.

In economic data Factory orders came in lighter than expected and while there was some Fed speak, nothing too groundbreaking.  Tomorrow we see ISM and Economic Optimism.  Looming Thursday is the Unemployment Claims data which has a very low estimate and looks like a softball for the markets to beat.  A big miss with already low expectations could be troubling and then we close the week with Non-Farm Employment and the Unemployment rate.

Story Stocks:

Lots of big name stocks in the news today starting with Johnson & Johnson (JNJ) who announced an over $2.2B settlement with the Department of Justice too resolve criminal and civil liabilities arising from the miss promotion and payment of kickbacks for a few drugs.  JNJ only lost 0/36% on the day and some may look at the settlement as a positive with the issue now potentially behind the company.

BlackBerry (BBRY) closed down over 16% after announcing that they are no longer searching for a buyer and will be replacing the CEO Thorsten Heins.  BBRY just cannot seem to get out of its way but much like JCP there will be trading opportunities for those that can stomach the moves and risk.  What needs to be seen is if this much maligned name can carve a niche in the current cell phone market and thrive.

Groupon (GRPN) closed up 6.44% on upbeat analyst comments including a price target raise at Goldman Sachs to $13 and Deutsche Bank to $17.

Twitter (TWTR) is not a stock you can pullup and get a chart on yet but its highly anticipated IPO is the topic of many discussions.  Today the news was the fact that the range looks to be raising to the mid 20’s with Bloomberg reporting likely above $25.  There has been a great deal of discussion about not wanting this to be like Facebook (FB) and are looking to place the shares with investors and not fast money.

The following noteworthy companies are scheduled to report earnings before tomorrow’s open: CVS, EMR, D, DTV, REGN, CTSH, SRE, KORS, ICE, AOL, OWW

Analyst Comments:

Upgrades 11/4/13

Downgrades 11/4/13

Initiations 11/4/13

Price Target Change 11/4/13

The Game Plan:

The S&P 500 futures (ES) has a potential Inverse Head & Shoulders set-up which could then target around 1780ES.  Ideally the index holds above 1755ES for the patterns but is valid over 1750ES.  If those are lost then Friday’s lows of 1757ES are in danger of being breached and first targeting the 20 day SMA (roughly 30 points lower).

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