Pre-Market Report: Earnings Packed Week

by: Midnight Trader


-Dow Industrial futures down 47 points.

-S&P 500 futures down 6 points.

-Nasdaq 100 futures down 7 points.

-Nasdaq-100 Pre-Market Indicator up 9.79 at 1310.54


Nikkei down 0.4%

Hang Seng closed for holiday.

FTSE down 0.5%


(+,-) Large cap tech: mixed

(+,-) Chip stocks: mixed

(-,+) Small cap stocks: mixed

(+) Drug stocks: mostly higher

(+,-) Software stocks: mixed

(+,-) Internet stocks: mixed

(-) Financial stocks: lower

(-) Auto stocks: lower

(+) Airline stocks: firmer

(+,-) Retail stocks: mixed


(-) General Motors (NYSE:GM) (-13.2%) report says government told automaker to have bankruptcy filing ready.

(-) Wells Fargo (NYSE:WFC) (-3%) gets analyst downgrade.

(-) (Boeing) BA (-5.5%) gets analyst downgrade.

(-) Lululemon Athletica (NASDAQ:LULU) (-3.1%) gets analyst downgrade.

(-) Textron (NYSE:TXT) (-4.8%) gets analyst downgrade.

(-) Chevron (NYSE:CVX) (-2.5%) warned last week of weak Q1 vs Q4.


(+) American Express (NYSE:AXP) (+1.4%) gets favorable Barron's cover story.

(+) MGM Mirage (NYSE:MGM) (+16.9%), LVS (+7.2%) gain amid report of a Dubai investor for City Center.

(+) WellPoint (WLP) (+8.3%) sells NextRx subsidiaries for $4.68 bln.

(+) Yahoo! (NASDAQ:YHOO) (+5%) gains amid reported revived informal partnership talks with Microsoft (NASDAQ:MSFT).


Stock futures continue to point to a soggy stock open though futures have pared early declines. Wall Street will try for a sixth straight weekly advance but will have to do so amid a flurry of bank earnings.

The broad market gain seen on Wells Fargo's (WFC) upbeat earnings preview late last week has faded. In addition, GM is lower this morning as bankruptcy remains a strong possibility after the government told the automaker to have its filing prepared.

Wells Fargo & Co shares are under pressure in pre-market trading after Keefe, Bruyette & Woods cut the stock to Underperform from Market Perform, citing valuation concerns after its recent rally, reports said.

The stock has more than doubled since bottoming at $7.80 on March 5.

Shares of General Motors (GM) are under pressure after a report from the New York Times said the Treasury Department is directing the automaker to prepare for a bankruptcy filing by a June 1 deadline.

Among the morning's news-driven gainers is Yahoo (YHOO). Onetime merger candidates Microsoft (MSFT) and Yahoo (YHOO) have resumed talks about search and advertising partnerships, the Wall Street Journal reported Friday, citing people familiar with the matter.

Both MGM (MGM) and Las Vegas Sands (NYSE:LVS) are active early gainers amid revived investment hope for the troubled City Center project.

Dubai World has offered a plan to save the struggling 67-acre City Center Las Vegas resort development and its relationship with partner MGM Mirage (MGM), the Wall Street Journal reported on Friday, citing people familiar with the proposal.

The new proposal calls for Dubai World, MGM Mirage and bank lenders to commit to the $3 billion needed to finish the project and remove any uncertainty about future funding, those people told the Wall Street Journal.

In merger news Express Scripts (NASDAQ:ESRX) has agreed to buy WellPoint's (WLP) NextRx subsidiaries for $4.68 billion, the companies said in a statement.

Crude fell after the International Energy Agency once again revised lower its forecast for 2009 global oil demand and as worries over bank earnings raised economic concerns. The Paris-based IEA said it is cutting its demand projection by 1 million barrels a day. After the latest revision, global demand this year is now forecast at 83.4 million barrels a day, which is 2.4 million barrels a day below the 2008 level.

Crude for May delivery fell $1.06, or 2%, to $51.18 a barrel.