There was a lot of excitement in the market yesterday as Apple (AAPL) broke through $600 and then could not hold. We did see markets finish at multi-year highs and if you pause to look around you notice that the Dow (DIA) is above 13,200 with the S&P (SPY) above 1400 and the Nasdaq (QQQ) above 3050. There is certainly not a lot to complain about there, and it is apparent that we are in a bull market here. Looking at the economic news today, we see that there will be:
- CPI (Consensus of 0.4%)
- Core CPI (Consensus of 0.2%)
- Industrial Production (Consensus of 0.5%)
- Capacity Utilization (Consensus of 78.8%)
- Michigan Sentiment (Consensus of 75.8)
Looking at Asian markets we see markets lower
All Ordinaries - down 0.05%
Shanghai Composite - up 1.3%
Nikkei 225 - up 0.06%
NZSE 50 - down 0.81%
Seoul Composite - down 0.46%
In Europe we see nearly all green across the continent
CAC 40 - down 0.01%
DAX - up 0.08%
FTSE 100 - up 0.18%
OSE - up 0.25%
Technology
As we mentioned earlier, Apple hit $600/share, which got many people excited. It was short lived as these events usually are, but Apple will move upward once again and eventually break through this level. It reminds us of some of the old Wall Street barons who said watch at century marks and buy at a century plus 10. To put all of this in perspective though, we heard yesterday that Apple was worth more than the entire retail sector. If that is true, wow - that is about all one can say.
Towerstream (TWER) had a great day yesterday on the heels of its earnings. The Wi-Fi provider beat, and shares rose over 42% to close at $3.70/share. It is a company we have watched in the past, and sadly we were preoccupied and missed this one. However we thought it might be worth bringing to everyone's attention due to the new iPad and ever growing demand for Wi-Fi in the large metropolitan areas where it operates.
Retailing
Gap (GPS) is stuck below the $26/share level, but still hanging around waiting for a catalyst. Maybe the Michigan numbers will help with that, although that may just be wishful thinking. What we do know is that business is improving, and so is the economy - two reasons we want to be involved with this three brand monster.
Manufacturing
Caterpillar (CAT) has hung in there pretty strongly as of late, and it is only $3 off of its 52-week high. We have stated numerous times that we are bullish on the company's prospects, and reiterate those feelings this morning. You have the dividend providing a small cushion as one waits for the capital gains. When commodities join the rally in full force we expect Caterpillar to outperform.
Banking
Regions (RF) had another good day yesterday, rising to $6.44/share. We thought that the stock could outperform if the banks could move higher and the stress tests were certainly that catalyst. We are moving higher, and we still believe in the story of crippled banks moving to shore up the financials, but we do find ourselves wanting to take some profits here to lock in these quick and easy gains. Selling half of the position would be our call here.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
