The economic numbers yesterday were mixed, with retail sales coming in extremely strong and the Empire numbers extremely disappointing. This morning the big news already is that Spain had a successful short-term debt auction where demand was strong, but interest rates rose sharply higher. This is helping Europe this morning, but as good as this may look it is but a small victory in what will only be a larger war - this has been the case for some time now as it pertains to the continent.
The economic news out today includes Housing Starts (Consensus 700k), Building Permits (Consensus 710k), Industrial Production (Consensus 0.2%) and Capacity Utilization (Consensus 78.5%).
Looking at Asian markets we see markets are lower:
All Ordinaries - down 0.31%
Shanghai Composite - down 0.94%
Nikkei 225 - down 0.06%
NZSE 50 - up 0.20%
Seoul Composite - down 0.37%
In Europe markets are higher:
CAC 40 - up 1.47%
DAX - up 1.02%
FTSE 100 - up 0.78%
OSE - up 0.25%
Apple (AAPL) led the techs lower yesterday, and in the process pulled numerous indices and ETFs lower as well. Yesterday was obviously a continuation of the 'outflow' of funds from one of the so-called "safest" stocks to be in lately. In reality it was not a safe place to be, but it seemed to never decline as both smart money and retail money sought exposure to the high-flying tech giant. We have been talking about this possibility of money coming out now for a while, but this hardly appears to be the end of the bull run in Apple's shares. The company has earnings out on April 24 and that should help the shares recover so long as management does not talk down future earnings as they have a history of doing. The shares did fall through the $600/share level, and that is something to watch going forward - how quickly it can bounce back through that level.
Renren (RENN) once again traded a ton of shares, almost 34 million shares to be exact. That is roughly 3.4x average daily volume and it is safe to say that the day traders have gotten a hold of this one. The spike in volume is one tell, but so too is the sharp sell-off that the company's shares experienced going into the close. That is a classic tell. The shares were down in AH trading to $7/share, but with the news out of Europe this morning and the day trader infatuation with this one, it could be a nice trade today.
Sirius XM (SIRI) had a rough day yesterday, closing at $2.17/share after falling $0.06 or 2.69%. This took it below the $2.20/share level we saw support at, and today will be the tell of what to do with shares. A bounce above the $2.20 mark and one can probably hold onto the position, a failure to close above that level and we want nothing to do with the stock until momentum is once again firmly established.
With numbers starting to come in for the banks, we would once again like to call attention to Regions Financial (RF) which for readers who did purchase shares have already cashed in ½ of the position for a gain and still hold ½ of the original position for further trading purposes. We are looking for a bounce in all banks as they realize the benefits of lowering their cost of capital by getting out from under the TARP umbrella.
For those who are having trouble understanding the valuation behind Las Vegas Sands (LVS), we do have to admit it is rich however it is somewhat logical when one considers all of the assets they possess. The company owns some of the best properties in Las Vegas and Macau and the license for Macau is quite valuable as it places the company in a small oligopoly. There are many on the outside looking in and salivating at the growth in the market and right now Las Vegas Sands is one of the few able to capitalize on this. With all this said, we reiterate that if you already have a position in the company that we think it shall continue to pay holding going forward long-term, and short-term it appears to have momentum as well.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.