We are left to wonder exactly how long Greece can hold Europe hostage. We find it worrisome that the rest of the continent lets such a minor player get away with rocking the boat as much as Greece does, and further question why they simply do not make an example of the country. Markets here in the US were hit as the former Greek Prime Minister stated that Greece was preparing to exit the Euro as a contingency plan and that this was a very real possibility. This is pushing US futures lower, but also has put significant pressure on Asian and European shares.
Today we have a lot of housing news coming out, including MBA Mortgage Index, New Home Sales (Consensus of 339k), FHFA Housing Price Index and then the Crude Inventories.
Looking at Asian markets we see markets are lower:
All Ordinaries - down 1.31%
Shanghai Composite - down 0.42%
Nikkei 225 - down 1.98%
NZSE 50 - down 0.56%
Seoul Composite - down 1.10%
In Europe markets are lower:
CAC 40 - down 1.94%
DAX - down 1.79%
FTSE 100 - down 1.87%
OSE - down 1.56%
Apple (AAPL) opened strongly in the morning and then faded, closing off of the lows for the day as shares got a bit of a bump into the close. The shares closed at $556.97 having fallen $4.31/share during trading on volume of 24.8 million. Most are downbeat on this upcoming quarter, but we find ourselves quite optimistic based on what the company has and has not said during their conference calls. The management team is quite conservative in their guidance and we cannot remember the last time they missed regarding their own guidance, so until they break that trend one should invest according to it.
We will call yesterday a victory for Sirius XM (SIRI) as shares were up and down but were able to hang around the $2/share level, which is where it needs to trade to build support for another leg upwards. With volume of 53 million yesterday, Sirius shares fell $0.02 (1.01%) to close at $1.96/share. One thing we think should be pointed out is that the market does need to see improving EPS growth moving forward and/or higher margins, otherwise the current P/E ratio will not suffice and Mr. Market will have to step in and adjust the P variable of that formula.
Clearwire (CLWR) was up $0.10 (8.33%) to close at $1.30/share on volume of 48 million. The move upwards was impressive and so too was the volume which was about three times the company's three month average in volume. The stock made its move during the morning, literally stepping up and then from about 11:30 AM until market close the stock held its ground, which is saying a lot because the market fell during that time. This recently looked oversold due to its valuable spectrum and how the company fits into Sprint's plans to use a dual network over the next few years, but we are going to reevaluate it over the next few days and see where it stands in relation to the rest of the market because the run here may have placed it ahead of the market.
Facebook (FB) is dominating the financial news with lawsuits being filed and new revelations regarding what actually took place after, during and leading up to the company's IPO. We have grown accustomed to seeing this one at the top of the volume charts, and yesterday it once again posted volume over 100 million. Eventually volume will come down, but for now this one is trying to find a base. Shares fell $3.03 (8.90%) to close at $31/share. Shares seem to be trading in line with the controversy surrounding the company and with Massachusetts filing court papers yesterday, it could be a glimpse of what is to come. What investors need to remember is that at the end of the day it is all about growth and if the company can deliver, then the stock could perform much like Google's did years ago.
Express (EXPR) missed on their current quarter's numbers - on both the earnings and revenues metrics. Worse still, the company guided next quarter's numbers lower which is what really riled investors. Volume surged to 17 million and that is 17 times normal volume, and that kind of surge in volume is something you do not see every day. The shares finished at $16.76 down $6.33 (27.41%). This retailer is one to stay away from, not something anyone should be getting involved with thinking that it will be an easy turnaround - because in retail these types of events take time to right themselves.