It looks as though euro bonds will be here sooner rather than later. And that is most certainly good news rather than bad. A common currency bloc should also be able to issue common debt in order to shore up the trading bloc when times get rough. The world has known this for some time, and it now appears that with Germany looking around and realizing that its hard stance has cost it all of their allies that they must finally relent and allow this in order to save the united continent. It is most certainly viewed by the Germans as a choice between two evils, but at the end of the day it is the lesser of the two and could very well be the turning point in this European Debt Crisis.
Today is once again Jobs Thursday and with that comes the Initial Claims (Consensus 365k), Continuing Claims (Consensus 3250k), Durable Orders (Consensus 0.3%) and the Durable Orders ex-Transportation (Consensus 1%).
Looking at Asian markets we see markets are mixed:
All Ordinaries - down 0.31%
Shanghai Composite - down 0.53%
Nikkei 225 - up 0.08%
NZSE 50 - down 0.40%
Seoul Composite - up 0.32%
In Europe markets are higher:
CAC 40 - up 1.40%
DAX - up 0.77%
FTSE 100 - up 1.43%
OSE - up 0.76%
We want to talk about Apple (AAPL) first this morning, as only seems right, due to what appears as its resumed leadership role within the market. Shares finished yesterday up $13.59 (2.44%) to close at $570.56/share on volume of 20.8 million. As Apple turned higher, so too did the market. One has to believe that Dell's pain is simply Apple's gain and further exemplifies Apple's ability to run circles around the competition and effectively differentiate their products from competitors'. That is key and what has enabled to company to first expand their margins and secondly maintain them at absurdly high rates.
While we are talking about Dell (DELL), let's point out how bad it was for shareholders yesterday. Shares finished the day down $2.59 (17.18%) to close at $12.49/share on volume of 109 million. That is quite a few times normal volume and it is fair to say many investors took the opportunity to exit positions, but it is only right to point out that computers most likely made up a large portion of trading yesterday too. The earnings were bad, and that is what led the shares lower, but it is only further evidence that 'cool' is a necessity in order to differentiate products from one another in an industry in which the products have effectively become commodities with short shelf lives.
Moving on to Facebook (FB) we note that the company had its biggest up day in its short history with shares rising $1.00 (3.23%) to close at $32/share. Volume continues to fall, but was still a very respectable 73.7 million shares. We heard two conflicting reports yesterday coming from Fox Business and CNBC -- with one stating the NYSE had approached Facebook about switching exchanges and CNBC stating that none of these supposed emails and phone calls everyone was talking about had ever taken place. Later the NYSE came out and addressed the rumors itself and put to rest any speculation that the two had been talking to each other. So for the time being it shall remain a rumor which will probably resurface at a later date.
Sirius XM (SIRI) continues to hang in there and hover around the $2/share support level. With volume of 46 million shares, the investors saw shares rise $0.03 (1.53%) to close at $1.99/share. We thought that this was going to fall through the support at $1.80ish and although it did trade below it, shares quickly rebounded and here we find ourselves with the company facing the same situation. We would warn investors to be wary at these levels, and to be hesitant before adding to positions. Not so much because of the company itself, but rather because of the macroeconomic issues the general market is facing.
Rosetta Genomics (ROSG) continued its winning streak rising $3.81 (51.28%) to close at $11.24/share. Volume was strong, coming in at 6.2 million which is right around the range where it is has traded the past two weeks. The stock has been on a tear during that time frame, having risen from the $2/share area to its current price.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.