Today we get the Michigan Sentiment Final, which could give us a boost, but nothing dramatic. Markets around the world are mostly higher this morning and U.S. futures are higher as well. It will be interesting to see if U.S. markets can remain positive going into the close ahead of the weekend or if we get weaker as people want to get out of the market in case Europe implodes again over the weekend. We fear that the sell-off is almost a certainty as stories continue to emerge of suicides as a result of these austerity measures in the southern European states, and it is only a matter of time before the rallies and protests resume.
Looking at Asian markets we see markets are mixed:
All Ordinaries - down 0.61%
Shanghai Composite - down 0.74%
Nikkei 225 - up 0.20%
NZSE 50 - down 0.28%
Seoul Composite - up 0.53%
In Europe markets are mostly higher:
CAC 40 - up 0.33%
DAX - up 0.86%
FTSE 100 - down 0.08%
OSE - up 0.16%
Pandora (P) had a nice day yesterday, rising $1.27 (12.29%) on volume of 15.6 million to close at $11.60/share. The company provided investors with a good earnings report and it appears that the company may be gaining some traction in the industry now. The field is crowded, and barriers to entry are low in the internet based radio field but many think that there is profit to be had and the company is one of the leaders right now in the race to become a dominate and profitable player. After the jump yesterday, shares are now above a level where they had earlier traded and built a bit of support. It will be interesting to see if shares can maintain that level and build upon its gains or if they will falter and head lower. So far the story has been lower highs and lower lows.
With all of the bad news swirling, it is a bit surprising to see Facebook (FB) rising as it is. Shares rose $1.03 (3.22%) on volume of 50.2 million to close at $33.03/share. Half of the gain came on a pop right into the close which was a bit strange, but with this stock stranger things have happened. Reports came out after the close that the market makers have lost around $100 million on this stock and that is quite surprising. It seems almost everyone lost money on this, except the company that is, and this is just more evidence that this IPO was nothing short of a fiasco.
Apple (AAPL) was down $5.24 (0.92%) to close at $565.32/share. We continue to be less than impressed with the volume the company is doing because yesterday's 17.7 million is below the three month average volume and this is a trend which has developed over the past two weeks or so. We want to see Apple lead the way, and volume will be one indicator that people are moving back in and the company is once again resuming its leading role. Also making news is that the CEO will forgo $75 million in dividends on his restricted stock units over their vesting period. Others at the company will receive the dividends, but Mr. Cook specifically asked that his shares be exempt from dividends so the company shall keep his.
NetApp (NTAP) had an awful day yesterday due to their earnings report they released earlier. Shares fell $4.04 (12.29%) on volume of 54 million and closed at $28.82/share. The company gave a weak revenue forecast which was the issue here and this dragged the whole sector down. It looks like tech spending in certain categories may be moving lower - in regards to the growth rates - and that is something that all companies are going to have to deal with as the global economy begins to sputter as Europe and China's problems begin to cause issues for everyone.
Rosetta Genomics (ROSG) has been on fire ever since it was announced that the federal government would allow its programs to reimburse for the company's tests. We have watched in amazement as the shares climbed higher and higher defying gravity. Yesterday the shares rose $5.05 (44.93%) on volume of 8.8 million to close at $16.29/share. It is apparent that momentum traders have been pushing this one, but after yesterday's intraday spike to $23/share we might have seen a short-term top. At this time we think this one is too hot to touch, and would not recommend buying in after this huge run - and at the same time that does not mean it is a short candidate as that is far too risky…it is best to just be a spectator.