US futures are higher this morning, adding to the gains of Friday, but we are sure there will be a pullback at some point this week. Friday will be the day to watch for economic news, and the rest of the week should be rather slow as many have scheduled their vacations to take either the first two days of the work week or the last two days of the work week in order to use the 4th of July holiday on Wednesday to create a 5 day holiday.
Looking at the economic news today we have the ISM Index (Consensus 52.2 million) and Construction Spending (0.2%) due out today.
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Looking at Asian markets we see markets are mixed:
All Ordinaries - up 0.89%
Shanghai Composite - up 0.03%
Nikkei 225 - down 0.03%
NZSE 50 - up 1.19%
Seoul Composite - down 0.13%
In Europe markets are higher:
CAC 40 - CLOSED
DAX - up 0.85%
FTSE 100 - up 0.56%
OSE - up 0.66%
Apple (AAPL) finally made us look good Friday as shares rose $14.95 (2.63%) to close at $584.00/share. Volume rose up to more respectable levels coming in at 15 million shares, which is a welcome sign. The shares did trail the general tech market, however the chart was very positive. The chart depicted a stock rising from the lower left to the upper right with shares closing at the highs for the day. This one will need to keep it up if the market is to head higher going into the end of the year. Analysts think this is the case as they raised price targets on Friday.
Sirius XM (SIRI) closed down $0.01 (0.54%) to close at $1.85/share on volume of 37 million shares Friday. Down on an up day is never good, especially when the market has one of its best days of the year. Nevertheless, the stock opens the week still looking for direction but still in a bullish area of the chart. We remain within a trading range which has essentially contained the shares for almost every day of the past few weeks and now going on months. Every time share break out, either higher or lower, they quickly find themselves back within the range.
Seagate Technology (STX) does not usually come up here, but this morning it does simply because of its performance on Friday. The company had 89.6 million shares traded as shares rose $1.48 (6.37%) to close at $24.73/share. The company's shares will be added to the S&P 500, which was announced last week. This company is a cash flow generator rather than a top line grower which makes it boring to most technology investors. We think that after this run-up and the sharp drop in competing technologies' cost that investors would be wise to stay away for the time being.
Anheuser-Busch InBev (BUD) rose $5.86 (7.94%) to close at $79.65/share on above normal volume of 5.3 million shares. The company is purchasing the remaining shares of Grupo Modelo that it did not already own. This cements their ownership of the Grupo brands and completes a transaction that the Busch family was unable to. This isn't your father's Bud, and it will be quite interesting to see how the new corporate management handles the rest of the issues that the company faces.
Also moving on the news was Constellation Brands (STZ) which moved strongly higher by $5.30 (24.36%) closing at $27.06/share. Volume was strong at 14.5 million shares, dramatically higher than the 3 month average. The company announced it is buying the half of their joint venture, which imports Corona (Grupo Modelo's top brand) into the United States, that it does not already own. They will also have the perpetual right to sell that and other brands here in the US which now gives them a platform to build their beer business off of.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.