We will have half a day to trade today, and we would expect a rather calm day outside of market moving news which should affect only a few companies which we have most likely already received this morning prior to the open.
In economic news we have Factory Orders (Consensus 0.4%), Auto Sales and Truck Sales. One should look to Friday to supply the fireworks as we have a lot of jobs data coming out and that will surely impact the market mentality for the next week or two after. We would expect rather tepid numbers but that is simply looking at the trend thus far and our gut feeling as to how the job market is currently performing.
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Looking at Asian markets we see markets are higher:
All Ordinaries - down 0.15%
Shanghai Composite - up 0.14%
Nikkei 225 - up 0.70%
NZSE 50 - up 0.13%
Seoul Composite - up 0.87%
In Europe markets are higher:
CAC 40 - up 0.21%
DAX - up 0.83%
FTSE 100 - up 0.24%
OSE - up 1.02%
Yesterday we saw Sirius XM (SIRI) explode higher and actually trade above the $2/share level. Shares could not hold that level, but possibly more importantly we saw the shares close above the $1.93/share level which had served as a powerful resistance level. Shares finished higher by $0.13 (7.30%) to close at $1.99/share yesterday on volume of 67.7 million shares. It will be interesting to see how much of yesterday's gains the shares can maintain today, and so long as we can remain above the $1.93/share level this will remain bullish. We will leave the speculating to others as to why this jump occurred, but there is but one elephant in the room which could have caused it if this was not a technical rally. This will be one to watch today.
We also saw Apple (AAPL) move higher by $8.52 (1.46%) to close at $592.52/share on volume of 14.2 million. The volume was up, and stronger than in recent weeks and this is a trend which we would like to see continue. Our call for a move above $600/share is now looking more and more probable and a less risky call by the day. So this morning we would like to shed more light on our thinking of the future for the shares looking out to the end of the year. As we have said previously we think the shares move higher with the catalyst being new products which should come out by the end of the year and possibly as early as August/September. We fully expect the stock to trade above its current 52-week high and all-time high by the end of the year. That is roughly a 10% move from yesterday's close and would be on top of the gains already realized this year.
Groupon (GRPN) had a rough day yesterday as shares fell $1.12 (10.54%) to close at $9.51/share on volume of 12.7 million shares. The company was hit with two news items yesterday as Susquehanna lowered its price target to $12/share from its previous target of $15/share. Also making news is that the Chairman has stepped back from day-to-day operations of the company and is focusing on his venture capital firm. This is one company we would stay away from as the barriers to entry are low and the business is cutthroat. Margins can only head lower, unless of course the company finds another avenue to create revenues and actual profits.
The rise in the shares of Regions Financial (RF) continues as shares rose $0.10 (1.48%) to close at $6.85/share in yesterday's trading. Volume was strong at 16.4 million shares and we are fast approaching the $7/share level, which we have not traded above for a few months. The housing market continues to strengthen, and the economy in the bank's territory is improving so we would continue to believe that shares will tick higher. We continue to believe that the regional banks are where investors should be looking if they need exposure to the financial sector.
As it turns out Lincare (LNCR) is getting bought out by Germany's Linde. The announcement came out Sunday, but we ran out of room to cover it in yesterday's article and wanted to do so today as we had previously mentioned it here not long ago. The deal calls for the shares to be purchased for $41.50/share, which was a 22% premium over Friday's close. Shares finished yesterday up $7.32 (21.52%) to close at $41.34/share on volume of 84.6 million shares. In hindsight the details were very precise about this deal leading up to its actual announcement, and to precise to ignore.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.