Coming off of the Fourth of July festivities we should expect lighter trading, however the economic news does not stop for those on vacation and we have some of the most important monthly data coming out today. Yes, it is once again 'Jobs Thursday' and we expect the numbers to be tepid at best. We have done some buying in recent days, and will do further purchases based upon how the jobs data looks.
Looking at the economic news due out today, we have the MBA Mortgage Index, Challenger Job Cuts, ADP Employment Change (Consensus 105k), Initial Claims (Consensus 385k), Continuing Claims (Consensus 3283k), ISM Services (Consensus 53.0) and Crude Inventories. This will be a lot for the market to swallow and could push the futures and market around a good bit as the data is released.
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Looking at Asian markets we see markets are mostly lower:
All Ordinaries - down 0.09%
Shanghai Composite - down 1.17%
Nikkei 225 - down 0.27%
NZSE 50 - up 0.03%
Seoul Composite - up 0.06%
In Europe markets are higher:
CAC 40 - up 0.09%
DAX - up 0.54%
FTSE 100 - up 0.37%
OSE - up 0.07%
Sirius XM (SIRI) powered above the $2/share level we pointed out and finished above it in trading on Tuesday. Shares shot up at the open and then tapered off during the half day of trading but had enough buyer interest to give it a little pop at the close. Shares finished up $0.055 (2.77%) to close at $2.04/share on volume of 53.4 million shares. We still think this is one to watch but would expect it to consolidate around the $2/share level. So with that said, we would look to take profits here (if not on the whole position at least on half).
We have also been discussing Apple (AAPL) lately and how it would rise to $600/share. It obviously happened much quicker than we anticipated as it hit $600/share on the dot in trading on Tuesday, but it was a timely call that no one else was making at the time. Shares closed at $599.41/share having risen $6.89 (1.16%) on Tuesday. Volume was also strong as it came in at 8.6 million for the half day. For those who feel they missed out, we would remind you that we do think that it will go higher still, and we stated Tuesday that we think it will hit new highs before the year-end on new product launches.
It seems that everyone loves to hate Facebook (FB). The stock put together a nice run when the market was showing red, and now that we have green it has been moving lower as many talking heads and analysts have panned it. The IPO embarrassed quite a few people and left others bitter at the fact they lost what was perceived to be easy money. Shares did turn up on Tuesday rising $0.43 (1.40%) to close at $31.20/share on volume of 8.7 million shares. Over time people will forgive the company, especially if the stock begins to award investors but right now the company and its investors can continue to expect to get the bad press, negative analyst opinions and the talking heads to pan it due to valuation and the IPO fiasco. Sadly that is how Wall Street works.
Arena Pharmaceuticals (ARNA) finished above the $10/share level on Tuesday on volume of 15.7 million shares. The stock closed up $0.08 (0.75%) to close at $10.02/share and it appears as though this shall be the new base for the stock moving forward. The company still has a lot of work to do, and not all of it will be easy so investors do need to be on the lookout to see how the company's plans are progressing for manufacturing and marketing, among other things. We do think that they have enough cash to get them through this period, so this could be a good speculation going forward.
Nanosphere (NSPH) rose $0.46 (18.25%) to close at $2.98/share on Tuesday. Volume was extremely high on this one as it traded 6.1 million shares during the half day of trading we had on news that Jefferies upgraded the shares in light of the FDA's recent approval of the company's bloodstream infection test. This may have been an overreaction to the news as the holiday week has left little news for the day traders to trade off of, so that is one thing to be aware of as markets open today.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.