There have been numerous glitches here in the US as the robots have taken over, but this morning a glitch has shut down the Spanish stock exchange and they will open later. We are blown away that this type of stuff has become normal news and is accepted by market participants. Fortunately companies are learning their lessons and the free market is punishing those who fail to operate without issues.
Currently markets in Europe are up and US futures are as well. We shall see if the jobs number is enough to carry us forward or not until we have more news later this week, but until then we shall remain bullish.
We do not have any economic news out today, but will have some out tomorrow and Wednesday will be the big day for released data (data set - consensus):
Looking at Asian markets we see markets are higher:
All Ordinaries - up 1.18%
Shanghai Composite - up 1.04%
Nikkei 225 - up 2.00%
NZSE 50 - up 0.43%
Seoul Composite - up 2.01%
In Europe markets are higher:
CAC 40 - up 0.48%
DAX - up 0.49%
FTSE 100 - up 0.14%
OSE - up 0.23%
Clearwire (CLWR) continues moving higher after the company surprised investors during their latest earnings release with news that contradicted the rumors which had been floating around in the market. Shares are up more than 30% since the earnings were released and that was not all added in one day, but rather spread over numerous days. Shares on Friday traded higher by $0.07 (5.69%) to close at $1.30/share with volume of 22.3 million shares. The company has roughly twelve months to monetize some spectrum or find other financing sources, so that shall be a story to watch.
Friday saw a bounce in shares of Knight Capital Group (KCG) after it was announced that they had sold off the positions they had accumulated and brought back two of their customers which had suspended trading with them. Shares finished at $4.05/share after rising $1.47 (56.98%) during Friday's session. Volume was once again very strong with 121.4 million shares traded. We could see shares move higher once again today as the company announced over the weekend that they had secured about $400 million in new financing to continue operations, however this new capital does come at an awfully steep price from the reports we are seeing.
Friday saw another new 52-week high for Gap (GPS) which saw shares rise $0.29 (0.87%) to close at $33.46/share on volume of 10.9 million shares. The company is hitting on all cylinders right now and their stores are busy for the first time in many years. All of that traffic is allowing Gap to keep prices higher by not having to mark inventory down in order to clear inventory. This quarter should show the company picking up steam with the back-to-school crowd with sales picking up at the flagship Gap and Old Navy brands.
Shares in Arena Pharmaceuticals (ARNA) continue their losing streak with shares falling $0.36 (4.65%) to close at $7.39/share on volume of 12.9 million shares on Friday. We do have earnings coming up and with that a conference call where investors should get some more information of milestones moving forward. We have been a little surprised in the sharp drop in the shares recently, as they have pulled back further than we thought they would, but looking ahead this does appear like one of those great buying opportunities. With that said we are quite interested in what is said during the conference call. For those who follow web traffic results, it is important to note that diet pills and variations of the search have been trending on Yahoo from time to time since the FDA began approving them.
The Interpublic Group of Companies (IPG) saw shares rise $1.29 (13.33%) to close at $10.97/share as rumors circulated that another rival was looking at buying the company. It later surfaced that no buyout talks had been held at all and these were nothing more than rumors which probably started on some trading desk. It created a stir though as shares popped and volume spiked to 40.4 million shares in Friday's trading.