Minyanville's T3 Morning Market Call: Futures Look to Bounce Back From Sharp Monday Reversal

By T3Live.com  JUN 12, 2012 9:15 AM

Ten-year bond, Finisar, TomTom, and Apple are all active.


US stock futures point to a modestly higher open Tuesday following Monday's stunning reversal. Futures were sharply higher Sunday night after a Spanish bank bailout was announced, but gave back all of those gains and more, with the S&P falling 1.3% on the day and putting in a very nasty candlestick. For now, stocks have stabilized, but it will be key to see if we get more selling pressure during the session.
Investors' eyes remain firmly trained on the European sovereign debt crisis, where Spanish and Italian bond yields continue to rise. Spain's 10-year bond yield inches ever closer to 7% (currently at 6.67%), which would return the ball to the ECB's court. The optimism over the Spanish bailout was remarkably short-lived, a signal to worldwide policy makers that more long-term solutions will be the only medicine for an ailing market. The focus now also shifts to Greek elections, which could plunge the eurozone into another emergency crisis if there is major upheaval of bailout-supporting politicians.
On the corporate front, Finisar (FNSR) was the most noteworthy earnings report after the bell yesterday. The optical networking company missed on revenues and guided lower, but after being nearly cut in half in the last four months, it seems like such a report was already priced in. The stock initially sold off hard following the report, but is now higher from yesterday's close.
Stock in Dutch navigation device maker TomTom (TMOAF) is up more than 10% on news of a data deal with Apple (AAPL), which will use the company's data infrastructure to run its own navigation software. The news comes as a blow to Garmin (GRMN), which saw its stock lose more than 6% after the news came from the Apple Worldwide Developers Conference.


No positions in stocks mentioned.