Sony Shares Tumble

Bloomberg reports shares of Sony Corp (SNE) tumbled to a five-year low in European trading. The world’s second largest maker of consumer electronics said fiscal 1Q profits fell almost 50% annually to $327 million below analyst expectations. Revenues climbed 0.1% to $18.67 bln which was also below forecasts.

Further, Sony issued downside guidance for FY2009 saying it had a cautious outlook with declining demand for Bravia televisions and Cybershot cameras due to slowing global growth.

From the Bull Pen: We’ve mentioned Nokia (NOK) as a better upside play. With resistance at $30, bulls can play the upside with sell-stops below the 50 DMA ($26.40).

From the Bear Cave: Previous support is now resistance. Sony Bears can play the downside using the trades above the $40 mark as areas to set buy-stops.


India’s Inflation Problem

Bloomberg reports for the third time in just two months, India’s central bank increased its benchmark interest rate, this time by half a percentage point as the country struggles in its fight against inflation. The Reserve Bank of India raised its repurchase rate to 9% from 8.5% surprising investors as only one in 22 economists in a Bloomberg survey expected today’s move. Many had predicted just a quarter-percentage gain. The central bank also raised the cash reserve ratio to 9% from 8.75%.

From the Bull Pen: Is ArcelorMittal (MT) the better global play? Sell-stops can be set below $79, or $75 for those with a higher risk profile.

From the Bear Cave: Bears might consider the India fund (IFN); a rally back towards $41 could have them initiating a downside position.


For more ideas in real time throughout the trading day, check out Minyanville’s Buzz & Banter.


Quick Check Around the World

Asian trading closed in the red with the Hang Seng -1.89%, Nikkei -1.46%, Sensex -3.89%, Taiwan -3.03% and Shanghai -1.82%.

A quick check across the pond finds the CAC -0.86%, DAX -0.38%, FTSE +0.54%

As of 8:40 AM EST, S&P futures are up +5 points to 1240, and Nasdaq futures are up +6 points to 1820.


A Look At Commodities

Commodities are lower. Crude oil is lower -0.53 to 124.25. Gold is down -3.50 to 924.20. Silver is higher +0.092 to 17.417, and copper is off -1.45 to 369.50.

The dollar index is higher +0.213 to 72.857.


On the Radar

Economics

9:00 S&P/CaseShiller Home Price Index
9:00 S&P/CaseShiller Composite-20 YoY
10:00 Consumer Confidence
17:00 ABC Consumer Confidence

Click here to see the full trading radar.

Turnaround Tuesday? Good luck today!