Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: Stocks Rebound; Greece Demoted to Emerging Market Status


IBM tries to steal Amazon's cloud contract with the CIA.

Stocks are set to rebound today as unrest continues in Greece and tech titans battle for government contracts.

After heavy losses yesterday, Dow (INDEXDJX:.DJI) futures were up 0.50% at 15,214 this morning before the opening bell. S&P 500 (INDEXSP:.INX) futures also rose 0.56% to 1,636.20 and contracts on the Nasdaq (INDEXNASDAQ:.IXIC) index climbed 0.46% to 2,997.25.

Ahead of today's Energy Information Administration petroleum inventory report, West Texas Intermediate oil futures are down just 0.07% at $95.31/barrel.

Japanese shares fell overnight as machinery orders fell 8.8% month-over-month in April after March's 14.2% rise. This worse-than-expected indicator shows that companies are still skittish about capital expenditures despite the government's stimulus efforts.

European indicies were up slightly today. Inflation figures for Europe also came out today, confirming that some areas of the eurozone are at risk of deflation. German consumer prices rose 0.4% in May, logging a 1.5% year increase in inflation. French prices were up just 0.1% monthly, 0.8% year-over-year and Italian CPI was dead flat from April, but up 1.1% from May 2012. Eurozone industrial output rose for the third straight month in April, rising 0.4% where a drop was expected.

Yum Brands, Inc. (NYSE:YUM) same-store sales in China fell 19% on a yearly basis last month as customers fear avian flu from poorly handled poultry. This was better than April's 29% drop. Yum derives more than half of its revenue from China, where KFC is usually very popular.

First Solar, Inc. (NASDAQ:FSLR) shares fell 5.4% in the pre-market, extending yesterday's losses after the company offered another 8.5 million public shares.

Institutional Shareholder Services recommended that Sprint Nextel Corporation (NYSE:S) shareholders support SoftBank Corp's (TYO:9984) recently sweetened offer for a controlling stake in the company. The Japanese company offered $21.6 billion for 78% of Sprint.

The Wall Street Journal reported that International Business Machines Corp. (NYSE:IBM) successfully protested the Central Intelligence Agency's awarding a cloud computing contract to, Inc. (NASDAQ:AMZN). The $600 million contract to connect the broader intelligence community is part of the Defense Department's $35 billion yearly tech budget, which is a more necessary source of revenue for tech providers whose private clients are cutting back. The CIA originally awarded the contract to Amazon Web Services, but the Government Accountability Office agreed with IBM's protests yesterday. The CIA could reopen negotiations within the next 60 days.

Greece was given the dubious honor of being the first country to be demoted from "developed" to "emerging" by MSCI, the global mutual fund provider. This comes amidst protests over the government's closure of a popular public news broadcaster.

Twitter: @vincent_trivett
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Featured Videos