Before The Bell: Global Bulls Take Stage; GE Orders More Planes
Stocks around the world are rallying and GE talks with Boeing.
Stocks rallied around the world this morning after taking a hint from yesterday's strong session in the U.S. European markets were up over 3.5% as of 7:30 AM EST. According to Bloomberg, UBS (UBS), Europe largest bank by assets, and Australia's biggest securities firm, Macquarie Group rose as financial stocks gained confidence after JPMorgan Chase (JPM) upped its bid for Bear Stearns (BSC) yesterday. Hong Kong's Hang Seng jumped the most in two months adding 6.4% followed by India's Sensex which added 6.07%. The MSCI World Index was up 1.8% in London with all 10 industry groups in the green. Read Todd's Monday Morning Point Guard: Bulls Look To Continue Run.
From the Bull Pen: Bulls see the upside in pharma play, Schering-Plough (SGP); sell-stops below recent lows ($19.40).
From the Bear Cave: Bears are unconvinced of a sustained rally and see a downside opportunity in the India Fund (IFN); entry at $50 with buy-stops above $52.
GE: More Planes!
Bloomberg reports General Electric (GE) is in negotiations with Boeing (BA) to buy 40 to 50 of its 737 jetliners. Based on a listing price of $70.5 mln, the deal could be valued as much as $3.53 bln, but discounts are traditionally given to such large orders. GE's move is intended to meet demand from airlines upgrading their fleets as Boeing and its larger rival Airbus struggle to keep up with production. Boeing's 737 is its most popular aircraft with an order backlog of over 1,800 planes valued at more than $130 bln. The company has delivered over 5,500 737's since the model's first flight in 1967. Professor Jeff Saut mentioned GE yesterday in his column Bullish For Now.
From the Bull Pen: Bulls can attempt the upside in Boeing; sell-stops below the January low; $71.58.
From the Bear Cave: Bears see resistance for GE at $38. Buy-stops can be set above that point on downside attempts.
For more ideas, see Minyanville's Spotlight Stocks.
Quick Check Around the World
Asian trading closed with the Hang Seng +6.43%, Nikkei +2.12%, Sensex +6.07%, Taiwan -0.79% and Shanghai +0.09%.
A quick check of Europe finds the CAC +3.10%, DAX +2.98%, FTSE +3.27%.
As of 8:30 AM EST, S&P futures are higher by +3.20 points to 1354 and Nasdaq Futures are up +8.25 points to 1827.
A Look At Commodities
Commodities are stronger. Crude oil is higher +0.64 to 101.46. Gold is up +14.80 to 933.50. Silver is up +0.262 to 17.067, and copper is up +6.70 to 372.20.
The dollar index is lower -0.647 to 72.305.
On the Radar
9:00 S&P/CaseShiller Home Price Index: 184.9 prior
9:00 S&P/CS Composite-20 (y/y): -10.5% cons
10:00 Consumer Confidence: 74.0 cons
10:00 Richmond Fed Mfg. Index: -5 cons
10:00 House Price Index (m/m): -0.2% prior
Click here for the full trading radar.
Good luck, Minyans and have a great day!
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