Before the Bell: Large And In Charge; JetBlue and Wi-Fi
Small cap CEOs are nervous. Large Cap CEOs are still optimistic. Jetblue is offering Wi-Fi. Futures are slightly higher.
FT reports new data by Vistage, a network of over 2,200 CEOs of small to mid-cap companies reveal that confidence levels have plunged to their lowest levels in five years with expectations for capital investment, revenue and profit growth hitting multi-year lows. By contrast, large cap CEOs have become more optimistic due in part to the belief that the falling dollar will allow them to weather any effects of a slowdown in the U.S. Further, the large cap CEO's remain confident that cap-ex spending, revenues, and employment will increase in the first half of 2008. Professor Kevin Depew mentioned this rotation in yesterday's Five Things You Need To Know.
From the Bull Pen: Professor Depew mentioned a move in the consumer staples. Bulls may find a play in Kraft (KFT) and Coca Cola (KO), sell-stops below the 50-DMAs ($33.49 and $60.46 respectively).
From the Bear Cave: Bears may play the downside in the iShares Russell 2000 index (IWM). A reasonable play may be to fade (read:sell) the stock's recent strength; buy-stops above the 50-DMA ($79.22).
Wi-Fi in Flight
The WSJ reports JetBlue (JBLU) has been working for months with Yahoo (YHOO) and Research In Motion (RIMM) to be the first U.S. airline to provide free in-flight email and instant-messaging services. The company has equipped one of its A320 planes with an onboard wireless network which plans to take off Tuesday. Should the trials go well, the company plans to install the services on its whole fleet. Other airlines, such as AMR's (AMR) American Airlines and Alaska Air Group (ALK), have expressed interest into the features as well. Professor Quint Tatro recently mentioned JetBlue in his article Will Airlines Take Flight?
From the Bull Pen: Those believing JetBlue's stock has bottomed out may play the upside; sell-stops below the 52-wk low ($6.54). ALK has also recently broken a downtrend from February; sell-stops may be set below $23.75.
From the Bear Cave: Bears may see a downside play in AMR should the stock rally to $19.50; buy-stops above $21. Delta Air Lines (DAL) may also be an option; buy-stops above $19.11 (50-DMA).
Click on Minyanville's Stocks To Watch for more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng -2.42%, Nikkei +0.52%, Sensex +0.86%, Taiwan +0.32% and Shanghai +1.13%.
A quick check across the pond finds the CAC +1.09%, DAX +0.73%, FTSE +1.28%, ATX +0.66%, Swiss Mkt. +0.95% and Stockholm +0.89%.
A Look At Commodities
Crude oil is weaker this morning -0.19 to 90.04. Gold is lower -0.60 to 806.50. Silver is down -0.005 to 14.62, and copper is higher +5.95 to 310.80.
As of 8:30 AM, S&P futures are lower by 5.90 points, and Nasdaq futures are higher by 4.75 points.
On the Radar
8:30 Nonfarm Payrolls: 75k cons
8:30 Unemployment Rate: 4.8% cons
8:30 Hourly Earnings: 0.3% cons
8:30 Average Workweek: 33.8 cons
10:00 Michigan Sentiment: 75.5 cons
3:00 Consumer Credit: $5.0 bln cons
Click here for the full trading radar.
It's Festivus time! Good luck today and we'll see you after the bell!
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