Before The Bell: China Wants Less Steam; Pfizer Sued
China is taking more steps to cool its economy. Pfizer is being sued by a former official. Futures are up this morning.
WSJ reports the People's Bank of China said it will raise the one-year deposit and lending rates for the sixth time this year to prevent overheating and inflation of the world's fastest growing economy. The PBOC announced that the one-year yuan lending rate will be 7.47%, an increase of 0.18 percentage points. The rate changes will take effect tomorrow. Minyan Satyajit Das, author of Traders, Guns, & Money, gave context on China as well as the global economy in his contribution Investors Go For "Mo"?
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From the Bull Pen: Professor Ryan Krueger named Chinese Internet search provider Baidu (BIDU) in a group of stocks with solid average revenue and earnings growth, and expanding margins. Those bullish may set near-term sell-stops below the 50-DMA ($354).
From the Bear Cave: Professor Bennet Sedacca mentioned a possible bubble in the China 25 Index (FXI). Bears may play the downside; buy-stops above the recent break ($180)
WSJ reports a former Pfizer (PFE) official is suing the company for illegally boosting sales of one of its best-selling drugs Lipitor through misleading educational programs. The lawsuit claimed that these programs were part of a marketing strategy that "led thousands of physicians to prescribe Lipitor for millions of patients who did not need medication." The government has yet to intervene; however, which could be a sign that prosecutors are skeptical of the case. Further, Pfizer released a statement saying the case is meritless. In related news, biotech specialist David Miller mentioned the company last month in Pfizer's Astonishing Torcetrapib Data.
From the Bull Pen: Bulls looking for a play in big Pharma may see an opportunity in Merck (MRK); sell-stops below $57. Professor Miller also recently mentioned a play in Par Pharmaceuticals (PRX); sell-stops may be placed below $20.
From the Bear Cave: Regardless of the lawsuit, Professor Miller has been bearish on Pfizer. Bears may see a play with buy-stops above the downtrend at $24.50.
Click on Minyanville's Stocks To Watch for more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng -0.05%, Nikkei +0.01%, Sensex +0.37%, Taiwan -1.96% and Shanghai +2.06%.
A quick check towards Europe is skewed green with the CAC +0.56%, DAX +0.26%, FTSE +0.58%, ATX +0.28%, Swiss Mkt. +0.62% and Stockholm -0.17%.
A Look At Commodities
Crude oil is lower this morning -0.08 to 91.16. Gold is down -2.8 to 802.60. Silver is lower -0.09 to 14.12, and copper is up +2.65 to 298.45.
As of 8:30 AM ET, S&P futures are down up +7.30 points and Nasdaq futures are higher by 15.7 points.
On the Radar
Initial claims: 346 k vs. 335 k cons
GDP-Final: 4.9% vs. 4.9% cons
3Q Core PCE q/q revised to 2.0% from 1.8%; GPD Price index +1.0% from 0.9%
10:00 Leading Indicators: -0.1% cons
12:00 Philadelphia Fed: 8.0 cons
Click here for the full trading radar.
Thirsty Thursday! Good luck!
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