Before The Bell: Black Friday, Dollar Pain, Futures are Up
Shoppers rush into retail for Black Friday, but will it last? Dollar pain in the plane! Futures are higher.
The WSJ reports the nation's retailers are counting on swarms of shoppers this holiday season amid a difficult retail environment. Retailers such as J.C. Penney (JCP) are marking down items as much as 50% in addition to opening at 4:00 AM, one hour earlier than last year. With high food and energy costs, retail analysts are expecting sales gains to be the weakest in five years. Read Professor Scott Reeves' Will Black Friday Save Retailers?
From the Bull Pen: Those looking for bullish retail plays can choose from Saks (SKS) with sell-stops below $18.75, BJ's Wholesale (BJ), with sell-stops below $32, or Gap (GPS), with sell-stops below $18.40.
From the Bear Cave: Retail bears looking to short strength can look to Target (TGT) as it approaches previous support and current resistance at $57.50.
Dollar Pain in the Plane
Bloomberg reports Airbus CEO Tom Enders said the company may cut R&D spending in a cost-cutting move as the dollar's decline become "life-threatening" for the world's largest plane maker. Enders said in a speech the dollar-Euro has breached the pain-barrier due to the company pricing planes in U.S dollars and incurring a majority of expenses in Euros. Earlier this month the company stated that due to the dollar decline, the company would require an additional 1 bln Euros in savings on top of the 2.1 bln Euros already planned. Read Todd's Of Clouds And Linings.
From the Bull Pen: With the dollar decline of approximately 12% this year versus the Euro, those expecting a reversal can see a play in the Dollar Bullish Fund (UUP). Sell-stops can be placed below $23.26.
From the Bear Cave: Dollar bears may continue to play the Dollar Bearish Fund (UDN), sell-stops below the 20-DMA ($28.09).
Click on Minyanville's Stocks To Watch for more company-specific ideas.
Quick Check Around the World
As traders make their way into work on this Black Friday, foreign markets are feeling good in green.
Asian trading closed with the Hang Seng +2.06%, Nikkei +0.34%, Sensex +1.76%, Taiwan -1.85% and Shanghai +0.96%.
A quick look across the pond finds the CAC +0.59%, DAX +0.30%, FTSE +1.02%, ATX +0.88%, Swiss Mkt. +1.57% and Stockholm +0.75%.
A Look At Commodities
Crude oil is lower by -0.85 to 96.44. Gold is up +11.1 to 809.7. Silver is up +0.165 to 14.58. Copper is up +9.40 to 302.45.
As of 8:45 AM EST, S&P futures are higher by +13.70 points and Nasdaq futures are up by +20.00 points.
On the Radar
There are no economic events scheduled for today.
Too much gobble gobble? Good thing it's a short trading session with the markets closing at 1:00 PM EST. Good luck!
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