Before The Bell: Dollar Plunges on Fed Funds; DNA's Quarter
Traders are pressing their bets the Fed will lower rates the most in over two decades. DNA beats but drugs sales are lower than expected. Stock futures are lower.
Bloomberg reports the dollar declined for the fourth consecutive day to its lowest levels in two months as traders press their bets the Fed will lower the Fed Funds rate by 75 basis points. Such a move would mark the greatest reduction since 1984, during the Reagan Administration. Fed funds futures on the CBOT show a 100% chance the Fed will cut the target by 50 basis points to 3.75%, and a 50% chance of a 75 basis point reduction. For more, read Professor Prieur du Plessis' article Worry in the Wake of a Wild Week.
From the Bull Pen: Gold specialist Professor Lance Lewis mentioned a potential trifecta in the gold complex regarding the economic events scheduled this week. Gold bulls may play the gold ETF (GLD); sell-stops below $85.
From the Bear Cave: Bears can continue to press the downside using the bearish dollar fund (UDN); sell-stops below $27.50.
Yesterday, Genentech (DNA) reported fourth quarter results of $0.69 EPS, $0.02 better than expectations of $0.67. Revenues increased 9.4% on an annual basis to $2.97 bln inline with expectations. However, sales of its main drugs, Avastin and Rituxan, fell short of expectations. The company issued guidance of $3.30-3.45 EPS for FY'08, which was inline with expectations. For other ideas, check out Professor David Miller's Biotech Roundup. Also, be sure to check out his Six Rules For Biotech Investing.
From the Bull Pen: Professor Miller positively mentioned DNA last week. Bulls may use this morning's weakness as an opportunity for entry. Sell-stops may be placed below $65.
From the Bear Cave: Professor Miller mentioned the poor fundamental story in Amgen (AMGN). Buy-stops can be placed above $51.
Click on Minyanville's Spotlight Stocks for more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng -2.38%, Nikkei -0.98%, Sensex -2.30%, Taiwan +3.13% and Shanghai -0.98%.
A quick glance towards Europe finds the CAC -0.59%, DAX -0.42%, FTSE 1.01%, ATX -0.69%, Swiss Mkt. -1.28% and Stockholm -1.49%.
A Look At Commodities
Crude oil is down -0.51 to $93.71. Gold is edging higher +0.60 to 904.10. Silver is +0.052 to 16.325, and copper is +3.35 to 331.70.
As of 8:00 AM EST, S&P and Nasdaq futures are lower by -10.6 and -14.5 respectively to 1410 and 1940.
On the Radar
8:30 Retail Sales: 0.1% cons
8:30 Retail Sales ex-auto: 0.1% cons
8:30 PPI: 0.2% cons
8:30 Core PPI: 0.1% cons
8:30 NY Empire State Index: 11.5 cons
10:00 Business Inventories: 0.4% cons
Click here for the full trading radar.
Good luck, Minyans!
GET THESE INSIGHTS AND MORE IN REAL-TIME. CALL 212-991-9357 FOR A 14-DAY FREE TRIAL TO THE BUZZ & BANTER OR CLICK BELOW.
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.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter