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VIDEOPNC, UPS Could Be Miner's Canaries
Both serve as good bellwethers of market activity.
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The day started negative, with poor economic data (e.g. severely depressed consumer spending); then we learned that the President’s financial rescue plan wont be unveiled until some time next week.
However, tech led the tape higher; the DJIA was pushed down by Boeing (BA), 3M (MMM) and BofA. The S&P 500 closed right at 825, as Professor Cooper mentioned today on the Buzz:
“Note the false opening range breakout above 825 and what may turn out to be a right shoulder (bearish) at 825 in the last hour.
825 is 360 degrees in price down from the last swing high at 944.
A close above 825 today would be a hint of hope for the bulls.”
Today on the Buzz and Banter, Professor Depew shared his weekly range projection for the S&P:
“Expanding the TD Range Projections to the weekly chart we have the following projected high and low for SP, 894 and 791.30.
With unfulfilled downside short-term targets of 794, 790 and 783, this gives us some added context for the SP this week.”
For more thoughts on the S&P this week, check out Jeff Saut’s most recent article.
Whatever plays out, it seems that this week may be chop-and-slop until there's a definitive plan from Washington.
Before the bell, Turnaround Tuesday will be shaped by earnings releases. Some large companies reporting are Merck (MRK), Schering Plough (SGP), UPS (UPS) and PNC Financial (PNC).
PNC and UPS are the 2 I would watch. Why? I would be listening to every word a bank has to say right now, and UPS is a good measure of economic activity (or the lack thereof). The street currently has PNC EPS at $0.75 on revenues of $1.894 billion. UPS has EPS estimates of $0.85 on revenues of $13.202 billion.
After the close on Tuesday, traders will be greeted with more earnings data. I would focus on three reports: Metlife (MET), Disney (DIS) and Yum Brands (YUM). The data out of China shows an obvious slow down which makes YUM’s report interesting, because the company has spent a lot of cash investing in China over the years.
Have a great night, Minyans.
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