Before The Bell: Dupont Looks Higher; Soros Warns of More Danger
Billionaire Investor George Soros says effects of housing crisis won't be felt for some time.
Morning Perspective: DuPont Looks Higher
Bloomberg reports DuPont (DD) issued upside guidance this morning for the first quarter. The global chemical manufacturer and the world's second largest seed producer said 1Q profits will come in approximately $1.29 per share above estimates of $1.17. As reasons for the upward guidance, the company cited strong growth in the agriculture business as well as "rapid" growth in emerging markets. In addition the company stated strength in the first quarter should offset continued weakness in U.S. construction and automotive markets. For the full year, the company said profit will come in the range of $3.40 to $3.55 a share compared with estimates of $3.44 per share. For more, read Professor Guy Adami's Do DuPont as Agriculture Soars.
From the Bull Pen: Those bullish DuPont can set sell-stops below $48. Another options is Dow Chemical (DOW); sell-stops below $38.
From the Bear Cave: Those bearish on the Ag space can play the downside in the Agriculture ETF (DBA); buy-stops above $40.
Soros Warns of More Danger
Bloomberg reports Billionaire investor George Soros said the credit crunch will worsen before improving. Soros told reporters on a conference call today that lack of oversight is partly responsible for the conditions in the financial markets and that U.S. regulators "failed to perform their job" in a crisis that started with the U.S. housing market. Soros said the conditions are "man-made" with a "false belief that markets correct their own excesses." "It will take much longer for the full effect of the decline in the housing market to be felt." For another perspective, read Professor Greg Collins article Can Stocks Push Higher?
From the Bull Pen: Even with the current market conditions, Professor Collins positively mentioned Arcelor Mittal (MT) for the longer term; entry near the breakout at $80 with sell-stops set below.
From the Bear Cave: Bears can play the downside on the dollar using the inverse ETF, dollar bearish fund (UDN); sell-stops can be set below $29.
For more ideas, see Minyanville's Spotlight Stocks.
Quick Check Around the World
Asian trading closed with the Hang Seng +0.84%, Nikkei -1.27%, Sensex -0.60%, Taiwan +1.86% and Shanghai +1.69%.
Glancing towards Europe, we spot a lot of red with the CAC -1.41%, DAX -1.42%, FTSE -1.33%
As of 8:40 AM EST, S&P futures are lower -6.1 points to 1354, and Nasdaq futures are down -7.25 points to 1830.
A Look At Commodities
Commodities are higher. Crude oil is up +0.29 to 111.15. Gold is higher +2.4 to 936.00. Silver is up +0.080 to 18.280, and copper is off -3.80 to 399.00.
The dollar index is lower -0.352 to 71.490.
On the Radar
Trade Balance: -$62.3 vs. -$57.5 bln cons.
Initial Jobless Claims: 357 k vs. 383 k cons.
Continuing claims: 2940 k vs. 2935 k cons.
10:30 ICSC Chain Store Sales (y/y): 1.9% cons.
2:00 Monthly Budget Statement: -$81.0 bln cons.
Click here for the full trading radar.
Happy Thursday! Have a great day!
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