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Minyanville's Before The Bell: Global Indexes In A Sea Of Green, Futures Up


Stocks are up around the world and global inflation is lower than expected. Futures are up.

It appears bullish sentiment is around the world as global equity indexes are in a sea of green. Asian and European stocks climbed after Dow Industrials touched an intraday high above the 14,000 mark yesterday. Equity futures are up again this morning with The Organisation For Economic Co-Operation and Development (OECD) stating August inflation for the global economy was at 1.8% versus 2% in July. Consumer prices fell -0.1% while it was unchanged in July. If you believe the rally will continue, look to the best plays with global exposure. In addition to the DYA and SPY symbols, look to Boeing (BA) and Dryships (DRYS). Professor Adami has written about both of these stocks in his articles Dryships Shipping Global Profits and Boeing's Back In Town. Also, get Toddo's Random Thoughts from yesterday for his views on what to expect for the fourth quarter.

In M&A activity, consolidation in the GPS arena continues. TomTom NV (TOM2), the world's largest maker of car navigation devices, will borrow $2 bln to acquire Dutch digital-mapping company Tele Atlas NV (TA6). ABN Amro (ABN) and Goldman Sachs (GS) have arranged the deal.

Just yesterday Nokia (NOK) announced it would acquire digital-mapping company Navteq (NVT). Professor Udall noted on the Buzz & Banter that the move was a positive for Broadcom (BRCM). Keep an eye on that stock as well as Garmin (GRMN) which may have missed another opportunity. Analysts at CIBC criticized GRMN that it should have made a move earlier. GRMN stock was down over 10% on yesterday's news. Some of Professor Udall's themes seem to be playing out. Get his original thoughts in his article 21 Bullish Predictions For Tech.

Commodities are materially weaker. Crude oil is lower by -$1.08 to $79.16 and Gold futures are down hard by -$16.3 to $737.80. Keep track of the gold ETF's such as the GDX (gold miners) and the GLD (Streetracks Gold ETF) as they are likely to bid lower in the morning. Oil ETF's, USO (Oil) and OIH (Oil service holders) are likely to be lower as well.

On the radar this morning, pending home sales data will be released at 10:00 AM EST. Consensus estimates call for a decline of -2.0%. The prior figure showed a decline of -12.2%. This data obviously has a direct correlation with homebuilders so keep the big names on your radar: LEN, RYL, MTH, DHI, and the HGX index. Get Professor Shedlock's view on housing in Mortgage Forgiveness Act: The Seen and Unseen. Also Professor Depew spoke about another homebuilder Lennar in his daily column Five Things You Need To Know. Click here to get his perspective.

Auto manufacturers (GM, DAI, and F) will also report monthly sales figures throughout the day. Total domestic auto and truck sales data will be released at 5:00 PM EST with estimates of 5.1 mln and 7.2 mln respectively. Click here to get the full weekly trading radar and look at Minyanville's Stocks to Watch for more company-specific ideas.

It may be worth your time to review your trading style. Click here for Professor Tatro's article Trading Style Matters More Than Stocks as he offers helpful tips. Have a great day, Minyans!
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No positions in stocks mentioned.

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