Before The Bell: Bernanke Hints; Dell Disappoints
Bernanke hints at a December rate cut. Dell disappoints investors. Futures are up.
Fed Chairman Ben Bernanke hinted at a December rate cut last night stating turbulence in the financial markets had the potential to cause more harm to the economy. The Fed remains concerned about risks to inflation, yet warned that higher energy prices, a weak housing market, and tighter credit conditions would significantly weigh on the consumer. Bernanke also stated that the Fed would have to remain "exceptionally alert and flexible" as "we continue to assess how best to promote sustainable economic growth and price stability." Read Todd's Random Thoughts.
From the Bull Pen: In a slowing economy, bulls may look to interest-rate sensitive stocks for upside potential. Those believing the banks have bottomed out may look to Citigroup (C), and JP Morgan (JPM); sell-stops below $29.50 and $42.50 respectively.
From the Bear Cave: Bears may see a downside opportunity in cyclical stocks. Boeing (BA) and United Technologies (UTX) may be options; buy-stops above $97 and $77 respectively.
Dell (DELL) reported 3Q earnings last night of $0.35 per share in-line with analyst expectations; revenues rose 8.5% year-over-year to $15.65 bln vs. expectations of $15.35 bln. The company stated in the conference call that it continued to lose share in the consumer segment with a decline in U.S PC sales. The WSJ, however reports of bright spots such as sales from China, Brazil, Russia, and India accounting for 32% of total revenue. Professor Scott Reeves mentioned Dell in Will Black Friday Save Retailers? Also check out Professor Quint Tatro's Letter To Santa.
From the Bull Pen: Those looking for exposure in the tech space may find a better play in Hewlett Packard (HPQ). Dr. Jon Najarian previously noted the company as "the number one technology firm on the planet." Sell-stops may be placed below recent lows ($48)
From the Bear Cave: Todd noted Dell's 50% retracement yesterday on the Buzz. Bears may press the downside with stops above yesterday's close ($28.14)
Click on Minyanville's Stocks To Watch for more company-specific ideas.
Quick Check Around the World
Asian trading closed with the Hang Seng +0.57%, Nikkei +1.08%, Sensex +1.89%, Taiwan +1.65% and Shanghai -2.63%.
A glance towards European bourses finds the CAC +1.02%, DAX +1.23%, FTSE +1.01%, ATX +0.86%, Swiss Mkt. +0.92% and Stockholm +0.88%.
A Look At Commodities
Crude oil is lower 1.75 to 89.26. Gold is higher 0.50 to 802.80. Silver is down 0.05 to 14.39, and copper is up 7.9 to 317.30.
As of 8:00 AM, S&P futures are higher 15 points, and Nasdaq futures are up by 25 points.
On the Radar
8:30 Personal Income: 0.4% cons
8:30 Personal Spending: 0.3% cons
8:30 Core PCE Inflation: 0.2% cons
9:45 Chicago PMI: 50.5 cons
10:00 Construction Spending: -0.2% cons
Click here for the full trading radar.
Happy Friday, Minyans, and good luck to all those taking exams.
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