Before The Bell: Out of iPhones; IMF Sees Global Slowdown
Is Apple about to release a new model of its phone?
Bloomberg reports analysts at research firm Piper Jaffray say that Apple's (AAPL) retail stores are running out of iPhones. Out of 180 stores in the U.S., 20 of them have no iPhones, analyst Gene Munster said. A spokesman for Apple said the company is working hard to quickly replenish the phones, but others take the short supply as a hint the company is on the verge of introducing a new, faster third-generation model. Munster believes the company may offer as many as three models of the iPhone by next January in an effort to appeal to a broad range of customers similar to its strategy with its iPod. Professor Quint Tatro recently mentioned Apple in Trading Between the Lines.
From the Bull Pen: Those bullish on Apple (AAPL) can play the upside with sell-stops below $140. Another option is the Technology fund (XLK); sell-stops below $22.60.
From the Bear Cave: Bears expect Apple to continue eating up market share from other companies like Motorola (MOT); buy-stops can be set above $10.00.
IMF Sees Global Slowdown
According to Bloomberg, the International Monetary Fund cut its projections for global growth and said there is a 25% chance of a world recession. The Washington-based lender, citing the worst financial crisis in the U.S. since the Great Depression, said the world economy will grow 3.7% this year, down from its previous projections of 4.1% last January and 5.2% last July. Projections for the U.S. and European economies were also cut. The fund said it expected U.S. economic growth of 0.5%, a full percentage point below its prediction in January, and 1.3% expansion in the euro region, down from its January forecast of 1.6%. Get Todd's perspective in yesterday's Answers I Really Wanna Know: How Will Markets Transition Into 2Q?
From the Bull Pen: Bulls are playing the consumer nondurables in this environment. Campbell Soup (CPB) is an option; sell-stops below $34.
From the Bear Cave: Bears can attempt a downside play in industrial manufacturer Dover (DOV); buy-stops above $45.
For more ideas, see Minyanville's Spotlight Stocks.
Quick Check Around the World
Asian trading closed with the Hang Seng +3.18%, Nikkei +4.21%, Sensex +0.79%, Taiwan +2.20% and Shanghai +0.56%.
A quick check across the pond finds the CAC +0.85%, DAX +1.07%, FTSE +0.74%
As of 8:30 AM EST, S&P futures are higher +5.30 to 1375, and Nasdaq futures are up +10 points to 1868.
A Look At Commodities
Commodities are higher +0.62 to 101.60. Gold is up +9.40 to 892.30. Silver is up +0.120 to 17.010, and copper is unchanged at 382.60.
The dollar index is lower -0.230 to 72.334.
On the Radar
ADB Employment Change: 8 k vs. -45 k cons.
MBA Mortgage Applications: -28.7% vs. 48.1% prior
Click here for the full trading radar.
Happy Hump! Good luck, Minyans!
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