Before The Bell: Bulls Follow The General
General Mills is showing leadership while questions arise in India.
According to The WSJ, General Mills' (GIS) decision to push into whole grains eight years ago is paying off. All of the company's major cereal brands are now made with whole grains, making the products higher in fiber and nutrients. GIS has offered incentives for managers in creating these health products to achieve long-term goals, all the while the industry is facing increased pressure from regulators in offering healthier choices. Last week, GIS raised its profit forecast for the year due in part to these products. For context in this space, see Professor Ryan Krueger's Weekend Bookends.
From the Bull Pen: Bulls believe GIS is ahead of the curve and sitting in a favorable space given the overall economic woes. Near-term sell-stops on upside attempts can be set-below $54. Other alternatives may include Kraft (KFT); sell-stops below $30.
From the Bear Cave: Technically, bears see Wrigley (WWY) approaching resistance at $60, which also coincides with the 100 DMA. Sell-stops may be set above.
Confidence in India?
Reuters reports India's President Pratibha Patil said the government will try to continue high rates of economic growth while keeping inflation under control. "It will continue to be the endeavor of my government to sustain economic growth while keeping prices under check," Patil said at a session of Parliament. Recently the country reported an 8.7% growth in the economy in the 12 months that ended March 31, down from 9.6% the year before and the weakest pace in three years. Wholesale price inflation was also reported last Friday at a six-month high of 4.35% in early February. For context, see Professors Kathy Lien and Boris Schlossberg's article Decoupling or Recoupling.
From the Bull Pen: Those bullish can try an upside play in the India Index ETN (INP). Entry at $70 should the stock pull back to that level; sell-stops set below.
From the Bear Cave: Professor Fil Zucchi has negatively mentioned India on the basis of the country's inflation problems and a slowdown in the U.S. Bears can short the India Investment Fund (IIF); buy-stops above $45.
For more ideas, see Minyanville's Spotlight Stocks.
Quick Check Around the World
Minyans buckle up for a new five day stretch as foreign markets are trading mostly higher.
Asian trading closed with the Hang Seng -0.15%, Nikkei +3.07%, Sensex +1.74%, Taiwan +2.19% and Shanghai -4.07%.
A quick check across the pond finds the CAC +1.77%, DAX +1.18%, FTSE +1.64%, ATX +1.55%, Swiss Mkt. +2.11% and Stockholm +1.66%.
A Look At Commodities
Commodities are mostly stronger this morning. Crude oil is higher +0.34 to 99.15. Gold is up +4.00 to +948.70. Silver is higher +0.075 to 18.110, and copper is lower -2.35 to 378.70.
As of 8:45 AM EST, S&P futures are trading lower -1.7 points to 1353, and Nasdaq futures are down by -3.7 points to 1777.
The dollar index is up +0.053 to 75.576.
On the Radar
10:00 Existing Home Sales: 4.81 mln cons
Let's have an awesome week! Good luck, Minyans!
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