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T3's Take 3: Commodities Slump, Cybersecurity Jumps, Ferrari Revs Up for IPO


Today's financial recap and tomorrow's financial outlook.

Today at T3 Live

Ears Wide Shut by Jeff Cooper

Everyday I speak to a buddy of mine that manages money. He's been warning his clients for some time about the market -- like a lot of brilliant risk managers. It doesn't matter. It falls on deaf ears. Anyone who's been cautious on the market suggesting that history can't be ones guide at this point -- because we've never been here before, because we're in unchartered territory...

Click here to read more

Commodities Feel the Heat

Many commodities such as gold, oil, coal, and copper continue to fall to major lows.

Gold has been in the spotlight and has now traded down for 11 straight days, crashing through the widely-watched $1,100 level.

Some analysts are pointing the finger towards advances in the dollar against major currencies. The meltdown in China also had a major impact on currencies, even though markets there are off their lows.. The country reported a sharp decline in commodity imports at the beginning of the year. In its April Commodities Outlook, the World Bank stated that the Lunar New Year holiday falling into February this year had an effect on demand, but the post-holiday re-bound didn't occur in March.

The World Bank believes that commodity prices will continue to see weakness through to 2016 where it will witness a moderate recovery.

Meanwhile, Morgan Stanley (MS) warned that oil could reach levels far worse than 1986, especially once Iran's nuclear deal gets cleared.

Cybersecurity Jumps

Cybersecurity stocks enjoyed a strong rally after major player Fortinet (FTNT) beat estimates and reported better than expected guidance. The stock finished up 10.7%.

That drove strong gains in Palo Alto Networks (PANW), FireEye (FEYE), CyberArk (CYBR), Barracuda Networks (CUDA), and others.

Recent major data hacks have boosted sentiment towards the sector, the most notable being infidelity dating website, which suffered a major security breach ast week. As more and more individuals put their information online, the need for strong cybersecurity increases. Venture capital firms invested over $1.2 billion into cybersecurity firms this year, according to the Wall Street Journal.

The PureFunds ISE Cyber Security ETF (HACK) is now up almost 20% for the year, and was up 2.4% today despite a decline in the NASDAQ Composite.

Ferrari Revs to the NYSE

Fiat Chrysler (FCAU) filed for its Ferrari unit's IPO on the NYSE. The spin-off is expected to be completed in early 2016. Fiat Chrysler CEO Sergio Marchionne stated that the company sell about 10% of its stake to the public, while 80% will be distributed among Fiat Chrysler shareholders. Piero Ferrari, son of founder Enzo Ferrari, will hold the remaining 10%.

The IPO is expected to happen in mid-October.

Friday's Financial Outlook

Economic news for tomorrow will include Markit US manufacturing, new home sales, and the Baker Hughes rig count.

Overseas economic data includes Markit's Eurozone, France, and Germany PMI's.

American Airlines (AAL), Biogen Idec (BIIB), Omnicare (OCR), and Xerox (XRX) will report earnings before the open tomorrow. There are no earnings announcements after the close.

P.S. Want to trade better, have fun, network with Wall Street insiders, and support two amazing charities? 
No positions in stocks mentioned.
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