Moenning's Daily State of the Markets: 10/10
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Curb Your Enthusiasm
The enthusiasm from the initial pop higher in response to the better-than-expected jobs report was quickly curbed on Friday. Traders recognized that the report may have been tainted by revisions to BLS calculations and that the first job losses for the economy in more than 2 years wasn�t exactly a positive. In addition, the reality is that the jobs report almost guarantees another couple of rate hikes from the Fed. Other factors that kept enthusiasm curbed for the day included a series of security scares and an ongoing focus on the threat of the bird flu. So when you combine job losses, more rates hikes on the horizon, and lots of talk about inflation, it wasn�t surprising to see traders curb their enthusiasm on the day.
Turning to this morning, at least some of Friday�s initial enthusiasm may have returned as there may be some optimism building in anticipation of a positive earnings season. Oil is flat, bond yields are steady, overseas markets are higher, the futures are pointing north, and it may be time for a bounce attempt. The key question right now is if the current decline represents a buying opportunity or a warning sign.
Stocks "In Play" This Morning:
IBM � Citigroup upgrades to Buy
AA � Kicks off earnings season today
INTC � Said to unveil latest chip today
GM � Down before bell in response to DHP bankruptcy filing
DELL � Removed from Citigroup�s Recommended List
BR � Expects Production to be below estimates. Stock indicated lower
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: IBM, INTC, BR
To see Mr. Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
The enthusiasm from the initial pop higher in response to the better-than-expected jobs report was quickly curbed on Friday. Traders recognized that the report may have been tainted by revisions to BLS calculations and that the first job losses for the economy in more than 2 years wasn�t exactly a positive. In addition, the reality is that the jobs report almost guarantees another couple of rate hikes from the Fed. Other factors that kept enthusiasm curbed for the day included a series of security scares and an ongoing focus on the threat of the bird flu. So when you combine job losses, more rates hikes on the horizon, and lots of talk about inflation, it wasn�t surprising to see traders curb their enthusiasm on the day.
Turning to this morning, at least some of Friday�s initial enthusiasm may have returned as there may be some optimism building in anticipation of a positive earnings season. Oil is flat, bond yields are steady, overseas markets are higher, the futures are pointing north, and it may be time for a bounce attempt. The key question right now is if the current decline represents a buying opportunity or a warning sign.
Stocks "In Play" This Morning:
IBM � Citigroup upgrades to Buy
AA � Kicks off earnings season today
INTC � Said to unveil latest chip today
GM � Down before bell in response to DHP bankruptcy filing
DELL � Removed from Citigroup�s Recommended List
BR � Expects Production to be below estimates. Stock indicated lower
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: IBM, INTC, BR
To see Mr. Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
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