Reply #46: pre-opening blather [View All]

[UpInArms]

09:00 am : S&P futures vs fair value: -8.3. Nasdaq futures vs fair value: -29.0. The cash market remains poised to open well below the unchanged mark. The Technology sector remains the drag and will likely maintain the spotlight as investors continue to dwell on disappointing reports from INTC and YHOO, and as they await post-close earnings news from Apple (APPL), Advanced Micro (AMD), and QLogic (QLGC). The Financial sector is apt to garner similar attention on account of recent reports from JP Morgan (JPM), Mellon (MEL), Northern Trust (NTRS), and Schwab (SCHW). JPM and MEL slightly exceeded EPS expectations, while NTRS and SCHW modestly missed them. Washington Mutual (WM) is slated to report after the bell.

08:33 am : S&P futures vs fair value: -8.7. Nasdaq futures vs fair value: -28.0. Recently released December CPI data reflected a 0.2% rise in the core rate, matching economists' expectations. Total CPI unexpectedly fell 0.1% versus the expected 0.2% increase. Stock futures continue to indicate a sharply lower open as INTC and YHOO remain in focus; bonds have rallied in the data's immediate wake. Separately, decidedly bearish overseas trading, particularly in Asian markets, exacerbates the downbeat domestic tone. The Nikkei fell 3% in its most recent session, which ended early for the first time because of a selling surge.

07:59 am : S&P futures vs fair value: -7.7. Nasdaq futures vs fair value: -29.0. Versus fair value, futures trade indicates a sharply lower open for the cash market. Behind the bearish sentiment is a pair of disappointing Q4 earnings reports from tech bellwethers Intel (INTC) and Yahoo (YHOO). Following yesterday's close, the former delivered EPS of $0.40 and fell $0.03 short of expectations. Revenue was light, and the chip maker issued downside revenue guidance for the current quarter. Four analyst downgrades have been prompted. YHOO, meanwhile, missed estimates by a penny with its $0.16 per share. Its Q4 sales and Q1 guidance were in-line with expectations. INTC and YHOO shares have plunged 10% and 11%, respectively.