Futures are very weak heading into the open this morning as Spain has sold off 3.5% so far today and the CAC, DAX, and FTSE are also negative. So far in May, we are down 2.5% on the S&P and the futures are pointing to a gap-down of another 1.00%. Yesterday's breach of the 1.30 level on the EURUSD coincided with new low yields on the US 10yr as well as a break below the April lows on the S&P to briefly touch 1347.50. We are now set to gap down to that level and potentially break below. To the upside, 1385 is where the 20 and 50 DMAs are curling over to the downside.
After the close, Cisco Systems (CSCO) is due to report with analyst expectations coming in at .47/share along with Priceline (exp.: 3.98). Tesla Motors (TSLA) is also set to report with Capital IQ consensus estimates coming in at a loss of .69/share.
Last night, Disney (DIS) and Macy's (M) beat expectations but both are down in the pre-market.
Wed, May 9, 2012
by David Boland