The market got hit hard Monday after S&P cut the outlook on US debt from stable to negative. Although they maintained a perfect AAA credit rating for the US, analysts warned there was a one in three chance the ratings agency could cut that rating within the next two years. The markets frowned at the news, as potential austerity measures are not good for stocks. After opening sharply lower, the market continued to head lower during the session before bouncing slightly in the afternoon. All the major indices are closing down around 1.2%.
While the indices got hit hard, there were pockets of strength in the market as mentioned in the Morning Call. Lululemon Athletica, inc. (LULU) was the strongest after Goldman raised its price target on the apparel stock to $105 from $95, breaking out to new highs. Under Armour, Inc. (UA) held in its upper base. Wynn Resorts Limited (WYNN) recovered from early weakness and broke to new highs also. Las Vegas Sands Corp. (LVS) was even stronger today, breaking out of a month long base and surging 3.8%. Apple Inc. (AAPL) appeared in the brink of disaster with a momentum flush in the morning, but rallied hard to close up 1.4% today ahead of Wednesday’s much anticipated earnings report.
For more market and stock commentary watch the T3Live.com Daily Recap with Scott Redler (below).
*DISCLOSURE: Scott Redler is long BIDU, POT, LVS, MGM, SOHU, CYD, OIH, WEBM, HAUP, GLD. Short SLV.
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