US stock futures are pointing sharply higher Thursday after a choppy day yesterday had investors wondering what would be the next move for the market. While the market had run into a tricky spot on the retracement of last week’s brief but steep correction, not many expected another harsh down day like we saw Tuesday. However, this market has once again showed its resilience, surviving selling pressure yesterday and now gapping up big.
Apple Gets a Boost with Jobs Appearance
As Apple Inc. (AAPL) CEO Steve Jobs stepped on stage at the company’s iPad 2 launch and sounded healthy, the market got its leader back. AAPL has been weak during this period of digestion in the market, and if indices are going to get back to highs it would be a huge boost to have leading stocks like Apple pointing the way. Amid all the hoopla over Jobs’ appearance, some people are forgetting about the product the event was for, the iPad 2. Apple expects to ship 40 million iPads in 2011, and continues to dominate several product segments. The company still has tremendous growth prospects and remains undervalued. The stock is set to open higher today, near recent pivot highs.
For more market and stock commentary watch Scott Redler’s Morning Call video below.
Oil Slips
Perhaps more directly contributing to the rise in the futures is a drop in oil. Oil futures ended yesterday’s session above $102 per barrel but have come off this morning. International leaders are pressing Libya for a peace deal, but that still seems some ways off. Also contributing to a more bullish tone this morning is consistently improving economic data. Yesterday we saw a better than expected ADP Employment Change and slightly better than expected ISM Manufacturing reading. Look out for ISM non-manufacturing today and then obviously the big employment numbers tomorrow.
RIMM Looks Destined for Lower Prices
Even though the market has relieved some pressure this morning with the gap up, it is still good to have some shorts in your back pocket for when the market gets hit. One stock you should watch for lower prices in Research in Motion, Limited (RIMM), says Evan Lazarus of T3Live.com. The fundamental story on RIMM has long since ended, as android-powered phones and the iPhone are rendering its signature Blackberries obsolete. On a technical basis, the stock has been making a series of lower highs on all timeframes, and it appears to be putting in a bearish consolidation pattern. The trade today would be a short against Monday’s high with a first target at $63 and a second target down to $58.
*DISCLOSURE: Evan and Scott have no relevant positions.
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