The markets opened higher to kick off May following the killing of Osama Bin Laden but have sold off since the open. While his slaying provided an emotional boost to the American people, the watershed event seemed to have little positive impact on stocks, and much talk has turned to the need for vigilance in the face of possible retaliation.
With the market pulling off intraday, not many stocks have been able to gain traction long, which is not terribly surprising considering the two-week bounce we have seen. Usually during earnings you see a distinct separation of the “haves” and “have nots” in the market. Although Amazon.com, Inc. (AMZN) reported a miss on EPS, the increased expense was due to investment in cloud computing infrastructure, and area that could be part of a bright future the company. Investors bought AMZN aggressively the following day (Wednesday) and then it held up well Thursday and Friday, evidence that higher prices were imminent. Today Amzn has led the tech group, surging more than 2% to $200.
Apple Inc. (AAPL) has not acted well following Nasdaq rebalancing on Friday, trading lower down near its 21-day moving average. After a blockbuster earnings quarter one would expect Apple to start climbing toward its many lofty analyst price targets, some of which stand in excess of $600.
Among the Chinese Internets, SINA Corporation (SINA) showed promise early but has pulled off. The others- Sohu.com Inc. (SOHU), Baidu.com, Inc. (BIDU) and Ecommerce China DangDang (DANG), have been weak, perhaps a sign some of the momentum froth is coming out of the market at this stage.
Wynn Resorts, Limited (WYNN) was also strong early but pulled in hard after looking like it would make new highs. Investors are perhaps hesitant to chase WYNN to new highs ahead of Las Vegas Sands Corp. (LVS) earnings, which come after the close today. If LVS can come through with a decent report, WYNN should see new highs soon.
Finally, silver has bounced hard after getting slammed over the weekend. the iShares Silver Trust ETF (SLV) has erased half of those gains after opening down nearly 6%. The SPDR Gold Trust ETF (GLD) stretched to new highs early before pulling off, and is currently flat.
*DISCLOSURE: Scott Redler is long AAPL, LVS, GLD, VMW, CRM, MGM, WFC, CIEN. Short SPY, SLV.
This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs. Visit the T3Live Homepage, Virtual Trading Floor, and Learn More About Us.
