ALARON LAS VEGAS US EQUITY FUTURES REPORT 04/28/2009
US EQUITIES FALL IN VOLATILE SESSION AS BANKING CONCERNS, SWINE FLU EVOLUTION OVERCOMES GROWING CONSUMER OPTIMISM, IBM DIVIDEND INCREASE.
US Equities slipped on Tuesday in a tug of war session that saw the indices swing between gains and losses. Negative sentiment won out on the session as fresh worries regarding Bank of America and Citigroup’s capital positions and swine flu developments offset a surprisingly positive read on consumer confidence and IBM’s boosting of its dividend.
Citigroup and Bank of America, two of the main poster children for the current banking crisis, came under pressure today after US regulators told the banks that they would likely not pass criteria set by US government “stress tests” and would need to raise additional capital. Citigroup and Bank of America responded by announcing proposals to increase conversion of preferred stock and sell off businesses such as Nikko Securities.
The banking woes set the tone for the early part of the session. Turnaround to positive territory for equities was fueled by reports showing U.S. house prices slowed in February while consumer confidence in April had its biggest jump in more than three years.
IBM gave the Dow its biggest boost, after its board approved a 10 percent increase in its dividend and authorized a stock buyback. Once again, the tech sector offered the most opportunity today due to its stronger cash position. By the end of the session though, the inability to break through any new resistance levels and lingering concerns regarding the evolution of the swine flu breakout eroded gains for the major indices, though they did close significantly off of their lowest levels of the day.
Technically, June Dow futures remain above support at 7870. Upward target for the market remains at 8169. However continued range trading is likely to increased downward momentum that should likely test 7640. Look for a key downward target to be 7270.
|
EQUITY RANGES |
OPEN |
HIGH |
LOW |
CLOSE |
CHANGE |
|
DJM9 (JUNE DOW) |
7895 |
8040 |
7885 |
7967 |
-35 |
|
SPM9 (JUNE S&P) |
844.50 |
861.00 |
843.00 |
851.80 |
-5.00 |
|
NDM9 (JUNE NASDAQ) |
1361.00 |
1378.00 |
1355.00 |
1360.50 |
-12.75 |
Prepared by Rich Roscelli & Paul Brittain.
Past performance is not indicative of future results. The information and data in this report were obtained from sources considered reliable. Their accuracy or completeness is not guaranteed and the giving of the same is not to be deemed as an offer or solicitation on our part with respect to the sale or purchase of any securities or commodities. Alaron Trading Corp. its officers and directors may in the normal course of business have positions, which may or may not agree with the opinions expressed in this report. Any decision to purchase or sell as a result of the opinions expressed in this report will be the full responsibility of the person authorizing such transaction.
