ALARON LAS VEGAS US EQUITY FUTURES REPORT 05/13/2009
US STOCKS HEAD FOR THE EXITS, FEW PARACHUTES AS WEAK RETAIL DATA REIGNITES RECESSION CONCERNS.
US EQUITIES fell on Wednesday after US retail sales posted consecutive monthly losses, offering an opposing view to the positive data that supported notions of economic recovery as consumers expressed their fears regarding the lagging indicator of employment by holding back significantly on purchases outside of necessities. The scope of the concern was made evident by the fact that the drop in April retail sales was higher on the core measure that excludes the high publicized automobile industry. Speaking of those Titans of capitalism (As I recall, the Titans lost and were confined to the center of the earth), negative equity sentiment was further “fueled” by General Motors and Chrysler announcing today that they would be closing 3000 dealerships in the United States. The dealerships would be primarily in urban areas, offering even greater challenges for municipalities with ever dwindling tax bases and vacant commercial real estate.
Retail stocks fell despite better than expected results from several large consumer product companies after the retail sales data was released. Financial and Technology stocks continued to struggle in the wake of continued new issues of stock in an effort to raise capital outside government and public sectors. Financials also fell as mortgage applications fell in the wake of higher interest rates for the first week of May. Drug stocks continued to buck the pullback in equities, as buyers took positions in defensive sectors. Realizations that the recession is still offering challenges and that certain elements of the global economic slowdown (employment for example) have not bottomed out yet.
Technically, June Dow Futures retraced through support of 8275 before closing slightly above this level. The market should continue to test support level, making an attempt to correct to 8228. Significant support remains in place at 8126. Upward recovery in the market should be capped out at 8420 for the near term.
|
EQUITY RANGES |
OPEN |
HIGH |
LOW |
CHANGE |
|
|
DJM9 (JUNE DOW) |
8320 |
8332 |
8235 |
8294 |
-142 |
|
SPM9 (JUNE S&P) |
892.30 |
895.30 |
880.00 |
885.30 |
-21.50 |
|
NDM9 (JUNE NASDAQ) |
1366.00 |
1366.00 |
1338.00 |
1344.25 |
-40.75 |
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.
