StockTwits Market Preview 6/30/09

• kileyay
• June 30th, 2009

Half-Time Futures

Futures are higher this morning as the quarter draws to a close.

Traders should look for signs of window dressing, the phenomenon whereby fund managers make last-minute moves at quarter’s close. They tweak portfolios in a bid to show clients they’ve picked the right positions for their money.

Data

Data set for release includes the S&P/Case-Shiller home-price index for April, Chicago PMI for June and consumer confidence for June. The releases are due out between 9 a.m. and 10 a.m. Eastern time.

Overseas

Asian markets ended mixed. Japan’s Nikkei 225 Average added 1.8% but failed to stay above the psychologically-important 10,000-point level that it briefly pierced mid-session. Caution reigned ahead of the Bank of Japan’s tankan business sentiment survey due Wednesday. Chinese and Indian stocks retreated as investors locked in profits on the last session of the half-year.

Europe is mixed to flat. Banks and healthcare stocks lead.

Oil

Oil futures are up to the highest levels in several weeks amid continued violence in Nigeria’s main oil-producing region. Speculators are digesting reports that the OPEC and EU had agreed that the weakened global economy could support crude prices between $70 and $80 a barrel.

Look for higher oil to boost shares of Exxon-Mobil ($XOM) and other energy juggernauts. WTI Crude is going for around 71.50 during pre-market trade.

Corporate

Exco Resources ($XCO) will gap higher after inking a $1.3 billion deal to form a gas-shale venture with Britain’s BG Group.

H&R Block ($HRB) may gain as the tax-prep service’s annual outlook topped estimates. Shares are up pre-market.

A Texas jury ordered Abbott Labs ($ABT) to pay Johnson & Johnson ($JNJ) $1.67 billion over alleged patent infringement on an arthritis therapy. Abbott is planning an appeal. $ABT will gap down while $JNJ is up slightly.

Technicals

Yesterday’s rise came on low volume once gain, and the VIX is reaching new lows.

The 60 minute charts look overbought, especially tech-heavy Nasdaq. Continue to watch the neckline area — around 945 on the S&P 500 — for potential resistance upward.

blog comments powered by Disqus