StockTwits Market Preview 7/1/09

• kileyay
• July 1st, 2009

Overseas

Futures are up following strength across the pond.

European markets are kicking off the quarter with upward momentum, bolstered by gains in metal stocks. Indices in London, Frankfurt, and Paris are each up over a point.

The Orient was mixed on conflicting reports. Japan’s Nikkei fell slightly on a worse-than-expected survey of business sentiment.

But the Shanghai Composite shined, adding 0.9% to close at 2,986.09, inching closer to the key 3,000 level. The advance came on data showing that China’s manufacturing growth accelerated in June.

Watch for mineral extractors — viewed as leveraged to Chinese demand trends — to show strength in early trading. Metals look hot today. Gold is up around $10 an ounce.

Data

The Institute of Supply Management’s manufacturing gauge at 10 a.m. headlines a flurry of releases today: pending home sales, construction spending, car sales, and weekly energy inventories.

The ADP employment estimate — out ahead of the official employment release tomorrow — revealed that 473,000 private-sector jobs were lost in June.

Cheerios & Crude

General Mills ($GIS) early Wednesday forecast 6% to 7% growth in fiscal 2010 earnings, assuming no mark-to-market hits on commodity positions. The group reported a 94% improvement in fiscal fourth-quarter earnings. Shares look mixed to flat pre-market.

The commodity caveat is a reminder that rising oil prices could remain a drag on plebeians at the pump and domestic industry. WTI crude is trading back above $71 a barrel this morning after a drop in U.S. crude inventories.

Oshkosh Obama

Oshkosh Corp. ($OSK) is up huge in pre-market trade after winning a $1.05 billion order to supply all-terrain vehicles to the U.S. Army.

National defense has been under the radar for the Obama administration, which has been focusing on a not-very-popular health care scheme billed as the savior of the pricy, cumbersome status quo system.

Speaking of health care, Pfizer Inc. ($PFE) shares should see active trade. The provider jettisoned a Phase 3 colorectal cancer treatment trial because they deemed it not likely to significantly improve the ailment. After all, who would buy something that doesn’t work? We’ll leave that up to government.

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