StockTwits Market Preview 7/13/09

• kileyay
• July 13th, 2009

Futures are up following mixed results overseas and ahead of quarterly reports from financial and tech giants.

Overseas

Asian equity markets suffered heavy losses. The Shanghai Composite was off 1.1%, despite IPO and M&A news that boosted shares of China Eastern Airlines and Kirin Holdings. China State Construction Engineering’s coming $6 billion IPO was also in focus.

Japan’s Nikkei 225 tumbled again — its ninth straight losing session. Hong Kong’s Hang Seng Index lost 2.6%.

European stocks are rallying. London’s FTSE 100, Frankfurt’s DAX Xetra, and Paris’ CAC-40 are each up over a point.

Corporate

Goldman Sachs Group ($GS) is once again expected to report stellar earnings Tuesday. Analysts predict net income of $3.48 a share for the quarter.

Meredith Whitney Advisory Group upgraded Goldman, calling it a bull stock for a bear market. Shares will gap higher at the open. They’re trading up around 3%.

Johnson & Johnson ($JNJ) and Intel ($INTC) also report Tuesday.

Lender CIT Group ($CIT), which has been unable to get the FDIC to guarantee its debt, has warned its collapse would jeopardize the future of 760 manufacturing clients and ‘precipitate a crisis’ for as many as 30,000 retailers.

CIT’s bonds and stock have fallen — shares were off 17.7% on Friday — over concerns about its financial position. Shares are down again this morning.

Europe v. America

Nomura raised doubts about the performance of Continental European equities and reduced its weighting of the region to underweight from neutral. It’s more optimistic about the U.S. equity market.

The bank said the U.S. economy continues to outperform the euro-zone economy, and it’s expected to continue to do so over the next 18 months at least.

Bonds & Bullion

Yields on the 10-year U.S. Treasury slipped 3 basis points to 3.27% before recovering back up to 3.31%.

Crude oil and precious metals could stage a recovery this week, though prices look muted in early trade. WTI crude is hovering around $60 per barrel, and gold is going for $912 an ounce.

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