StockTwits Market Preview 6/25/09

• kileyay
• June 25th, 2009

Overseas

Futures are leaning lower following mixed markets overseas.

European shares are shedding Wednesday’s gains. Paris’ CAC-40 and Frankfurt’s DAX are each down over 1%. London’s FTSE 100 is off more than a half point.

Asia rallied. Japan’s Nikkei, South Korea’s Kospi, and Hong Kong’s Hang Seng each added more than 2%. Tech shined on the heels of Nasdaq strength yesterday. The sector was buoyed by decent earnings and an optimistic outlook from Oracle ($ORCL).

The Fed

Ambiguity abounds. The FOMC didn’t hike rates, as expected. The dovish statement conceded that the contraction is slowing and markets have “generally improved” but that rates will likely remain low “for an extended period.”

The markets faltered on the release. Traders looking for guidance received only more uncertainty. Not even the Bernanke brain trust seems sure.

Data

After the Fed release, even unexpectedly bad weekly jobless claims data seems a bit anticlimactic. Unemployment claims rose 15,000 last week despite forecasts for a decline.

The Commerce Department reported that first quarter GDP fell at a 5.5% annual rate – an upward revision from the previous forecast of a 5.7% contraction.

Corporate

A flurry of earnings is due out today. Look for releases from ConAgra Inc. ($CAG), Palm Inc. ($PALM), and McCormick & Co. ($MKC) to send shareholders scrambling.

Nike ($NKE) reported a 30% decline in its fiscal fourth-quarter profit and said orders are down 12%. The shoemaker’s stock looks set to gap down at the open.

IPOs

AIG has received approval from the New York Fed to proceed with public offerings for two international divisions.

Should AIG’s IPOs yield more than the preferred interests, it will help both the wounded insurance juggernaut and the ailing IPO divisions at bulge bracket banks.

Public offerings have been sparse but are poised to increase. Fred Wilson said on StockTwits TV last week that if IPOs were a stock, he’d buy shares. They can only go up, he stated.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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