StockTwits Market Preview 7/10/09

• kileyay
• July 10th, 2009

Futures are down following data on the trade gap and exports/imports.

The U.S. trade deficit unexpectedly narrowed by 9.8% to $25.96 billion in May, the Commerce Department reported. Chinese exports dropped 21% in June — a slower rate of decline than in prior months

The initial University of Michigan consumer confidence survey for July is also due out this morning.

Overseas

Asian shares finished the session mostly in the red, with Japanese shipping shares faltering on concerns about lower freight rates. The Nikkei 225 had its eighth consecutive losing session.

European stocks are down, with auto and oil shares dragging.

Oil

WTI Crude is trading for around $59 a barrel. The global appetite for crude remains unclear, with the International Energy agency predicting a 1.7% rebound in demand by next year.

The IEA slightly upped its 2010 world oil-demand forecast. The Paris-based agency cautioned that consumer and industrial demand for petrol this year remains weak. They predict crude consumption will rise 1.7% in 2010, led by China.

Corporate

Chevron ($CVX) shares will gap lower. The company said yesterday that poor profits at refineries and the financial impact of a weakening U.S. dollar will hurt.

International Business Machines ($IBM) shares are off early. The world’s biggest computer services provider was downgraded to “neutral” from “buy” by Goldman.

CIT Group Inc. ($CIT) is down 25 percent in pre-market trading. The FDIC is unwilling to guarantee CIT’s bond sales because the commercial lender’s credit quality is worsening.

Technicals

Technicals are mixed. All the indexes are still below their 50 day exponential moving averages. The VIX continues to tussle with the 30 level and has refused to break higher. Watch these two tells for a breakthrough.

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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