StockTwits Market Preview 7/8/09

• kileyay
• July 8th, 2009

Overseas

Futures are down this morning on the heels of losses and negativity overseas.

Asian markets sold off, dragged lower by continued weakness in oil and metal prices. Japan’s Nikkei 225 was down 1.8%, South Korea’s Kospi Composite was off 0.8%, and Hong Kong’s Hang Seng Index lost 1.2%.

European shares are pulling back for the fifth straight session. Financial firms and oil producers are faltering.

G8 leaders think the global economy faces “significant risks” and may need extra aid, according to summit draft documents also reflecting disagreement over climate change goals for 2050.

Commodities

Crude continues to get slammed. It’s down to around $62 per barrel despite recent bullishness out of Goldman, Merrill, and T. Boone Pickens.

Yes, we’re still listening to an oil bull responsible for hemorrhaging over a billion — evidence enough of the uncertainty surrounding crude prices.

Corporate

With economic data thin on the ground, corporate news reigns.

Alcoa earnings — or lack thereof — are the story this morning. Wall Street expects Alcoa Inc. ($AA) to post a second-quarter loss. The largest U.S. aluminum producer has had a tough three months.

Bear caution. As @wallstCS puts it, “Every time I see $AA is reporting earnings I hear a faint voice whisper: Stop, Drop, and Roll. Guard your positions.”

Shares of Amgen ($AMGN) are set to gap higher. The drug-maker said a Phase 3 trial of denosumab measured against Zometa of Novartis ($NVS) showed that it was better at reducing or delaying bone problems in breast-cancer patients.

Google Inc. ($GOOG) said that it’s preparing to tap into operating system market with the launch of Chrome OS. The stock looks strong in early trade.

Technicals

The major indices broke all kinds of support barriers on the downside yesterday.

The three majors — the Dow, the S&P, and the Nasdaq — are now below their 50 day moving averages. The tech-heavy Nasdaq was the last the fall, but it broke below its barrier with force.

The chartists are cooing, “Look out below.”

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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