More Greek tension is on the menu today, after EU leaders refused to sign off on the new bailout until Greece approves austerity measures. Not sure what planet they live on, but if they install the new austerity measures get ready for the third bailout. Unless you are under the misguided notion that demolishing your workforce has some sort of magic power to increase government revenue. Like saying you think David Blaine is really levitating.
Futures are reacting negatively to the news with the Dow down 83 points to 12,759. Nasdaq 100 futures are right behind the Dow, off 19 points to 2,542. The S&P 500 is rounding out the pre-market declines, down 11 points to 1,337.
Yesterday Greek political leaders agreed to a draft proposal – read an idea in abstract, not an actual plan – to cut debt to 120% of GDP. This also included a 22% cut in minimum private wages. Predictably, unions in the country immediately called for a 48-hour general strike. Social unrest is also being threatened.
European markets have reacted negatively to the news, with the Stoxx 600 Index off nearly a percent in intraday trading. Asian markets also closed mostly lower.
Domestically, the University of Michigan consumer sentiment numbers are expected to be released at 9:55am EST. Also Fed Chairman Ben Bernanke is expected to discus the state of the US housing market at the National Association of Homebuilders International Builders’ Show in Orlando, FL.
Commodities are getting hit in the risk-off mood this morning. Nymex crude futures are down over a dollar to $98.40. Oil is getting hammered after the International Energy Agency lowered its global oil demand outlook from 1.1 million barrels to 800k barrels per day.
Stocks to watch today include Linkedin Corporation (NYSE:LNKD), Bank of America Corp. (NYSE:BAC), Netflix, Inc. (NASDAQ:NFLX), Amazon.com, Inc. (NASDAQ:AMZN), Nuance Communications Inc. (NASDAQ:NUAN), Apple Inc. (NASDAQ:AAPL) and Exelixis, Inc. (NASDAQ:EXEL)
Linkedin Corporation (NYSE:LNKD) is up 9.58% in pre market trading at $83.71. LNKD shares are rallying right now due to fourth quarter results. Excluding items, Linkedin earned $0.12 per share in the fourth quarter, beating estimates of $0.07 per share. Revenue doubled in the quarter to almost $168 million, 8 million more than analysts were expecting. The company has a market cap of 7.45 billion.
Bank of America Corp (NYSE:BAC) is down 1.34% in pre market trading. BAC shares are down this morning as the overall market is set to open lower. While reports said the Greece deal was done, it turns out that isn’t the case. BAC shares had been steadily moving up since mid December when it was trading at $5. The company has a market cap of 86.18 billion.
Netflix, Inc. (NASDAQ:NFLX) is down 1.38% in pre market trading at $123.12. NFLX shares are down alongside the whole market this morning. NFLX shares have dropped more than $5 a share since Tuesday. Netflix is feeling a lot of heat from competitors like Amazon and Redbox when it comes to streaming video. The company has a market cap of 6.92 billion.
Amazon.com, Inc. (NASDAQ:AMZN) is down 0.83% in pre market trading at $183.45. AMZN shares are slightly lower this morning as volatility creeps back into the market. Amazon signed a licensing deal with Viacom to bring popular channels such as Nickelodeon, VH1, MTV, TV Land, Spike, Logo, BET and Comedy Central to its streaming service. The company has a market cap of 84.18 billion.
Nuance Communications, Inc. (NASDAQ:NUAN) is down 10.08% in pre market trading at $27.38. NUAN shares are tumbling after the company posted its fiscal first quarter results. Nuance posted earnings of $0.34 per share on adjusted revenue of $382.4 million. Estimates were for $0.36 per share on revenue of $392 million. The company has a market cap of 9.16 billion.
Apple Inc. (NASDAQ:AAPL) is up 0.11% in pre market trading at $493.55. AAPL shares are up slightly this morning despite the overall negative market. Reports are increasing that Apple will unveil their iPad 3 at an event in March. The company has a market cap of 459.82 billion.
Exelixis, Inc. (NASDAQ:EXEL) is down 3.85% in pre market trading at $5.45. EXEL shares are down this morning after the company announced an offering of 11 million shares at $5.50 a share. The company has a market cap of 735.05 million.
Leave a ReplyWant to join the discussion?
Feel free to contribute!