Moody’s Ban Warning Sends Futures Lower. Stocks to Watch: AEA, AMZN, CLWR, GM, NVDA, BAC, PMFG

A bearish mood is reigning over Wall Street this morning after Moody’s warned it could cut the credit ratings of over 100 banks. Add in the precarious position of Greece, and you have all the ingredients for a sell-off. Dow futures are currently down 36 points to 12,727. Nasdaq 100 futures are also declining, down 6.50 points to 2,551. S&P 500 futures are rounding out the losses, down 5.75 points to 1,336.50.

Late yesterday, Moody’s announced it was reviewing the ratings for over 100 financial institutions. Citing the EU crisis among other issues, the ratings agency said it could cut ratings of banks by multiple notches. US institutions under the gun include Morgan Stanley, Goldman Sachs and JP Morgan.

In Europe, the Greek debt crisis continued unabated. Some analysts are beginning to believe that the EU is preparing to eject Greece from the single currency union. The looming default deadline in March should make the officials speed up on what has been a multi-year crisis at this point.

Domestically it seems a if investors are taking some money off the one-way bet that is Apple. After hitting a high of $526.96, the stock sharply reversed. Dropping more than 2%, more investors could look to take some profits in the coming days. If it does fall again, it could pull the broader market down thanks to its 17% weighting on the Nasdaq.

On the data front, weekly jobless claims are expected at 8:30am EST. January housing starts are expected at the same time.

A speech by Fed Chairman Ben Bernanke will also be followed closely this morning. That is expected to kick-off at 9am EST.

In commodities, oil prices are giving up some of the ground they have gained in recent days. Nymex futures are currently down just over 70 cents to 101.08 per barrel.

Stocks to watch today include Advance America, Cash Advance Centers (NYSE:AEA), Amazon.com, Inc. (NASDAQ:AMZN), Clearwire Corporation (NASDAQ:CLWR), General Motors Company (NYSE:GM), Nvidia Corporation (NASDAQ:NVDA), Bank of America Corp. (NYSE:BAC) and PMFG, Inc. (NASDAQ:PMFG).

Advance America, Cash Advance (NYSE:AEA) is up 33.75% in pre market trading at $10.59. AEA shares are rising this morning on news that Grupo Elektra will aquire the company for $10.50 per share, or about $656 million. The company has a market cap of 485.77 million.

Amazon.com, Inc. (NASDAQ:AMZN) is down 3.37% in pre market trading at $178.25. Amazon China pulled the iPad 2 from their store yesterday after Apple asked them to. Apple is in a trademark dispute with Proview International Holdings which claims ownership of the iPad trademark in China. The company has a market cap of 83.95 billion.

Clearwire Corporation (NASDAQ:CLWR) is down 8.90% in pre market trading at $2.15. CLWR shares are slipping this morning after the company said revenue for 2012 may fall or at best stay at 2011 levels. CLWR shares had been rising over the past week from $2 to $2.40. The company has a market cap of 589.30 million.

General Motors Company (NYSE:GM) is down 1.48% in pre market trading at $24.60. GM reported fourth quarter results earlier today and profits were weaker than expected. Net income was $500 million, or $0.28 per share. Excluding certain items, General Motors earned $0.39 per share, analysts were expecting $0.41 per share. The company has a market cap of 39 billion.

Nvidia Corporation (NASDAQ:NVDA) is down 6.86% in pre market trading at $15.06. NVDA shares fell this morning as the company scales back sales expectations for its Tegra 3 processors, which is used in mobile devices. Nvida also warned that sales for its PC graphics chips could be affected due to delays at its contract manufacturer. The company has a market cap of 9.87 billion.

Bank of America Corporation (NYSE:BAC) is down 1.03% in pre market trading at $7.70. BAC shares are down some this morning on reports that Moody’s cut its credit rating along with 16 other global and 114 European financial institutions. The company has a market cap of 81.97 billion.

PMFG, Inc. (NASDAQ:PMFG) is down 19.56% in pre market trading at $21.01. PMFG announced an offering of 2.6 million shares at $16 per share this morning. The company has a market cap of 371.52 million.

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About Danny Fisher

Danny is the old hat at Active Investor. One of the been around the block a few times traders, his main focus is on overall market conditions. Be it some new merger talk or Washington being Washington, you can expect Danny will be on top of it.

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