Investors are starting to worry about complacency in the market and how that normally foretells an abrupt downturn. In a word, the market has been boring. Without a catalyst t push the market higher, the expectations of a correction are growing. this could shake out the profit holders and once it is over, get new money back into the system.
With no economic data on the calendar today, all eyes will be on oil. Crude jumped temporarily overnight after reports of a pipeline explosion in eastern Saudi Arabia. The Kingdom denied the report even with pictures from PressTV. Then again, it is PressTV, the Iranian media arm. Not exactly the CNN of the Middle East.
Nymex futures are currently down 76 cents to $108.08 per barrel. The worry for investors is that any prolonged move above $100 will put a damper on consumer spending and could threaten the already precarious recovery.
Gold prices continue to slip this morning, off $13.20 to $1709.
On the IPO front, Yelp Inc. (NYSE:YELP) is scheduled to start trading. The review site has priced its IPO at $15. 7.1 million shares are scheduled to be on offer.
In Europe, the EU a said they would release the second bailout to Greece once they completed the planned swap between Greece and their private creditors. This is expected to be completed in the next week.
Stocks to watch today include Shutterfly, Inc. (NASDAQ:SFLY), Zynga Inc. (NASDAQ:ZNGA), Nokia Corporation (NYSE:NOK), Yelp Inc. (NYSE:YELP), Sirius XM Radio Inc. (NASDAQ:SIRI), A123 Systems, Inc. (NASDAQ:AONE) and Bank of America Corporation (NYSE:BAC).
Shutterfly, Inc. (NASDAQ:SFLY) is up 13.38% in pre market trading at $30.51. SFLY trades about 1.4 million shares a day on average. SFLY shares are up today after Kodak sold its online business to the company for $23.8 million. The company has a market cap of 938.16 million.
Zynga Inc. (NASDAQ:ZNGA) is up 3.94% in pre market trading at $15.09. ZNGA shares are up today after the company announced a new online platform to play its titles, a move that will lessen its dependence on Facebook. Zynga trades about 13.1 million shares a day on average. The company has a market cap of 5.16 billion.
Nokia Corporation (NYSE:NOK) is down 1.51% in pre market trading at $5.21. NOK has traded over a million shares already this morning and trades 31.5 million shares a day on average. NOK shares have been steadily declining over the past week from $5.80 to around $5.20. The company has a market cap of 19.63 billion.
Yelp! Inc. (NYSE:YELP) will have its IPO today and will begin trading later this morning. The company’s shares will be priced in above expectations at $15 a share, valuing the company at nearly $900 million. Yelp! is a U.S. consumer review website.
Sirius XM Radio Inc. (NASDAQ:SIRI) is unchanged in pre market trading at $2.23. SIRI is seeing a good bit of volume in pre market and trades about 51 million shares a day on average. SIRI shares have trended higher most of the year so far moving from $1.85 to over $2.25. The company has a market cap of 8.37 billion.
A123 Systems, Inc. (NASDAQ:AONE) is down 3.68% in pre market trading at $1.83. AONE has traded 77 thousand shares already this morning and trades 2.9 million shares a day on average. AONE shares are down after the company reported preliminary fourth quarter results. A123 expects fourth quarter revenue of $40.4 million, well below expectations of $53.7 million. The company also filed an extension for its 2010 10-K. A123 will report full results on March 8. The company has a market cap of 239.55 million.
Bank of America Corporation (NYSE:BAC) is down 0.12% in pre market trading at $8.11. BAC is trading lower today as the overall market is set to open lower. BAC has been trading flat for about a month now around $8 a share. Analysts are beginning to worry about a market wide pull back as investors start to look for any reason to sell off. The company has a market cap of 87.15 billion.