Futures are pointing higher this morning on earnings optimism, but investors cannot seem to shake the wariness over Europe. Jobless claims are also on tap this morning. Dow futures are currently up 34 points. Nasdaq and S&P 500 futures are also positive, up 14 and 4 points respectively.
The just released jobless numbers are likely to disappoint investors. Claims came in at 386k, a 2k drop thanks to the BLS revising the previous week upward. This time it was from 380k to 388k. Expectations were for a print of 374k. So the narrative that will emerge is that like the housing market, the labor market is beyond anemic and will likely lead to some sort of new stimulus.
The percentage of overall earnings beats is helping investors shrug off news coming out of Europe, plus the ambiguous data emerging domestically and from China. Granted the earnings expectations bar was set so low, the number of beats at this point was inevitable. But investors are taking positives where they can get them.
In Europe, a Spanish bond auction was deemed a success even though borrowing costs rose. Strong demand tempered nerves over the yield rise. European markets as a whole are generally higher this morning, though the Spanish markets are off a bit thanks to the auction and the country’s general weakness in recent weeks.
Asia was mixed bag overnight. Japanese shares dropped, while Hong Kong and Australia both logged mild advances. Concern over the EU and their sovereign debt crisis is still weighing on the global investor.
Commodities are enjoying a bit of a rally this morning. Oil prices are up 17 cents to $102.84. Gold price futures are trading higher this morning, up $5.30 to $1,644 per ounce.
Stocks to Watch
Human Genome Sciences Inc. (NASDAQ:HGSI) is up 100.42% in pre market trading today at $14.39. HGSI shares are up big today after the company rejected a $2.6 billion bid from GlaxoSmithKline. HGSI typically trades 7 million shares a day on average. The company has a market cap of 1.43 billion.
Mellanox Technologies, Ltd. (NASDAQ:MLNX) is up 23.82% this morning at $53.65. MLNX has traded 46 thousand shares so far today and trades 215 thousand shares a day on average. MLNX shares are rallying today as the company announces quarterly results that beat by $0.18 per share and also beat on revenue. The company has a market cap of 1.74 billion.
Gilead Sciences Inc. (NASDAQ:GILD) is up 15.04% in pre market trading at $53.62. GILD has traded 926 thousand shares this morning and averages 9.3 million shares a day. Gilead announced earlier today that its experimental hepatitis C drug cured 88% of patients four weeks after treatment ended in its most recent study. The company has a market cap of 35.30 billion.
Dendreon Corp. (NASDAQ:DNDN) is up 9.13% in pre market trading at $9.80. DNDN has traded 3.1 million shares so far today and trades 8.7 million shares a day on average. DNDN shares are looking to rebound today after yesterday’s sell off from $9.40 to $9. The company has a market cap of 1.32 billion.
Complete Genomics, Inc. (NASDAQ:GNOM) is up 11.54% this morning at $2.90. GNOM has traded 62 thousand shares so far today and averages 1.89 million shares a day. GNOM shares have been declining over the past week, falling from $3 to $2.60 before jumping today. The company has a market cap of 86.89 million.
Patriot Coal Corporation (NYSE:PCX) is up 1.69% in pre market trading at $6.60. PCX has traded just over a thousand shares this morning and averages 7.3 million shares a day. PCX shares are up more than $0.80 a share on average. The company has a market cap of 589.12 million.
CVR Energy, Inc. (NYSE:CVI) is up 7.82% today at $30.05. CVI has traded 1.9 million shares already today, 300 thousand shares more than its daily average. CVI has signed a deal with Carl Icahn that would allow him to complete a tender offer of $30 per share. The company has a market cap of 2.42 billion.
About Rachel Brook
