If Europe wasn’t enough of a concern, investors received a nasty surprise yesterday after the closing bell. JPMorgan hastily put together a conference call where they announced as single trader had lost $2 Billion in trades designed to mitigate risk. Dow futures are currently down 75 points. Nasdaq and S&P futures are down 10 and 8 points respectively.
Internationally, Europe still remains a concern as the Greece hurtles towards another election in a few weeks. The recent one has essentially created a hung parliament. Polls out of Greece show the chief anti-bailout party gaining momentum, so this should make for an interesting June to see if they can secure enough seats to form a coalition.
Markets are also having to digest a sharp slowdown in Chinese industrial output. With expectations for a 12.2% rise, the number came in at around 9%. This has many analysts calling for the government to step in decisively to stabilize the weakening manufacturing sector. Retail sales also came in lower than expected.
Domestically the economic data calendar has PPI numbers which came in line with expectations thanks to a drop in gas prices. Consumer sentiment numbers for May are slated for release at 9:55am.
Commodities are following the broader market lower this morning with oil leading the way. After a slight rebound yesterday, the macro data across the globe has Nymex crude futures down $1.13 to under $96 per barrel.
Gold prices are also lower with gold futures down nearly $11 to 1584.50 per ounce. Some analysts came out overnight putting higher price targets on gold in the long-term, but short term it seems coupled with the equity markets.
Stocks to Watch
Nvidia Corporation (NASDAQ:NVDA) is up 9.18% in pre market trading at $13.56. NVDA has traded 622 thousand shares so far today and trades 13.2 million shares a day on average. Nvidia posted quarter results this morning and reported revenue and guidance that beat estimates. First quarter revenue was $924.9 million, above estimates of $916 million. Nvidia expects second quarter revenue to be between $990 million and $1.05 billion, higher than estimates of $976.2 million. The company has a market cap of 7.65 billion.
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is up 99.45% in pre market trading at $7.30. ARNA has traded 2.94 million shares so far today and trades 14.28 million shares a day on average. ARNA shares are rallying as a FDA panel voted 18 to 4 to recommend approval of its lorcaserin. The company has a market cap of 667.95 million.
Endocyte, Inc. (NASDAQ:ECYT) is up 16.55% in pre market trading at $8.10. ECYT has traded 317 thousand shares so far today and trades 1.2 million shares a day on average. Endocyte reported first quarter results late yesterday. The company reported a net loss of $0.27 per share, compared with $0.43 per share a year ago. The company has a market cap of 248.76 million.
Orexigen Therapeutics, Inc. (NASDAQ:OREX) is up 10.45% in pre market trading at $3.70. OREX has traded 25 thousand shares this morning and trades 1.15 million shares a day on average. OREX shares are rising some after ARNA’s FDA panel approval as Orexigen is also trying to bring a weight loss drug to market. The company has a market cap of 226.94 million.
Leap Wireless International Inc. (NASDAQ:LEAP) is up 6% in pre market trading at $5.68. LEAP has traded 8 thousand shares so far today and trades 2.55 million shares a day on average. LEAP shares are up today following reports from Reuters that AT&T and Leap have talked merger in the past few months. The company has a market cap of 424.52 million.
JPMorgan Chase & Co. (NYSE:JPM) is down 8.05% as the company is single handedly affecting the markets today. Yesterday, JPM announced it a $2 billion trading loss due to a failed hedge trading strategy. JPM is currently trading at $37.35 with 3.4 million shares traded. The company has a market cap of 155.58 billion.
Sony Corporation (NYSE:SNE) is down 7.35% at $14.25. SNE has traded 11 thousand shares so far today and trades 1.7 million shares a day on average. SNE shares have fallen to its lowest level in 30 years as the company reports its fourth straight annual loss. Sony posted a $5.7 billion loss for the fiscal year ending in March. The company has a market cap of 15.44 billion.