After four straight sessions of losses, stock futures are rising with hopes of a rebound on Tuesday. The continuation of the debt crisis in the euro zone coupled with worries that U.S. lawmakers are making the same mistakes as the Europeans–loads of rhetoric, but no substantive action–is putting investors and financial markets in a tailspin. The S&P 500 fell almost 2% while the Dow turned negative for the year on Monday. Last week, the S&P recorded its worst week in two months.
S&P 500 futures rose 7.2 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 41 points, and Nasdaq 100 futures rose 2.75 points.
The S&P has fallen through a key support level at 1,200. The next technical support was seen at 1,187, representing the 61.8% retracement of the 2011 high to low.
The average yield on the 3-month T-bill more than doubled to 5.11%from 2.292% one month earlier. The 6-month T-bill saw yields jump to 5.227% from 3.302%.
Technology shares will be in focus a day after Hewlett-Packard Co (NYSE:HPQ) gave a modest 2012 profit outlook.
The FTSEurofirst 300 rose 0.7% after a steep drop in the previous session, although trading was volatile after yields in a Spanish bill auction rose to their highest in 14 years.
Yields on peripheral euro zone debt climbed, with Italy’s 10-year bond above 6.7% but below the plus-7% that triggers fears a bailout will be needed. On foreign exchanges, the euro was slightly higher against the dollar although severe dollar funding strains are supporting the U.S. currency as European banks scramble to secure cash dollars.
Stocks to watch today include Hewlett-Packard Company (NYSE:HPQ), Brocade Communications Systems, Inc. (NASDAQ:BRCD), Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), Pacific Ethanol Inc. (NASDAQ:PEIX) and Nokia Corporation (NYSE:NOK).
Hewlett-Packard Company (NYSE:HPQ) is down 1.34% in pre-market trading with 33 thousand shares traded so far. The company released earnings late yesterday and reported better than expected fourth quarter results, but their guidance was lower than expected. HPQ reported revenue of $32.3 billion, down 3% from the same period last year. It was higher than Wall Street expectations of $32.05 billion. For the next quarter, HPQ expects profits of $0.83-$0.86 per share, well below Wall Street’s $1.11. The company has a current market cap of 53.37 billion.
Brocade Communications Systems, Inc. (NASDAQ:BRCD) is up 6.25% in pre0market trading with 5.8 thousand shares traded so far. BRCD reported a loss in the fourth quarter, but earnings beat expectations. The company’s income was $0.16 per share, beating expectations by $0.06. The stock on average trades 7.11 million shares a day. The company has a current market cap of 2.20 billion.
Apple Inc. (NASDAQ:AAPL) is up slightly in pre-market trading at 0.36% at $370.24. AAPL trades on average 18.34 million shares daily. Apple is looking to rebound today after the market took a hit yesterday. The company has a current market cap of 342.96 billion.
Netflix, Inc. (NASDAQ:NFLX) is down 4.66% in pre-market trading with 192 thousand shares traded so far. NFLX is falling after the company announced a plan to raise cash by selling $400 million worth of stock and convertible notes. Needless to say, investors are not going to like the company diluting shares. NFLX on average trades 9.78 million shares daily. The company has a current market cap of 3.91 billion.
Pacific Ethanol Inc. (NASDAQ:PEIX) is up 2.61% in pre-market trading. PEIX trades 12.19 million shares in volume on average. PEIX closed yesterday down 9.45% at $1.15. The company has a current market cap of 88.67 million.
Nokia Corporation (NYSE:NOK) is down 2.49% in pre-market trading at $5.87. NOK has traded 1.51 million shares already today and on average trades 29.72 million shares. The stock fell 7.53% yesterday and closed at $6.02. The company has a current market cap of 22.54 billion.