Europe continues to dominate the the psyche of the global investors. The political turmoil in Greece is bringing up the question of whether or not they will leave the Euro and return to the drachma. Dow futures are currently down 89 points. Nasdaq and S&P futures are down 21 and 11 points respectively.
Domestically, the economic data calendar remains light today with just wholesale inventories slated for release at 10am EST. This will leave the US markets susceptible to knee-jerk reactions on any headlines that emerge from Europe.
Most observers think there will be a new round of elections in June as neither side seems to have enough to seats to form a ruling coalition. The leader of the Radical Left has already come out and said that the Greek debt agreement s were null, hence the market reaction over the past few days. It shows the people on the ground are tired of being dictated to by the IMF and ECB.
Greece does have fiscal deadlines approaching on whether or not they continue to receive bailout funds. Without a ruling government, one has to wonder the status of the funds and whether or not Greece can meet their fiscal obligations set forth under the agreements. Doubtful at best.
Commodities are enduring the same sell off that the broader market is. Gold prices lost their grip on $1600 per ounce overnight, while oil continues to fall over concerns over growth. Oil is actually good news for consumers as it will lessen the pain at the pump somewhat.
All in all expect a repeat of yesterday in regards to market action. Unless the headlines out of Europe really start getting surprising.
Stocks to Watch
Demand Media, Inc. (NYSE:DMD) is up 21.06% in pre market trading at $9.60. DMD has traded 20 thousand shares so far this morning and trades 341 thousand shares a day on average. Demand Media reported first quarter results late yesterday and posted a beat on revenue and EPS. Adjusted EPS came in at $0.07, beating Wall Street’s view of $0.05. Revenue jumped to $82.9 million, beating estimates of $79.6 million. The company has a market cap of 643.39 million.
SodaStream International Ltd. (NASDAQ:SODA) is up 17.68% in pre market trading at $34.35. SODA has traded 246 thousand shares so far today and trades 880 thousand shares a day on average. SodaStream reported first quarter results earlier today. Revenue came in at $87.9 million, net income was $10.1 million and adjusted EPS was $0.55. The company has a market cap of 587.94 million.
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is up 7.31% this morning at $3.67. ARNA has traded 380 thousand shares so far today and trades 11.3 million shares a day on average. ARNA shares continue to rally ahead of May 10 FDA meeting. The company has a market cap of 624.15 million.
Pluristem Therapeutics, Inc. (NASDAQ:PSTI) is up 8.55% in pre market trading at $2.54. PSTI has traded 20 thousand shares so far today and trades 61 thousand shares a day on average. PSTI shares are up this morning on news that its PLacental eXpanded cells have saved the life of a child after bone marrow transplant failed. The company has a market cap of 103.77 million.
Dynavax Technologies Corporation (NASDAQ:DVAX) is down 14.93% this morning at $4.33. DVAX has traded 70 thousand shares so far today and trades 1.5 million shares a day on average. DVAX shares are tumbling today after the company announced a public stock offering late yesterday. The company has a market cap of 791.14 million.
STEC, Inc. (NASDAQ:STEC) is down 12.73% in pre market trading at $6.72. STEC has traded 9 thousand shares this morning and trades 686 thousand shares a day on average. STEC shares are falling after reporting a miss on first quarter results and weak guidance for the second quarter. STEC posted a $0.17 loss for the first quarter, analysts were expecting a loss of $0.15. The company has a market cap of 355.24 million.
Synacor, Inc (NASDAQ:SYNC) is down 2.92% this morning at $10.98. SYNC has traded 10 thousand shares so far today and trades 676 thousand shares a day on average. SYNC shares took a hit yesterday following a $4 a share jump. The company has a market cap of 187.78 million.