1:00pm (EST)
When we shut our eyes this morning around 2am, the Dow futures were up 70 points and it appeared as though the bulls were going to have a huge day. However, when we woke up this morning and were doing the finishing touches to our 9am update, futures were slipping which lead to a muted open for the market.
The Nasdaq showed strength on the heels of Intel’s (INTC, $21.69, up $0.68) blowout quarter but the mood quickly soured after Wall Street got the latest Retail Sales numbers. The Commerce Department said June sales fell 0.5% which was worse than the expected 0.2% decline most economists had expected.
As a result, the market is hanging near the breakeven level but is showing positive results. The Dow is up 16 points to 10,381 while the Nasdaq is higher by 14 points to 2,256. The S&P 500 is up by 2 points to 1,097.
Although we listed higher targets for the Dow this morning, the index is still running into resistance at 10,400. We have also been a repeating parrot on the 1,100 level for the S&P and the 2,240-2,250 level for the Nasdaq but the momentum does not appear to be there from the bulls to take these levels out today. We aren’t saying they can’t, we are just pointing out the market is near the top of the ranges again and any stalled rally will likely lead to a retreat and more hair pulling.
The jobless claims number could be another catalyst for Thursday’s trading and we also get a look at the health of the Financial sector as JPMorgan (JPM, $40.21, down $0.27) will announce earnings before the bell.
Turning to IPO’s, there are a number of initial public offerings that will be coming to the market over the next few days as activity seems to be picking up.
The biggest of the bunch will be private equity firm Kohlberg Kravis Roberts (KKR) will make its debut on Thursday on the New York Stock Exchange. The offering is worth about $2 billion but KKR is a partnership not a corporation so this one is a little funky in the way it is being done. In any event, stay clear of this one as it has a checkered past.
RealD (RLD) is expected offer nearly 11 million shares in a range of $13-$15 apiece. The company is trying to capture a little of the magic in the 3D wave that has hit us over the last 6 months. RealD supplies projectors for 3-D cinema screens and glasses for viewers but is a sketchy offering because the company’s bottom line bleeds red.
SMART Technologies (SMT) is a Canadian company that makes interactive white boards that could replace the days of chalkboards (finally!) that many of us grew up with. It seems these new “smart boards” are catching on as they have the power of a computer and the ease of a whiteboard.
Users can share applications, access the internet and write in digital ink. The company also acquired NextWindow in April which makes touch screens for electronic displays. We haven’t seen a board, yet, but they sound pretty cool. The company plans to raise $600 million with 35 million shares being offered in the $16-$18 range.
Finally, Qlik Technologies (QLIK) is a provider of business intelligence software. Their software analyzes costs and organizes and finds information. Qlik supports an impressive client base and expects to bring in about $100 million with its offering.
We like SMART a lot and RealD could get a pop because of its brand name but finding the diamond in the rough is a little easier when you do a little research.
Although we are big fans of the 3-D rave that has been hot over the last six months, those stocks are starting to cool and we question how long people are going to pay an extra $3-$5 to watch a 3-D movie. [Update: Imax (IMAX, $13.50, down $0.20) is down from its 52-week high of $21.30.]
That leaves SMART as the one to watch going forward.
We have a lot to cover in our Members Area as we have added a couple of names to our Watch List. We are slowly setting up for the market’s next move and we think there are a number of great setups coming our way. Subscribers, check for the updates.
We will be back in the morning with another full update and hopefully some breaking news on Vivus (VVUS, $12.74, up $0.30) which could get some good news concerning its drug Qnexa. We also have Vivus on our Watch List so some of you could be setting up for a nice payday…
Tags: dndn, IPOs, JPMorgan, Vivus, VVUS
This entry was posted
on Wednesday, July 14th, 2010 at 12:04 PM and is filed under IPOs, Market Analysis, Market Commentary.
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Rally Stalls After Weak Retail Sales
1:00pm (EST)
When we shut our eyes this morning around 2am, the Dow futures were up 70 points and it appeared as though the bulls were going to have a huge day. However, when we woke up this morning and were doing the finishing touches to our 9am update, futures were slipping which lead to a muted open for the market.
The Nasdaq showed strength on the heels of Intel’s (INTC, $21.69, up $0.68) blowout quarter but the mood quickly soured after Wall Street got the latest Retail Sales numbers. The Commerce Department said June sales fell 0.5% which was worse than the expected 0.2% decline most economists had expected.
As a result, the market is hanging near the breakeven level but is showing positive results. The Dow is up 16 points to 10,381 while the Nasdaq is higher by 14 points to 2,256. The S&P 500 is up by 2 points to 1,097.
Although we listed higher targets for the Dow this morning, the index is still running into resistance at 10,400. We have also been a repeating parrot on the 1,100 level for the S&P and the 2,240-2,250 level for the Nasdaq but the momentum does not appear to be there from the bulls to take these levels out today. We aren’t saying they can’t, we are just pointing out the market is near the top of the ranges again and any stalled rally will likely lead to a retreat and more hair pulling.
The jobless claims number could be another catalyst for Thursday’s trading and we also get a look at the health of the Financial sector as JPMorgan (JPM, $40.21, down $0.27) will announce earnings before the bell.
Turning to IPO’s, there are a number of initial public offerings that will be coming to the market over the next few days as activity seems to be picking up.
The biggest of the bunch will be private equity firm Kohlberg Kravis Roberts (KKR) will make its debut on Thursday on the New York Stock Exchange. The offering is worth about $2 billion but KKR is a partnership not a corporation so this one is a little funky in the way it is being done. In any event, stay clear of this one as it has a checkered past.
RealD (RLD) is expected offer nearly 11 million shares in a range of $13-$15 apiece. The company is trying to capture a little of the magic in the 3D wave that has hit us over the last 6 months. RealD supplies projectors for 3-D cinema screens and glasses for viewers but is a sketchy offering because the company’s bottom line bleeds red.
SMART Technologies (SMT) is a Canadian company that makes interactive white boards that could replace the days of chalkboards (finally!) that many of us grew up with. It seems these new “smart boards” are catching on as they have the power of a computer and the ease of a whiteboard.
Users can share applications, access the internet and write in digital ink. The company also acquired NextWindow in April which makes touch screens for electronic displays. We haven’t seen a board, yet, but they sound pretty cool. The company plans to raise $600 million with 35 million shares being offered in the $16-$18 range.
Finally, Qlik Technologies (QLIK) is a provider of business intelligence software. Their software analyzes costs and organizes and finds information. Qlik supports an impressive client base and expects to bring in about $100 million with its offering.
We like SMART a lot and RealD could get a pop because of its brand name but finding the diamond in the rough is a little easier when you do a little research.
Although we are big fans of the 3-D rave that has been hot over the last six months, those stocks are starting to cool and we question how long people are going to pay an extra $3-$5 to watch a 3-D movie. [Update: Imax (IMAX, $13.50, down $0.20) is down from its 52-week high of $21.30.]
That leaves SMART as the one to watch going forward.
We have a lot to cover in our Members Area as we have added a couple of names to our Watch List. We are slowly setting up for the market’s next move and we think there are a number of great setups coming our way. Subscribers, check for the updates.
We will be back in the morning with another full update and hopefully some breaking news on Vivus (VVUS, $12.74, up $0.30) which could get some good news concerning its drug Qnexa. We also have Vivus on our Watch List so some of you could be setting up for a nice payday…
Tags: dndn, IPOs, JPMorgan, Vivus, VVUS
This entry was posted on Wednesday, July 14th, 2010 at 12:04 PM and is filed under IPOs, Market Analysis, Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.