Thursday, November 12th, 2009
Pre-Market Round-Up for November 12, 2009
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JDS Uniphase Corporation (JDSU), Colgate-Palmolive Company (CL), and Ctrip.com International Ltd. (CTRP) are three story stocks to watch as the market is set to open lower.
Story Stocks to Watch
- JDS Uniphase Corporation (JDSU) – Shares of the communications equipment provider rose sharply higher in premarket trading after reporting lower results for the fiscal first quarter. The company saw its revenues drop 21% to $297.8 million, citing increased pricing pressures. However, the company received a favorable mention by CNBC’s Jim Cramer who said it was ready for a comeback with Jeff Evanson’s direction.
- Colgate-Palmolive Company (CL) – Shares of the consumer products company moved marginally higher in premarket trading after CNBC’s Jim Cramer recommended the stock on his Mad Money Lightning Round. The hedge fund all star believes that the stock remains a solid buy even as it continues to break new 52-week highs. Meanwhile, the company has benefited handsomely from the decline in the U.S. dollar.
- Ctrip.com International Ltd. (CTRP) – Shares of the Chinese travel services provider rose sharply in premarket trading after delivering solid third quarter results. The company saw its net revenues jump 47% to $80 million, operating margins improve to 37% from 29% and net income jump 80% to $28 million or $0.39 per share. During the fourth quarter, the company expects revenue growth of between 25-30%.
Market Preview
U.S. markets are set to open lower after Wal-Mart Stores Inc. [[WMT]] announced a drop in same store sales that cast doubt on a consumer led recovery. With about an hour left until open, the Dow Jones is trading down 44 points, the S&P 500 is trading down 3.30 points, and the Nasdaq is trading down 4.5 points so far during the premarket session.
Investors will be looking towards a number of economic reports to guide Thursday’s trading. Initial Jobless Claims will be the most watched indicator and is expected to drop to 510,000. Meanwhile, preliminary consumer sentiment numbers are expected to come in at 71 points. And finally, crude inventories will help put energy stocks on the watchlist at 11am.
The U.S. dollar moved lower during the overnight session to new 52-week lows, which helped increase the price of commodities. Gold hit a new record of $1,118 amid concerns about inflation in the United States and accumulation by central banks, while oil prices are trading up 0.9% at $79.80 per barrel. Other commodities like silver and natural gas also moved higher.
Overseas markets were largely mixed during their sessions. In Europe, Britain’s FTSE 100 rose 0.1%, Germany’s DAX rose 0.16%, and France’s CAC 40 rose 0.03% during their session. In Asia, Hong Kong’s Hang Seng dropped 1.01%, Japan’s Nikkei 225 dropped 0.68%, and China’s Shanghai index dropped 0.07% during their sessions.
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-- Written by David Breen
