Thursday, January 14th, 2010
Watchlist and Market Preview for January 14, 2010
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A123 Systems, Inc. (NASDAQ:AONE), Osteotech, Inc. (NASDAQ:OSTE), and Buffalo Wild Wings (NASDAQ:BWLD) are three stocks to watch as the market appears set for a higher open.
Stocks to Watch
- A123 Systems, Inc. (AONE) – Shares of the battery maker rose sharply higher in premarket trading after signing a multi-year battery supply agreement with Fisker Automotive. The new American automaker building premium green vehicles will launch is Karma Plug-in Hybrid Electric Vehicle in late 2010, which is expected to be one of the cleanest and most fuel-efficient cars in the world.
- Osteotech, Inc. (OSTE) – Shares of the biologic products maker rose sharply higher in premarket trading after reporting stronger-than-expected preliminary fourth quarter results. The company generated revenues of approximately $26.3 million, compared to $24.6 million a year ago, and noted that new products contributed $1 million in revenues. Meanwhile, the company reported a healthy $10.7 million in cash on its books.
- Buffalo Wild Wings (BWLD) – Shares of the popular restaurant chain moved sharply higher after MKM Partners upgraded the company from a Neutral to a Buy and increased its price target on the stock from $41 to $52 per share. Earlier this week, the company reiterated its expectation for 20% earnings growth in 2010 and was upgraded to Outperform from Market Perform by Morgan Keegan as well.
Market Preview
U.S. markets are set to open higher, extending the week’s rally ahead of retail sales data. The Dow Jones Industrial Average is trading up 17 points to 10,645, the Nasdaq is trading down 1 point to 1,881.50, and the S&P 500 is trading up 0.40 to 1,142.
The dollar recovered modestly during the overnight session, while commodities were mixed. Crude oil rose $0.13 to $78.44 per barrel, while natural gas fell $0.02 to $5.71 per MMBtu. Meanwhile, gold prices rose $1 to $1,137.80 per ounce and silver prices rose $0.03 to $18.58 per ounce ahead of the U.S. market open.
Investors will be looking towards a number of economic reports to guide the day’s trading. Initial jobless claims came out at 444,000 which was higher than market expectations of 433,000. Meanwhile, retail sales dropped 0.3% compared to market expectations of a 0.5% rise. Investors will also be watching November business inventories, which are expected to rise 0.3%.
Overseas markets moved largely higher during their sessions. In Europe, Britain’s FTSE jumped 28.06, or 0.51%, to 5,501.54, Germany’s DAX rose 27.96, or 0.47%, to 5,991.10, and France’s CAC increased 12.96, or 0.32%, to 4,013.82.
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-- Written by David Breen
