Pre-market Summary
The mkt ended yesterday on a weaker note, and futures indicate that is how today's session is expected to begin. Guidance from bellwether Nokia (NOK) and a number of negative headlines from the financial sector have served as restraint for buyers. While Nokia upped its operating margin target to 16-17% from 15% within the next one to two years, its prediction for declining average selling prices in the industry has contributed to demand concerns. The stock is indicated nearly 3% lower pre-mkt. Among financials, Punk Ziegel downgraded Goldman Sachs (GS), Bear Stearns (BSC) and Lehman (LEH) to Sell from Mkt Perform. Separately, Merrill Lynch (MER) and Morgan Stanley (MS), along with GS and LEH, had their earnings ests trimmed by J.P Morgan on concern that write-downs, along with falling M&A, will hurt earnings. The downgrades/est cuts are feeding concern that the recent rebound effort in the financial sector may have run its course. However, some positive news just hit the wires as Dell's (DELL) Board of Directors authorized a $10 bln common stock repurchase. Also just released, the Bank of Canada unexpectedly lowered its interest rate 25 basis points to 4.25%. Note today's trading session will lack catalysts with no economic data or Fed speakers on the agenda. Investors will also continue to look ahead to a number of central bank meetings in Europe and Asia later this week (and next Tuesday's FOMC meeting), tomorrow' OPEC meeting and Friday's November Nonfarm Payrolls number. Dow futures are currently -49; Nasdaq futures are currently -15.5; S&P futures are currently -6.9. For technical levels of interest, click here... The Bond mkt is slightly lower in early trade following yesterday's advance as investors have little to grab onto today with an empty calendar. The 10-yr is currently -05/32 to 3.864%... In Commodities, Jan crude oil ($89.14 -0.17) is showing little direction early as investors look forward to tomorrow's OPEC meeting in Abu Dhabi... In Europe, mkts were lower by mid-day as ongoing concern about banks' profitability weighed on the financial sector, while tech stocks were hurt by a cool investor reception to a trading update from Nokia. FTSE is currently -1.2%; DAX is currently -0.3%; CAC is currently -1.3%. In Asia, mkts ended mixed, though concern that economic growth is slowing in the U.S. continued. Nikkei closed -1.0%; Hang Seng closed +0.8%; Shanghai Composite closed +1.0%... Notable pre-market Calls include Downgrades: GS, BSC and LEH at Punk Ziegel, ETFC at GARP Research, ORCL at JMP Securities, PAY at Credit Suisse... On the Earnings calendar: AVAV, CHS, PSS, CPRT, GES, PLAB, NX and WIND are confirmed to report today after the close... Today's Economic calendar is empty.
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