By Shawn Langlois
Now, another short-seller favorite, Tesla, gets its shot to prove its legions of detractors wrong with its quarterly report. You can expect plenty of volatile action in the stock throughout the session along with a post-earnings squeeze if the numbers manage to beat targets.
So far, the shorts are grinning ear to ear. The stock is down about 4% premarket.
As for the broader market, stocks are holding up well ahead of the bell, shrugging off a bearish note from Goldman, detailed below, on the sketchy short-term fate of equities.
Key market gauges: Futures on the Dow
and the SP
are pushing slightly higher earlier, setting up for the kinds of gains that eluded Europe
about halfway through the session. Check out Indications.
highlights a relatively scant lineup of quarterly results. The shares have rallied some 30% since early November, even as that pesky range-anxiety stuff won’t go away. The company appears to be at a crossroads, and its investors could be in for a wild ride, considering short positions account for about 24% of its shares outstanding, making it one of the market’s most-heavily shorted.
The buzz: Thinking of jumping on the bandwagon and riding Google
shares? You might end up with a chunk of Eric Schmidt’s stake. The Google Chairman is planning to sell almost half his shares, some 3.2 million. We’ll see if the prospects of that hefty insider sale put any pressure on the stock when trading starts, but so far, it isn’t moving much premarket. Is Schmidt calling the top?
is still on the radar and probably will be there for awhile amid an uprising against its plans to go private for $14 a share. That’s just not good enough, according to Dell’s biggest outside shareholder, who is looking to push that price back to 2008 levels at $24 a share. Good luck.
Other top-trending tickers include Arch Coal
, which took a beating following its report last week, and LinkedIn
, in the wake of a booming 21% pop on Friday that doesn’t seem to have Wall Street bulls overly concerned.
The chart of the day: Alhambra Investment Partners, in its earnings season halftime report, pointed out that the fourth-quarter, by the time the numbers are tallied, is likely to show negative earnings growth. That would make for two backpedaling quarters in a row, something reserved only for recessionary environments. But the experts are sticking to their forecasts for strong growth, even after they missed 2012 by a mile. Here’s a chart that “may defy rational belief.”
The call of the day: It’s time to take a breather, says Goldman Sachs. The investment bank just moved from it’s bullish short-term position to neutral on equities over the next three months. Goldman is still upbeat for the next year but it’s looking for some consolidation in the coming weeks. “Asset prices have moved a long way and are now very close to our 3-months targets leaving unusually low cross-asset dispersion in our 3-month return expectations,” Goldman wrote.
Random reads: The Pope, citing health reasons, is giving up his mitre, not all that long after joining Twitter under the @Pontifex handle. Here’s some live reaction from The Guardian. Needless to say, the tweets are flying.
I nominate Manny Pacquiao. RT @djfxtrader: New Pontiff Should Be In Place By Easter, Vatican Spokesman Says
— Paul Theron (@paul_vestact) February 11, 2013
How sports is bleeding America dry, from Salon.
Feeling pressure to earn big bucks right out of college? Forget Harvard, the South Dakota School of Mines Technology is where it’s at, thanks to the commodity rush.
Another one of George Bush’s cronies fired off an errant shot this weekend.
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