Futures indicate a lower open for the mkt as the yield on the 10-year note eclipsed the psychological 5% level overnight for the first time since last Aug. As expected, the Bank of England left its benchmark rate unchanged today at 5.50%; however, New Zealand unexpectedly raising rates. That, coupled with yesterday's ECB rate rise and well-known Fed journalist John Berry's commentary that no easing is likely for a long time have put the yield up over the key technical level. Meanwhile, weekly Initial Claims fell 1K to 309K (consensus 312K). That's the lowest level in nearly a month and still indicative of tight labor conditions, hardly the evidence bond traders want to see since high resource utilization remains such a concern for the Fed.
Notable pre-market Calls include Upgrades: FNM at Friedman Billings, RDWR at CIBC, GD at Lehman; Downgrades: PG at Lehman, IMCL at Morgan Stanley... On the Earnings calendar: CAE, HRLY, NSM, QSII and ZQK are confirmed to report after the close... On the Economic calendar, as mentioned above Apr Wholesale Inventories (consensus 0.3%) will be released at 10:00ET while Apr Consumer Confidence (consensus $6.0 bln) will be released at 15:00ET.
Gapping down on weak earnings/guidance: SEAC -9.4%, SHFL -6.0%, CMTL -5.0%, SIX -2.6% (provided mid-quarter update)... Other news: YANB -4.2% (to be acquired by PNC for $35.00 per share -- below last night's 35.77 closing price), MNST -2.4% (announces new CFO), DNDN -2.2% (still checking for news), CMG -2.2% (downgraded to Market Perform at Raymond James).
Gapping up on strong earnings/guidance: AHO +3.8%, ADCT +3.2%... Following same store sales reports: JOSB +9.3%, SKS +5.0%... Other news: BAMM +10.6% (announces $3.00 special one-time dividend), HGSI +7.2% (announces positive final results Of Phase 2b trial of Albuferon), KRY +3.9% (Chavez still deciding what to do with the Sidor steel conglomerate and the Las Cristinas gold mine), BMET +3.2% (private equity consortium increases offer for BMET to $46.00 per share in cash), AAPL +1.2%, RIMM +1.0% (Cramer named AAPL, GOOG, RIMM and AMZN as his top four tech picks).
Courtesy of Briefing.com
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