Futures Surge After ECB Rate Cut, Jobless Claims

Scott Redler |

Yesterday's late-day rally came despite another warning from Standard & Poors that a downgrade could be imminent for the European Union and for European banks. A report, which was later denied, that the G20 was planning a $600 billion lending facility for Europe sparked the rally.

On the corporate front, Boeing (BA) is set for a higher open this morning after employees in three states agreed on Thursday to a new four-year contract. Costco (COST) on the other hand, announced that net income rose 2.6% with 10% higher comparable sales and is opening lower due to missed expectations.

Technically, the major indices and many stocks are forming bull flag patterns that suggest higher prices to come. The market has not seen a major pull-in after blasting off last week. The financials have always been key to any sustained rally, and yesterday's action was promising for the bulls. Goldman Sachs (GS) led the charge, breaking out of its flag ahead of the market.

Tech has been a mixed bag with some divergences emerging, but one name that looks to have taken over some leadership in the sector is Google (GOOG). Although the company was relatively week yesterday, it is flagging in front of 52-week highs, and should blast off if the market continues to be strong.

Although today's open is promising for the longs in this market, do not get ahead of yourself. This market remains driven by headlines, and technical patters have not always panned out.

*DISCLOSURES: Scott Redler is long LVS, NFLX, SLV, SPY, MGM, SINA, GOOG, JPM, XLF, OIH, POT.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
BA Boeing Company (The) 131.32 0.75 0.57 1,883,968
CITCD FlashZero Corp n/a n/a n/a 0
COST Costco Wholesale Corporation 150.45 -0.74 -0.49 2,534,124
GOOG Alphabet Inc. 783.01 8.80 1.14 1,132,420
GS The Goldman Sachs Group Inc. 162.89 1.41 0.87 2,568,296
JPM JP Morgan Chase 66.36 0.58 0.88 13,591,099
LVS Las Vegas Sands Corp. 56.89 0.43 0.76 2,186,811
MGM MGM Resorts International 25.57 0.21 0.83 3,652,555
NFLX Netflix Inc. 97.07 2.51 2.65 9,616,847
POT Potash Corporation of Saskatchewan Inc. 16.06 0.15 0.94 5,159,181
SINA Sina Corporation 77.73 1.98 2.61 1,166,237

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