Pre Market (futures, nasdaq, nyse, dow, s p) - Trader Talk with Bob Pisani - CNBC.com
Vague rumors are again moving markets today. Europe is weak (down 5 percent) on concerns of additional losses from major banks, as well as the failure of Europe to cut rates.
Thank you, Apple
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] , because you have reminded us of something the bears keep bringing up: that we are faced with three weeks of potentially difficult earnings guidance. You can see it today with Motorola
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] , which gave "kitchen sink" guidance for the first quarter: we were expecting a 9 cents gain, they said they would have a loss and that the recovery in mobile devices would take longer than expected. Sees losing market share. Down 11 percent pre-open. Nokia also weak on concerns of slowdown. You can see it with Coach
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] . They did OK for the quarter just ending, and essentially affirmed full year 2008 estimates. But Coach used to have a tradition of beating and raising; now we have to settle for status quo at best.
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You can see it with Suntrust
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] , which missed and reported losses of $510 million in money markets. Bears also believe that rate cuts will fail to stabilize markets, and there will be no leadership because of a drawn out process with financials, and tech expectations taken down
For the bulls, a lot of things have to go right:
--Europe cuts rates
--Fed cuts 50 bp next week
--Bond insurers stabilize/rescued
--Energy, financials re-emerge as leaders
--Insider buying picks up
--Investment outflows stabilize
The biggest advantage the bulls have is the already oversold conditions.
So where do we go from here? One trader noted yesterday that we have entered a new trench war of data points and news flow on the dangers of recession vs. rate cuts and stimulus.
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