Morning Call: US Debt Stalemate Weighs on Futures
US stock futures are set for a lower open Monday but are off overnight lows. The drop is triggered by a continued stalemate over the debt ceiling talks as the August 2nd deadline approaches. Bi-partisan talks broke down again over the weekend and neither side seems willing to give an inch. A US default would send shockwaves through the global economy, but lawmakers remain intent on playing chicken over the issue.
Also weighing on the futures overnight, Moody’s Investors Service cut Greece’s credit ratings by three notches Monday, basically stating their opinion that an eventual default is inevitable. Moody’s also went on to opine that the new bailout plan for Greece sets a bad precedent for creditors of other struggling Euro-zone nations.
Earnings season rumbles on this week with another series of high-profile reports, not the least of which comes on Tuesday with Amazon.com Inc. (NASDAQ:AMZN). Recent heavy investment in cloud infrastructure has excited investors despite EPS misses, and it will be interesting to see how they react to numbers this quarter. Other tech earnings to this point have been strong.
Apple Inc. (NASDAQ:AAPL) reported a monster quarter, with iPad and iPhone sales leading the charge, and the stock has rebounded nicely since trading lower following its post-earnings gap up. Expect to see AAPL above $400 sooner rather than later. It seems for now concerns about Steve Jobs’ health are being overshadowed by EPS.
Netflix, Inc. (NASDAQ:NFLX) is up 2% overnight as analysts expect another monster quarter from the new media pioneer when the company reports today. Watch NFLX after earnings, because with around a 20% short float the stock has a penchant for surprisingly harsh short squeezes. There is also news on NFLX this morning, as Bloomberg reports the company is in film-streaming talks with Dreamworks.
Evan Lazarus is the Chief Knowledge Officer of T3 Live. He leads the company’s strategic vision for trader education and manages all of T3 Live’s intellectual property. Mr. Lazarus employs a technical swing trading strategy. Mr. Lazarus has been in the equity trading business for 11 years. After three years at Freelance Equity Trading, LLC, he took a managing director position at Sperling Enterprises, LLC. At Sperling Enterprises, Mr. Lazarus, along with Scott Redler, managed the firm’s traders and developed its training program. His core competency lies in understanding the difficult psychological aspect of trading, and his ability to mentor other traders. Mr. Lazarus became a partner in Sperling Enterprises in 2006 and stepped into the role of Chief Operating Officer for the company. In 2007, he helped facilitate the merger between Nexis Capital and Sperling Enterprises. Mr. Lazarus now manages all training content at T3 Live. T3LIVE.com is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders, real-time.
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