Morning Call: Futures Turn Lower After Mixed Europe News

US stock futures are turned down Tuesday morning and now point to a lower open on Wall St. Last night futures were a bit under pressure after Moody’s Investors Service cut the sovereign debt rating of several European countries. Spain’s rating was cut by two notches while Portugal and Italy saw their trimmed one notch. However, strong investor sentiment from Germany helped to spark a market turnaround, and futures were slightly higher later on this morning.

Apple (NASDAQ:AAPL) will likely remain at the forefront of the action today due to more news about a possible new addition to its product line-up (sort-of). After the iPod we saw the iPod mini and then shuffle. There has been talk of a smaller, cheaper iPhone. Now, Dow Jones Newswires is reporting that the company is testing a new, smaller, cheaper version of its popular iPad tablet. The screen would reportedly be about 8 inches. AAPL is higher overnight, but off pre-market highs.

Earnings season is winding down, but there are still a few notable reports this week. Goodyear Tire & Rubber Co. (NYSEArca:GT) swung to a profit from a loss in the year-ago quarter, but sees slower growth in the future due to weakness across multiple markets. The stock is only marginally lower this morning.

The economic calendar today includes January retail sales and January import prices, both due at 8:30 ET. Also, at 10am ET, Treasury Secretary Geithner will testify before the Senate Finance Committee about President Obama’s budget proposal for fiscal 2013.

Boeing (NYSEArca:BA) is higher this morning after reporting that it has signed its largest-ever airplane order contract with Indonesia’s Lion Air. The deal, worth $22.4 billion, is for 230 planes – 201 737 MAXs and 29 next-generation 737-900 ERs.

While investors anxiety has shifted away from Greece for the time-being, the Euro zone will now have to tackle how to bring the country’s debt load down significantly. The goal is to bring debt-to-GDP down to 120%–from current levels of about 160%–by 2020. It is a tall task given that the Greek economy shrank by 7% in the fourth quarter amid deep austerity cuts, the largest drop of the recession.

Scott Redler Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategiesfor the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader. Scott Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Scott moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, he maintained his status as a top trader in the industry while working closely with all traders in the firm to dramatically increase performance. Scott has participated in more than 30 triathlons and one IronMan triathlon, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business and Bloomberg, and he has been quoted in the Wall Street Journal and Investor’s Business Daily among other publications. Scott produces much of the media and content available to subscribers and followers. 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.

This material is being provided to you for educational purposes only. No information presented constitutes a recommendation by T3 LIVE or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy. The content neither is, nor should be construed as, an offer, or a solicitation of an offer, to buy, sell, or hold any securities. You are fully responsible for any investment decisions you make. Such decisions should be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance and liquidity needs.Visit the T3Live Homepage, Virtual Trading Floor, and Learn More About Us.


Leave a Reply

Your email address will not be published. Required fields are marked *