Bank Earnings Will Decide The Trend To Follow

What’s Happening In The Market Now..

  • The market opened lower this morning ahead of key earnings expected later in the week.
  • Also weighing on stocks is a potential bankruptcy filing from General Motors (GM). The U.S. Treasury Department is directing General Motors to lay the groundwork for a bankruptcy filing by June 1, even though the automaker has publicly stated it could reorganize outside of court, The New York Times reported on Sunday, citing an unnamed source.
  • Investors will get a number of earnings results throughout the week, including reports from key financial firms. Financial companies had been among the hardest hit by the economic downturn and credit crisis, but they have also helped lead a rally over the past five weeks.
  • Goldman Sachs earns $1.66B in 1st-quarter, surpassing Wall Street’s estimates.
  • Oil company shares could come under pressure, after Chevron (CVX) said it expects its first quarter 2009 earnings to be sharply lower than in the fourth quarter of 2008. Oil prices are down this morning after the International Energy Agency said it expects global crude demand to drop this year amid the worst worldwide recession in decades.
  • Bankruptcies are surging despite law that made them tougher and more expensive
  • Sectors starting the day out strong include managed health care, health care services, consumer finance and agricultural products while trucking, autoparts & equipment, real estate services and tires & rubber are down.

Stocks Most Watched Today
Chevron Corporation (CVX), Yahoo Inc (YHOO), Occidental Petroleum Corporation (OXY), Aetna Inc (AET) and Monster Worldwide Inc (MWW), Express Scripts Inc (ESRX), WellPoint Inc (WLP), Teck Cominco Ltd (TCK), Shanda Ineractive Entertainment Ltd (SNDA), Varian Medical System (VAR), SPX Corp (SPW), Nordstrom Inc (JWN), Logitech International SA (LOGI), Eaton Corp (ETN) and Buckle Inc (BKE)

Today’s News Leaders…
Goldman Sachs Group Inc (GS), Express Scripts Inc (ESRX), Apple Inc (AAPL), Amazon.com (AMZN) and Boeing Co (BA) top the lists of companies with news today.

Analysts Favorites…
Research in Motion (RIMM), Best Buy Company (BBY), Western Digital (WDC), Bristol Myers Squibb Co (BMY) and Zimmer Holdings Inc (ZMH).

ETFs and HOLDRs Watched Today…
iShares MSCI Emerging Markets Index Fund (EEM), Select Sector SPDR Energy Fund (XLE), iShares S&P 500 Index Shares (IVV), Vanguard REIT ETF (VNQ) and iShares Dow Jones Select Div Index Fund (DVY)

Tip of the Day…
Homework leads to profits. After you have learned all you can you still have to make a decision. You’ve done the work now trust your gut and get in or stay out. The guy on the fence never looses but he never wins either.

Source: MarketIntelligenceCenter.com