Today’s session looks to be ruled by what happens with the GDP and jobless claims data that will be coming out this morning at 8:30 AM. Going into it, investors are not appearing terribly optimistic with futures trading right around neutral not making any movement either way.
The GDP report is supposed to show that the economy shrank by around 1.3% as a revised reading of Q2’s GDP of 2009. Additionally, the Labor Dept. will be delivering the weekly jobless claims data that is supposed to show that last week there were 560,000 jobs lost. This would be a drop of 16,000 jobs from last week. In my own opinion, that number seems pretty lofty. For the past few weeks, the number has been estimated downward, but we have seen the average jobless claims week-to-week increasing.
Well, I try to upload some pictures and got the entire document deleted right here at 9 AM.
I will quickly lay out what I liked and didn’t. I apologize for this confusion.
My buy pick is Ultra ProShares Financials (UYG). The ETF is going to do well off of the GDP numbers and John Paulson continuing to buy up financials that just came out in a report today, most specifically Citigroup.
My sell pick is Dell Inc. (DELL). I see a lot of potentinal selling going on today moving into the company’s earnings. Hewlett Packard’s earnings were not spectacular, and Dell’s should not be outstanding either. The company is expected to drop over 25% in profits. The stock has moved up 5% in the past week and 10% in the month. It should be time for some profit taking to occur, as investors should be getting out before the market closes.
Sorry about this, but it would take me right to the open to rewrite everything I had. Should have saved during the post.
Good Investing,
David Ristau
