Stock futures jumped, with Wall Street poised to rally at the open after news broke late Sunday that Osama bin Laden was killed in Abbottabad, Pakistan in an operation conducted by American military forces and the Central Intelligence Agency.
“In Asia, the Nikkei jumped 1.6%, while China and Hong Kong were closed for the Labour Day Holiday. China’s manufacturing PMI was released, which showed a decline quarter over quarter to 52.9. In Europe, positive sentiment engulfed Germany and France’s markets, while the UK bourse was close for May Day Holiday. European PMI came in slightly above its preliminary figures,” Christoper Lynn writes for TradersHuddle.com. “Crude oil was falling more than $2 per barrel on Bin Laden news, while silver was plunging more than 6%, trading at $45.495 an ounce. Gold was not seeing much of a sell-off, trading near the flat line.”
Lynn writes, “Apple, the maker of iPads and iPhones, was climbing 0.82% to $353 in pre-market. The stocks will likely probe the calculated resistance area at the $355 level during the session, if broken the stock could start mustering momentum to move into new all-time highs territory above $364.90. Apple re weighting in the NASDAQ-100 is effective May 2nd, with this overhang removed, some analysts expect Apple to help extend the broad market and NASDAQ highs, as the stock had lagged in the previous sessions and will likely play catch up. FBR Capital also raised its estimates for second quarter iPad production by 7 % to from 5.8M units to 6.2M units, due to increased availability of IPS panel displays and as Hon Hai sees improved manufacturing yields.”
Read more in the full article here.
CNNMoney reports, “U.S. stocks were poised for a higher open Monday, as investors cheer news that Osama bin Laden was killed by U.S. forces.”
“‘It was such an incredible victory that there is going to be a very, very good mood on Wall Street and throughout the country,’ said Jeffrey Sica, president and chief investment officer at SICA Wealth Management,” CNNMoney reports. “While the news should boost stocks first thing Monday morning, Sica said Osama bin Laden’s death is not enough to sustain a long rally.”
CNNMoney reports, “Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up about 0.5% ahead of the opening bell… While corporate earnings have thus far been strong, Sica said the weak read on the economy’s growth and the labor market last week were causes for concern… The Nasdaq-100 index will be rebalanced to reduce the weight of Apple’s stock by about 40%. Apple (AAPL) currently represents 20.5% of the index. After the rebalancing, Apple’s weight will be reduced to 12.3%.”
Read more in the full article here.
MacDailyNews Note: In pre-market NASDAQ trading, AAPL is currently down $0.86, or -0.25%, at $349.27.