Futures are pointing towards a lower opening this morning despite some good news here and there. Of course, oil is once again in focus, up another $2 to $144. Today’s the first day of the quarter and it is usually a bullish day, historically.
Bank and Financial stocks will also get some attention today as Morgan Stanley (MS, $36.07) initiated coverage of Lehman Brothers (LEH, $19.81) and Goldman Sachs (GS, $174.90) with an “Overweight” rating. Merrill Lynch (MER, $31.71) is reportedly selling assets…
Apple (AAPL, $167.44) got a Price Target upgrade to $175 from $165. The stock is down $2 in pre-market trading.
The big report I’m waiting on today is the Auto Sales due out at noon. The Ford (F, $4.81) July 6 puts (FSI, $1.19) closed below their high of $1.58 yesterday and hit the $1.25 stop. These calls were profiled at under $0.50 so the trade was good for more than a double. Even though the puts are likely to trade higher, an exit plan is an exit plan. However, the good news is that I mentioned the General Motors (GM, $11.50) July 10 puts (GMSB, $0.59) yesterday and they could do well today.
Expect a volatile day with pretty decent spikes either way. There are some economic reports that will move the market but we are certainly headed for a lower opening.