9:00am (EST)
We said it looked as though the bulls would battle back in the second half on Monday and shortly after our midday update, the comeback began. The bears were riding the back of Italy worries but the resilience of the bulls has been evident since last Tuesday’s bounce off the bottom which we called beautifully. It would be nice if we didn’t have to talk about Europe’s headwinds but we are afraid they could be around for the rest of the year. However, it appears Wall Street is starting to focus more on our backyard than theirs.
The Dow added 85 points, to 0.7%, to end at 12,068. The index traded to a low of 11,880 but went out near its high after reclaiming the 12,000 level. We are still rooting for a break back above 12,200 then 12,350. Support is strong at 11,800 then 11,600.
The S&P 500 gained 8 points, or 0.6%, to finish at 1,261. We are looking for a close above 1,275 this week and it was good to see the close above 1,250 yesterday after the index kissed a low of 1,240. We mentioned in our Weekly Wrap as long as 1,225 holds the bulls have the green light to push this market higher.
The Nasdaq advanced nearly 10 points, or 0.3%, and settled at 2,695. The 2,700 level continues to be a sticky hurdle as Tech traded to a peak of 2,697. The index tested a low of 2,649 and we were looking for 2,650 to hold. The bulls have a shot at 2,750 this week if this area holds, if not, the bears will push 2,600.
Shares of Priceline.com (PCLN, $509, down $4.37) were up nearly $14 in after-hours trading last night after the company beat Wall Street’s earnings expectations. Excluding costs, the company reported a profit of $9.95 a share on revenue of $1.5 billion. The suit-and-ties were looking for $9.30 a share on $1.4 billion in sales. However, Priceline did lower its forecast for the current quarter citing debt concerns from across the pond which could affect travel.
The 2% pop in extended trading wasn’t much of a move and this morning as we head to press, shares are at $523. We have been waiting to play Priceline for a few years now but shares and the options have been too expensive for us as the company refuses to do a stock split for some reason. Usually, triple-digit stocks carry high option premiums so it’s cheaper (and easier) to play options on ones under $100.
Futures are pointing towards a higher open: Dow (+73), S&P (+&), Nasdaq (+19). Subscribers, check the Members Area for the updates and stay on the lookout for Profit Alerts or New Trades this morning.
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