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Market Updates

Futures Mixed

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Equity futures are showing mixed results this morning, but American Express' earning warning is helping Dow futures to trade down better than 65 points. S%P futures are up fractionally and NASDAQ futures are unchanged. Fair value for the S&P 500 is $8.93 and that price will not change during the day. Buy programs are set for buying at $11.11 and sell programs are set at $6.45. For more information on fair value and buy/sell programs please visit www.programtrading.com

Bond YIELDS lower

We are seeing some buying in bonds this morning, with bond yields lower across the board. The yield on the 5-year Treasury note is down 0.45, or 0.99%. The 30-year T-bond yield is off 0.34%, and on the verge of falling back below its 50-day moving average. Economic reports due out this week could make for some volatile trading in bonds this week.

American Express Warns

Dow component American Express is trading lower by $3.05 to $38.25 this morning after the travel services and credit card giant said earnings for the period would be approximately 48 cents per share, which excludes a pre-tax loss of $185 million from the write-down and sale of certain high-yield securities. Analysts surveyed by First Call/Thomson Financial had been expecting earnings of 51 cents per share.

Amgen Trade Update

Last Thursday I highlighted a potential short/put trade in shares of Amgen (NASDAQ:AMGN) when the stock was trading near $59.12. I only wanted to short 1/2 position in the stock and decided to hold this trade over the weekend. On Friday, the stock traded inside of Thursday's trading range and today bearish traders want to see this stock trade below Friday's low of $58.63 to give us indication that the stock is starting to weaken after a rally from the $46 level back on March 22. We'll be updating the trade throughout the trading session today in the hot list on PremierMarkets.com

Jeff Bailey
Senior Market Technician

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