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Stock futures mixed

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Stock futures are showing some mixed results this morning and this may be encouraging for equity investors. Currently we're seeing S&P futures (sp01u) trade lower by 6 points to 1033, NASDAQ futures (nd01u) are higher by 1 point to 1,253 and Dow futures are down 80 points to 8,820. Fair value for the December S&P 500 futures (sp01z) today is $5.67. HL Camp & Company has their computers set for program buying at $6.92.

Bond YIELDS mixed

Early on we're also getting mixed results from the bond market. We're seeing some selling in the 30-year ($TYX.X) as this bond is seeing a higher yield to 5.443%. Both the 5-year ($FVX.X) and 10-year ($TYX.X) are seeing declines in their YIELD. The five year YIELD is down the most and it looks like many market participants don't think the Fed is through cutting rates at this point. Current YIELD on the 5-year ($FVX.X) stands at 3.825%. Last night in the premierinvestor.net market wrap I began laying out what I think is one scenario for traders/investors to be aware of as it relates to bond YIELDS and various US$/foreign currency action.

Oracle leads most active

In pre-market trading, shares of Oracle (NASDAQ:ORCL) are active with 482,000 shares traded. Yesterday's action had the stock going out at $11.01 and we're seeing trades this morning at the $10.60 level. CSFB downgraded the stock this morning to "buy" from "strong buy" citing deteriorating fundamentals for the software giant. Yesterday's conference call from ORCL has the company saying it expects licensing revenue growth of negative 15% compares to previous estimates for declines of 8-10%.

Rambus upgraded

Shares of Rambus (NASDAQ:RMBS) are being upgraded this morning over at Morgan Stanley to "outperform" from "neutral" after Rambus and Intel (NASDAQ:INTC) signed a new licensing agreement. The agreement is for 5-years and provides quarterly payments of $10 million. Yesterday, shares of Rambus (RMBS) finished the trading session at $6.65 and are seeing some action this morning at $7.15.

Jeff Bailey
Senior Market Technician

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