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Stock future slip as open nears

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Stock futures have been losing steam this morning as the open of trading nears. S&P futures are currently trading fractionally lower at 1,103 after having been higher by 2 points earlier this morning. NASDAQ futures are holding on with a 3-point gain at 1,482, while Dow futures are trading down 5 points at 9,430.

Fair value for the S&P 500 today is $1.38. HL Camp & Company has their computers set for program buying at $2.45 and set for program selling at $0.66. Fair value for the NASDAQ-100 today is $3.80.

Pre-market most active

After reporting pro forma earnings of 4 cents a share after the bell yesterday (beating estimates of 2 cents a share) Cisco Systems (NASDAQ:CSCO) leads most active with 1.3 million shares. Current trading is taking place at $18.44, which is higher than yesterday's close of $17.90.

Juniper Networks (NASDAQ:JNPR) is number 2 in volume with 340,000 shares traded. The stock is slipping back 18 cents from Friday's close of $22.58 at $22.40.

Brocade Communications (NASDAQ:BRCD) has traded 244,000 shares and adding 40 cents to yesterday's close of $26.11 here at $26.51.

FOMC meeting today

Later today at approximately 2:15 pm EST, we should get an announcement on Fed policy regarding interest rates. Investors look to be somewhat edgy this morning ahead of what may expect to be a 25 basis point cut to 2.25%. Some predict a disappointing reaction from the market should the Fed cut just 25 basis points as recent economic data shows little economic stimulus from past rate cuts. There is also thought that a more aggressive Fed and 50 basis point cut, might receive a more positive reaction from the market.

Upside surprises before the bell

Earning's season is coming to an end, but there are still a lot of companies reporting earnings. Those stocks that beat estimates (not necessarily showing positive earnings) are... AOLA, DOL, EMR, GLFD, HSIC, IGT, LEXG, MET, MSM, OHP, ROV and TWTC.

Those that are reporting earnings below estimates .... APN and STN.

Earnings after the bell

premierinvestor.net subscribers will need to be aware that Disk Drive Index (DDX.X) Component Hutchinson Technology (NASDAQ:HTCH) is expected to report a loss of 37 cents a share after the close of trading today. Yesterday we profiled the stock as bullish on a break above $20.10 and the stock shot higher to close at $21.22 and currently trades $21.25 in pre-market action.

Other stocks we've mentioned in past commentary scheduled to report earnings are Maxim Integrated Products (NASDAQ:MXIM), Qualcomm (NASDAQ:QCOM) and Service Corporation (NYSE:SRV).

Jeff Bailey
Senior Market Technician
Option Investor

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