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Stock futures edge higher

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Investors will look for a higher open for stocks this morning as stock futures are edging higher in front of a busy week for economic data. S&P futures (sp02u) are currently trading up 5 points at 946, NASDAQ futures (nd02u) are up 7 points at 1,021 and Dow futures (dj02u) are higher by 33 points at 8,901.

Treasuries are seeing modes selling with the benchmark 10-year Treasury trading down 9/32 to YIELD ($TNX.X) 4.27% while the longer-term 30-year Treasury is lower by 14/32 to YIELD ($TNX.X) 5.05%.

Today's economic data will have July New Home Sales being released at 10:00 AM EST. Economists are looking sales to come in around the 975,000 level. July Existing Home Sales are also scheduled for release at 10:00 AM EST with economists looking for an annual rate number near 5.2 million. The past couple of months, we've seen seemingly stronger numbers from the New Home Sales numbers compared to Existing as homebuilders are able to throw in free upgrades to help sway consumers where and existing home sale is more dependent on housing supply and regional comparables.

Other key economic data this week will have July durable goods orders released Tuesday morning at 08:30 AM EST and August consumer confidence released later that morning at 10:00 AM EST. Economists have forecasted July durable goods orders to rise 1.5% and August's consumer confidence to be near 97.0.

Fulcrum thinks potential FDA approval for BMY drug

This morning's company specific news has Fulcrum Global Partners saying that drug maker Bristol-Myers Squibb's (NYSE:BMY) $25.43 potential blockbuster antipsychotic drug Abilify could win final marketing approval from the FDA as soon as this week in a once daily capsule form. Fulcrum says there are 2 positive factors now known that argue in favor of FDA marketing approval between this week and this October in that there are no unusual discussions presently occurring for Abilify with the FDA, and BMY is not aware of any manufacturing problems with the FDA. In addition, Fulcrum believes the drug appears to have improved safety and tolerability versus present antipsychotics from Johnson & Johnson (NYSE:JNJ) $54.82, Astrazeneca (NYSE:AZN) $30.34, Pfizer (NYSE:PFE) $34.54 and Eli Lilly (NYSE:LLY) $59.57.

Banc of America cautious ahead of Hewlett earnings

Banc of America said it believes that Hewlett Packard's (NYSE:HPQ) $14.70 third-quarter revenue could come in below expectation of $17 billion (consensus is at $16.8 billion) when it reports quarterly earnings tomorrow. Banc of America believes continued weak consumer demand, sluggish corporate markets, and the unwinding of channel inventory will have weighed on the quarter. BofA expects HPQ to give cautious guidance and says HPQ's valuation will remain clouded by concerns about ongoing integration challenges as well as earnings quality and visibility.

Jeff Bailey
Senior Market Technician
Option Investor


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