This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Best Ways to Play the Market Rebound: Morning Call

U.S. markets look to extend their winning streak to 3 days, as U.S. stock futures are flat in the pre-market hours despite disappointing earnings reports from Disney (DIS - Get Report) and Molycorp (MCP - Get Report). However, the majority of the earnings focus will be on Cisco (CSCO - Get Report), reporting after the bell -- the company has a lot to prove.

Analysts are expecting Cisco to earn 37 cents a share on sales just under $1 billion. Gross profit margins are expected to fall from 65% to 62% from a year earlier. The stock is down 13% year-to-date and has an average downside of 11% after the past four quarterly reports. As a result, investors will be wondering if a repeat performance is coming ... or will Cisco surprise to the upside.

Investors will also be trading a medley of Cisco's competitors: Juniper Networks (JNPR - Get Report), Hewlett-Packard (HPQ), Dell (DELL), Broadcom (BRCM - Get Report), Adtran (ADTN) and NetApp (NTAP - Get Report).

Investors will be eager to hold onto yesterday's gains following a push in the S&P 500 index above the 1352 area. Sellers held the market to this level last Friday after the U.S. government job report.

Asian markets continue their multi-day upswing on news that Tokyo Electric Power will receive aid from the Japanese government, sending the stock up over 8%. Goldman Sachs (GS) says that Japanese car makers are well on their to full recovery from supply disruptions caused by the earthquake, adding to bullish momentum.

European markets advanced on positive earnings reports from Ericsson (ERIC), Peugeot Citroën and Hermes. Meanwhile, investors continue to ignore the soaring costs of insuring Greek debt. German Chancellor Angela Merkel says Greece must accomplish certain goals before additional aid is considered, potentially driving the Greek government closer to debt restructuring, thus putting more pressure on the Euro currency.

Gold and silver continue to rebound as the U.K., Germany and China are among many countries facing increased inflation pressures. The SPDR Gold Trust ETF (GLD) and iShares Silver Trust ETF (SLV) remain heavily traded in equity markets and are popular among investors wary of worldwide currency issues.

Crude oil is down ahead of inventory numbers at 10:30am -- more reports of increased supplies could send oil lower, dragging the oil services index down as well.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BRCM $44.12 2.81%
CRM $66.85 0.45%
CSCO $27.65 1.92%
DIS $106.12 0.61%
JNPR $22.53 1.08%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs