This Day On The Street
Continue to site
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

Market Preview: Pandora's IPO, Finisar, CPI

NEW YORK ( TheStreet) -- The market got a reprieve Monday from the rampant bearishness that's pervaded Wall Street for the past month as apparently salvation lies in still more shopping.

The push vaulted the Dow Jones Industrial Average back above 12,000 again after a two-day hiatus, and the blue-chip index has now moved higher in three of the past four sessions. It's too early (and there's still too much data ahead) to say the Dow's six-week losing streak is in serious jeopardy, but the setup is certainly there.

Wednesday brings a plethora of data, headlined by the consumer price index for May at 8:30 a.m. ET, and expectations are for tame 0.2% increase, slightly than the 0.4% rise in April. The core number, which excludes food and energy (and is often mocked for this reason), is also projected to be a 0.2% bump higher. Ian Shepherdson, chief U.S. economist at High Frequency Economics, expects the headline CPI to be held down by falling gas prices but sees the core rising again because of rents.

"The key driver of the upshift in core inflation from its 0.6% October low to 1.3% in April has been rents, which account for nearly 40% of the index," Shepherdson said in a research note. "The year-over-year rate of increase of owner-equivalent rents has swung from a low of -0.3% in August last year to +0.9% in April."

The other key report, according to Shepherdson, is industrial production for May at 9:15 a.m. ET, and he expects output to rise 0.6% with capacity use rising to 77.4% from 76.4% vs. consensus expectations of 0.2% and 77% respectively, according to

"The May industrial production numbers should help steady market nerves after the very disappointing April report," Shepherdson wrote.

The other datapoints due Wednesday include the Empire State Manufacturing survey at 8:30 a.m. ET, MBA's mortgage applications data for last week at 7:00 a.m. ET, the National Association of Home Builders Housing Market Index at 10:00 a.m. ET, along with crude inventories for last week at 10:30 a.m. ET.

Morning chatter will likely center around Pandora Media (P - Get Report), which will make its public debut on the New York Stock Exchange on Wednesday with the ticker symbol "P." The Internet radio company saw heavy demand for its IPO on Tuesday, pricing an offering of 14.7 million shares at $16 each, and raising roughly $235 million.

The company, which is still a loss maker, had started out with a range of $7-$9 per share, then upped it to $10-$12 per share on Friday while also increasing the size of the sale by another million shares.

The earnings calendar features Finisar (FNSR - Get Report) after the closing bell. The Sunnyvale, Calif.-based maker of optical networking equipment is expected to post a profit of 33 cents a share in its fiscal fourth quarter ended in April on revenue of $242.8 million.
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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JDSU $6.51 -2.40%
CIEN $16.83 0.00%
FNSR $16.46 0.00%
JPM $63.20 0.00%
P $9.93 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs