The Morning Call is brought to you by T3Live.com in collaboration with TheStreet. T3Live.com is an online financial media network and education platform that provides active traders and investors with market analysis, real-time access to strategies, and in-depth training from real traders in real time.
-- Stocks were under pressure yesterday as President Obama called for 4 trillion dollars in spending cuts and tax increases. Positive notes from the beige book on economic growth and declining unemployment helped stocks rally into the close.
While investors turn their focus to the four S&P stocks, including
, set to report earnings after the close, it is the weakness overseas pushing U.S. futures lower.
The Nikkei was down 0.9%, before a late rally on news of a better-than-forecast profit outlook from
sent stocks to a positive close.
European markets are down on concerns that Greece and Portugal will restrcuture their debt, causing bonds to fall, while pushing yields to record levels. Investors worry that a Greek restructuring of debt could result in a 50 to 70% haircut.
The Russian market closed down nearly 1% as four days of selling in copper and nickel lead mining stocks lower.
The U.S. dollar index hits 16-month lows before rallying back above the important $75 level, causing silver to rally 1% while gold remains flat.
should be in play today with silver still near highs.
Defense stocks like
in addition to big pharmaceutical stocks like
seem most affected by the Obama deficit plan.
downgrades the financial sector to "neutral" from "overweight" --
Bank of America
are all lower before the open.
Chinese reverse merger stocks continue to be a hot-spot for investors and regulators, as
raised margin requirements on Chinese reverse mergers to 100%. Some of the stocks on the list include:
, down 45% year-to-date,
China Integrated Energy
, down 74% year-to-date,
, down almost 49% year-to-date,
China Sky One Medical
, down 56% year-to-date and
China Shen Zhou Mining and Resources
down almost 26% year-to-date.
These Chinese reverse merger stocks in aggregate have plummeted 75% for the year, while "legitimate" larger cap Chinese stocks like
are up 46% in 2011.
Disclosures: Jordan Kimmel is long JO, JVA, RES, IDT, SLW, MCZ, SRZ, SMTC, ACAD, REED, GRRF, NVMI, FFHL, COOL, WSTL, ROYL, TORM, SCLN, BSQR, ASYS and CROX
This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.