U.S. equity index futures are higher again this morning. S&P 500 futures added 5 points in pre-opening trade. Higher than expected fiscal fourth quarter earnings contributed to strength.
Reaction to economic news released at 8:30 AM EST was mixed. January housing starts rose 2.8%, in line with expectations. January building permits slipped 4.9%, also in line with expectations.
Companies reporting better than expected fiscal fourth quarter earnings included Rogers Communications, Devon Energy, Deere, Humana and Loblaw. Rogers Communications also raised its dividend by 10% and announced a share repurchase program. Deere rose 8% after releasing better than consensus first quarter earning and after offering positive guidance for 2010.
Bank of America/Merrill initiated coverage of the U.S. Home Building sector with Buy recommendations on most stocks in the sector including Lennar, KB Homes, Pulte Homes, Ryland Group and DR Horton.
Home Depot added 2% after Oppenheimer upgraded the stock from Perform to Outperform.
Microsoft improved 1% after Citigroup initiated coverage with a Buy recommendation. Target is $31.
Credit Suisse has raised its estimates for fertilizer prices. Fertilizer stocks including Potash Corp, Agrium and Mosaic have gained 1%-2% in overnight trade.
Uranium stocks continue to advance following news yesterday that the U.S. government will provide an $8.3 billion loan guarantee to be used to build two new reactors in the U.S. Cameco and Uranium Participation Units were notable gainers in late trading yesterday. Their short term momentum indicators recently turned positive. Cameco added to gains this morning. Cameco has a period of seasonal strength from January 21st to June 5th.
Don Vialoux, chartered market technician, is the author of a free
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