U.S. equity index futures are mixed this morning. S&P 500 futures are unchanged in pre-opening trade. Index futures did not respond significantly to the second estimate of fourth quarter GDP. Consensus was growth at an annualized rate of 5.7% versus the initial estimate of 5.7%. Actual was growth at 5.9%.
Volume on U.S. exchanges is expected to be lower than average this morning due to a major snow storm that hit New York last night.
AIG fell 9% after reporting a fourth quarter loss of $8.9 billion.
Gap Stores added 4% after reporting higher than expected fourth quarter earnings, after increasing its dividend, after announcing a share buy back and after offering positive guidance for 2010. ‘Tis the season for retail merchandiser stocks to move higher!
FNX Mining reported higher than expected fourth quarter earnings. Consensus was a profit of $0.17 versus a loss of $4.68 per share last year. Actual was $0.31 per share. FNX Mining currently has a positive technical profile. Intermediate trend is up. The stock moved above its 50 day moving average yesterday. On balance volume shows that the stock is being accumulated by major investors. Support is at $11.27 and resistance is at $13.78. Current intermediate upside potential on a breakout above resistance is to $16.85. ‘Tis the season for base metal stocks to move higher until May!
Don Vialoux, chartered market technician, is the author of a free
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