Market Talk

Stock futures look a little perky, though once again not enough to discern any clear path when markets open. That’s been the case most days in the last week or two, as investors try to detect whether the recent rally has topped out, or if it still has legs.

S&P futures up 6.50; DJ futures up 50. Ten-year flat, yield at 3.23%. Crude’s back above $60/barrel.

BofA shares up 5.2% premarket after selling more than $13B in stock in a capital raise. Maybe BAC investors feel they’ve already been through so much, some dilution is the least of their concerns.

Target’s 1Q EPS came in slightly below last year’s number, but ahead of expectations. Revenue actually inched ahead, but same-store sales were down 3.7%. Shares ahead 5% premarket.

H-P down 4.6% after taking a cautious stance in its outlook. No notable economic data on tap.

It’s not getting much play, but Japan, the world’s second largest economy, reported its worst quarterly GDP – ever. But not to worry, we are told, the Japanese are already seeing signs of improvement. Hooray.

Elsewhere, California’s got to scramble now after voters soundly rejected a series of budget proposals. The state has a $21B budget hole, could run out of money by July, and is already hitting up Uncle Sam for “assistance.”

We have an idea. The government should nationalize California. That’s right, make it a part of the federal government, along with GM, Chrysler, Citi, BofA and the Park Service. They should then split it up into a good California and a bad California, which could be spun out to investors. The good California would comprise Yosemite, the redwoods, San Diego and the Lakers. The bad California would comprise mud slides, riots, wild fires, Ashton Kutcher and the Viper Room.

(Paul Vigna contributed to this report.)