Asian markets overnight felt the reverberations of S&P’s outlook cut on US government debt, with stocks marking substantial declines.
European markets currently engaged in a moderate bounce from sharp selling yesterday, and euro’s recovering. Stage set for modest rebound for US stocks after yesterday’s sell-off
Oil continues to slide, recently at $106.43/barrel, and gold’s up a little after another fresh Comex settlement high yesterday at $1492.30.
Goldman Sachs, J&J earnings headlines hitting the tape now. Both stocks rising in premarket trading. Intel, IBM after the close. March housing starts due at 8:30 a.m. ET.
S&P futures up 1.80, DJ futures up 27. Ten-year note lower, yield at 3.39%.
Meanwhile, last night Texas Instruments reported a weak first quarter and warned the Japanese disaster would cut into its second quarter. Kevin Kingsbury adds some perspective:
Citigroup calls the impact on Texas Instruments (TXN) in the wake of Japan’s disaster largely as expected. It lowers guidance amid TXN’s cut and moves price target to $40 from $42. But the investment bank does call TXN’s underlying business “good” and “order strength is contributing to an optimistic” 2H view. Susquehanna concurs, adding, “Outside of baseband/Japan, demand commentary sounds good.” FBR says, “We remain constructive on TXN as the firm has meaningful barriers, growing scale and a low 12x P/E multiple,” which should send shares higher. “That said, many TXN comparables are also inexpensive.” Auriga keeps its sell rating, contending it is “somewhat pessimistic” about a 2H rebound. TXN down 2.3% premarket at $34.