The Drive For Five – Stocks Set To Rise on June 10

US Markets

• S&P 500  Futures +9 points
• Oil $53.99
• 10-Year 2.15%
• Dollar Index 96.84
• VIX 16.14

International Markets

• Japan Nikkei +1.2%
• China Shanghai +0.86%
• Hong Kong HSI +2.27%
• South Korea +1.31%
• Germany DAX  Flat
• UK FTSE +0.44%

International Trading

Hong Kong HSI

Hong Kong jumped over 2% on June 10, following better than expected China trade data. The index crossed a critical level of resistance at 27,345. It could set up a rebound to 28,160.

US Trading For June 10

The big news today, tariffs with Mexico have been suspended.

United Technologies and Raytheon are merging. They say it is a merger of equals, but yet UTX shareholders will get 57% of the new company, keep the CEO, and have eight board seats. That compares to Raytheon shareholders getting 43% of the company and seven board seats. Doesn’t sound equal to me, so why isn’t Raytheon acquired with a significant premium?

As a Raytheon shareholder, I can’t say I’m thrilled with the terms of the deal. I have owned Raytheon since October 2016, so it may serve an excuse to take my profits and go.

S&P 500 (SPY)

S&P 500 is rising on June 10, with SPY ETF pointing to an increase in the pre-market. If the SPY can manage to rise to $289.25, it sets up a potential move to $291.50.

AMD (AMD)

AMD continues to rally, rising another 2.5% on June 10. If the rally holds, it sets up a rise $34.50.

Microsoft (MSFT)

Microsoft is rising and has is likely to move towards the upper end of its trading range at roughly $134.

Square (SQ)

Square is rising too, and it is facing a steep overhead downtrend around $69.60. We will soon find out if Square is breaking out or breaking down.

Intel (INTC)

Intel is trading above resistance at $46, and now the stock could rise back to roughly $48.

Bank of America (BAC)

Bank of America is approaching a breakout at $28, which could help the bank rise to around $29.50. Just watch the Treasury spreads, wider spreads means Bank stocks go up, narrow spreaders means the stocks go down. That simply for now.