Stocks Are Pointing To A Lower Opening On January 23

Global

Stocks are falling across the globe, with most of the pressure coming from Asia from fears around the coronavirus. Hong Kong was down over 1.5%, and Shanghai was down over 2.75%. Japan and South Korea were both down around 1%. 

Markets in Germany and the UK are down slightly, by 35 and 24 bps, respectively. 

10-Year Yield

S&P 500 futures are down 4.5 points around 8 am, while the US 10-year Treasury is moving lower and currently 1.75%. The 10-year is on a pretty critical level of support.

10-Year yields

 

S&P 500 (SPY)

The S&P 500 Futures are trading through the lower end of the rising wedge now, and it would suggest the stocks are likely to move lower from here, perhaps setting up that move to around 3,250 we have been looking for. However, there is one level of support to contend with at 3,310. That is level to watch for today, a break of 3,310 gets the futures to move to 3,250.

S&P 500 futures

 

Semis (SMH)

Semis could have a good day on the back of Texas Instruments and Terradyne. But resistance in the SMH is in the $149 to $150 region. So that will need to be watched closely for a breakdown or breakout.

 

Skyworks (SWKS)

Skyworks will report tonight, and Cowen is noting that buy-side estimates are for revenue guidance of $850 million versus consensus estimates of $750 million. It likely means guidance of less than $850 million could be a problem for the stock. 

It is clear from the stock’s big move higher that expectations are high. I know my hopes increased when the company moved its earnings date ahead of Apple and two weeks earlier than usual. So know we will have to wait. $112 would be support should the company disappoint. 

skyworks, swks

 

Western Digital (WDC)

Western Digital is rising sharply today after it was upgraded from Morgan Stanley to Overweight from Equal Weight while boosting its price target to $88 from $64. We have been tracking WDC since January 3, when first noted some bullish options betting and the potential break out. I still think the stock can climb to that $75 level of resistance. 

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Disclosure: Michael Kramer And The Clients Of Mott Capital Own SWKS, MSFT, And AAPL

Disclaimer: This article is my opinion and expresses my views. Those views can change at a moment's ...

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