Stocks Are Pointing To Higher Opening On Cyber-Monday

By Michael J. Kramer of Mott Capital Management

Monday, December 2, 2019 9:30 AM EST

US Markets

S&P 500 Futures +4.5 points
US 10-Year 1.85%
VIX 12.94
Dollar Index 98.30
Oil $56.43

International Markets

Japan +1.01%
China +0.13%
HK +0.37%
SK +0.19%
Germany -0.30%
UK -0.08%

Stocks are pointing to a higher for the S&P 500 after some manufacturing data continues to show improvement. Germany Manufacturing PMI came in at 44.1 versus estimates for 43.8, and up from last month’s 42.1. Also, the China Caixin PMI came in 51.8 versus forecasts for 51.4, and up from 51.7 last month. Meanwhile, the official PMI came in 50.2.

We will get our own PMI readings today, with the ISM reading at 10 AM. The reading is expected to rebound to 49.4 from 48.3 last month.

S&P 500 (SPY)

The futures have been drifting lower despite starting the day higher and based on the current levels, the cash market should open right around resistance at 3,150. If we can manage to get above 3150 today, then perhaps the next level of resistance would come around 3,200. But until the index can break above that region of resistance, I think we continue to hang in a holding pattern and trade sideways, until reaching the lower side of the trading channel.

S&P 500, spy

Splunk (SPLK)

Splunk is catching a big today after receiving an upgrade from Goldman to buy from neutral while raising its price target to $180 from $147. The stock broke out of a significant level of consolidation between $108 to $141. The $141 level should offer plenty of support going forward, and the stock could be heading to $161.

Splunk, splk

Roku (ROKU)

Roku was downgraded to underweight from equal-weight at Morgan Stanley, and its price target was raised to $110 from $100. The RSI continues to trend lower, which continues to suggest to me longer-term the stock is heading lower. A break below $150, starting pushing it to $135.

roku, roku

Biogen (BIIB)

Biogen was downgraded to underperform from neutral with a $250 price target at Baird. The stock has failed on three occasions at a price of around $310 three times and now could be set up to retest support $280.

biogen, biib

Alibaba (BABA)

Alibaba is pointing a to lower opening today, shocker. I spoke about this over the weekend. The chart suggests the stock falls to around $188. Baba went out at 195 HKD.

alibaba, baba