US EQUITIES

DOWNSIDE ALERTS (login for Real Time)

 

(-) RIMM (-9%) cuts Q3 outlook below prior expectations, Street view.

 

Trading Analysis-

The stock has held a downside range of 35.82 to 34.10 through the bulk of its pre-market trade. Sellers have been active at the 35.50 to 35 range, maintaining this area as a strong ceiling thus far. Buyers have pushed back two downside tests at the 34.10 to 34.20 area, a tentative floor through the mid-session and late pre-market.

 

(-) OVTI (-TK%) outlook below Wall Street expectations.

 

Trading Analysis-

The stock has maintained a negative range this morning between 4.70 and its low of 4.40. Heading deeper into the second-half of pre-market trade, OVTI is holding mostly between 4.56 and 4.40. We noted last night after OVTI reported its results that there was modest upside support that moved into OVTI between its after-hours low of 4.21 up to 4.50 - perhaps an area for longs to watch for any potential floor to form.  So far, this morning, that floor call seems to be holding as OVTI recently bounces off its low of 4.40 up to 4.60.

 

Historical Insight-

In the near-term, OVTI’s historical earnings-driven performance between the extended-hours and following regular sessions doesn’t offer us much directional influence. The stock is a mixed mover over the last four quarters. It has followed through with more aggressive same-direction next-day trade twice and twice reversed its after-hours movement in next-day trade.

 

(-) FCX (-18%) company announces production cut, suspends dividend.

 

Trading Analysis-

 

The stock is firming from a pre-market low of 17.68 to levels just above 18.25. A continuation of this latest upside bounce may run into downside pressure near 18.75 to 18.50, levels where sell momentum was relatively strong on the stock’s mid-session drop to its lows.

 

UPSIDE ALERTS (login for Real Time)

 

(+) CEG (+30%) Electricite de France (EDF) reportedly offered to acquire a 50% stake in Constellation Energy.

 

Trading Analysis-

The stock is steadying near 30 to 30.50 after dropping from a mid-session pre-market high of 32.85. The firmer support near 30 to 30.50 is in line with the strength we recorded earlier in today’s session where CEG recorded some of its most aggressive upside support between 29.25 and 30.

 

(+) MRVL  (+1%) reports better-than-expected earnings results.

 

Trading Analysis-

Stock is maintaining an upside range of 5.41 to its pre-bell high of 5.66. Buyers have been most active this morning between the low and about 5.50.

 

Historical Insight-

We noted last night MRVL has followed through on its after-hours performance with more aggressive, same-direction next-day trade in three of the last four quarters. While the stock's tendency to add to its evening performance in the following regular session looks intriguing, we also stated we would still be wary of getting in too high on the long side tomorrow. Of note in Tuesday night’s trade was some rather consistent downside liquidity that hit MRVL between 5.80 and 5.70, a potential ceiling to watch. We said, longs may want to wait for any potential dips back near 5.25 to 5.30. Thus far this morning, MRVL is holding within the range we saw last night, not quite touching the evening ceiling and lingering just above the floor established in after-hours trade.

 

ETF RECAP

Active-volume exchange-traded funds in Tuesday's regular session:

 

SPDR S&P 500 (SPY): +3.9%

 

iShares S&P 500 (IVV): +3.9%

 

PowerShares QQQ (QQQQ): +3.3%

 

Select Financial Sector SPDRS (XLF): +8.2%

 

iShares Russell 2000 (IWM): +5.3%

 

iShares Russell 1000 Growth (IWF): +2%

 

SPDR Gold (GLD): +1.7%

 

iShares MSCI Emerging Markets Index (EEM): +6.3%

 

United States Oil Fund (USO): -3.5%

 

Active-volume extended-hours movers:

 

SPY, -1.5%

 

QQQQ, -2%

 

SDS, +3%

 

GLD, -0.8%

 

IWM, -0.4%

 

ETF Power Play

The iShares Dow Jones U.S. Real Estate ETF (IYR) gained 11.9% on Tuesday after an analyst upgrade of key real estate investment trusts. Look for more attention on real estate- and construction-linked funds Wednesday. Mortgage applications filed last week surged 112%, compared with the week before, as borrowers rushed to lock in lower rates, according to the Mortgage Bankers Association's weekly survey released on Wednesday.