A Peek Into The Market Before The Trading Starts
Pre-open movers
US stock futures turned down. Futures on the Dow Jones Industrial Average declined 16 points to 11,163, while S&P 500 futures fell 1.70 points to 1,197. Nasdaq 100 futures rose 1.75 points to 2,135.
A Peek Into Global Markets
Negative sentiments ruled the European markets today. While the STOXX Europe 600 Index has lost 0.30%, London's FTSE 100 Index moved down 0.55%.
Asian markets ended mixed, with Japan's Nikkei Stock Average adding 0.93%, Australia's S&P/ASX 200 moving up 0.30% and China's Shanghai Composite losing 0.15%.
Broker Recommendation
Citigroup has published a research report on Amkor Technology (NASDAQ: AMKR) and Teradyne, Inc. (NYSE: TER) and has upgraded both companies to Buy.
In the report, Citigroup writes "We see three key positives driving a potentially very bullish set-up out the other side of the correction: 1) EPS/cash flow should prove more resilient (especially surprising for AMKR) and companies should still make a lot of money resulting in a re-valuation based on higher “cross-cycle” EPS (much like 2004 but likely more dramatic), 2) chipmakers are now faced w/more capital-intensive “shrinks” as the next wafer size (450mm) is years away; and 3) key factors driving back-end test buy-rate compression have run their course. While these are positive for the entire sector, front-end orders still have ~40-50% risk during 1H:11 while the battle in the back-end is much easier to fight given how much orders are already down. Additionally, back-end stocks are no more expensive than front-end relative to trading levels the past few years so risk appears much lower."
Citigroup has upgraded Amkor from Sell to Buy and has increased the price target from $6 to $10 and has upgraded Teradyne from Hold to Buy and has increased the price target from $13 to $17.
Amkor Technology and Teradyne, Inc. closed Friday at $6.47 and $11.86, respectively.
Breaking news
- HiSoft Technology International Limited (NASDAQ: HSFT) reports its Q3 adjusted EPS at $0.21, beating the consensus of $0.18. To read the full news, click here.
- Tech Data Corp (NASDAQ: TECD) reports its Q3 EPS at $1.07, beating the consensus of $0.95. To read the full news, click here.
- Tyson Foods Inc (NYSE: TSN) reports fourth quarter EPS of $0.64. To read the full news, click here.
- GEROVA Financial Group, Ltd. (NYSE: GFC) today announced it will effect a share consolidation on the basis of one ordinary share for every five ordinary shares of the company, which will become effective today. To read the full news, click here.
Read more from Benzinga's Markets.
