Benzinga Market Primer: Monday, May 20

It’s Monday and the S&P 500 is, again, sitting at an all time high of 1,667.47. CNBC predicted that the bulls will keep control this week but the market will listen for any sign that Fed president Ben Bernanke is considering drawing down QE.

However, some technicians note that the market is looking parabolic as the upward slope of the rally is the steepest it’s been since it began.

Morning News

• S&P 500 futures are down slightly to 1,665.07.
• The EUR/USD was up slightly at 1.2864.
• German 10-year government bond yields rose 3 basis points to 1.36 percent.
• Italian 10-year government bond yields fell 2 basis point to 3.83 percent.
• Gold fell 0.97 percent to $1,351.50 per ounce.
• According to The Wall Street Journal, Yahoo YHOO has agreed to buy Tumblr for $1.1 billion in an all cash deal.
• 15-1 long shot, Oxbow, won the Preakness ending Kentucky Derby winner, Orb’s quest for the coveted Triple Crown.

Asian Markets

The Nikkei rose to a five year high, up 222 points or 1.47 percent to 15360.81 as optimism over Prime Minister Shinzo Abe’s pro-growth measures grows.

The Kopsi is under pressure as tensions rose after reports that North Korea fired four short-range missiles despite the international community’s condemnation. It was down 0.22 percent to 1982.43.

European Markets

European shares were up fractionally overnight. The Spanish Ibex Index rose 0.08 percent and the German DAX rose 0.42 percent. The French CAC 40 rose 0.14 percent while U.K. shares were flat.

Commodities

Commodities were down overnight with WTI Crude futures falling 0.59 percent to $95.45 per barrel and Brent Crude futures down 0.42 percent to $104.22 per barrel. Copper futures fell 0.95 percent to $329.15 and gold and silver futures continued their sell off with silver declining 0.79 percent to $21.57 per ounce.

Currencies

The news continued to be the Japanese Yen over 100 at 102.63 against the US dollar. The GBP/USD was up fractionally at 1.5193, and the EUR/USD was up 0.41 percent at 1.2864

Earnings Reported Friday

• Stage StoresSSI reported first quarter EPS of -$0.11 vs. $0.09 expected on revenue of $378.6 million vs. $388.43 million expected. The stock closed 7.25 percent lower at $24.19.
• Donaldson CompanyDCI reported fiscal third quarter EPS of $0.47 vs. $0.49 expected on revenue of $619 million vs. $659.40 million expected. The stock closed fractionally lower at $38.18.

Monday’s Earnings

• Campbell Soup Company CPB is expected to report fiscal third quarter EPS of $0.56 vs. $0.56 a year ago.
• Urban OutfittersURBN is expected to report first quarter EPS of $0.29—a year over year gain of $0.06.
• JA Solar Holdings Co JASO is expected to post a Q1 loss at $1.03 per share on revenue of $226.50 million.
• TiVo TIVO is expected to post a Q1 loss at $0.14 per share on revenue of $61.88 million.

Pre-Market Movers

Investors are mostly sitting on their hands this morning after a month of solid gains.

• Time Warner TWX shares are up 1.48 percent pre-market after a solid box office showing of Star Trek: Into Darkness.

Economics

No economic data is on the calendar today. Chicago Fed President Charles Evans will speak along with a three and six month bill auction.

Have a great day and remember to remain cautious as the market continues higher.