With the holiday shortened trading week we will see a front loaded data week with all of the week's information being released by the end of Wednesday. Today we only have the Pending Home Sales figure to look for, but the week will get busier Tuesday and Wednesday.
A few things to watch this week are the travel data and initial reports of retail figures, even though those numbers are not scientific and based on information such as number of cars seen in aerial photos of parking lots, people entering malls and other store fronts and the sale of certain items. This year with many retailers opening up earlier on Thanksgiving investors will have more to pay attention to.
Also we think that this winter storm that is sweeping across the country could be a potentially big story as many travelers could be stranded and temperatures are set to drop in the eastern U.S.
Chart of the Day:
The Japanese yen's recent weakness has been the driving force behind the Nikkei's recent rise. The move has been big and strong over the past two months and with the government standing resolute in their easy money policy it appears that the Yen might very well have further to go to the downside.
(Click to enlarge)
Source: Yahoo Finance
We have economic news today and it is as follows:
- Pending Home Sales (10:00 a.m. EST): Est: 1.3% Actual: -0.6%
Asian markets finished mixed today:
- All Ordinaries -- up 0.32%
- Shanghai Composite -- down 0.47%
- Nikkei 225 -- up 1.54%
- NZSE 50 -- UNCH
- Seoul Composite -- up 0.49%
In Europe, markets are trading higher this morning:
- CAC 40 -- up 0.60%
- DAX -- up 1.01%
- FTSE 100 -- up 0.35%
- OSE -- up 0.35%
Technology
We liked SiriusXM early on when we began writing our daily market commentary articles, and it has been a winner since then. Even more impressive is if one looks back a bit further on a five year chart. Hard not to be bullish of a name which steadily rises from the lower left to the upper right.
(Click to enlarge)
Source: Yahoo Finance
Shares of SiriusXM (SIRI) are rising in pre-market trading after Barron's highlighted the name in their recent publication. The article lays out the bull case for why the shares could rise 50% moving forward. The writers' thesis is based upon the company's monopoly position in the satellite radio market, growing free cash flow and a subscriber base which has continued to grow at a steady rate. Investors can also look forward to the company launching new services, something we have written about before and believe holds a lot of promise for the company as they already have a customer list to sell to and could offer packages in bundles.
The key for the company is getting its radios into cars, something they have done an excellent job doing but is easier when consumers are buying new cars. The company has its radios pre-installed in 7 out of 10 new cars in the U.S. and has made inroads on the used car market, so as consumers trend back to normalized replacement cycles Sirius should see subscriber growth follow.
Security
It sure looked like ADT was set to break out of its recent trading range, but after the repurchase agreement announcement shares are heading sharply lower.
(Click to enlarge)
Source: Yahoo Finance
ADT Corporation (ADT) has agreed to repurchase 10 million shares from Corvex Management at Friday's closing price of $44.01/share. Corvex will also vacate their board seat as part of the deal. Investors are not liking this deal early on as it takes away a voice which was pushing for value creation. Earlier this year ADT had been a big winner, but then saw its shares begin to lag and trade in a range for the past half year. The shares had just recently moved back up to the top of that range before this news and once again shareholders are seeing the shares approach the support levels the stock has tested a number of times. Investors should also note that the shares are trading within striking distance of their 52-week low based on early trading.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)
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