After a very busy after hours round of earnings reports, we got news that Spain’s debt was downgraded. As if that was an earth shattering surprise. Futures were down all evening as I enjoyed an off-Broadway show with my wife in which my cousin was starring in. If you have a chance to catch this limited run of A Midsummer Night’s Dream, I wholeheartedly recommend you do so. To top it all off, the NY Rangers of Madison Square Garden (MSG) won it playoff in an exciting game 7.
So we wake up to futures moving higher as Europe shook off the Spain downgrade. Then we found out that the first look at 1q12 GDP was less than expected. With nearly 80% of the S&P 500 (SPX) stocks reported better than expected results, there is clearly a chasm between Wall Street stock analysts and economists.
Keep an eye on Starbucks. The stock is looking lower by about $3 after reporting a stellar quarter. The reason, again no surprise, is Europe. While the stock may have gotten ahead of itself, if you can get it on a dip, try to. Amazon (AMZN) is surging. Hats off to Jeff Bezos! It appears that AMZN and Apple (AAPL) can coexist. Finally Expedia (EXPE) is surging off of its results. Priceline (PCLN) should get some nice pin action. Other than that, I am expecting a quiet day today. Have a great weekend; we can use a nice rest. I plan to as it is my birthday. In fact, I am taking off to Atlantic City for two days on Sunday and Monday and will be taking the day off on Monday.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long PCLN stock and long AAPL stock and calls— although positions can change at any time.
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant and agricultural stocks. You can subscribe at www.restaurantstox.com
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