Just like that, welcome to a new trading month. May was down overall, but it ended on an encouraging note, though stocks are looking less enthusiastic early Wednesday with three days of jobs data about to get started. Regarding lack of enthusiasm, if you like the negative at the moment head over to MarketWatch, which is carrying Why the Bulls Are Set Up for a Fall in June.
Overseas, news continues to seep out of Greece, with one of the nation's newspapers reporting that various international lenders and agencies are expected to wrap up talks on Thursday on a medium-term fiscal plan. Read the Reuters report.
Back in the U.S., aside from jobs traders will get the ISM manufacturing report and construction spending data at 10 a.m . EDT and a steady stream of auto sales reports throughout the day. And weather watchers get ready: The North Atlantic hurricane season -- which has the ability to uproot local economies and commodities -- has officially started. The season runs until November, with September tending to be the worst month. The NOAA has predicted up to 18 named storms, of which 10 could become hurricanes and six may be major hurricanes (at least category 3).
ON THE BLOGS
* Fun With Gold Bugs . . . — The Big Picture
* The China Domino Has Fallen! — Pragmatic Capitalism
* Why a Greek Default Could Be Worse Than the Lehman Collapse — Money Morning
* S&P 500 Breaks Short-Term Downtrend — Bespoke
* Getting Overbought — Capital Observer
* DougKass - shorting spiders at 134.55 now
* bondscoop - Just last week Gross was quoted saying the 10 year wouldn't see 3% for some time. I guess some time was shorter than I thought it was.
* optstrategist - $VIX forays below 15 in the last six months have been short-lived, as they have preceded a short-term market correction every time.
* zerohedge - by kathylienfx - And here comes the thunderous lemmings herd: MS drops NFP forecast to 150,000 from 175,000
* gtotoy - when the fins start upgrading other fins it will start to get fun
IN THE HEADLINES
* Oil and Gas Stocks Have Hit Bottom - Barrons.com
* Schwab's Bold Bet on ETFs - WSJ
* Best Post-QE2 Bet: A Play on Volatility Index - MarketWatch
* A Ford Trade Tied To a Stock-Market Rebound - Barrons.com
* Another Insider Trading Trial Set to Begin - NYTimes
* 2 Funds That Don't View Risk as a 4-Letter Word - Barrons.com
* Will Silver Shine Brighter? - CNBC
* Reflections on the Yuan as a Global Reserve Currency - Minyanville
STOCKS TO WATCH
- Ford (F), GM (GM) and other automakers are expected to report their sales for May. Analysts believe sales probably fell 8% from April, according to an AP report.
- Toyota (TM) is recalling more than 100,000 Prius hybrids around the world because of a steering problem. Almost half of the cars in the recall were sold in the U.S.
- Nokia (NOK) sank to its worst point in more than a decade as its two-day slide continued in European trading in the wake of the company's weak earnings forecast. for the mobile phone maker after its profit warning and questioned whether it could ever recapture lost market share.
- Sealed Air (SEE) agreed to acquire Diversey, a commercial cleaning and sanitation company, in a deal valued at $4.3 billion.
- Citigroup (C) is nearing an agreement to set up a joint venture in China that would give the bank access to the nation's capital markets, The Wall Street Journal reported, citing people with knowledge of the matter.
UPGRADES & DOWNGRADES
- Tiffany (TIF) was lowered at Deutsche Bank to hold from buy.
- Heinz (HNZ) was downgraded at Goldman to sell from neutral, and its price target was reduced by $4 to $49.
- Citigroup (C) was initiated with an outperform rating at RBC.
- Amazon (AMZN) and eBay (EBAY) were initiated with equal weight ratings at Barclays.
- Deutsche Bank