Wake Up Call - An Apple a Day Would Keep Recession Away

S&P 500 and NASDAQ Index futures are indicating a continued rise today, and with no catalyst to debate the issue until tomorrow's GDP report, the morning should be positive. As we enter the afternoon, Wall Street Greek anticipates some profit taking ahead of the Advance GDP report. See our value added take on today's key news below, and also "The Greek's Week Ahead" for your weekly market-moving event planner.

Asia:
Hang Seng Index +0.64%; Shanghai/Shenzhen CSI 300 +1.31%; NIKKEI 225 +1.12%; S&P/ASX 200 +0.39%; Taiwan TAIEX +0.19%; BSE SENSEX 30 +0.08%; KRX 100 +0.91%; Ho Chi Minh NA

U.K., Europe & Middle East:
DJ STOXX 50 Index +0.31%; FTSE 100 +0.38%; CAC 40 +0.2%; DAX +0.64%; Russian RTS Index -0.09%; ASE General +0.27%; Tel Aviv 25 +1.52%; Tadawul All Share NA; DFM General -0.27%

Our value-added take on today's key news:

• *** Here in the heart of earnings season, stock specific news is driving the momentum of the market. See Yahoo!'s earnings calendar for today. Ford (F) reported a significantly narrower loss than was anticipated, as it benefited from cost cutting and strong European sales. Exxon Mobil (XOM) reported an 18% profit rise, as strong refining profits on widening margins offset the impact of lower relative Q1 oil prices. Several home builders reported results last evening and this morning, with a recurring message. Pulte Homes, the country's second largest builder reported a larger loss than the consensus saw, while not providing June quarter guidance. This is the trend among home builders, and does not exhibit confidence in any recovery this year, as we have been warning since we began this service. We think this clearly evidences the value of our high quality independent equity research focus, because many talking heads had been speaking of a housing recovery as recently as early this year. As we begin to publish equity research, we think you will gain a clearer view of that value add.
• *** Apple (AAPL) reported blow out earnings, while providing forward revenue guidance short of expectations. AAPL shares are up 7.7% in pre-market activity, but Wall Street Greek is advising you to look to exit and/or short the shares as volume fades. Let the hungry funds and momentum chasers drive this stock up, and as the news fades, look to exit or take a short interest in the shares. AAPL's guidance for the forward quarter may just be conservative forecasting, or it may portend a real slowdown. There are no ifs, however, in our view that the SEC will prove a negative catalyst for AAPL, as it shows that nobody is above the law. Steve Jobs has achieved an iconic level near, perhaps a distant second, to Bill Gates, and nobody in the media seems to want to implicate him. However, the media has a way of really savoring the demise of the great. Somebody once said, "Show me a hero, and I'll show you a tragedy." Wall Street Greek expects jobs to be implicated in wrongdoing here.
• *** Weekly initial jobless claims were reported this morning at 321,000, short of the consensus expectation for 329,000, and well below last week's reading of 341,000. Labor pressure on inflation likely persists as a result, and expect this data to become more important in reflection at a later date.
• *** Oil prices are easing a bit after yesterday's boost from the gasoline draw. News that Iranian and European views may be closing the gap between them has oil giving back a little. However, that news is emanating from Iran and to be blunt, is bull... The real catalyst that could drive oil lower, starting on Friday, or even today, is the Advance GDP report due Friday. If the forecast is short of estimates, or even meets the weak number seen of 1.8% growth for Q1, we suspect oil might give back ground.

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