With Swine flu hitting the headlines, nobody is obviously immune and it was evident on the markets. Stocks all over the board were down while sectors like health/pharma are looking to hit an upside move. Its all about positioning yourself and capitalizing on trends.

Another sector that made a move was autos. With (GM) cutting its workforce in half and trimming another line form its production, the stock did have movement on the upside but again, many are still leaving the option of a bankruptcy on the table. (F) has come out and said they will be able to make a profit within 2 years and this is pulling the stock upwards. Obviously Ford is the move better play for a long, but if you have the ability to take a risk (GM) could perhaps give a stronger return – however the potential for a loss or drop in share price is still there.

Here is the market summary for Monday:

Indicators to watch for Tuesday:
7:45AM Weekly retail sales
10:00AM Consumer Confidence for April.
10:00AM Fed Manufacturers and Services Surveys for April.

Earnings Watch:
Some of the companies I am watching for earnings tomorrow (there are too many overall to list!)
(JAVA), (QCOR), (PNRA), (MBHI), (ETFC), (EHTH), (BWLD)
(SNBC), (PCZ). (PFE), (VLO), (ODP), (ELNK), (CCE), (BMY)

News to Follow:
Daimler of Germany said on Monday that it had agreed to divest its remaining 19.9 percent stake in Chrysler, ending an ordeal that began with a stunning 1998 merger that later went sour. Link.

U.S. Steel Corp (X) announced drastic measures to shore up its balance sheet on Monday, including slashing its dividend by more than 80 percent, delaying payments to a retiree healthcare trust and selling shares of common stock to pay down debt. (Bad news for shareholders!). Link.

Qualcomm Inc. posted a fiscal second-quarter loss Monday on a hefty payment to rival chip maker Broadcom Corp. to end legal disputes that spanned several continents. Link.

Baidu.com Inc., operator of China’s most-used Internet search engine, posted a 24 percent increase in first-quarter profit as Web usage continued to grow in the world’s third-biggest economy. Link.

For Tuesday, I will be watching the travel sector. With more news coming out on the spread of the flu, less people will be on the move globally and this will start to further hit the airline, hotel and cruise stocks. It was seen on Monday, and a continuation will be expected until some sort of plateau in this health situation comes to light. With bank stocks down today, I am hoping to get into a quick play on (C) if there is a push on the upside. If not, (SKF) is my friend.

Happy Investing!

Aman, MBA

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