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June 10 – Stock Mentions: UTX, RTN, AMD, MSFT, SQ, INTC, BAC
Michael Kramer and the clients of Mott Capital own RTN and MSFT
Get everything you need to know with our Sunday premium column –Getting Ready For The Week Of June 10
- S&P 500 Futures +9 points
- Oil $53.99
- 10-Year 2.15%
- Dollar Index 96.84
- VIX 16.14
- Japan Nikkei +1.2%
- China Shanghai +0.86%
- Hong Kong HSI +2.27%
- South Korea +1.31%
- Germany DAX Flat
- UK FTSE +0.44%
Hong Kong HSI
Hong Kong jumped over 2% on June 10, following better than expected China trade data. The index crossed a critical level of resistance at 27,345. It could set up a rebound to 28,160.
US Trading For June 10
The big news today, tariffs with Mexico have been suspended.
United Technologies and Raytheon are merging. They say it is a merger of equals, but yet UTX shareholders will get 57% of the new company, keep the CEO, and have eight board seats. That compares to Raytheon shareholders getting 43% of the company and seven board seats. Doesn’t sound equal to me, so why isn’t Raytheon acquired with a significant premium?
As a Raytheon shareholder, I can’t say I’m thrilled with the terms of the deal. I have owned Raytheon since October 2016, so it may serve an excuse to take my profits and go.
S&P 500 (SPY)
S&P 500 is rising on June 10, with SPY ETF pointing to an increase in the pre-market. If the SPY can manage to rise to $289.25, it sets up a potential move to $291.50.
AMD continues to rally, rising another 2.5% on June 10. If the rally holds, it sets up a rise $34.50.
Microsoft is rising and has is likely to move towards the upper end of its trading range at roughly $134.
Square is rising too, and it is facing a steep overhead downtrend around $69.60. We will soon find out if Square is breaking out or breaking down.
Intel is trading above resistance at $46, and now the stock could rise back to roughly $48.
Bank of America (BAC)
Bank of America is approaching a breakout at $28, which could help the bank rise to around $29.50. Just watch the Treasury spreads, wider spreads means Bank stocks go up, narrow spreaders means the stocks go down. That simply for now.
Good Luck Today.
Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.