TradeMaster Daily Stock Alerts Blog

Small-cap stocks are expected to open near steady levels after a relatively tame overnight session. Concerns on the financial side of things could be countered by solid earnings news. The Russell 2000 (NYSE:IWM) was basically flat in after-hours trading, so an opening near Friday’s close in the 710 zone appears likely.

Even though Congress approved the rescue plan for government-sponsored mortgage firms Fannie Mae (FNM) and Freddie Mac (FRE) on Saturday, enthusiasm from that news was overcome by other news that regulators seized a couple of small U.S. banks this weekend.

Crude oil futures were up about $1 dollar a barrel heading toward the U.S. stock market opening, lifted by attacks on oil pipelines in Nigeria. Grains prices were also called solidly higher, so commodity price inflation will start the week out on a firm note.

On the earnings front, Kraft Foods Inc. (KFT) topped the Street’s estimate and raised forward guidance, which sparked a 3% rally in the stock during overnight trading. There will be plenty of big name companies to study this week, as 118 of the S&P 500 are slated to release results.

Other positive news included a successful trial for an osteoporosis drug by Amgen Inc. (AMGN), which sparked a hefty 15% rally in the firm’s shares in after-hours trading. In addition, private equity firm Kohlberg Kravis Roberts & Co. announced plans for an IPO, which is a positive signal for the market.

On the charting front, support for the Russell 2000 comes in today at 707.50, 701 and 694. On the upside, resistance is pegged at 715, 720 and 726.

In overnight trading, stock markets around the world were narrowly mixed. Europe shares were down ahead of the U.S. open, while Japan closed up 0.1%, Hong Kong down 0.2%, China up 0.7%, Australia down 0.9%, Singapore down 0.4%, South Korea down 0.1% and India up 0.5%.

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