Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

PreMarket Prep Recap For May 18: Brazil Stocks Tank, Retail Earnings Continue

EWZ, SIRI, MGM, RL, WMT, BRZU, BBWI

Missed this morning's PreMarket Prep? Don't worry about it. Here were the key technical levels and stories outlined by hosts Joel Elconin and Dennis Dick.

You can catch the show live every morning, as well as participate with our hosts, guests and other listeners here. You can also find the podcast on iTunes, Soundcloud, and Stitcher.

Is Brazil facing corruption again?

Recent scandals involving the new president of Brazil has caused Brazilian stocks to tank. According to Brazilian newspaper O Globo, President Michel Temer offered to pay off a potential witness to remain silent in the country’s largest bribery investigation.

Brazil’s equities market is feeling the pain. The iShares MSCI Brazil Capped ETF (NYSE: EWZ), one of more heavily traded U.S. ETFs that holds Brazilian stocks is down almost 17 percent, while the Direxion Shares Exchange Traded Fund Trust (NYSE: BRZU) is down over 51 percent.

Key Technical Levels

The following are a few of the stocks discussed during the show. Elconin and Dick offered key support and resistance levels.

L Brands Inc (NYSE: LB)

While L Brands took a hit earlier in the week (dropping almost 9 percent), a better-than-expected earnings report rallied the stock 6.2 percent Thursday morning. Elconin noted the May 11 high of $53.13 as a level of resistance and $50.67 as support.

Wal-Mart Stores Inc. (NYSE: WMT)

Wal-Mart was also trading up after a decent earnings report. The chain reported EPS of $1.00 vs. a $0.96 estimate, and its U.S. sales also increased by 2.9 percent year-over-year.

The stock is back at levels it hasn’t seen since May 19, 2015, when it peaked at $78.36. That’s a big level of resistance, and Elconin said he’s watching $74.50 as a key support level.

Ralph Lauren Corp (NYSE: RL)

Ralph Lauren was trading slightly up following its Q4 earnings report. The company posted sales of $1.6 billion vs. $1.56 billion estimates, and beat on EPS. Elconin thouhht the $76 level looked like a mark the stock could easily pass through, and that is exactly what happened after the open.

Casino Stocks

Due to cautious comment by Macau’s Gaming Inspection and Coordination Bureau, casino stocks took a slight hit Wednesday. Elconin identified that he liked $30 as an important level for MGM Resorts International (NYSE: MGM), but the stock has never slipped below $30.50. Another important level to watch is Wednesday’s close of $31.15, which it hasn't passed through yet.

SiriusXm Reportedly in Discussions to Acquire Pandora

Amid a report from The New York Post that Sirius XM Hldgs Rg (NASDAQ: SIRI) could acquire Pandora Media Inc. (NYSE: P) at $12-13 a share, Pandora spent Thursday’s pre-market action up around 5 percent. Elconin said the $10 level is one to keep an eye on, but to not get caught buying a stock on rumors.



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today