Last week marked the third week of losses out of four in the U.S. markets. This morning, we're getting the week started on the right foot, with the S&P 500 (SNPINDEX:^GSPC) and the narrower, price-weighted Dow Jones Industrial Average (DJINDICES:^DJI) up 0.94% and 1.01%, respectively, at 10:05 a.m. EDT.
The Federal Open Market Committee begins a key two-day meeting tomorrow. As such, Fed-watchers and investors are scrutinizing this morning's Empire State Manufacturing Survey for June. The index of general business conditions rose nine points to 7.8, substantially greater than expectations of zero (a positive figure indicates expansion). However, "most other indicators in the survey fell," including the index for the number of employees, which dropped to zero, and that for the average workweek. Indexes for the six-month outlook also declined. All told, the report offers mixed signals on the economy at best.
Three tocks on the market's radar
Shares of No. 2 microprocessor maker AMD (NASDAQ:AMD) are up 3.4%, almost certainly due to a positive Barron's article that ran on Saturday, proclaiming: "AMD Could Double, Helped By Its Strategy." The thrust of the article is that AMD's 2012 acquisition of SeaMicro has been critical in opening up a new market opportunity: Server and micro-server chips. Intriguing as that may sound, the notion that the stock could double comes from a hedge fund manager who is quoted in the article. For that to happen would require -- among other assumptions -- 30% revenue growth by 2015.
Today marks the start of the week-long Paris Air Show, the aviation industry's biggest trade show. In an interview with The Wall Street Journal, Airbus (NASDAQOTH:EADSY) CEO Fabrice Bregier said he was confident the company would raise its operating margin to 10% within two years (excluding the one-time cost associated with the launch of the new A-350 jet liner). The emphasis is on profitability, as Airbus' current order book is equivalent to eight years of production.
The same is true of its rival, Dow component Boeing (NYSE:BA). Speaking of which, Boeing is expected to launch a larger version of its 787 Dreamliner, the 787-10, with $30 billion in orders!
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