Wal-Mart's Thursday Morning Data Sets Negative Tone For Retailers

Joel Elconin and Dennis Dick discussed on Thursday's Benzinga's #PreMarket Prep the disappointing news from Wal-Mart WMT before the day's open.

Wal-Mart disappointed with a top and bottom line miss, trading down more than $2 in the pre-market. The movement Thursday morning is generated with relative ease compared to a similar move during regular market hours. The large gap offers an opportunity to bottom pick before incoming volume fades this one up.

Wal-Mart held $76.05 well and its a level that jives well with other daily lows.

Above all things, Wal-Mart earnings will put a major damper on the rest of the retail equities.

Related: Late-Day Flash Crashes Rock Tuesday's Close

Kohl's KSS was heavily sold through Wednesday, taking out $55 and $54, before Thursday morning's top and bottom line misses. The move to $52.02 comes on really low volume after Wednesday's heavy selling activity. Considering the slide from $56 to Thursday morning's level of $52, there is potential for anyone who shorted that move to cover on this retailer.

Good news on Cisco CSCO as it breaks out to new six-month highs, up over seven percent since Wednesday's after-close earnings release. $24.60 - $24.80 will be resistance and a break through above $25 most likely will not happen. Focus will be on the $24.65 pre-market high.

Juniper JNPR is bid up on 1,800 shares, moving up $0.60 in the pre-market. Juniper has been a stealth mover, breaking above the $25 high and is a bit more attractive to buy on this move than Cisco.

J.C. Penney JCP releases earnings after Thursday's close and has been the beneficiary of bull traders who are hoping for a turnaround. The $8.50 low is a key level going into the evening's release.

Tepper's Temperament
David Tepper's specific word usage is spooking the market and headlines report the Appaloosa Management founder is "nervous" about the market. He directly stated at the 2014 SALT Conference "don't be too freakin' long" regarding capital preservation.

This commentary has some market participants spooked and is cause for concern Thursday morning.