Buzz Bits: Dow Closes Green, Nasdaq Dips Into Red
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Editor's Note: This is a small sample of the content available on the Buzz and Banter.
Earnings Report - MV News
- Intel (INTC) reported 4Q EPS of $0.26, including items, vs $0.25 cons on revs of $9.7 bln vs $9.43 bln cons. Gross margin came in at 49.6% vs 50% exp.
Semi Tough - Adam Warner - 3:45 PM
Personal opinion here, but I find the pre-earnings action in Intel (INTC) less extraordinary than meets the eye. The open interest in the Jan 22.5 line sounds huge; 277,000 in the calls and 136,000 in the puts.
The volume today is 130,000 in the calls and 118,000 in the puts as I type.
The prices suggest the "Over/Under" gap move in the stock is roughly $1, or under 5%. And then a return to the incredibly plodding action Intel sees most days.
But compare all this to Google (GOOG), to name one. The open interest in the Jan 510 calls is over 20,000, which translates to an open interest of about 440,000 INTC calls. And earnings here are after expiration.
Positions in GOOG, INTC
Lunch Meat! - Todd Harrison - 1:28 PM
- Pep highlighted Google as a long idea last week and Dr. Phil followed up this weekend. Way to tag, team.
- We just saw some size puntage in the Intel January 22.5 puts (10 G's for sale). At what point does the bullish option flow morph into a lopsided bovine boat?
- "They" (the hedgers) threw alotta supply at the tape this morning and nary a blink. I'm not seeing the upside "all clear" via our tells (note the balanced breadth and marginally higher greenback) but the reaction to flow is often as important as the flow itself.
- Inertia Alert! Crude is off 4% as the CRB meanders from the all-important (and recently tested) CRB 293 zone. That "smacking sound" you hear is me licking my lips.
- Sixteen years in this business and I still can't get used to being away from the flickering fray during the day. Minyan Brooks knows exactly what I'm talking about.
- Be that as it may, we've got a car downstairs with our name on it and, from what I understand, freezing rain awaiting in Houston. I know this (read: earnings season) isn't an optimal time to travel but we go to the mat for our partnerships.
Position in drillers
Netflix, Odds & Ends - Jeff Macke - 11:53 AM
* As reported earlier on the Buzz, NetFlix (NFLX) is pounding the PR table with its new plan to offer streaming video movies. In addition to the NY Times article linked previously, Minyan Herb Greenberg is offering some blogged thoughts here. My two cents? Netflix is finally getting backed into the corner many have predicted for so long. Blockbuster (BBI) is showing signs of life, Apple (AAPL) Television looms large and streaming video might be the most horrible format for watching anything since in-flight movies were invented.
* You wanna see more bears in them there Wall Street woods? Just keep running footage of the Venezuelans and their "new socialism"... you know, the one which welcomes capitalists into their economies to spruce up the infrastructure prior to nationalizing at a "fair price" (determined by a dictator). Yikes.
* Check out the options action on both sides of the Intel (INTC) 22.50's today. Anyone else smell a 22.50 pinning, almost regardless of what the chip kings say tonight?
What you need to know... - Jon Doctor J Najarian - 8:38 AM
JP Morgan Upgrades Sirius (SIRI) & XM Radio (XMSR) - The broker took the two satellite radio providers to overweight from neutral, saying that retail and competition fears for the firms are now largely understood. However, I also saw a report from BofA this morning that cut its rating on XMSR, so there will be some push and pull.
Centex (CTX) Expects Loss in 3Q - The home builder said it expects to swing to a third-quarter loss from continuing operations of $2.00 per share, from a profit of $2.52 a share a year ago. The company said it will record land valuation adjustments of around $300 million due to the declining housing market.
Deutsche Downgrades Semis - The German bank downgraded semiconductor equipment providers KLA-Tencor (KLAC) and Lam Research (LRCX) to hold from buy and Novellus Systems (NVLS) to sell from hold.
British Air Strike Threatened – Europe 's #3 Airline's employees have voted to strike. Members of the Transport and General Workers Union opted to picket the sidewalks, based on their concerns over sick pay and pensions. No word yet on disruptions due to the pickets.
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