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Buzz Bits: Dow, Nasdaq Turn Downward

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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

  • Kohl's (KSS) reports 3Q EPS of $0.68 vs. $0.64 cons on revs of $3.64 bln reported 11/2.
  • Disney (DIS) reports 4Q EPS of $0.36 vs. $0.33 on revs of $8.78 bln vs. $8.66 cons.
  • American International Group (AIG) reports 3Q EPS of $1.61 unsure if comparable to $1.43 cons on revs of $29.2 bln vs. $29.07 bln cons.
  • NVIDIA (NVDA) reports 3Q non-GAAP EPS of $0.39 vs. $0.34 on revs of $820.6 mln vs. $752.7 mln cons.



Broken promises of working together. - Rod David - 3:18 PM

No, not Bush and Pelosi. (Well, maybe.) S&Ps, NDX and the Dow were almost entirely on the right track this morning as was noted here earlier today. There was one thing missing: S&Ps refused to join NDX in its consolidation above prior highs. Now all of yesterday afternoon's recovery has been retraced.

Yesterday the Dow's new high close reflected enthusiasm for the Democrats' victories (despite the inconvenient truth that the session's first reaction was a big drop). So, what's today's scapegoat?

Check out the Dollar, which has fallen back to October's lows. This happened to be our target for that leg, and it didn't need to be retested for a low to bottom. Unless today's drop were rejected tomorrow - preferably without delay, and without gapping up - a new downleg will have begun. And the stock market doesn't seem to like that very much.


Oh Randy - Kevin Depew - 2:10 PM

  • Has the script been flipped? A selloff into the close would certainly be a change of pace.
  • Looking through the S&P 500 for daily DeMark TD-Sequential sell signals: Bank of America (BAC), Carnival Cruise Lines (CCL), HCA (HCA), Lab Corp. America (LH) and US Bancorp (USB) all have TD-Sequential daily sell signals.
  • Minyan Arun asked about the technicals for Whole Foods Market (WFMI) and Accredited Home Lenders (LEND).
  • WFMI reversed up to a column of Xs on a PnF basis after the breakdown but before I played the stock I would want to see a weekly DeMark downside exhasution signal appear. The PnF downside count is a grim 25.
  • LEND is completely broken on a PnF basis. The downside count is to 20.
  • As you know, Toddo has been out the past week working on some special projects for the Ville. He was a little shy about sharing this recent project he just wrapped up in Cali with ye faithful, but I encouraged him to go ahead and put it out there. "Toddo, you really, really love the Raiders," I said. "Especially Randy. People should know about your love for the Raiders... and Randy." Check it out!



Everyone's talking... - John Succo - 12:55 PM

Everyone today is talking about the comments coming out of China about what they may do with all those dollar reserves. Gold and Oil are up on that.

If you remember I made a comment almost one year ago. My firm calculated that it would take China about two years to amass enough gold that if the dollar dropped 50% they would come out whole with the corresponding jump in gold prices.

This would put them in a position to abandon their U.S. dollar policy (lending to the U.S. consumer to buy their stuff) if they perceive the U.S. slowing to the point where their exports would stagnate anyway.

Meanwhile China's economy has its own problems. Right now all central banks are holding hands and pumping this liquidity together.

When things start to go bad hands get slippery.


Another way to view homies versus a prior bubble. - Bennet Sedacca - 8:58 AM

This is a custom chart that I get daily from Ned Davis Research (and I thank them for allowing me to share it with you). It is an overlay of the NDR Home Building Group versus the Naz in its pre-bubble and post-bubble cases.

There is a correlation, although far from perfect, I must say. No two markets are identical but the top was very similar as is the post-bubble experience. If it continues, and there is no guarantee that it will, we should get another move down and accelerate from denial to capitulation. I stress SHOULD not WILL.

So I remain cautious about this group as even Mr. Hovnanian admitted they 'hope' for a turn in 2007 but don't yet see one. So this confirms my belief that if anyone has a firm earnings estimate for the homies, they are guessing.

Getting rid of overpriced land is a good beginning, as is the stoppage of building more when you can't even sell what you have built at a profit. Still, red ink is quite possible for this group as are write-downs of book value. When the hopers realize this, I think they sell 'em.

Just my opinion, and yes, I know I sound like a broken record on this topic, but I think it is important for the overall state of the economy. Now, off to Chapel Hill!


What you need to know... - Jon Doctor J Najarian - 8:07 AM

Cisco (CSCO) Profits Climb 28% - CSCO said as sales rose 25%, their profit also rose 28% as demand for their networking gear was extremely strong. How strong were the sales? They rose to $8.18 billion from $6.55 billion! This morning UBS upped CSCO to a buy and share are trading $27 in the pre.

Hansen Natural Sales up 62% - And it gets even better, as gross sales for the nine months ended September 30, 2006 rose 73.7% to $524.4 million and its net sales for the nine months were up 81.1% to $454.3 million from $250.9 million a year earlier.

J.P. Morgan upgrades Sonic Solutions (SNIC) – The digital-media software company was upgraded to overweight from neutral because JPM believes weak consumer PC demand ahead of the Vista launch is now priced into the stock following weak second-quarter results and low third-quarter guidance.

News Corp. (NWS) Profit Tops $843 Million - Boosted by better results from cable and broadcast television, NWS posted a profit compared with a year ago, when the media conglomerate's earnings were weighed down by a $1 billion charge to write down their broadcasting licenses.

Position in CSCO

No positions in stocks mentioned.

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