Buzz Bits: Dow, Nasdaq Get Bit By Boo
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Earnings Report - MV News
- Abercrombie & Fitch (ANF) reports 1Q EPS in-line of $0.65 on revs of $742.4 mln vs. $757.97 mln cons.
- Gymboree (GYMB) reports 1Q EPS of $0.67 vs. $0.63 cons on revs of $206.7 mln vs. $208.9 mln cons.
- Network Appliance (NTAP) reports 4Q EPS in-line of $0.30 on revs of $801.2 mln vs. $798.1 mln cons.
- CA Inc. (CA) reports 4Q EPS in-line of $0.20 on revs of $1.0 bln vs. $1.01 bln cons.
- Limited (LTD) reports 1Q EPS in-line of $0.13 on revs of $2.31 bln vs. $2.31 bln cons.
The king is gone but he's not forgotten. Is this the story of Johnny Rotten? - Todd Harrison - 3:03 PM
The Minx slinks to session lows as Hoofy takes it on the nose. The downside drag is being led by...anyone? Anyone? The techs, in general, and the semis (-1%) in particular, which have been cause for paws all session. The homies (also flagged) are dabblin' in Red Dye as well, although they weren't as obvious to the tape watchers among us.
What's the reason? Mr. Greenspan (or, Elmer to old school Minyans) is being fingered as the culprit but the writing was on the wall (great, or otherwise) before he spoke. Still, the chatter I'm picking up from my coverage is pointing to those comments, so you know and if you care. Truth is, it doesn't really matter what the excuse it, it simply matters that the excuse is there.
Alas, it IS contra-hour so keep your right hand up (both ways) as we hike our way over the Hump. Our key tells aren't offering much in the way of guidance (breadth, the dollar, the financials are Nowheresville) but again, tech couldn't find a bid when the S's were jiggy so I don't foresee them finding sponsorship into the close.
Anyhoo, that's about it from where I sit as I watch Goldman with one eye and the rehearsing interns with the other. For if nothing else, we've got our priorities straight here in the 'Ville and we're less than two hours away from the really big show!
As always, I hope this finds you well.
Randoms - Fil Zucchi - 2:45 PM
- Buyers felt a sudden urge to scoop up Tellabs (TLAB) over the last 30 minutes, to the tune of 4 mln shares.
- Do I think FCStone (FCSX) is still digesting last month's gains? Yes, annoyingly so unfortunately.
- Unless the Chinese are sending the U.S. a message on how their American vacation went, the Long Bond (USM07) is at a tradable level.
- I have owned Cytyc Corp. (CYTC) on and off for many many years. I was sniffing around Hologic (HOLX), but it was too expensive. Now I can buy both of them (assuming the deal happens, and that's not a given) and HOLX is on sale.
- Uber-Minyan RF just pointed me to the Fifth Third Bancorp (FITB) June 45 calls trading on big volume and a quick 10 points jump in vols. Tomorrow's paper today?
- By recent standards between 13:40 and 14:30 est. we had a full fledged bear market.
Positions in USM07, HOLX, FCSX, TLAB
Retail Tales - Jeff Macke - 10:40 AM
So... two retailers of roughly comparable size reported today and are both trading down about 4% after running up strongly into earnings.
Now, in a "rational" market, Dillards (DDS), which missed and forecast more of the same, in keeping with its long established trend, would continue to swirl downward until it hit whatever price seems fair for a doomed company run by a family who controls all the voting shares. Without doing any pesky "numbers" beyond share price, I would note that Ford (F) trades at 8.75.
GameStop (GME), the other company in our case study dujour, would be giving investors a classic opportunity to add shares. GME beat the numbers, guided to the range for the balance of the year and is set to do ginormous (technical term for "BIG") numbers in '08, once Nintendo's (NTDOY) Wii is done taking over the world.
The wrinkle in the story is that Dillard's controlling family is making noises about putting itself up for sale and GameStop is not. No advice here but I can put it this way: if I'm "investing," I'm ignoring DDS completely and looking to buy GME right here, right now, and I'm saving some cash to put to work if the shares work lower. If I'm gambling I'm considering DDS $40 calls (and expecting the same pay-off I expect from Lottery tickets... zero).
I'm keeping an eye on 'em today and I'll see how it plays out. I'll have more on retail later today after I head to MVHQ to prep for Miracle.
Commodity Round Up - Sally Limantour - 10:11 AM
- At 10:30 we get the oil inventory numbers which could be a market mover for energy and other markets.
- Copper stocks continue to build at the Shanghai futures exchange and inventories are up 17% and are at their highest in three years. See the chart here.
- "End of Kuwait Dollar Peg Puts GCC Union in Doubt"
Will the the Gulf Cooperation Council (GCC) see other members abandoning the US dollar in coming weeks? Other members include Qatar, Saudi Arabia, Bahrain, Oman and the United Arab Emirates.
- "Gulf Investors Stake Out UK High Streets"
Gulf Arab billionaires are investing heavily in UK companies. Several of them have recently been buying stakes in big name companies. Their oil wealth has made them a power in global financial circles.
- Goldman says its crazy not to be in commodities.
- The giant Swiss pharmaceutical company, Novartis (NVS), is to invest about 400 million dollars US of its pension fund in precious metals. This is about 4% of the company's total pension fund. If other companies follow, that alone could take precious metals much higher.
Position in CL, NG, G, SI, HG, EC
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