Buzz Bits: Dow, Nasdaq Take a Hit
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Earnings Report - MV News
- Google (GOOG) reported 2Q non-GAAP EPS of $2.49 vs $2.22 cons on revs of $2.46 bln vs $2.40 bln cons.
- Gilead Sciences (GILD) reports 2Q EPS of $0.56 vs. $0.54 cons on revs of $685.3 mln vs. $669.9 cons.
- Amgen (AMGN) reported 2Q EPS of $1.05 vs $0.94 cons on revs of $3.60 bln vs $3.47 bln cons.
- Broadcom (BRCM) reports 2Q rev of $941.1 mln vs. $939.0 mln cons.
- Leggett and Platt (LEG) reports 2Q EPS of $0.45 vs. $0.44 cons on revs of $1.40 bln (inline). The company guides 3Q EPS to $0.42-$0.47.
- First Data Corp (FDC) reported 2Q EPS of $0.56 vs $0.54 cons on revs of $2.90 bln vs $2.78 bln cons.
- Microsoft (MSFT) reported 4Q EPS of $0.31 vs $0.30 cons on revs of $11.80 bln vs $11.60 bln cons.
- Advanced Micro Devices (AMD) reported 2Q EPS of $0.18 vs $0.17 cons on revs of $1.22 bln (in-line). The company had pre-announced revs of $1.215 earlier in the month.
- VeriSign (VRSN) reports 2Q EPS of $0.24 ex-items vs. $0.24 cons on revs of $392.0 vs. $386.7 cons.
- Capital One Financial (COF) reports 2Q EPS of $1.78 vs. $2.08 cons on revs of $2.91 bln vs. $3.48 bln.
Bell Buzz - Todd Harrison - 3:51 PM
Position in JPM
Deja vu or veja du? - David Miller - 3:17 AM
After the strongest breadth day since the June 2005 lows, biotech is unable to confirm the gains from yesterday. This market reminds me of what we had at the beginning of the Iraq war (v2.0) or in the months after 9/11. "Event risk" was the psychology of the day, so people didn't want to have exposure on the weekends. Traders played chicken with geopolitics by buying Friday's close and selling into the rallies on Tuesday or Wednesday. It almost always worked, but smart traders played smaller than normal positions just in case.
I'm not saying that should be this week's trade. But the parallels are similar. The biggest complication (and it's a big one) is that in neither of those situations did we have a Fed intent on wringing speculation out of the markets.
Don't forget we play taps on the June options tomorrow.
The Tell Tale Hearts - Jeff Macke - 2:42 PM
Greetings from a mid-town Manhattan hotel room where I'm watching Tiger Woods put the finishing touches on both his first round of The Open and Nick Faldo's psyche. From the looks of the tape, many of the potential buyers of stocks are joining me on the side-lines. Boo's Crew, in stark contrast, showed up early and has been selling tech all day.
My primary "Tells" for a tradable tech rally have been Ebay (EBAY) and Intel (INTC). Two stocks which have been death to longs all year. More importantly for my purposes, they are also two stocks where expectations were low (to put it nicely) going into earnings. Much like Superman, both titans lived down to dreary expectations.
The question going in was: Is bad news already "in" stocks like Intel and Ebay? The answer is an emphatic No.
With that, I'm off for an NYC walkabout. I'll see you tonight at 8pm for a CNBC Town Hall!
Green Goes Red on the Screen - Woody Dorsey - 12:55 PM
The Bernanke Bump may only be a foul tip. Markets needed a lift but one day wonders are not usually as sound as sober bases. Maybe the market was too quick to the "read my bips" rhetoric of ole gentle Ben. He still doesn't look like he has "game." And so the risk appetite games of Summer continue.
It looks like some sideways gnashing of teeth may continue with the risk that the Fed will still "do" an ugly 18th rate rise. But the Fed is only a babe in the woods compared to the Bear who will have his way...eventually.
Rustle 2000 - Kevin Depew - 11:18 AM
Keep an eye on the Russell 2000 (RUT) today. As you know, this has been a nice proxy for risk appetite and speculation. So far today the RUT is significantly trailing the SPX.
Take a look at this interesting chart comparing the RUT to the SPX. What I especially find interesting is the change this time (so far) in the behavior of the RUT following the widespread move yesterday in equities compared to June 29th's similar move. The four days following that rally saw the RUT outperform the SPX before leading the way on the downside. That outperformance is not occuring this time. In fact, you can see the growing divergence between the two today on the chart. This suggests to me that risk aversion is still the larger theme intact even as we relieve oversold conditions in the market.
Position in RUT/SPX equivalents
AAII Survey - Jason Goepfert - 9:16 AM
Where all my peeps at?
The American Association of Individual Investors reported this morning that 58% of respondents in its latest survey expect the stock market to be lower six months from now.
This is the highest percentage of bearish respondents in more than a decade (tied for mid-February 2003). Even more surprising is that the results were submitted through yesterday evening, meaning that even after yesterday's explosive move, we're still seeing more bears than any other time in a decade. Apparently more than a few folks are buying into the "bear market rally" idea.
The usual caveats apply about this being only one survey, and it only reflects what people are saying, not necessarily what they're doing, but if I had to choose one survey out of the dozens available, this is the one I would pick (even accounting for all its flaws).
What you need to know... - Jon Doctor J Najarian - 8:19 AM
Bernanke Sees Light! The Federal Reserve Chairman said that he was still concerned about inflation, but that slowing economic growth should limit price pressures in the world's largest economy. They say they don't ring a bell at the bottom, and I'm not saying that was the bottom, but the market reaction was as swift as if someone heard a bell ringing!
eBay Results OK, But Buyback Needed To Boost Shares – The web auction leader posted quarterly results matching Wall Street estimates, but they like Yahoo (YHOO) confirmed fears of slowing growth. eBay (EBAY) would have suffered YHOO's fate, but they announced their first-ever buyback of up to $2 billion of stock over two years and that my friends is why shares are up 6% in the pre.
Intel Reports Profits & Sales Down - The world's largest chipmaker faces increased competition and has had to cut prices to clear out excess inventory and that's what I took away from last night's earnings report. Intel (INTC) earned $2 billion, or 33 cents a share as sales fell 13% to $8 billion.
Apple Beats Estimates, Shares Surge – The bottom line in Apple's (AAPL) 3Q shows 47% surge in profits, or $472 million ($0.54 per share), which blew away Wall Street estimates. This is a beat of between $0.07 and $0.11 and Heat Seeker shows shares trading $58.77, up 9% in the pre.
Position in EBAY, INTC, AAPL
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