Before The Bell: Good Earners; Googles For Baidu
Companies reporting better than expected earnings; Bidu gears up for Internet battle.
According to the WSJ the Dow Jones Industrial Average has recovered approximately 6% since falling below the 12,000 mark a month ago due in part to a number of positive earnings reports (excluding the financial sector). In the S&P 500, of the 462 companies that have reported, 62% beat analyst expectations with the best performing sectors being in the health, utilities, industrials, and tech. In relation to the dot-com bubble, eight out of 11 sectors in the S&P 500 reported annual earnings declines in 2001 compared with just three in 4Q of 2007. Read Professor Prieur du Plessis' column Is Now Time To Buy?
From the Bull Pen: In the tech space, a number of professors have favorably mentioned Apple (AAPL); sell-stops can be placed below yesterday's low $118. The Powershares Water ETF (PHO) is another option; sell-stops below $19.
From the Bear Cave: Bears can press the downside in the financials using the Financial ETF (XLF); buy-stops can be set above $28.
Googles For Baidu
Bloomberg reports Baidu (BIDU), gained the most in a month on rumors that the company acquired a web browser for an undisclosed amount. Sohu.com reported the company made the acquisition of Maxon, an Internet browser with an estimated 10 million users, earlier this week citing an unknown source. Analysts believe Baidu, China's main Internet search engine, made the acquisition in an effort to compete with Google (GOOG). Shares of BIDU rose as much as 9% yesterday in U.S. trading. Todd mentioned BIDU in his Random Thoughts.
From the Bull Pen: Bulls can attempt the upside in GOOG; sell-stops below $450. The tech SPDR (XLK) is another option; sell-stops below $22.
From the Bear Cave: "Buy the rumor, sell the news." Bears can choose to short BIDU now with a buy-stop above recent highs ($280). Alternatively, bears can enter at $300 should the stock approach that level; buy-stops set above.
For more ideas, see Minyanville's Spotlight Stocks.
Quick Check Around the World
Critters fire up this Thursday pup and look upon a mixed bag of foreign markets.
Asian trading closed with the Hang Seng +0.44%, Nikkei -0.75%, Sensex -0.01%, Taiwan +1.86% and Shanghai -0.80%.
A quick look towards Europe finds mostly red with the CAC -0.84%, DAX -0.82%, FTSE -0.70%, ATX +0.12%, Swiss Mkt. -0.47% and Stockholm -0.71%.
A Look At Commodities
Commodities are strong. Crude oil is up +0.48 to 100.12. Gold is higher +2.70 to 963.60. Silver is up +0.100 to 19.310, and copper is up +0.80 to 384.60.
The dollar index is down -0.61 to 74.149.
On the Radar
GDP Annualized: 0.6% vs. 0.8% cons
Personal Consumption: 1.9% vs. 2.0% cons
GDP Price Index: 2.7% vs. 2.6% cons
Core PCE (q/q): 2.7% inline
Initial jobless claims: 373 k vs. 350 k cons
Continuing claims: 2807 k vs. 2785 k cons
Help Wanted Index: 21 cons
Click here for the full trading radar.
Good luck, Today! Hooya!
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