Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

MV Weather Report: Will Earnings Season Mean Monsoon for JPMorgan, Google?


Rain or shine, we review the day's biggest stock stories.

Today was a sleepy, uneventful trading session. The market had a ziz-zag trading pattern and seemed to search for a theme all day.

Even though the S&P and DJIA closed higher on the day, weakness in the NASDAQ stuck out to me - and those were the stocks that led this run. Notable rally leaders that sold off today include Apple (AAPL), Research In Motion (RIMM), Amazon (AMZN) and Netflix (NFLX).

The financials led today. Goldman Sachs (GS) bounced back nicely after its equity offering announcement yesterday. The big banks also traded extremely well: Bank of America (BAC), Wells Fargo (WFC) and JPMorgan (JPM) all had up days. Google (GOOG) traded higher late in the day on a rumor that it was going to beat expectations (but we don't do rumors in the 'Ville).

Tomorrow, traders will have all eyes on earnings. The big reports will be JPMorgan before the bell, and Google after the close. Also watch for earnings from Nokia (NOK), Titan Machinery (TITN), Intuitive Surgical (ISRG) and Sandisk (SNDK).

The current estimates for JPMorgan call for EPS of $0.32 on revenues of $22.953 billion. If Goldman's report was any preview for JPMorgan's, look for the company to smash estimates. The only issue: I suspect much of the report is already priced in, and we may see a sell-the-news scenario, as we did with Goldman.

Google's EPS estimates are at $4.93 on revenues of $4.084 billion. Google's quarter is difficult to game. It typically finds a way to beat EPS every time, but it might run into trouble now, with companies across the board spending less on advertising.

Here's a Buzz & Banter post from Professor David Dispennette explaining some earnings-related options trades:

"So, I've established another Put Spread (like Google yesterday) in JPMorgan by buying the April $32.50 Put and selling the April $30 Put for a total cost of $1.04.

"My downside is the entire $1.04, my breakeven is $31.46 and my maximum return will take place with a close below $30 on Friday, which will net me $2.50 for a 140% return.

"I also sold Intuitive Surgical April $100 Puts and bought Titan Machinery April $10 Calls as a way to play there earnings, also due out tomorrow."

All right, Minyans - there's a lot going on tomorrow. Rest up, and have a great night!

In memory of our fallen friend and trusted colleague, Bennet Sedacca, 100% of the donations made to the RP Foundation through April will be channeled to philanthropic endeavors consistent with the RP mission, working closely with the Sedacca clan in the distribution of those funds. We thank you kindly for your support as we strive to effect positive change in the lives of children.
< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos