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Two Ways: Sony Struggles

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Strengthen your portfolio in good times and bad.

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Sony's Perfect Storm

Sony (SNE) posted its first annual loss in 14 years, and didn't offer much hope for a quick turnaround in the months ahead. According to the New York Times, the Japanese consumer electronics company reported a loss of 165.1 billion yen for the quarter ending in March. This stands in contrast to a gain of 29 billion yen in the same period a year earlier.

Revenues on an annual basis fell 13% to 7.73 trillion yen due to the slowing economy and Japan's strengthened currency. Stiff competition has also taken its toll. Sony surrendered the lead in music players to Apple's (AAPL) iPod, and hasn't been able to seriously compete with the iPhone. Nintendo's (NTDOY) Wii has also been the dominant force in the gaming sector, beating out Sony's PlayStation 3.

Sony shares fell over 6% in Tokyo.

From the Bull Pen: For Japanese plays, we've talked about Toyota (TM). But the stock could find support near $72. Those playing the rebound can fade (read: buy) into that level with a sell stop below.

From the Bear Cave: Bears can look to AT&T (T). The stock hasn't been able to rally much with the rest of the equity markets and $25 support seems to be under assault. Those attempting the downside can place a buy stop 2% above entry.

Quick Check Around the World

Asian trading closed with the Hang Seng -3.04%, India -1.22%, Nikkei -2.64%, Shanghai -0.90% and Taiwan -1.87%.

Glancing towards Europe, we see the CAC -0.40%, DAX -0.69%, FTSE -0.01%

As of 8:20 AM EST, S&P Futures are trading -2 to 882.00, and Nasdaq futures are +1 to 1338.00.

A Look at Commodities

Over in commodities, crude oil is trading -0.91 to 57.11 while gold is -2.10 at 923.80 this morning. Silver is -0.185 to 13.83 and copper -5.20 to 198.50.

The dollar index is +0.2950 to 82.8650.

On the Radar

Economics

08:30 Core PPI 0.1%
08:30 Initial Claims
08:30 PPI 0.1%

Click here for the full trading radar.

Good luck!

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