Two Ways To Play: eBay A (Online) Seller's Market
Strengthen your portfolio in good times and bad.
Stock futures are getting a lift this morning in part due to optimism from Hewlett-Packard (HPQ). Bloomberg reports shares of the world's largest personal-computer maker rose in after-hours trading after the company beat analyst estimates and gave an upbeat forecast.
Notebook sales jumped 26% as demand for the products and other items picked up in Europe and Asia which helped the company achieve a 14% gain in 3Q profits. For 4Q, the company expects revenue to come in just above $30 billion with profits at around $1.01 to $1.03 a share. Analysts were expecting $1 a share in profit on $30 billion in revenues.
For context, see Professor Scott Reeves' column, Dell Comes Back with a Vengeance.
From the Bull Pen: Those that remain bullish on H-P can continue to play the stock; sell-stops can be set below yesterday's close ($43.70). Dell (DELL) is also an option as long as the stock holds the March uptrend; sell-stops below the 50 DMA ($23.75).
From the Bear Cave: Did IBM (IBM) really break its uptrend for the year? In the near-term buy-stops can be set above $125 on downside tries.
eBay Wooing Buyers and Sellers
The Wall Street Journal reports online auctioneer eBay (EBAY) is lowering its fees related to fixed-price items for U.S. sellers to improve the balance between buyers and sellers. Instead of charging sellers to list each item separately, eBay will charge 35 cents to list any number of the same types of fixed-price items. The fee is down from as much as $4. The company will also increase the duration of a listing to 30 days from seven as well as simultaneously raising the commission it charges once the products are sold. The changes will be effective September 14.
From the Bull Pen: Bulls can look to Amazon (AMZN) for an upside play. Will the stock retest the $90 mark? Near-term sell-stops can be set below $80.
From the Bear Cave: Ebay's stock attempted to fill the gap down from July, but failed. Bears can continue to play the downside, buy-stops can be set in the $25-26 range.
For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.
Quick Check Around the World
Asian trading closed with the Hang Seng +2.18%, Nikkei -0.10%, Sensex +0.92%, Taiwan +0.89% and Shanghai +7.63%.
Glancing towards Europe, we see the CAC +0.69%, DAX +0.47%, FTSE +0.92%
As of 8:30 AM EST, S&P futures are higher +1.60 to 1270, and Nasdaq futures are up +4.75 to 1924.
A Look At Commodities
Commodities are mostly higher. Crude oil is trading +0.81 to 115.34. Gold is up +2.80 to 813.90. Silver is higher +0.140 to 13.245, and copper is up +9.25 to 344.75.
The dollar index is higher +0.178 to 77.016.
On the Radar
Weekly MBA Mortgage Applications: -1.5%
Click here to see the full trading radar.
Good luck today!
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