Minyanville's Before The Bell: Problems At Home, Apple Shines, Futures Up
Homeowners are fighting to save their homes; bankruptcies surge! Apple saves the day. Futures are up!
Morning Perspective: Troubles at home
According to the WSJ, consumer bankruptcy filings surged almost 23% year-over-year as more homeowners fight to prevent their homes on being repossessed. The news comes as Neumann Homes, Chicago's largest homebuilder, filed for bankruptcy. Read Professor Shedlock's Housing Woes And Pain Avoidance. Read our Subprime Slime package as well.
From the Bull Pen: Housing is in turmoil but for those who think the negativity may be overdone, tertiary plays such as Home Depot (HD) and Lowe's (LOW), both of which are at the bottom of long-term ranges, may be considered with stops below $30 and $26 respectively.
From the Bear Cave: With the housing sector in turmoil, traders might look to go long the inverse ETF Proshares Ultrashort Real Estate (SRS). Reasonable sell-stops may be placed under the recent uptrend at $90.
Spotlight on Apple
Apple (AAPL) blew away estimates last night reporting 4Q EPS at $1.01 vs. $0.85 consensus. Revenues rose 28.5% year-over-year to $6.22 billion versus $6.06 billion consensus. The company issued upside guidance for 1Q, seeings EPS of $1.42 vs. $1.40 consensus on revenues of $9.2 billion vs. $8.65 billion consensus. Apple was originally mentioned in Professor Udall's Revisiting 21 Bullish Predictions For Tech.
From the Bull Pen: Professor Udall reiterated his bullish stance on AAPL by stating on the Buzz he'd buy on any pull back. Buyers may look to yesterday's close ( 174.90) to add positions if the opening gap gets filled with a stop below.
From the Bear Cave: On the other side of the trade, Professor Kevin Depew noted yesterday on the Buzz that the stock has registered a DeMark sell signal on the daily chart, with another DeMark sell signal that will register today on the opening gap higher.
Click on Minyanville's Stocks To Watch for more company-specific ideas.
A Quick Check Around the World
Asian markets were higher. The Hang Seng surged +3.54%, the Nikkei added +0.07%, India's Sensex gained +4.99%, Taiwan's TAIEX gained +1.51%, and Shanghai finished up +1.87%.
In Europe , the DAX is up +0.97%, FTSE up +1.42%, and the CAC is up +1.11%. As of 8:15 AM EST, S&P Futures are up +5 points and Nasdaq futures are up +22 points.
A Look At Commodities
Gold is higher by 3.4 to 763.40 and crude oil is up +0.63 to 86.65.
On the Radar
We have another light radar this morning with no economic events scheduled. Here are some companies that have reported before the open:
BNI: $1.48 EPS vs. $1.37 cons; revs $4.069 bln vs. $4.02 bln cons.
COH: $0.41 EPS vs. $0.40 cons; revs $677 mln vs. $659.1 mln cons.
UPS: $1.05 EPS vs. $1.02 cons; revs $12.21 bln vs. $12.24 bln cons.
JBLU: $0.12 EPS vs. $0.07 cons; revs $765 mln vs. $762.7 mln cons.
Here are some companies reporting after the bell with analyst estimates:
AMZN: $0.18 EPS/$3.13 bln revs
BRCM: $0307 EPS/$928 mln revs
CTX: $-5.52 EPS/$2.19 bln revs
Click here for the full Minyanville Trading Radar.
Good luck and have a great day!
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