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Two Ways: Oh, Deere!


Strengthen your portfolio in good times and bad.


Deere Profits Drop

Farm equipment manufacturer Deere (DE) is out with its first-quarter earnings this morning, posting a 45% drop in profits. Net income came in at $203 million, or $0.48 per share, which was $0.15 below Thomson First Call consensus. Revenues dropped 1% to $5.146 billion compared with expectations of $4.64 billion.

In a statement, the company said it remains solidly profitable despite the global economic headwinds - and points to continued signs of strength in US and Canadian markets. Looking ahead, Deere expects equipment sales to fall 8% for the full year and about 9% in the second quarter due in part to unfavorable currency conditions. Profits for fiscal 2009 are projected at around $1.5 billion, but the company is suspending quarterly forecasts due to uncertain market conditions.

From the Bull Pen: Bulls can look to Archer-Daniels Midland (ADM) for an upside play. One option can be to enter as it falls toward $25. A sell stop can be set below $24.

From the Bear Cave: Taking a look at the daily chart, bears see that Deere may eventually be headed for $30. One option can be to watch the behavior in the first hour of trading and test the downside with a 2% buy stop above entry.

Quick Check Around the World

Asian trading closed with the Hang Seng 0.55%, Nikkei -1.45%, Sensex -0.22%, Taiwan 0.15% and Shanghai -4.72%.

Glancing towards Europe, we see the CAC -0.19%, DAX -0.77%, FTSE -0.71%,

A Look At Commodities

Crude oil is trading -0.03 to 34.90. Gold is -0.70 to 966.80. Silver is +0.20 to 14.300, and copper unch at 142.30.

The dollar index is +0.0750 to 87.9950.

On the Radar


07:00 MBA Mortgage Applications
08:30 Import Price Index (MoM & YoY) -1.5% & -11.9%
08:30 Housing Starts 530k
08:30 Building Permits 525k
09:15 Industrial Production -1.4%
09:15 Capacity Utilization -72.4%
02:00 FOMC Minutes from Jan. 28th meeting

Click here for the full trading radar.

Good luck, Minyans!

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No positions in stocks mentioned.

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