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.

Before The Bell: Weak Shield in Sears, Philips Lightens Up


Shield surprises on the downside. Philips makes a bold statement. Futures are lower.

Morning Perspective: Weak Shield for Sears

Sears (SHLD) reported 3Q EPS of $0.01 vs. estimates of $0.50; revenues fell 3.4% year-over-year to $11.5 bln vs. $11.61 bln consensus. Bloomberg reports the performance marks the first consecutive quarterly decline since Chairman Eddie Lampert merged Sears and K-Mart in 2005. Sears CEO Aylwin Lewis said "We cannot blame our results entirely on the retail and macro- economic environments. We have much on which to improve.'' Professor Adam Warner mentioned Sears in Doin' It Bloggystyle. Also read Professor Quint Tatro's Seven Things to Look For In Fundamentals Trading.

From the Bull Pen: Bullish plays in retail may include Gap (GPS); sell-stops below $19.

From the Bear Cave: Professor Jeff Macke mentioned Sears as a train wreck in a recent article. "It does suggest the limits of the 'ride along with the genius trade," he wrote with respect to Eddie Lampert. Those still bearish SHLD may roll buy-stops down to $112.50 and, if broken, $107 (recent lows).

Philips Brightens Up

Reuters reported Philips Electronics (PHG) agreed to buy U.S. lighting maker Genlyte Group (GLYT) for $2.7 bln. The deal, announced yesterday, would make Philips the top lighting company in North America strengthening its footing against rival General Electric (GE). In a statement Philips said that it does not expect to be hurt by a downturn in the residential housing markets as the company continues to focus on non-residential areas which are expected to continue growing. Professor Guy Adami mentioned this story in Lighting It Up With Acuity.

From the Bull Pen: Professor Adami mentioned another similar lighting play in Acuity (AYI) as it attempts to break out through $40; near-term sell-stops may be set below the 20-DMA ($37.88).

From the Bear Cave: Bears may use yesterday's strength as an entry-point to fade (read: sell) General Electric. Buy-stops may be placed above the 50-DMA ($40.18).

Click on Minyanville's Stocks To Watch for more company-specific ideas.

Quick Check Around the World

Asian trading closed skewed to the upside with the Hang Seng +4.06%, Nikkei +2.38%, Sensex +0.34%, Taiwan +2.06% and Shanghai +4.16%.

A quick check of Europe finds the CAC -0.14%, DAX +0.21%, FTSE -0.36%, ATX -0.57%, Swiss Mkt. +0.21% and Stockholm +0.01%.

A Look At Commodities

Crude oil is trading higher 2.30 to$92.92. Gold is also higher by 2.0 to 809.30. Silver is lower by -0.018 to 14.515, and copper is up 7.85 to 311.25.

As of 8:45AM, S&P Futures are down by 4.1 points and Nasdaq futures are lower by 5.5 points.

On the Radar


8:30 GDP-Prel: 4.8% cons
8:30 Chain Deflator: 0.8% cons
8:30 Initial Claims: 330 k prev.
10:00 New Home Sales: 750 k cons

Click here for the full trading radar.

Good luck, Minyans! Have a great day!
< 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