Before The Bell: Intel Surges; Google Clicks Rise
Tech giant defies expectations and says there is no slowdown.
Intel (INTC) beat earnings estimates last night. The semiconductor giant said 1Q profits came in at $0.29 per share above analysts expectations of $0.25 per share. Revenues increased 9.3% year-over-year to $9.67 bln inline with forecasts. According to Bloomberg, INTC shares surged as much as 9% in after-hours trading after the company issued positive guidance. INTC estimates revenue of $9 bln to $9.6 bln where consensus estimates call for $9.25 bln. Further, Hannes Schwaderer, head of the company's German unit, said there were no indications for an economic slowdown with small and medium-sized companies continuing to invest strongly in their IT infrastructure. For more read Professor Sean Udall's Tech Earnings Watch.
From the Bull Pen: Those bullish INTC can play the upside; sell-stops below yesterday's close, $20.91.
From the Bear Cave: Bears can play the downside in the semiconductor ETF (SMH); entry near $30 with buy-stops above $30.50.
Google Clicks Rise
Bloomberg reports Google (GOOG) saw a 1.8% increase in ad-clicks during the last quarter. In addition, a Lehman Brothers analyst who cited data from ComScore said clicks on Google's sponsored links rose 2.7% in the last month of the quarter. The world's most popular search engine depends on ad clicks for most of its revenue which totaled $16.6 bln for 2007. The company reports 1Q results tomorrow after the closing bell. Analysts expect sales to rise 42% to $3.59 bln. Todd mentioned Google last week in his Random Thoughts.
From the Bull Pen: Those bullish on GOOG can play the upside with sell-stops below recent lows ($420). Microsoft (MSFT) has also been positively mentioned in the 'Ville; sell-stops below $28.
From the Bear Cave: Bears with a higher risk profile can play the downside on GOOG with an entry-near $470 and buy-stops above $500.
For more ideas, see Minyanville's Spotlight Stocks.
Quick Check Around the World
Asian trading closed with the Hang Seng -0.10%, Nikkei +1.20%, Sensex +0.56%, Taiwan +1.58% and Shanghai -1.69%.
A quick check towards Europe finds the CAC +1.08%, DAX +0.64%, FTSE +0.94%
As of 8:35 AM EST, S&P futures are higher +8.90 points to 1344, and Nasdaq Futures are up +26 points to 1822.
A Look At Commodities
Commodities are all higher. Crude is up +0.19 to 113.98. Gold is higher +10.10 to 938.30. Silver is up +0.270 to 18.120 and copper is up +5.65 to 394.75.
The dollar index is down -0.564 to 71.459.
On the Radar
Consumer Price Index (m/m): 0.3% vs. 0.3% cons.
Core CPI (m/m): 0.2% vs. 0.2% cons.
CPI (y/y): 4.0% vs. 4.0% cons.
Core CPI (y/y): 2.4% vs. 2.4% cons.
Housing Starts: 947 k vs. 1010 k cons.
Building Permits: 927 k vs. 970 k cons.
9:15 Industrial Production: -0.1% cons.
9:15 Capacity Utilization: 80.3% cons.
2:00 Fed's Beige Book
Click here for the full trading radar.
Happy hump day! Good luck and have a great day!
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