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.

Minyanville's Before The Bell: Halloween Edition! Alcatel and Debt Markets Spooky!


Alcatel reports a creepy crawler performance. The debt markets frighten Cerberus. But equity futures point up!

Morning Perspective: Alcatel's Creepy Performance

Alcatel-Lucent SA (ALU) reported 3Q loss of -0.02 euro per share vs. analyst estimates of -0.01 euro loss per share. Revenues rose 30.4% year-over-year to 4.35 bln euro vs. 4.43 consensus. The world's largest maker of telecom equipment stated it would cut another 4,000 jobs along with the resignation of CFO Jean-Pascal Beaufret. CEO Patricia Russo cited the collapse of the housing market as reasons for slowing sales of fixed-line network equipment. Yesterday Todd asked about the tech sector in Answers I Really Wanna Know.

The Bull Pen: Those who think the negative sentiment is finally overdone with respect to Telecom may look to ALU with sell-stops below recent support at $9.00. Tertiary plays include Verizon (VZ), near-term sell-stops below $43.50 (50-DMA) and Broadcom (BRCM), sell-stops below $32.

The Bear Cave: Those believing the long-term downtrend in ALU will resume may look at 9.90 (50-day) as a prudent entry point. Buy-stops may be placed with trades above.

Debt-market Spooks Cerberus

Cerberus Capital Management officially announced it's withdrawing the $6.2 bln offer for Affiliated Computer Services (ACS) it made last March. Cerberus cited "continuation of poor conditions in the debt markets" as a reason for its withdrawal, in addition to dissatisfaction with how ACS management handled the $62 per share approach. Read Minyan Peter's The Ripple Effect of Collateralized Debt and Bank Earnings Post Mortem for more context into the financial sector.

From The Bull Pen: Cerberus and ACS aside, those who are bullish financials may look for a play in bellwether Goldman Sachs (GS), but note the stock is extended above sell-stops and the FOMC policy statement will be released at 2:15 EST. One idea is to look for an entry point on weakness to the $230 area, with sell stops below $215.

From The Bear Cave: Traders looking to play the downside on the financials may see a play in Lehman Brothers (LEH) with buy-stops above recent support ($65 area).

Quick Check Around the World

Asian trading closed with the Hang Seng -0.90%, Nikkei +0.52%, Sensex +0.28%, Taiwan -0.48%, and Shanghai +0.98%.

Over in Europe, markets are higher with the CAC +0.52%, DAX +0.17%, and FTSE +0.44%. As of 8:30 AM EST, S&P futures are up 6.00 points and Nasdaq futures are higher by 7.25 points.

A Look At Commodities

Crude is slightly higher +0.06 to 90.45. Gold is lower by -0.80 to 787, silver is down -0.008 to 14.32, and copper is off by -0.006 to 3.47. The dollar index (DXY) is down -0.03 to 76.74.

On the Radar

The calm before the storm is over. Traders will have plenty to digest today. Below is a list of economic events for today's session.

8:30 GDP-adv: 2.1% cons
8:30 Chain Deflator – Adv: 2.1%
8:30 Employment Cost Index: 0.9% cons
9:45 Chicago PMI: 53.0 cons
10:00 Construction Spending: -0.3%
10:30 Crude Inventories: -5288k prev.
2:15 FOMC Policy Statement

Click here for Minyanville's full Trading Radar.

Happy Halloween, Minyans! Good luck today!
< 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