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.

Two Ways To Play: AIG Drops The Ball


Strengthen your portfolio in good times and bad.

AIG Hits Markets

American International Group (AIG) is weighing on the markets today. The world's largest insurer by assets reported weaker than expected results with a first quarter loss of $7.81 billion. This time last year the company earned $4.13 billion. AIG also reported nearly $15 billion in its credit and investment portfolios. Looking forward, the company said losses may reach $2.4 billion and will need to raise $12.5 billion to shore up its balance sheet. Revisit Mr. Practical's U.S. Banking System on the Fritz.

From the Bull Pen: Bulls are eyeing the $180 level for Goldman Sachs (GS) and may attempt an upside play if the stock gets there. Sell-stops can be set below the 50-day ($175).

From the Bear Cave: This confirms the bear's belief that the financial markets are still severely stressed. Bears might play the Ultrashort Financial (SKF) which tracks twice the inverse of the DJ Financial Index; sell-stops near $100.

Retails Shine in April

According to the WSJ, retailers rang up higher sales in April posting their best results in months. Leading the charge was Aeropostale (ARO) blowing out the month with a 25% gain in same-store sales. Other companies with double-digit gains included BJ's (BJ) and Children's Place (PLCE) with an 18% and 15% gain respectively. Even Saks (SKS), which has seen its shares beaten up by nearly 40% YTD, surged 24%. On the lower end Gap (GPS) continued to decline with sales dropping 6. Sales were flat in the Gap and Banana Republic brands but fell 12% at Old Navy and 7% on the international level.
For more, see Professor Jeff Macke's Retail Round-Up.

From the Bull Pen: Bulls are looking at Wal-Mart (WMT); entry may be near $55 should the stock pull back and sell-stops can be set below $53.

From the Bear Cave: Bears can play the downside in Kohl's (KSS); buy-stops can be set above $50.

For more ideas, check out Minyanville's Spotlight Stocks.

Quick Check Around the World

Asian trading closed with the Hang Seng -1.52%, Nikkei -2.06%, Sensex -2.01%, Taiwan -0.84% and Shanghai -1.19%.

A quick check of Europe finds the CAC -2.25%, DAX -1.34%, FTSE -1.34%.

As of 8:45 AM EST, S&P Futures are lower -7 points to 1385, and Nasdaq Futures are down -9 points to 1956

A Look At Commodities

Commodities are higher. Crude oil is trading +1.46 to 125.13. Gold is higher +5.0 to 887.10. Silver is up +0.166 to 16.960, and copper is lower -2.55 to 379.50.

The dollar index is lower -0.339 to 73.139.

On the Radar


Trade Balance: -$58.2 bln vs. -$61.0 bln cons.

Happy Friday! Good luck!
< Previous
  • 1
Next >
Position in GPS

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