Two Ways To Play: Sin Citi
Strengthen your portfolio in good times and bad.
According to Bloomberg, Goldman Sachs believes Citigroup (C) may write down an additional $8.9 bln in the second quarter. Goldman cut the six-month price target to $16 and placed the firm on its conviction sell list because it believes Citi faces "multiple headwinds" including further writedowns, and higher consumer provisions.
The firm also lowered its ratings on all U.S. brokerages to "neutral" from "attractive" because the industry appears to be deteriorating at a faster pace than previously anticipated. Todd noticed how Citigroup was trading yesterday. Read Trading In The FOMC Wake.
From the Bull Pen: Bulls looking for a financial play might find one in BB&T (BBT). The stock is in the process of breaking its may downtrend; sell-stops can be set below $24.
From the Bear Cave: Can State Street (STT) overcome the poor sentiment? Those skeptical can play the downside; buy-stops above $70.
Nike Drops in After-Hours
Nike (NKE) reported its fourth quarter results last night. The athletic retail giant said earnings came in at $0.98 per share, 2 cents better than analysts estimates. Revenues rose 16.1% year-over-year to $5.09 bln vs. consensus estimates of $4.95 bln. But shares fell as much as 6% in after-hours trading due in part to a 33% increase in selling, general, and administrative costs in the quarter, according to Bloomberg. Further, Nike reaffirmed its sales growth for FY09 to be in the high single digits. Professor Jeff Macke mentioned Nike last week in Bear Stearns Arrests Have Little Effect.
From the Bull Pen: Those that remain bullish on Nike can fade (read:buy) this weakness as it closes the gap near $61.
From the Bear Cave: Bears looking for a downside play in retail might see one in Tiffany (TIF); buy-stops in the near term above $45.
For more ideas in real time throughout the trading day, check out Minyanville's Buzz & Banter.
Quick Check Around the World
Asian trading closed with the Hang Seng -0.79%, Nikkei -0.05%, Sensex +1.42%, Taiwan -0.55% and Shanghai -0.11%.
A quick check of Europe finds the CAC -1.90%, DAX -1.72%, FTSE -1.73%
As of 8:30 AM EST, S&P futures are down -12.6 points to 1310, and Nasdaq futures are lower -22 points to 1910.
A Look At Commodities
Commodities are higher. Crude is up +0.82 to 135.38. Gold is up +28.40 to 910.70. Silver is up +0.422 to 16.930, and copper is higher +2.45 to 381.00.
The dollar index is lower -0.266 to 72.657.
On the Radar
GDP (q/q): 1.0% vs. 1.0% cons.
Personal Consumption: 1.1% vs. 1.0% cons.
GDP Price Index: 2.7% vs. 2.6% cons.
Core PCE (q/q): 2.3% vs. 2.1% cons.
Initial Jobless Claims: 384 k; prior revised to 384 k.
Continuing Claims: 3139 k; prior revised to 3057 k.
10:00 Help Wanted Index: 19 cons.
10:00 Existing Home Sales: 4.96 mln
10:00 Existing Home Sales (m/m): 1.4% cons.
Click here for the full trading radar.
Good luck today!
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