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Before The Bell: Bad News For Boeing; Pain In Intel


Boeing may delay the Dreamliner again! Intel is in pain. Stock futures are lower.

Morning Perspective: Bad News For Boeing

Bloomberg reports Boeing (BA) may announce additional delays in its 787 Dreamliner, which could push the plane's maiden flight back to June. The 787, already six months behind schedule, was slated for delivery in November or December 2008. But that target is now in jeopardy as production has been hurt by parts shortages and assembly delays. The 787 Dreamliner, however, is Boeing's most successful new aircraft, with 817 orders valued at approximately $120 bln. Professor Mark Bloudek, a former Boeing engineer, wrote of this story earlier this month in Boeing's 787 Production Concerns.

From the Bull Pen: Bulls looking for a diversified manufacturing conglomerate can find a safer play in Lockheed Martin (LMT); sell-stops below $104.

From the Bear Cave: Bears can press the downside in BA, buy-stops above yesterday's high. Other options lie in Boeing's subcontractors such as Spirit AeroSystems (SPR) and Allegheny Tech (ATI). Buy-stops can be set above $28 and $78 respectively.

Pain in Intel

Intel (INTC) reported fourth quarter profits of $0.40 per share, in-line with analyst expectations. Revenues for the company rose 10.5% year-over-year to $10.71 bln versus $10.84 bln consensus, and gross margins for 4Q came in at 58.1% versus expectations of 57.2%. Yet shares of the world's largest chipmaker plummeted in after-hours trading yesterday as the company forecasted first quarter revenues to come in at $9.4 bln versus $10.1 bln consensus. For more ideas, read Toddo's Ten Themes For 2008.

From the Bull Pen: Bulls believing the markets are overreacting may use the weakness in Intel for an upside try. Sell-stops may be placed below $19.

From the Bear Cave:
Bears may find a downside play in Applied Materials (AMAT); sell-stops above the downtrend from the October highs ($17.40)

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

Quick Check Around the World

Hump Day rolls into the 'Ville as Critters look upon foreign markets trading down in the dumps.

Asian trading closed with the Hang Seng -5.37%, Nikkei -3.35%, Sensex -1.89%, Taiwan -2.96% and Shanghai -2.81%.

A quick look across the pond finds the CAC -0.76%, DAX -1.35%, FTSE -1.40%, ATX -4.66%, Swiss Mkt. -2.04% and Stockholm -1.01%.

A Look At Commodities

Crude oil is lower -0.81 to 91.10. Gold is down -10.60 to 892.20. Silver is lower -0.120 to 16.205, and copper is off -5.50 to 316.50.

As of 8:50 AM EST, S&P futures are down 11 points to 1377 and Nasdaq futures are lower by 25 points to 1886.

On the Radar


CPI y/y +4.1% vs +4.1% consensus
Core CPI y/y +2.4% vs +2.4% consensus
Core CPI m/m +0.2% vs +0.2% consensus
CPI m/m +0.3% vs +0.2% consensus

9:00 Net Foreign Purchases
9:15 Capacity Utilization: 81.3% cons
2:00 Fed's Beige Book

Click here for the full trading radar.

Happy Hump Day! Good luck!

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No positions in stocks mentioned.

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