Buzz Bits: Dow, Nasdaq Dip Lower
Your daily Buzz & Banter highlights...
Editor's Note: This is a small sample of the content available on the Buzz and Banter.
Earnings Report - MV News
- Oracle (ORCL) reports 4Q $0.37 EPS vs. $0.35 cons on revs. $5.8 bln vs. $5.61 bln.
- Nike (NKE) reports 4Q $0.86 EPS vs. $0.86 cons. on revs. $4.4 bln revs vs. $4.36 bln cons.
Answers I Really Wanna Know... - Todd Harrison - 3:37 PM
- Did you see those seven figure prints on the rope (read: hitting a bid) in the QQQQ and SPY?
- At what point is Blackstone broken?
- Do you see the slippy action in Fortress (FIG) as chatter circulates that 60% of its assets are priced with "internal models"?
- Did I mention that, according to my internal model, I weigh 180 lbs?
- And just like that, the VXO can vote?
- What's gonna happen when everyone goes on vacation next week?
- You're not a bug, are you gnat?
- With a conscious nod that S&P 1386 is a mere 10% correction from the recent high, are you viewing your risk profile through the proper lens?
- What's the difference between a frontal lobotomy and a bottle in front of me?
- Do you see that the SEC has opened twelve probes into complex securities?
- Fletch or Fast Times?
- Y'all see the relative rotation into pharma and the consumer space?
- Holy cow, it's 3:30 already?
- Is $31 to Blackstone what 1490 is to the S&P?
- Why do I sense that both will close within' spittin' distance of those respective levels?
- Are we there yet?
Bag it Randoms - Jeff Macke - 2:16 PM
- Kroger (KR) is getting smacked around today after reporting and guiding more or less in-line. In-line is rarely good enough for stocks sporting 20% gains half-way through the year. Something to keep in mind as we enter reporting season in the next couple weeks.
- Nike (NKE) reports after the bell. Pay attention to its running and basketball segments, which are rumored to be improving after years of lagging. Since yesterday's dance with a neighborhood pit-bull, I'm in the market for some running shoes with steel-toed spikes, a la the Iron Sheik.
- Speaking of runs coming to a bloody end, here's an utterly pointless prediction for the third quarter: Apple (AAPL) goes back to the 90's (and, no, I'm not expecting a stock split).
- "Pssst... Green(horse)shoe loves Blackstone (BX)..."
- You can try anything as long as you have a firm exit plan. Keep that in mind if you're trading this tape. Long or short, the discipline to act on your "mental stops" is key to volatile markets. As Todd-O says, don't let a trade turn into an investment.
Quick Look at Gold, Silver-Related Shares - Kevin Depew - 1:28 PM
The ongoing selloff in gold, silver and related shares is beginning to raise some hackles, whatever hackles are, so I wanted to point out some important point and figure levels worth watching.
- Barrick Gold Corp. (ABX) broke a quintuple bottom and violated trendline support in May. The stock has tried to recover, but has only managed weak attempts at correcting the trend violation since then. A move to 26 would be very damaging.
- Gold Fields Ltd. (GFI) broke a double bottom at 16, confirming the trendline break that was initiated earlier this year. The downside count is to 11.5 based on point and figure price projection rules.
- Goldcorp, Inc. (GG) is eyeing a potentially critical trendline violation at 22. This would break the point and figure trend that had been intact since 2004.
- Meridian Gold, Inc. (MDG) broke the long-term multi-year point and figure trend last last year. A move to 23 would be yet another new sell signal; the downside projection is to 18.
- Newmont (NEM) is already broken and on a point and figure sell signal; the downside count is to 33
- Silver Standard Resources, Inc. (SSRI) is a relative strength winner among its peers, but this stock too has now given a new point and figure sell signal, although the downside projection to 28 leaves the primary uptrend well intact. Of the stocks mentioned, if I were creating a list of potential buys down the road, this would be atop the list.
Morning Update - Sally Limantour - 9:30 AM
Volatility in stocks yesterday gave us trading opportunities on both sides but the market continues to exhibit higher volume on the way down. Asian stock markets were mostly lower with Japanese shares lower on losses by Sony (SNE) and Advantest (ATE). China also fell, continuing its decline from Monday. The Shanghai index is now down 5.4% in the last two trading sessions.
Yesterday's news from the Bank of International Settlements was a sobering message that pointed to inflation risks, a stronger-than-expected US slowdown and a concern that "markets had become irrationally exuberant." This coupled with the subprime woes contributed to the fast sell off in stocks yesterday.
News this morning the US Dept of justice has launched an anti-corruption investigation into BAE Systems (BEAS) which includes dealings with Saudi Arabia had BAE shares sliding 9 per cent.
The buyout boom which has helped fuel the market may slow down and we are starting to see a raft of bond offerings for recently announced deals come off the table. These include the $7.75 bl buyout of Thompson Learning and the $7.1 bln deal for US food service. Going forward the market will be watching two other buyouts, the $4.7 bln deal for ServiceMaster and the $6.9 bl sale of Dollar General to see how their bonds are priced and will serve as a pulse for the LBO world.
This morning has a slew of reports to key of off and I will be watching today's pivot of 1515.00 and how/if the market can capture yesterday's POC of 1524.25. The 1528.00 level I spoke about yesterday did cap the upside and early going the first resistance will be the 1521.75 level.
Click to enlarge
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.
Daily Recap Newsletter