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Two Ways to Play: Disney Hunts For Treasure


Strengthen your portfolio in good times and bad.

Fed Reports Tight Credit Concerns

The Federal Reserve said yesterday that banks were tightening loan terms at a near-record pace. In its Senior Loan Officer Survey published yesterday, 70% of banks said they increased loan rates over their cost of funds for commercial and industrial borrowing. The figure compared with just 45% in January. In addition to the tighter lending terms, demand for bank loans from both businesses and households weakened further over the quarter, though by less than previous quarter, and a large majority of respondents to the survey said there were increased defaults of material obligations under the loan agreements as well as significant changes in borrower's financial circumstances. See Professor Bennet Sedacca's How Did We Get Into The Mess? Part 1.

From the Bull Pen: Bulls see a play in Visa (V); sell-stops can be set below $80.

From the Bear Cave: The SLO survey confirms the Bear's suspicions that there is severe stress in the credit markets. Downside plays in the financial ETF (XLF) can be an option

Disney Likely a Solid Quarter

Walt Disney (DIS) is set to report after the bell today. Bloomberg reports the second-largest U.S. media company may say that 2Q profit rose 7.1% to $997 million, or 51 cents a share from a year earlier, according to consensus estimates. Sales likely increased 5.4% to $8.5 billion. Analysts believe the company may have weathered a slowdown with box-office sales from "National Treasure" which brought in $456.4 million in global sales in the period. In addition, "Hannah Montana" reigns as the top show for children ages 6 to 14, and theme park attendance likely rose in part to Easter and spring holidays falling earlier in the year. Professor Jeff Macke mentioned Disney in last week's Macke's Mover.

From the Bull Pen: Professor Mack said he doesn't expect earth-shattering results with Disney's quarter but remains long the stock.

From the Bear Cave: Bears can look to other media plays like Time Warner (TWX). Fading the stock into $17 resistance is an option.

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

Quick Check Around the World

Asian trading closed with the Hang Seng +0.30%, Nikkei +2.05%, Sensex -0.67%, Taiwan +0.23% and Shanghai -0.73%.

A quick look across the pond finds the CAC -0.72%, DAX -0.81%, FTSE -0.64%

As of 8:35 AM EST S&P futures are down by -6.3 points to 1402, and Nasdaq Futures are lower by -6.75 points to 1973.

A Look At Commodities

In commodities, crude oil is lower -0.42 to 119.57. Gold is higher +3.60 to 877.70. Silver is lower -0.26 to 16.720, and copper is lower -7.85 to 390.00.

The dollar index is lower -0.170 to 73.020.

On the Radar


No economic events on the radar today.

Click here for the full trading radar.

Happy Tuesday! Good luck today!
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