Two Ways To Play: GM Sweetens the Pot
Strengthen your portfolio in good times and bad.
GM Fighting For Customers
Bloomberg reports General Motors (GM) is offering cash incentives of as much as $2,500 on many 2007 and 2008 models just in time for the U.S. Memorial Day Holiday. Customers will receive as much as $1,000 on newer vehicles and may get an additional $1,500 on vehicles with invoice dates on or before January 22. By doing so, GM is hoping to clean out older inventory as well as increase traffic to the showroom in time for the summer driving season. The program will run from May 22 to June 2. Professor Kevin Depew mentioned GM in a recent Five Things You Need To Know.
From the Bull Pen: Rather than automakers, bulls might consider an upside play in an auto parts retailer. AutoZone (AZO) might be an option; sell-stops can be set near $120.
From the Bear Cave: Too little, too late say the bears. Bears are pressing the downside in GM, buy-stops above $20.50.
BJ's Wholesales (BJ) said first quarter results were better than expectations. Earnings rose to 29 cents a share, a penny better than consensus estimates. Revenues increased 12.1% year-over-year to $2.31 bln vs. $2.27 bln consensus. Looking forward, the company raised its 2009 guidance with EPS in the range of $2.04 to $2.14. This compares with its previous guidance of $1.98-2.08 and consensus estimates of $2.06. Professor Jeff Macke recently talked about BJ in this month's Retail Roundup.
From the Bull Pen: Bulls like BJ and can set sell-stops below $38. In addition, bulls are seeing a nice pull-back in Wal-Mart (WMT) to $55.
From the Bear Cave: Bears would rather play the downside in a company like J.Crew (JCG); buy-stops can be set above $50.
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 +1.16%, Nikkei -1.65%, Sensex +0.08%, Taiwan -0.59% and Shanghai +2.93%.
Quickly checking European bourses, we see the CAC -0.39%, DAX -0.51%, FTSE +0.27%
As of 8:40 AM EST, S&P Futures are trading -2.20 points to 1415, and Nasdaq Futures are lower -6.75 points to 2002.
A Look At Commodities
Commodities are higher. Crude oil is up +0.74 to 129.69. Gold is higher +2.60 to 922.80. Silver is up +0.697 to 17.671, and copper is lower -3.05 to 376.00.
The dollar index is lower -0.334 to 72.074.
On the Radar
MBA Mortgage Applications: -7.8% vs. 2.9% last week.
2:00 Minutes of April 29-30 FOMC Meeting
Click here for the full trading radar.
Today is hump day! Good luck!
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