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Two Ways To Play: Wal-Mart Rolling Back Prices, Earnings Estimates


Strengthen your portfolio in good times and bad.


Wal-Mart Cuts Outlook

Wal-Mart (WMT) shares are trading lower in Europe this morning. According to Bloomberg, the world's largest retailer cut its full-year outlook due in part to gains in the dollar against other currencies. The company reported third-quarter earnings of $0.77 a share, a penny better than consensus estimates. Revenues rose 7.5% year-over-year to $97.63 billion, versus $98.26 billion consensus.

CEO Lee Scott said he was optimistic about the holiday season, but the company still cut its annual earnings forecast to $3.42-$3.46 per share from a previous estimate of $3.43-$3.50. Analysts, meanwhile, were banking on $3.48.

See Toddo's The Great Expression for more context on our economy.

From the Bull Pen: Those who remain bullish on Wall-Mart are looking past the cut in guidance and seeing the series of higher lows on the daily chart. A near-term sell stop can be set below $52. Another retailer to consider is Dollar Tree (DLTR). One might be able to catch it on a pullback near $35-$36.

From the Bear Cave: Bears can consider Sherwin Williams (SHW) for a downside trade. A buy stop can be set near $54-$55.

Quick Check Around the World

Asian trading closed with the Hang Seng -5.15%, Nikkei -5.25%, Sensex -3.08%, Taiwan -3.85% and Shanghai 3.68%.

Glancing towards Europe, we see the CAC 0.18%, DAX -0.11%, FTSE -1.31%

As of 8:20 a.m. EST, S&P Futures are trading -3 to 850, and Nasdaq futures are -11 to 1152.

A Look At Commodities

Crude oil is trading +0.56 to 56.72. Gold is -4.500 to 713.80. Silver is -0.180 to 9.300 and copper is +0.700 to 164.95.

The dollar index is +0.108 to 87.574.

On the Radar


08:30 Trade Balance
08:30 Initial Jobless Claims
08:30 Continuing Claims

Click here for the full trading radar.

Good luck today!

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No positions in stocks mentioned.

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