Two Ways To Play: Sony Sings the Blues
Strengthen your portfolio in good times and bad.
Sony Slashes 8,000 Jobs
Topping headlines this morning, Japanese electronics maker Sony (SNE) said it will cut 8000 jobs, or 4% of its total workforce. According to Reuters, the cuts are the deepest so far by an Asian firm and are designed to save the company about $1.1 billion a year. Sony also plans to scale back on electronic investment to the tune of 30% over the course of the next fiscal year.
Year to date, shares are down over 60%. The painful steps are being taken to offset weakened global demand and a stronger Japanese yen.
From the Bull Pen: Sony's downtrend might be showing signs of exhaustion. Those willing to attempt the upside can set a tight sell stop near $19.50. Qualcomm (QCOM) might be a safer option. Sell stops can be set below $32.
From the Bear Cave: Bears looking for a downside play can consider Hewlett-Packard (HPQ) on a rally back to $40. If and when.
Quick Check Around the World
Asian trading closed with the Hang Seng -1.94%, Nikkei 0.80%, Sensex 2.20%, Taiwan 1.23% and Shanghai -2.54%.
Glancing towards Europe, we see the CAC 0.80%, DAX 1.95%, FTSE 0.61%,
As of 8:25 a.m. EST, S&P futures are trading +0.8 to 905, and Nasdaq futures are -3 to 1209.
A Look At Commodities
Crude oil is trading +0.22 to 43.93. Gold is -1.300 to 766.10. Silver is -0.100 to 9.840, and copper is+12.30 to 147.80.
The dollar index is +0.793 to 86.353.
On the Radar
10:00 IBD/TIPP Economic Optimism
10:00 Pending Homes Sales
Click here for the full trading radar.
Good luck! Have a great day!
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