Two Ways To Play: JPMorgan Beats Street
Strengthen your portfolio in good times and bad.
Results from JPMorgan Chase (JPM) are helping to boost stock futures. Bloomberg reports the largest U.S. bank by market value reported 2Q earnings of 54 cents per share. That beat analysts' estimates by a dime. Revenues grew 8.9% year-over-year to $18.4 billion, which included numbers from its acquisition of Bear Stearns.
CEO Jamie Dimon said in a statement that the company's expectation is for the economic environment to continue to be weak – and likely to get weaker, but with its substantial capital base, the company continues to invest for the future and remains confident it is building a strong profitable company. For more context in banking, see yesterday's Random Thoughts by Toddo.
From the Bull Pen: JPM is one of the best of breed. Those bullish can set near-term sell-stops below yesterday's close ($35.94).
From the Bear Cave: Bears are wary that the banks may have room to run, but one downside play may be in the ishares Financial sector ETF (IYF). Downside entry near $70 resistance may be an option.
EBay Revenues Slowest in a Decade
According to Bloomberg the average selling price for eBay's (EBAY) online buyers fell 6% in 2Q. That helped mark the slowest revenue growth for the world's largest Internet auctioneer since 1998, when the company went public. Ebay said net income came in at 43 cents, beating expectations by 3 cents, while revenues rose 20% to $2.2 billion. The company forecasts full-year profit to rise to $1.72 to $1.77 per share, higher than its previous forecast. But that figure was below consensus estimates of $1.74. Professor Sean Udall mentioned Ebay in his recent column, Hedging is Your Best Tech Bet.
From the Bull Pen: Professor Udall mentioned a possible tech play in Cavium Networks (CAVM). A sell-off towards the $15 mark could get some bulls involved.
From the Bear Cave: Is Ebay much different from the other retailers? The stock is down as much as 10% in the premarket, but bears can cautiously play the downside on any rallies with the belief that it could break below $25 support. Buy-stops above $28.
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 +2.41%, Nikkei +1.00%, Sensex +4.26%, Taiwan +3.93% and Shanghai -0.78%.
Over in Europe, we see the CAC +2.38%, DAX +1.98%, FTSE +2.53%
As of 8:40 AM EST, S&P Futures are up +10.9 points to 1252, and Nasdaq futures are hihger +16.50 points to 1861.
A Look At Commodities
Crude oil is lower -0.99 to 133.63. Gold is down -3.30 to 959.30. Silver is up +0.110 to 18.845, and copper is higher +1.15 to 368.85.
The dollar index is lower -0.046 to 72.018.
On the Radar
Housing Starts: 1066 k vs. 960 k cons.
Building Permits: 1091 k vs. 965 k cons.
Initial Jobless Claims: 366 k vs. 380 k cons.
Continuing Claims: 3122 k vs. 3180 k cons.
10:00 Philadelphia Fed: -15.0 cons.
Click here for the full trading radar.
Happy Thursday! Good Luck!
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