Two Ways: Yahoo Profits Surge
Strengthen your portfolio in good times and bad.
Yahoo (YHOO) shares are gaining ground this morning. The Sunnyvale, California-based company reported that third-quarter profits more than tripled to $186.1 million, or $0.13 a share, up from $54.3 million, or $0.04 a share a year ago.
According to the Wall Street Journal, the gains were helped in part by cost-cutting efforts from CEO Carol Bartz as well as a $98 million investment gain on Chinese Internet company Alibaba.com.
Yahoo executives also said the Internet ad business appeared to be stabilizing, particularly from large marketers. Shares are up 4% in the premarkets. For more on earnings, see Professor Jeff Macke's Earnings Predictions That Matter.
From the Bull Pen: Watch for the noise to play out in Yahoo post-earnings. The stock is trading at 17.80 resistance and could be set to finally break through on the fourth try. One can consider setting a small, initial position here, a sell stop can be set below yesterday's close (17.17).
From the Bear Cave: If you believe the market is starting to lose steam, consider the S&P 500 depository receipts (SPY). On the weekly chart, we see the stock at weekly 110 resistance on declining volume. Those playing the downside can set a buy stop above that level.
A Quick Check Around the World
Asian trading closed with the Nikkei -0.03%, India -1.24%, Hang Seng -0.30%, Shanghai -0.45%, and Taiwan -0.67%.
Across the pond, we see the FTSE -0.89%, CAC -1.31%, DAX -0.99%
As of 8:10 a.m. EST, S&P Futures are trading -5.75 to 1083.50 and Nasdaq futures are -8.750 to 1749.50.
A Look at Commodities
Over in commodities, crude oil is -1.13 to 78.00 while gold is -6.40 to 1052.10 this morning. Silver is -1.48 to 17.415 and copper -0.023 to 2.9090.
The dollar index is +0.0500 to 75.5550.
On the Radar
10:30 Crude Inventories
02:00 Fed's Beige Book
Click here for the full trading radar.
Good luck today!
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