QQQ Morning Update

Slumped on Cyprus worries and Orcale results

noreply@blogger.com (OptionSmart.com) — Fri, 22 Mar 2013 06:36:00 -0400

Stocks slumped, as investors took a breather using as an “excuse” weak euro-zone economic data, escalating worries over the banking crisis in Cyprus and disappointment with Oracle’s quarterly earnings. Meanwhile, existing home sales in February edged up 0.8% to an annual rate of 4.98 million, a 3-year high but slightly lower than expectations. Jobless claims totaled 336,000, up 2,000 from the prior week, but less than the 345,000 forecast. The Philly Fed's index rose to 2 in March from -12.5 the prior month, above a reading of -3 expected for March. The Conference Board's leading economic index grew 0.5% in February, with 8 out of 10 indicators climbing, marking the third straight month of gains. HSBC China PMI came in at 51.7 in March, improving from a final reading of 50.4 for February, showing expanded manufacturing activity. On the downside, Markit PMI for Germany’s manufacturing sector unexpectedly contracted in March and dropped to a three-month low at 48.9, sending the sector back into contraction territory. Oracle slid 9.7%, dragging the tech sector down, a day after the co. disappointed with both its results and forecast. Cisco gave up 3.8% after FBR Capital downgraded the stock to underperform, warning that the networking-gear maker “will become increasingly more challenged to offset weaker-than-expected routing and switching demand as it works to transition to a more software- and service centric business model.” Hewlett-Packard failed to hold early gains after an announcement that it has raised its quarterly dividend by 10% and lost 2.6% a day after the board survived a “Vote No” campaign against some directors. On the upside, Yahoo climbed 3.5% on an upgrade from Oppenheimer. In the evening trade Nike soared 7.8% following quarterly figures that outstripped Wall Street’s projections.

Jumped after the Fed's statement

noreply@blogger.com (OptionSmart.com) — Thu, 21 Mar 2013 06:51:00 -0400

Stocks climbed after the Federal Reserve said it would continue to support the U.S. economy. The Federal Reserve maintained its policies on bond purchases and record-low interest rates, projecting “a return to moderate economic growth following a pause late last year.” Europe also remains a factor for markets, with an updated proposal to soften a controversial tax on bank deposits in Cyprus outright rejected by the island nation’s parliament on Tuesday. FedEx slumped 6.9% after the co. reduced its 2013 earnings forecast as more customers resorted to less costly options. Adobe Systems gained 4.2% following sales and profit that topped expectations. BlackBerry rose 6.5% after Morgan Stanley raised its rating to overweight from under weight, and more-than-doubled price target to $22 a share from $10. Apple gave up 0.5% as Canaccord Genuity cut its price target on Apple to $600 a share from $650, but left buy rating intact. Yahoo and Zynga also slipped on the recent downgrades. After the closing bell Oracle tumbled 7.2% in heavy volume, with the co.’s fiscal third-quarter sales coming below expectations and mixed next quarter guidance.

Sell-off on Cyprus worries and profit-taking

noreply@blogger.com (OptionSmart.com) — Wed, 20 Mar 2013 06:58:00 -0400

Stocks finished mixed as investors considered developments in Cyprus that placed a financial bailout at risk. Profit-taking was also likely at play for much of the session. Housing starts rose 0.8% in February, to 917,000 homes on an annualized basis, slightly better than expected. Tech stocks closed mostly in the red. Juniper slid 5.3% after Goldman Sachs downgraded the co. to sell, citing “competitive and disruptive pressures.” Electronic Arts shed 8.3% after CEO John Riccitiello has resigned. Dell rose 0.99% after an analyst said the company could get a higher bid from Blackstone “that is superior” to the current $13.65 a share offer from Silver Lake Partners and Chief Executive Michael Dell. EBay edged up 1.97% after JMP Securities named the company as its “top pick” among 10 Internet firms that it started coverage on Tuesday morning. The broker also set buy ratings for Google and AOL but tagged Amazon.com and Facebook with neutral views. In the evening trade Adobe Systems soared 6.3% on heavy volume as the co. posted better-than-expected first-quarter results.

Fell sharply on worries over Cyprus

noreply@blogger.com (OptionSmart.com) — Tue, 19 Mar 2013 07:27:00 -0400

Stocks fell sharply on a euro-zone proposal to tax Cypriot bank deposits in order to cut the cost of a rescue. Also, investors have been looking for a reason to selloff for the last 3% as the S&P 500 up 8.8% so far this year. The euro slumped against the dollar as investors also bought U.S. Treasurys, pushing down the yield of the benchmark 10-year note 10_YEAR 0.00% to 1.962%. Also, the National Association of Home Builders/Wells Fargo index of builder confidence unexpectedly fell by 2 points to 44 in March, for the second straight month. Tech stocks followed the broader market, with Apple, Hewlett-Packard and Advanced Micro Devices each posting solid gains. H-P rose 2.9% after Morgan Stanley upgraded the stock to overweight, or buy, citing the co.’s free cash flow potential. Apple rose 2.7% on renewed speculation that it might raise its quarterly dividend. AMD jumped 1.9% after Macquarie Capital raised the stock’s rating to outperform, citing the company’s potential in videogame business. In the evening trade Electronic Arts climbed after the co. said its chief executive is stepping down.

Europe and Fed meeting in focus

noreply@blogger.com (OptionSmart.com) — Mon, 18 Mar 2013 08:00:00 -0400

Stocks retreated, ending the longest advance by the Dow in more than 16 years and containing the S&P 500 just as it neared its record close, on weaker-than-expected inflation data. The University of Michigan-Thomson Reuters index fell to an initial March reading of 71.8 from a final 77.6 in February. Consumer prices rose 0.7% in February, the highest gain since June 2009, as gasoline price spiked 7.2%, remaining the main reason for the overall price increase. A gauge of manufacturing in the New York region that was little changed in March. Industrial production rebounded in February, rising 0.7% after a 0.1% drop in January. Bank of America rose 3.8% after the Federal Reserve OK'd its share-buyback plan. J.P. Morgan Chase fell 1.9% and Goldman Sachs Group gained 0.5% after the Fed approved their capital plans but also asked them to resubmit new ones in six months. Apple rose 2.6% as several analysts that cover Apple remained upbeat about the co.’s mobile-phone prospects even with the launch of the Galaxy S4. Groupon spiked 6.1% after a positive endorsement from noted Legg Mason investor, who noted the company has $1.2 billion in cash and no debt. This week invetros will focus on the FOMC meeting, which is expected to keep interest rates near zero and continue its quantitative easing program. Also, news from Europe will make investors worry as European Union unveiled a €10 billion plan early Saturday to rescue Cyprus' outsized banking sector and avoid a default.

Posted solid gains on jobless claims data

noreply@blogger.com (OptionSmart.com) — Fri, 15 Mar 2013 05:30:00 -0400

Stocks advanced, lifting the S&P 500 index to within 2 points of its all-time closing high, as investors welcomed the latest confirmation of an expanding economy. Initial jobless claims declined by 10,000 to 332,000 last week, better than forecasts of 350,000, signaling ongoing improvement in the labor market. Separately, producer prices jumped 0.7% in February, boosted by a rise in gasoline prices. Apple rose 0.97% after a BTIG Research upgraded the co. to buy from neutral, but the stock was under some pressure ahead of the coming launch of Samsung’s Galaxy G4 smartphone. EBay 1.6% gained in volatile trading after Evercore Partners raised its rating to overweight, or buy, from equal weight. Amazon.com fell 3.4% after J.P. Morgan cut its rating to neutral from overweight and lowered target price.

Rose again on upbeat retail sales data

noreply@blogger.com (OptionSmart.com) — Thu, 14 Mar 2013 05:34:00 -0400

Stocks posted slight gains, with the Dow delivering its ninth consecutive day of gains on solid economic data. Retail sales were up 1.1% last month, the largest gain in five months and better than forecast. Business inventories rose 1% in January. On the corporate front, Netflix rallied 5.6% after the co. started new social features with Facebook . Walgreen gained 4.2% after UBS hiked its rating on the drugstore chain to buy from neutral. BlackBerry soared 8.2% on announcement that an unnamed partner has placed an order for 1 million BlackBerry 10 smartphones. Also, Verizon Wireless announced that it plans to begin selling the new BlackBerry Z10 smartphone in the U.S. on March 28, about a week after AT&T. Texas Instruments fell 0.9% after Bernstein Research downgraded the co. to a neutral rating, citing the need to “move to the sidelines on cyclically-exposed names” based on signs of higher inventories and “modest” expectations.

Mixed finish

noreply@blogger.com (OptionSmart.com) — Wed, 13 Mar 2013 06:02:00 -0400

Stocks ended mixed, but the The Dow Jones industrial average still managed to finish at a record high, continuing longest winning streak since February 2011. But with all three major U.S. indexes up between 7% and 10% so far this year, correction at this stage should be considered healthy. House Republicans on Tuesday introduced a plan to cut the deficit to $528 billion in fiscal 2014 and then to $69 billion by 2016, kicking off a debate that is expected to bring a 10-year budget proposal from Senate Democrats on Wednesday. Retailers Costco and Cabela rose after better-than-expected earnings and strong earnings guidance. Tech sector ended mixed with notable losses coming from Apple and Red Hat. Apple fell 2.2% after Jefferies analyst trimmed his price target on Apple’s stock to $420 a share from $500, cutting iPhone salesestimates for the current quarter. Red Hat slid 4.8% after Citigroup cut its rating on Red Hat to neutral from buy on the grounds that the company is lacking a major source of new revenue growth. Zynga slid 5.1% after Macquarie Capital said in a research note that the idea that Yahoo might buy the social-media gaming company is “unfounded.”

Extended gains

noreply@blogger.com (OptionSmart.com) — Tue, 12 Mar 2013 07:00:00 -0400

Stocks continued their record run as hopes that Congress will pass a budget before a March 27 legislative deadline added to the recent enthusiasm. Dell rose 1.5% after Carl Icahn Carl said his Icahn Enterprises L.P. had signed a confidentiality agreement with Dell and will begin reviewing information related to the PC maker’s plans to go private. BlackBerry rallied 14.1% after the co. set a March 22 release date for its new Z10 smartphone and announcement from AT&T that it would begin pre-orders on Tuesday. Apple gained 1.4% despite a downgrade by CLSA to outperform from buy and lowered its price target to $505 a share from $575, blaming “weaker iPhone trends”. Google added 0.4% after RBC Capital Markets raised its price target to $950 a share from $840. In the evening trade VeriFone jumped 6.7% after the co. said it was replacing Chief Executive Doug Bergeron, effective Tuesday.

More catalysts needed to move higher

noreply@blogger.com (OptionSmart.com) — Mon, 11 Mar 2013 07:30:00 -0400

Stocks recorded weekly gains and the Dow Jones Industrial Average scored another record close, after data strong jobs data. Employers added 236,000 jobs and unemployment fell to 7.7% in February from 7.9% the month before, both above projections. Also, wholesale inventories in January rose 1.2% in the biggest leap since December 2011. Tech stocks closed mostly in the green with Pandora Media jumping 17.6% after a better-than-expected forecast for the current quarter and recent upgrades. Texas Instruments gained 0.3 after the co. raised the bottom end of its outlook range for the current quarter. BlackBerry lost 1.2% after a media report that it is planning to launch its new Z10 smartphone in the U.S. on March 22, while the co. has not yet announced a U.S. launch date for the device. Google lost 0.13% on the news that the company has begun laying off about 1,200 workers from its Motorola Mobility unit, representing about 10% of the head count for the business. In the coming week investors will test the depth of the U.S. economic recovery from reports on manufacturing and consumers, including the PPI and CPI, business inventories, empire manufacturing, industrial production, capacity utilization.

Looking for a catalyst

noreply@blogger.com (OptionSmart.com) — Fri, 8 Mar 2013 06:51:00 -0500

Stock market averages opened higher and traded in a very narrow range Thursday. Most of the gains were scored early after the Labor Department reported that jobless claims declined by 7,000 last week, pushing the four-week average to five-year lows.Overseas, action was mixed throughout much of Asia and most major markets across Europe scored modest gains on the heels of the latest ECB meeting. The S&P 500 Index (.SPX) traded in a 4-point range and added 2.80 points to 1,544.26. Meanwhile, CBOE Volatility Index (VIX), the index that tracks implied volatility priced into SPX options, dropped .47 to 13.06 and has now lost 15.8 percent in the past week. All eyes will be on the jobs report, as the market ends a week of record-setting gains with strong potential for another market peak on Friday.

Dow extended record rise

noreply@blogger.com (OptionSmart.com) — Thu, 7 Mar 2013 06:18:00 -0500

Stocks finished mostly higher, with the Dow Jones Industrial Average extending its record rise. ADP private-sector jobs rose by 198,000 in February, exceeding expectations; the January data were also revised higher. Meanwhile, U.S. factory orders in January declined by the most in five months, hit by weak appetite for military hardware and commercial aircraft. Dell gained 1.8% following a report that investor activist Car Icahn has taken nearly 100 million of the company’s shares. Apple lost 1.3% after Citigroup and Barclays Capital both cut their price targets on the stock, citing projections for lower iPhone and iPad sales in the March quarter. Groupon fell 6.0% a day after CFO Jason Child told a tech conference that the company wasn’t planning on any major changes in strategy as it searches for a new CEO. Microsoft slid 0.90% after the European Union fined the co. $733 million for failing to offer consumers a choice of Web browser with new versions of the Windows operating system.

Extended gains on economic data

noreply@blogger.com (OptionSmart.com) — Wed, 6 Mar 2013 06:26:00 -0500

Stocks rallied, pushing the Dow Jones industrial average to a new record high. But concerns over Europe, particularly the Italian elections, and the ongoing budget drama in Washington, could serve as catalysts for a brief slide. The ISM service sector index rose to 56 in February, a slight improvement from 55.2 in January and above 55.4 projected. Tech stocks maintained their strong gains, fueled by a broad market surge, as well as notable pickups by Apple and Qualcomm. Groupon gained 4.0% after CFO Jason Childs announced that the co. is not contemplating major changes to its business model following last week’s ouster of CEO Andrew Mason. Qualcomm jumped 2.0% after the co. raised its quarterly dividend by 40% to $0.35 a share and added a new $5 billion buyback to replace a previous $4 billion program. Yahoo rose 1.1% after the co. was upgraded to a buy rating by Cantor Fitzgerald. JC Penney tumbled 10.7% as Vornado Realty Trust reportedly dumped 40% of its stake.

Gained on investors' optimism

noreply@blogger.com (OptionSmart.com) — Tue, 5 Mar 2013 05:43:00 -0500

Stocks closed higher as strength in defensive stocks shook off early morning losses following a measure to cool China’s real-estate bubble, including higher down payments and mortgage rates on second homes in cities and a 20% capital gains tax on sales of existing homes. Also, investors remain optimistic about the economy even as federal spending cuts begin to take hold. Tech stocks followed the broader market with Yahoo, Lexmark and Groupon posting notable gains, but Netflix remained one of the tech sector’s top decliners. Yahoo and Lexmark gained 3.46% and 2.98% respectively after Barclays analysts raised their ratings on the stocks. Netflix gave up 4.3%, after a spokesman for Netflix told the AllThingsD blog that the company has no current plans for an app to run on the BlackBerry 10 operating system. Apple, Nokia and BlackBerry recorded notable losses after several analysts raised concerns about sales of their latest and upcoming devices. In the evening trade J.C. Penney slid 2.8% after CNBC, citing sources, reported that Deutsche Bank is offering a 10 million block of J.C. Penney shares at between $16.40 and $16.60.

All yes on spending cuts and jobs

noreply@blogger.com (OptionSmart.com) — Mon, 4 Mar 2013 06:52:00 -0500

Stocks gained as upbeat consumer confidence and manufacturing data countered concern about government-spending cuts. Also, data showed Chinese manufacturing slowing for a second month and euro-zone factory activity contracting.Groupon rallied 12.6% a day after the daily-deals provider fired its CEO following a disappointing quarter. Gap gained 2.9% after the co. tallied fourth-quarter profit that exceeded estimates. Salesforce.com gained 7.6% after posting better-than-expected results for its fourth quarter. Apple slid 2.5% after a U.S. district court judge cut nearly in half its award in its patent-infringement case with Samsung. Investors will continue to monitor data on the state of the U.S. economy after the forced federal spending cuts were triggered on Friday, including jobs figures, and an indication that more stimulus in the global financial system is on the way.

Slid on mixed data and ahead of government spending cuts

noreply@blogger.com (OptionSmart.com) — Fri, 1 Mar 2013 07:14:00 -0500

Stocks fell after mixed data on growth and employment, and ahead of government spending cuts set to begin at midnight. The U.S. GDP expanded at an annual 0.1% pace in the fourth quarter, while the government initially projected last month that the economy contracted by 0.1%, which would have marked the first decline since the second quarter of 2009. Also, Chicago-area manufacturing hit an 11-month high in February. Weekly jobless claims dropped 22,000 to 344,000, below the expected level of 362,000. Groupon plunged 24.3% on company’s disappointing quarterly results and outlook. Pandora Media gave up 4.2% after in a blog posting Pandora founder Tim Westergren said the co. would begin limiting free listening on mobile devices to 40 hours a month in order to better cope with rising royalty rates. In the evening trade Groupon rose 3.5% as the co. said it will immediately replace founder and CEO Andrew Mason and the board will start searching for his successor. Gap gained 1.3% on strong earnings report.

Extended gains

noreply@blogger.com (OptionSmart.com) — Thu, 28 Feb 2013 00:00:00 -0500

Stocks rallied as a second day of testimony from Ben Bernanke signaled to lawmakers that the central bank's easy money policies would remain in force. Investors also welcomed the data showing pending home sales rose in January to the highest level since April 2010. Durable goods orders dropped 5.2%, in January, a steeper decline that the decrease of 3.5% projected. Groupon jumped 7.8% ahead of fourth-quarter results, however, its shares plunged more than 20% in the evening trade after the co. widely missed forecasts and said sales in the current quarter would fall short of estimates. Priceline climbed 2.6% in the wake of the company’s late-Tuesday upbeat quarterly results. Apple lost 0.98% after its shareholders did not vote on a controversial proposal that would have limited the company's ability to issue preferred stock. The CBOE Volatility Index fell 13% to 14.73.

Gained on Bernanke statement and strong housing data

noreply@blogger.com (OptionSmart.com) — Wed, 27 Feb 2013 06:48:00 -0500

Stocks rose after Fed chairman Ben Bernanke gave investors reason to believe that the central bank would continue to do its part to help the economy. Also, the FHFA reported home prices rose 0.6% and the S&P/Case-Shiller home-price index climbed 0.2% in December. New-home sales rose 15.6% in January to an annual rate of 437,000, the highest mark since July 2008. Consumer confidence index climbed to 69.6, exceeding estimates of 62.3. Home Depot rose 5.7% after the co. reported strong year-end results, providing more evidence of a housing rebound, raised its dividend and approved a $17 billion stock buyback. Macy's added 2.8% after the company reported a 20% increase in fourth quarter profits and a 3.7% increase in sales at stores open for more than one year. Best Buy and JPMorgan Chase announced that they would cut 400 and 4,000 positions respectively as parts of their cost-cutting plans. Apple rose 1.4% on speculations about the possibility of the company announcing a stock split at its annual meeting on Wednesday. Intel gained 1.7% after the co. said it would begin making chips on the part of Altera in a move that could help Intel with costs associated with developing new chip technologies. In the evening trade Priceline.com rose 3.2% after quarterly adjusted earnings surpassed analysts’ expectations, while a weak outlook from First Solar prompted a selloff.

Slid on Italian elections

noreply@blogger.com (OptionSmart.com) — Tue, 26 Feb 2013 06:24:00 -0500

Stocks slid sharply, with the Dow and S&P 500 suffering their biggest one-day decline of the year, as Italian elections and looming spending cuts in the U.S. hit sentiment. Wall Street's so-called fear gauge, the CBOE market volatility index surged 32%. Also, many traders said that stocks have been vulnerable to a pullback after making a run at new all-time highs earlier this month. The worries about Italy also overshadowed reports that Prime Minister Shinzo Abe nominated an advocate of aggressive monetary easing to head the Bank of Japan. Zynga rose 7.5% in the wake of measures taken late last week by the state of Nevada to legalize online poker, and New Jersey that would allow Internet-based gambling in conjunction with Atlantic City casinos. Hewlett-Packard gave up 0.7% after The Wall Street Journal reported that board members are meeting with a group of investors seeking the ouster of three directors. Apple fell 1.8% after Samsung Electronics announced an event for New York City on March 14, where it is expected to debut its next Galaxy S smartphone. Facebook rose 0.5% after the co. said it would offer free or discounted messaging access to members in more than a dozen countries, via those members’ mobile-phone operators. After the closing bell Autodesk slid 2.7% as the co. reported better-than-expected earnings but issued weak forecast.

Budget cuts and Bernanke's testimony to move the market

noreply@blogger.com (OptionSmart.com) — Mon, 25 Feb 2013 07:13:00 -0500

Stocks rallied after better-than-expected results from Hewlett-Packard and an upbeat report on German business confidence, which rose to its highest reading since April. H-P rose 12.3% a day after upbeat earnings, although analysts pointed to longer-term challenges for the technology powerhouse. Tech sector also got a lift from Texas Instruments, which jumped 5.2% after the co. announced that it has hiked its quarterly dividend by 33%. On the downside, BlackBerry slid 5.0% after MKM Partners downgraded the stock to a sell from neutral on challenges posed by BlackBerry 10 operating system. The looming forced budget cuts that could kick in on March 1will likely be topmost on investors' minds this week. Also, Bernanke’s semiannual testimony to Congress on Tuesday and Wednesday will probably move the market. The economic health of Americans will also be in focus, with consumer confidence, auto sales and Michigan sentiment due out throughout the week. Data on the housing market is also expected, with the Case-Shiller 20 city index, new home sales and construction spending on tap.

Slid further on negative news

noreply@blogger.com (OptionSmart.com) — Fri, 22 Feb 2013 05:33:00 -0500

Stocks declined for a second straight day on a batch of negative news. A survey of purchasing managers showed Europe's downturn worsened in February. Jobless claims rose by 20,000 to 362,000 last week, above economists’ expectations. The Philly Fed’s index fell to -12.5 in January from -5.8 December, while economists were expecting the index to rise to 1.5. Meanwhile, the U.S. leading indicators index climbed for a second month in January; and the existing home sales up 0.4% in January, but sales dropped to the lowest level in more than 13 years. The CPI was unchanged month-over-month in January, and up 1.6% from a year ago, core CPI increased 0.3% month-over-month in January, and 1.9% from a year earlier. Wal-Mart climbed 1.5% after the co. reported better-than-expected earnings and hiked its annual dividend by 18% but said sales had softened towards the end of January, and into February. Verifone Systems fell 42.8% after the co. projected second-quarter profit below estimates due to Europe’s soft economic climate. Apple lost 0.6% as David Einhorn held a conference call to discuss the company. Google rose 0.4% after Bernstein Research raised the price target to $1,000, anticipating “mass adoption of smartphones, tablets and the mobile Web is a large value-creation opportunity for Google”. Groupon rose 3.8% on a Piper Jaffray upgrade. In the evening trade Hewlett-Packard and Marvell both rose more than 4.0% after better-than-expected financial results and upbeat forecasts. Outside of quarterly results, Texas Instruments shares were unchanged after the co. said it’s raising its quarterly dividend by 33% and added $5 billion to its authorized share buyback program.

Dropped sharply after Fed minutes

noreply@blogger.com (OptionSmart.com) — Thu, 21 Feb 2013 05:20:00 -0500

Stocks ended lower after Federal Reserve meeting minutes raised worries the central bank might scale back its bond buying program. Also, housing starts fell to a 890,000 rate, below expectations. PPI rose 0.2% in January after a 0.3% decline the month before. In the commodities market, oil prices sank 2% on rumors that a large player was being forced to sell crude futures. Gold fell 1.6% pressured by the FOMC minutes and strength in the dollar. Caterpillar slid 2.5% as the co. reported global sales fell in the first quarter. Apple fell 2.4% after supplier Foxconn Technology Group froze hiring at its biggest factory in Shenzhen. H-P fell 1.1% after Dell painted a more challenging picture of the PC market, with analysts noting that Dell’s aggressive pricing during the recently ended quarter may have hurt H-P’s own efforts to maintain share. BlackBerry lost 4.5% as analysts were questioning early sales of the new Z10 smartphone in the U.K. and Canadian markets. Garmin slid 9.4% after the co. reported a 22% drop in fourth-quarter earnings and projected results for the full fiscal year that were below expectations.

Gained on merger news

noreply@blogger.com (OptionSmart.com) — Wed, 20 Feb 2013 07:22:00 -0500

Stocks rose with the Dow and S&P 500 finished at new 5-year highs, as investors grew hopeful about a potential merger between OfficeMax and Office Depot. Also, a gauge of builder sentiment unexpectedly fell in February from the more-than-six-year high hit in January. German investor confidence in February rising to a nearly three-year high, signaling Europe’s biggest economy seems to be recovering from its slide. Best Buy gained 2.7% after the co. announced plans to make its price-matching program permanent on March 3. Boeing lost 0.5% ahead of a vote by union engineers that ends Tuesday night on whether to approve a strike over retirement benefits. Meanwhile, Apple slipped by a faction after Reuters reported that the co.’s computers were hit by a hacking attempt, but that no personal data was stolen. Google gained 1.8% as company is facing heightened scrutiny from privacy regulators in Europe, according to a media report. Sony’s U.S.-listed shares rose 2.2% as the co.company is expected to unveil what is believed to be the PlayStation 4 console at an event in New York City on Wednesday evening. In the evening trade Dell and Herbalife edged higher after the firms posted quarterly results that were ahead of analysts’ expectations.

Housing and manufacturing data in focus

noreply@blogger.com (OptionSmart.com) — Mon, 18 Feb 2013 07:38:00 -0500

Stocks finished mostly higher in choppy trading after mixed economic new. UMich consumer-sentiment gauge rose to a preliminary February reading of 76.3 — the highest level since November — from a final January reading of 73.8. Also, the Empire State manufacturing index moved into positive territory in February for the first time since July. Separately, industrial production slipped 0.1% in January after the Federal Reserve found the final two months of last year were stronger than initially estimated. Wal-Mart slid 2.15% after a Bloomberg News report that the co.’s called February sales “a total disaster” in an internal email. Apple lost 1.4% despite reports that hedge-fund giants David Einhorn and George Soros increased their holdings in the company and a note from Piper Jaffray predicting that the co. may host a product event sometime in the spring, citing past practices. Also, Agilent Technologies gave up 5.2% after reporting a 22% drop in earnings for its fiscal first, with a forecast for the current period that was below expectations. LogMeIn slid 29.6% after the co. issued a disappointing forecast for the current quarter and fiscal year, prompting downgrades on the stock from J.P. Morgan, Oppenheimer and Wunderlich. A key question for investors in the next week is whether the likelihood of federal spending cuts will spur a correction in a market that’s sitting at multiyear highs. Also, several key statistics on the economy will be released throughout the week, including the NAHB Housing Market index, housing starts, building permits and existing home sales, manufacturing data. Also, Philly Fed Index and minutes from last month's Fed's policy-making meeting. In corporate news, several companies will report corporate earnings this week, including Wal-Mart, BAE Systems and Dell.

Little changed on mixed news

noreply@blogger.com (OptionSmart.com) — Fri, 15 Feb 2013 02:00:00 -0500

Stocks recorded modest gains in tight trading, but blue chips posted losses, as European news overshadowed better-than-expected jobless claims and two big M&A deals. GDP in the 17-nation euro-zone contracted by 0.6% compared with the third quarter and fell 0.9% from the fourth quarter of 2011. And in Japan, real GDP shrank at an annualized rate of 0.4% in the October-December, with the result countering expectations for growth. Initial jobless claims fell by 27,000 to 341,000, below 365,000 claims expected. Heinz spiked 19.9% as Berkshire Hathaway and 3G Capital agreed to buy the co. for $28 billion. US Airways and American Airlines parent AMR officially announced an $11 billion deal to create the world's largest airline. Dell closed down 0.4% after Raymond James downgraded the stock, on the belief that the company is unlikely to fetch much of a higher price in its pending buyout deal. BlackBerry jumped 7.5%, as a regulatory filing by former co-CEO Jim Balsillie showed he had sold all of his shares in the company. Angie’s List surged 23.8% following strong results and a positive forecast. In the evening trade CBS fell 1.4% after weaker-than-expected earnings and revenue; the co. also announced plans to accelerate share buyback program by $1 billion this year.