1:00pm (EST)
The bulls are having a tough day and you don’t need us to tell you the market may have reached a temporary “top” again. There is a bevy of news that is happening today AND tomorrow so we will do some quick hits today.
The Dow is currently down 88 points, or 0.8%, to 10,279 while the S&P is down 9 points, or 0.9%, to 1,085. The Nasdaq is off by 18 points, or 0.7%, and is at 2,231. It was a rough open for the bulls and upside resistance remains 10,400 for the Dow; 1,100 for the S&P 500; and 2,250 for the Nasdaq.
To the downside, support for the Dow will come in at 10,200 and 10,000; the S&P could test the 1,075 then the 1,050 area again while the Nasdaq level to watch is 2,150.
JPMorgan (JPM, $39.47, down $0.88) reported earnings this morning and they were spectacular. However, we are seeing a classic “sell the news event” as the stock opened 1% higher and is now down 2%. The company earned $4.8 billion, or $1.09 a share, versus $2.7 billion, or $0.28 a share, in the year earlier period. Wall Street was looking for $0.67 a share.
JP’s trading results were down given the tough market environment which hurt profits but their loan book continues to shrink which means they are being very “selective” with whom they loan money too. Bingo. We have said credit is still tight and small businesses continue to complain they can’t get a loan. They want to expand and hire but they can’t borrow. Consumers can’t get loans from banks, so JP is following the trend.
Bank of America (BAC, $15.12, down $0.55) and Citigroup (C, $4.09, down $0.12) report earnings before the bell on Friday…
Financial regulation reform is still trying to push its way through Congress and that has also clouded the outlook for the Financials. The Democrats have the 60 votes needed so things could come to fruition by the end of the day or tomorrow. Even if the bill is signed, financial reform will still have to work its way through the system as other agencies (Treasury Department, SEC, etc.) will have to incorporate their own rules and also implement them into the financial system.
Let’s not forget we will be getting word on Europe’s bank stress tests by next Friday.
The bulls are also having trouble digesting some disappointing economic news which offered mixed signals on the health of the U.S. economy.
Initial jobless claims fell by 29,000 to 429,000 last week; the producer price index (PPI) fell 0.5%; and the Empire State Index tanked to 5.08 in June from a reading of 19.57 a month – economists were looking for a number of 18.5 and this report is the one weighing heaviest on the bulls.
All eyes will be on Google (GOOG, $488.63, down $2.71) after the bell as the company gives Wall Street its quarterly results. Shares have dropped over $100 since April and we think the stock will make at least a $30 move one way or the other in after-hours trading.
And one more story we are following closely, Vivus (VVUS, $12.11, flat), which is halted pending news on its obesity drug, Qnexa. We don’t know if shares will open up for trading today but the news will be out sometime in the next few hours. We expect Qnexa will get a good recommendation from the panel for the FDA to consider the drug but it probably won’t be unanimous.
We will be back in the morning with a full update on things.
Tags: call options, how to trade options, JPMorgan, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, Vivus, volatile options, VVUS
This entry was posted
on Thursday, July 15th, 2010 at 1:04 PM and is filed under BioTech, Earnings, Market Analysis, Market Commentary.
You can follow any responses to this entry through the RSS 2.0 feed.
Both comments and pings are currently closed.
Get RSS Feed
Bears See An Opening
1:00pm (EST)
The bulls are having a tough day and you don’t need us to tell you the market may have reached a temporary “top” again. There is a bevy of news that is happening today AND tomorrow so we will do some quick hits today.
The Dow is currently down 88 points, or 0.8%, to 10,279 while the S&P is down 9 points, or 0.9%, to 1,085. The Nasdaq is off by 18 points, or 0.7%, and is at 2,231. It was a rough open for the bulls and upside resistance remains 10,400 for the Dow; 1,100 for the S&P 500; and 2,250 for the Nasdaq.
To the downside, support for the Dow will come in at 10,200 and 10,000; the S&P could test the 1,075 then the 1,050 area again while the Nasdaq level to watch is 2,150.
JPMorgan (JPM, $39.47, down $0.88) reported earnings this morning and they were spectacular. However, we are seeing a classic “sell the news event” as the stock opened 1% higher and is now down 2%. The company earned $4.8 billion, or $1.09 a share, versus $2.7 billion, or $0.28 a share, in the year earlier period. Wall Street was looking for $0.67 a share.
JP’s trading results were down given the tough market environment which hurt profits but their loan book continues to shrink which means they are being very “selective” with whom they loan money too. Bingo. We have said credit is still tight and small businesses continue to complain they can’t get a loan. They want to expand and hire but they can’t borrow. Consumers can’t get loans from banks, so JP is following the trend.
Bank of America (BAC, $15.12, down $0.55) and Citigroup (C, $4.09, down $0.12) report earnings before the bell on Friday…
Financial regulation reform is still trying to push its way through Congress and that has also clouded the outlook for the Financials. The Democrats have the 60 votes needed so things could come to fruition by the end of the day or tomorrow. Even if the bill is signed, financial reform will still have to work its way through the system as other agencies (Treasury Department, SEC, etc.) will have to incorporate their own rules and also implement them into the financial system.
Let’s not forget we will be getting word on Europe’s bank stress tests by next Friday.
The bulls are also having trouble digesting some disappointing economic news which offered mixed signals on the health of the U.S. economy.
Initial jobless claims fell by 29,000 to 429,000 last week; the producer price index (PPI) fell 0.5%; and the Empire State Index tanked to 5.08 in June from a reading of 19.57 a month – economists were looking for a number of 18.5 and this report is the one weighing heaviest on the bulls.
All eyes will be on Google (GOOG, $488.63, down $2.71) after the bell as the company gives Wall Street its quarterly results. Shares have dropped over $100 since April and we think the stock will make at least a $30 move one way or the other in after-hours trading.
And one more story we are following closely, Vivus (VVUS, $12.11, flat), which is halted pending news on its obesity drug, Qnexa. We don’t know if shares will open up for trading today but the news will be out sometime in the next few hours. We expect Qnexa will get a good recommendation from the panel for the FDA to consider the drug but it probably won’t be unanimous.
We will be back in the morning with a full update on things.
Tags: call options, how to trade options, JPMorgan, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, Vivus, volatile options, VVUS
This entry was posted on Thursday, July 15th, 2010 at 1:04 PM and is filed under BioTech, Earnings, Market Analysis, Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.