9:00am (EST)
The bulls managed to take the market higher on Monday, but they will likely give back all of those gains today and then some. Futures are pointing towards a nasty open after International Business Machines (IBM $129.79, up $1.76) missed on their revenue number.

Yesterday, the Dow Jones added 57 points, or 0.6%, to finish at 10,154. The index traded to a high of 10,187 but ran into resistance which is currently at the 10,200 level. If futures hold and selling pressure picks up then we could see a drop below 10,000 today.
The S&P 500 gained 6 points, or 0.6%, and closed at 1,071 but ran into trouble at the 1,075 level as the index touched a high of 1,074. The next level of support will come in at 1,050 but that will fall if the bears have their way.
The Nasdaq added nearly 20 points, or 0.9%, to settle at 2,198 but once again had trouble with the 2,200 level. The index traded to a high of 2,201 but will could take a huge bath if Tech tanks.
Of course, the big story this morning is IBM’s earnings which were pretty good despite the revenue miss. The company reported a profit of $3.4 billion, or $2.65 a share, versus $3.1 billion, or $2.34 a share, in the year ago period. Analysts were expecting $2.58 a share.
Revenue came in at $23.7 billion, up from $23.3 billion but was below the $24.2 billion Wall Street had factored in. The company said currency changes cut revenue by $500 million in the quarter.
Shares of IBM are down $6.29, to $123.50 in pre-market action. IBM alone will account for over a 40 point loss on the Dow.
Elsewhere, Texas Instruments (TXN, $25.55, up $0.78) also missed on their revenue number despite profits tripling. The company earned $769 million, or $0.62 a share, versus $260 million, or $0.20 a share, a year earlier.
Revenue came in at $3.5 billion while expectations were for $3.52 billion. Although TI provided some decent numbers going forward, shares are getting clipped this morning. In early action, the stock is down $1.45, to $24.10.
As we head towards the opening bell, Dow futures are off by 74 to 9,986 while the S&P 500 futures are down 9 to 1,054. The Nasdaq 100 futures are showing a loss of 17 points and are at 1,789.
This just in, Goldman Sachs (GS, $145.68, down $0.49) missed on their revenue number. Earnings beat Wall Street’s estimates but they fell a little short in some areas of their business. Shares are down $4 in pre-market action.
Tags: call options, Goldman Sachs earnings, GS, how to trade options, IBM, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, TXN, volatile options
This entry was posted
on Tuesday, July 20th, 2010 at 9:02 AM and is filed under Covered Calls, Earnings, Market Commentary.
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Big Blue Misses (IBM), Shares Tumble
9:00am (EST)
The bulls managed to take the market higher on Monday, but they will likely give back all of those gains today and then some. Futures are pointing towards a nasty open after International Business Machines (IBM $129.79, up $1.76) missed on their revenue number.
Yesterday, the Dow Jones added 57 points, or 0.6%, to finish at 10,154. The index traded to a high of 10,187 but ran into resistance which is currently at the 10,200 level. If futures hold and selling pressure picks up then we could see a drop below 10,000 today.
The S&P 500 gained 6 points, or 0.6%, and closed at 1,071 but ran into trouble at the 1,075 level as the index touched a high of 1,074. The next level of support will come in at 1,050 but that will fall if the bears have their way.
The Nasdaq added nearly 20 points, or 0.9%, to settle at 2,198 but once again had trouble with the 2,200 level. The index traded to a high of 2,201 but will could take a huge bath if Tech tanks.
Of course, the big story this morning is IBM’s earnings which were pretty good despite the revenue miss. The company reported a profit of $3.4 billion, or $2.65 a share, versus $3.1 billion, or $2.34 a share, in the year ago period. Analysts were expecting $2.58 a share.
Revenue came in at $23.7 billion, up from $23.3 billion but was below the $24.2 billion Wall Street had factored in. The company said currency changes cut revenue by $500 million in the quarter.
Shares of IBM are down $6.29, to $123.50 in pre-market action. IBM alone will account for over a 40 point loss on the Dow.
Elsewhere, Texas Instruments (TXN, $25.55, up $0.78) also missed on their revenue number despite profits tripling. The company earned $769 million, or $0.62 a share, versus $260 million, or $0.20 a share, a year earlier.
Revenue came in at $3.5 billion while expectations were for $3.52 billion. Although TI provided some decent numbers going forward, shares are getting clipped this morning. In early action, the stock is down $1.45, to $24.10.
As we head towards the opening bell, Dow futures are off by 74 to 9,986 while the S&P 500 futures are down 9 to 1,054. The Nasdaq 100 futures are showing a loss of 17 points and are at 1,789.
This just in, Goldman Sachs (GS, $145.68, down $0.49) missed on their revenue number. Earnings beat Wall Street’s estimates but they fell a little short in some areas of their business. Shares are down $4 in pre-market action.
Tags: call options, Goldman Sachs earnings, GS, how to trade options, IBM, momentum options trading, Momentum stocks, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, TXN, volatile options
This entry was posted on Tuesday, July 20th, 2010 at 9:02 AM and is filed under Covered Calls, Earnings, Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.