9:00am (EST)
The market traded north and south of the breakeven line for much of yesterday before taking a skid in the final couple of hours after Federal Reserve Chairman Ben Bernanke started talking.
Wall Street needed to hear only two words before the bears started to name that song. Big Ben’s “unusually uncertain” lyrics certainly won’t be as famous as “irrational exuberance” (the quote made by Alan Greenspan back in the day), but they were enough to rattle the market.
Bernanke also noted that central bankers were “prepared to take further policy actions as needed” to support a recovery. These remarks worried the bulls about the current economic recovery, and as a result the market sold-off.
We mentioned yesterday Ben’s body language would be watched closely, and he looked nervous in the spotlight. His voice was rather depressing compared to his usual upbeat comments, and it showed.
As a result, the Dow recorded a triple-digit loss of 109 points, or 1.1%, to settle at 10,120. The index traded to a high of 10,265 while the low was 10,065. It was the fourth session in-a-row the Dow has flirted with the 10,000 level.
The S&P 500 fell 14 points, or 1.3%, and closed at 1,069. The index finished just below the 1,070 level but could be gearing up to challenge 1,100 again this morning.
The Nasdaq appeared like it was going to be the clear winner on Wednesday but it shed 35 points, or 1.6%, and was last seen at 2,187. The index will likely make another run at its 200-day moving average of 2,240 as the index traded to a high of 2,236 yesterday and looks poised to do so again today. Tech also settled back below the 2,200 level which is still capping all rallies on a closing basis.
Turning to earnings, one of our favorite stocks let the Street down in after-hours last night. Netflix (NFLX, $119.65, down $0.74) failed to live up to the hype after the company topped earnings, but revenue came in light. The company also gave full-year guidance that also wasn’t up to par as shares are getting hit for a 10-spot this morning in early action.
Netflix reported a profit of $44 million or $0.80 a share, versus $32 million, or $0.54 a share, in the year ago quarter. Revenue came in at $520, up from $409 million, a year earlier. Analysts were looking for earnings of $0.71 a share on sales of $524 million so they missed by $4 million or so.
We were expecting a blowout quarter for Netflix and the overall results were golden, but, we were also worried about their top-line numbers as many companies are coming in on the light end. However, there are also quite a few companies that beat on both the top and bottom line and futures are showing a nice pop.
As we head to press, Dow futures are higher by 109 points to 10,167 while the S&P 500 futures are showing a 14 point pop and are at 1,078. The Nasdaq 100 futures are up 20 points to 1,835. Upside targets will be Dow 10,200-10,300; S&P 1,100; and Nasdaq 2,250 this morning.
Tags: call options, how to trade options, momentum options trading, Momentum stocks, Netflix, NFLX, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, volatile options
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on Thursday, July 22nd, 2010 at 9:03 AM and is filed under Earnings, Market Analysis, Market Commentary.
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Futures Pointing Towards Strong Open
9:00am (EST)
The market traded north and south of the breakeven line for much of yesterday before taking a skid in the final couple of hours after Federal Reserve Chairman Ben Bernanke started talking.
Wall Street needed to hear only two words before the bears started to name that song. Big Ben’s “unusually uncertain” lyrics certainly won’t be as famous as “irrational exuberance” (the quote made by Alan Greenspan back in the day), but they were enough to rattle the market.
Bernanke also noted that central bankers were “prepared to take further policy actions as needed” to support a recovery. These remarks worried the bulls about the current economic recovery, and as a result the market sold-off.
We mentioned yesterday Ben’s body language would be watched closely, and he looked nervous in the spotlight. His voice was rather depressing compared to his usual upbeat comments, and it showed.
As a result, the Dow recorded a triple-digit loss of 109 points, or 1.1%, to settle at 10,120. The index traded to a high of 10,265 while the low was 10,065. It was the fourth session in-a-row the Dow has flirted with the 10,000 level.
The S&P 500 fell 14 points, or 1.3%, and closed at 1,069. The index finished just below the 1,070 level but could be gearing up to challenge 1,100 again this morning.
The Nasdaq appeared like it was going to be the clear winner on Wednesday but it shed 35 points, or 1.6%, and was last seen at 2,187. The index will likely make another run at its 200-day moving average of 2,240 as the index traded to a high of 2,236 yesterday and looks poised to do so again today. Tech also settled back below the 2,200 level which is still capping all rallies on a closing basis.
Turning to earnings, one of our favorite stocks let the Street down in after-hours last night. Netflix (NFLX, $119.65, down $0.74) failed to live up to the hype after the company topped earnings, but revenue came in light. The company also gave full-year guidance that also wasn’t up to par as shares are getting hit for a 10-spot this morning in early action.
Netflix reported a profit of $44 million or $0.80 a share, versus $32 million, or $0.54 a share, in the year ago quarter. Revenue came in at $520, up from $409 million, a year earlier. Analysts were looking for earnings of $0.71 a share on sales of $524 million so they missed by $4 million or so.
We were expecting a blowout quarter for Netflix and the overall results were golden, but, we were also worried about their top-line numbers as many companies are coming in on the light end. However, there are also quite a few companies that beat on both the top and bottom line and futures are showing a nice pop.
As we head to press, Dow futures are higher by 109 points to 10,167 while the S&P 500 futures are showing a 14 point pop and are at 1,078. The Nasdaq 100 futures are up 20 points to 1,835. Upside targets will be Dow 10,200-10,300; S&P 1,100; and Nasdaq 2,250 this morning.
Tags: call options, how to trade options, momentum options trading, Momentum stocks, Netflix, NFLX, option picks, option stock picks, options alerts, options newsletter, options track record, put options, stock options trading, volatile options
This entry was posted on Thursday, July 22nd, 2010 at 9:03 AM and is filed under 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.