Re : The DOW and the "Maginot Line:.<g>
Looking again at the DOW that remains at less than 2% from the psychological 10,000 mark,the so called "Maginot Line".<g>
Although it is a price-weighted index and not a market cap-weighted index, and therefore, it isn't as representative of the overall market, the DOW is usually what the average investor refers to when talking about the 'general market' and the 10,000 is an important psychological event that would help the index to start getting off the intermediate DT coming from its Oct 2007 H of 14,279 <g>
bigcharts.marketwatch.com
If C and AIG had not been taked off the DOW, it seems that the index would already hat gone through the Maginot Line.<g>
But some of the earnings due this week could make the difference.<g>
AA already had a good report,last week but JNJ reported weaker than expected 3rdQ revenue and the stock was down 2.43%. It opened with a DG, but was able to hold above the support of the $60 level and is trying to move up AHs.<g>
There are other 5 DOW stocks due to report this week: INTC, JPM, IBM, BAC and GE. (C is also due to report, but is no longer a member of the group.<g>)
INTC already reported after the close a 5% drop in profit to $1.9B (0.33/shr), but beat analysts' projections of $0.28/shr and the stock is up 4.59% at present in AHs trading.<g>
JPM is scheduled to reports earnings tomorrow morning and is expected to report a profit of $0.49/shr on revenue of $24.8B, according to estimates by Thomson Reuters.That should look good compared to the $0.32/shr in the 3rdQ last Yr., when earnings were down 57% on 18% lower revenues.The stock is up 0.83% in AHs trading.
C is to report on Thursday, bu as mentioned, is no longer a member of the group, although it is still considered as the most important bank. It is up 1.04% in AHs trading. It has reported better revenues in the first 2Qs and although the loss was larger on the 2ndQ, the estimates for the full Yr.are for a loss around $0.22/shr vs. the loss of $4.45/shr in 2008 and is expected to report on the black around $0.05/shr in 2010.<hg>
IBM is also scheduled to report on Thursday.It reported better earnings in spite of lower revenues in the first 2Qs and is expected to post $2.38.shr on revenue of $23.37B It is up 0.61% in AHs trading. The stock seems ready to make an all time H as it will go over the Sep 2000 H of $134.94 <g>
The estimates for IBM on the 4thQ are also good with earnings around $3.38/shr vs. $3.28 in 2008 and revenues around $26.68B
The full Yr estimates are for $9.77 and $10.75 vs. the $8.93 in 2008
BAC is due to report on Friday morning. It reported better revenues in the first 2Q but earnings were lower on the 2ndQ and in spite of the problems with the Merrill Lynch bonuses and the recent departure of Ken Lewis, the stock is up 0.56% in AHs trading. It needs to close above its Aug 28 H of $18.25 and to trade above the $24 level before it can get off its longer term DT.<g>
The EE for 2009 are around $0.67 and $0.93 for 2010, but those estimates are bound to be changed.<g>
The dollar closed lower vs. the Euro, but the way some of the aforementioned stocks are trading AHs, still we can't give up on the DOW crossing the Maginot Line this month yet.<g>
I will keep the individual stock charts off this note, since I have a few telephone calls to answer before going out for dinner.<g>
Bernard |
