I think you will get a broad rally for the first 45 minutes or so.
Depends on the numbers, although just about any number will be "spin doctored" to make it look good, I think. Unless Non-Farm is too high.
I cannot find the reference to DELL, perhaps I heard it in a verbal comment. But for an example of this person's work I snipped a comment out of his Wednesday report. The guy loves DELL, as he is long from 8, well 4 after this split. So he is not a nay-sayer.
This stuff is probably copyrighted by the author, Gene Inger. I hope he does not get too ticked at me for referencing his work if he ever finds out.
Again, this was from Wednesday night and his comments about the pending market open were in reference to yesterday's (Thursday's) market.
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Intel's warning. . .that first quarter earnings will be lower than
Street expectations by 10%, should not be surprising, except for the
denial commonplace in the market. All kinds of stocks will now be
reviewed (after the fact) in this regard. To me, the most significant
aspect of this was their statement that it affects all products in all
geography's and all OEM's (original equipment manufacturers).
That's pretty bearish stuff. Europe and the Americas were hit the
hardest, and that's not going to be well received. The stock is off 10
in Instinet trading now; while IBM is down 4 and Dell is off about
6, while CPQ is down 2, while TXN is off 3 tonight. This are 6 p.m.
aftermarket quotes. By the time we reach morning, some may view
all this as an opportunity, since that's the mentality. However this is
a watershed event (we have them all the time), which can be
significant because of broader market concerns of duplicity in
earnings, where there isn't much positive short-term visibility.
Technically, Intel left a gap last Summer when it broke per our call
then, the last rally filled the gap, then this week broke below it;
which left a sort of island pattern. We will (including me, just like
under 70 last time) be buyers of Intel again (as a trade like we did
under 70, called in advance), while holding core portions that are
simply hedged per strategy. We think next year will be a fabulous
year for Intel ...by the way... and think lot's of this comes from
knowledgeable people (enthusiasts and IS managers) postponing
buys until the combination of NT 5.0 and the BX chipset arrive. |
