I think prices quoted on the GLOBEX market right now will improve as the day progresses, from present levels SPM may test perfectly 1322 area, however probably a weaker opening a rebound to 1342 if 2200 on NDX is held and BKX stays firm up as result of Friday's new buy rating. I will look for first opportunity to lift my 1270 long puts if BKX RUT NDX hold supports like 900 398 and 2200, until 2210 is taken out I will maintain my 1270's, if we close below 2195 I will like to see 2155 and that would translate into some more selling below 1322, it may hearld a move to 1302 level. If BKX RUT also break supports I will not hesitate to sell some 2320's on May and buy some more SPM May puts, this will be on a close below 1322 or NDX 2198 or BKX 900.. Good opportunity to make money on high level of volatility.
We are in a positive earnings phase for the first
quarter,'' said BankBoston's Riley. ''The economy's good growth
has produced better profit expectations.''
Analysts on average forecast profits for Standard & Poor's
500 Index companies grew a respectable 6 percent in the first
quarter. Economists surveyed by Bloomberg News on average
predicted annualized growth of 2.8 percent for the first quarter.
this CPQ mishap may be a beginning of a distribution in other stock sectors, I will watch for RUT support at 398 area and expect a rebound from that point, however if I purely think as pit trader, this is the kind of market they like. They thrive on they fluctuations and they would like to move this index to the support even few point lower to ring some stops.
U.S. Stocks May Fall Amid Slumping Computer Shares (Update1)
U.S. Stocks May Fall Amid Slumping Computer Shares (Update1)
(Adds information to end of story about earnings
expectations and stocks likely to move significantly this week.)
New York, April 11 (Bloomberg) -- U.S. stocks may fall
tomorrow, as Compaq Computer Corp. leads computer shares lower
after warning of an earnings shortfall Friday.
The Standard & Poor's 500 Index June futures contract fell
18.2 to 1340, or 1.3 percent below fair value, which takes into
account dividends, cost of money and number of days until
expiration.
Compaq announced after the close of trading Friday that its
first-quarter profit will be about half what analysts forecast
because of falling prices and weak demand. The warning knocked
down Compaq and Dell Computer Corp. in trading after exchanges
closed, and other PC stocks are likely to follow, analysts said.
''Personal computer stocks will likely stay under
pressure,'' said Ned Riley, chief investment officer of
BankBoston Corp., which oversees $30 billion. Compaq has declined
40 percent since January on concern that falling PC prices are
hurting profits.
Compaq could fall after the Houston-based company said it
expects earnings of about 15 cents a share for the first quarter,
compared with the 31 cents analysts expected.
While Compaq blamed slow sales, Intel and Dell haven't
warned on profit. And overall, investors are optimistic that
solid economic growth will continue to help the market.
Strong Earnings
''We are in a positive earnings phase for the first
quarter,'' said BankBoston's Riley. ''The economy's good growth
has produced better profit expectations.''
Analysts on average forecast profits for Standard & Poor's
500 Index companies grew a respectable 6 percent in the first
quarter. Economists surveyed by Bloomberg News on average
predicted annualized growth of 2.8 percent for the first quarter.
Citigroup Inc., First Union Corp. and American Express Co.
may rise after being recommended Friday by Byron Wien, Morgan
Stanley Dean Witter Corp.'s chief U.S. portfolio analyst, on
Public Broadcasting System's ''Wall Street Week with Louis
Rukeyser.''
Executone Information Systems Inc. could rise, as the
company is changing its focus to Internet-based gambling and said
it is in advanced talks with several states about becoming the
first company to sell U.S. state lottery tickets on line.
Golden State Bancorp. may rise, after the second-largest
U.S. thrift won a near-record $909 million in damages against the
U.S. government for a 1981 broken promise of favorable accounting
treatment for thrift takeovers.
MIPS Technologies Inc. could rise after the designer of
semiconductors Friday reported net income of 27 cents a share for
the quarter ended March 31. Analysts expected MIPS to earn 23
cents.
Tyco International Ltd. may rise after Dennis Kozlowski,
chairman of the diversified manufacturer, said the company would
be able to almost double its sales to $40 billion and boost
annual earnings as much as 25 percent in the next five to six
years, Barron's reported.
Saks Inc. could rise after Barron's reported without citing
sources that the department-store's shares could bounce back into
the 40s if Chief Executive Brad Martin can deliver on his
earnings projections. Saks fell 3/16 Friday to 25 9/16. |
