Disappointing earnings from DELL and AIG (among others) are weighing on the market this morning. The question in my mind once again is 'will this follow-through?' Given the last few weeks I'm very skeptical but I guess one of these times the trading range will break -- if for no other reason than everybody's been lulled to sleep and expecting more range-bound trading.
On Today's Calendar:
- 9:45 -- Chicago PMI
- 9:45 -- Mich Sentiment-Rev.
More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic
Potential swing trades:
See one of the recent 'Chart Reading' posts for some potential swing candidates. Also be sure to check my typical swing trade entry & exit rules.
Potential day trades:
(From Briefing.com)
Gapping Down
In reaction to weak earnings/guidance: SONS -10.4%, DECK -10.2%, CDL -9.6%, PARD -8.8%, HANS -8.3%, AMCS -8.0%, TIE -7.9%, DTSI -7.3% (also downgraded to Hold at Kaufman), HLX -7.0%, DF -6.4% (also files mixed securities shelf offering and removed from Focus List at JPMorgan), CEGE -5.8%, MENT -5.2%, BGFV -5.1% (also downgraded to Mkt Perform at Wachovia), AIG -4.9% (also downgraded to Mkt Perform at Keefe Bruyette), HRS -4.8%, FCH -4.6%, HMSY -3.7%, EAS -3.1%, CPHD -2.9%, UNS -2.9% (also downgraded to Hold at Soleil), LYV -2.5%, LIZ -2.1% (also delays annual report filing), WPPGY -1.8%, DELL -1.6% (also upgraded to Outperform at Friedman Billings), MOVE -1.6%, BIO -1.2%... European financials/banks stocks showing weakness with a few names with co specific news: RBS -4.2% (downgraded to Underweight from Equal Weight at Morgan Stanley), BCS -3.8% (Rebel investors seize Bear hedge funds - FT), UBS -3.2% , CS -2.4% , HBC -2.2% (gets $3.2 billion bid for French regional units - Bloomberg.com), ING -1.3%... Select mining stocks showing weakness: SLT -3.1% , AAUK -2.9% , MT -2.2% , LMC -1.2%... Other news: FMT -44.9% (announces it may need to record additional asset write-downs and reserves; co says it has significant liquidity risk), MNI -7.8% (reports Q4 impairment charges), ABK -6.8% (CNBC commentator says that the Ambac bailout hit a serious snag)< SDTH -6.0% (still checking), MBI -5.4% (files 10-K, says it is expected that developments recent developments will result in additional material mark-to-market losses for January 2008), AEG -2.8% (still checking), SVNT -2.7% (announces further Information on top line Phase 3 trials results for Puricase), S -2.7% (continued weakness following yesterday's decline), ASYT -1.3% (confirms board's previous rejection of unsolicited interest from The Gores Group and Aquest), AMGN -1.2% (might set dangerous precedent; psychological impact on investors will be profound and AMGN could test the low $40s - Citigroup)... Analyst downgrades: MF -9.2% (downgraded to Equal Weight at Lehman and downgraded to Neutral at UBS and downgraded to Neutral at Credit Suisse), RHD -3.6% (downgraded to Sell at Deutsche Bank and downgraded to Peer Perform at Bear Sterns), LYV -2.5% (downgraded to Hold at Morgan Joseph), VRX -2.4% (downgraded to Neutral at Merrill), WST -1.4% (downgraded to Neutral at UBS), EOG -1.2% (downgraded to Underperform at RBC), NVS -1.2% (downgraded to Underweight at HSBC).
Gapping UpIn reaction to strong earnings/guidance: MRVC +23.6%, SDIX +12.8%, IPG +12.7%, SAPE +12.2%, JOEZ +12.2%, UTSI +9.6%, OVTI +9.4%, INAP +8.1%, ESL +8.0%, CLUB +7.8%, FCN +6.0% (also announces the acquisition of TSC Brasil; terms not disclosed), GPS +5.4% (also announces $1 billion share repurchase program), CSCX +5.3%, INT +4.7%, NOVL +4.7%, URI +4.1%, SGMS +4.1%, BXG +4.0%, NXG +3.1%, WR +3.0%, JRJC +2.9%, HEI +2.7%, EXAC +2.6%, CTV +2.5%, ESEA +1.7% (also upgraded to Buy at Cantor Fitzgerald), SWN +1.3% (also declares two-for-one stock split)... Other news: COMS +21.0% (Bain Capital and China's Huawei plan to resubmit an application seeking U.S. approval for their planned $2.2 bln buyout of 3Com - WSJ), JAZZ +15.4% (FDA approves once-daily Luvox extended release), AGO +11.9% (announces commitment by Wilbur Ross to purchase up to $1 bln of common equity), TTWO +4.2% (approached by other cos since EA offer - WSJ), RHT +4.1% (still checking), QDEL +4.1% (says the FDA grants CLIA waiver for its QuickVue RSV test), KRY +3.7% (provides shareholders a recap of achievements and progress for the Las Cristinas gold project in Venezuela), IVN +2.7% (still checking), TTWO +2.7% (still checking), GXDX +2.2% (prices a 2.08 mln share common stock offering at $25.50/share), CCK +1.5% (announces stock repurchase program of up to $500 mln), ACLS +1.5% (Sterling Capital Management amends 13D filing; wants ACLS to proactively solicit bidders for co)... Analyst upgrades: BKD +1.3% (upgraded to Buy at Stifel).
Disclaimer & How I use this list
The last still-intact indices, closing Friday 2/29 near their last visible means of support at Dow 12000, NYSE 8800, NDX 1700 and RUT 675 - where they were the Friday before (2/22) in the last hour of trading - means that CNBC, Gasparino, the monoline supporting banks and the "see no evil" SEC now face a demand performance to repeat the 2/22, during-market-hours, unsubstantiated Ambac rescue rumor.
With the leading bank and broker indices BKX and XBD collapsing to new 5 week lows 2/29, and Asia and Japan down 3% and 4% tonight 3/2, the market manipulators won't just need another miracle-rumor-short squeeze - they'll now need the impossible - to keep the last 4 indices above from breaking below the Jan 08 lows and confirming the official onset of the bear market downtrend.