Tag Archives: GS

ETF Preview: Oil Fund Returns to Higher Ground as Trio of Energy Outlooks Due Out This Week

Active-volume exchange-traded funds in Monday’s regular session:

SPDR S&P 500 (SPY): -0.4%

iShares S&P 500 (IVV): -0.4%

PowerShares QQQ (QQQQ): -0.3%

Select Financial Sector SPDRS (XLF): 0.7%

iShares Russell 2000 (IWM): -1.2%

iShares Russell 1000 Growth (IWF): -0.6%

iShares MSCI Emerging Markets Index (EEM): -1.6%

United States Oil Fund (USO): +0.4%

Top-volume movers in this morning’s pre-market session:

QQQQ, +0.4%

SPY, +0.4%

GLD, +0.2%

USO, +1.6%

IWM, +0.3%

Winners and Losers-

Major market ETFs, including the SPY, DIA, UYG and others, are firmer even as stock futures chop around the even mark ahead of today’s open. The PowerShares QQQ (QQQQ), which tracks the technology-studded Nasdaq Composite, is up 0.4%, topping volume ranks.

Technology Select Sector SPDR (XLK) is flat but should see increased interest closer to the opening bell. Texas Instruments (TXN) is up 5% and near the evening highs. The company expects Q2 revenue to be within a range of $2.3 to $2.5 bln, above its previous guidance range of $1.95 to $2.4 bln. EPS is seen in the range of $0.14 to $0.22 per share, above its previous view of $0.10 to $0.15 per share. The Street estimate is $2.2 bln in revs and earnings of $0.10 per share.

Banking issues are mostly firmer. The Treasury is preparing to announce today it will let 10 banks buy back government shares, people familiar with the matter said, signaling confidence some of the largest U.S. lenders won’t again need a taxpayer rescue, Bloomberg News reports. JPMorgan Chase (JPM) is among those cleared to repay Troubled Asset Relief Program funds, according to the story. Goldman Sachs (GS), American Express (AXP) and State Street (SST) are also among those that have sold shares and debt unguaranteed by the government, demonstrating they can raise funds without federal aid.

At last check, Select Financial Sector SPDRS (XLF) is up 0.8%. The Direxion Financial Bull 3X fund (FAS) is up 1.2% and among the most actively traded banking ETFs; its bearish counterpart (FAZ) is down 0.7%.

The SPDR S&P Retail fund (XRT) could see increased interest closer to the bell with some sector names reporting last night and this morning. Men’s Wearhouse (MW) firmed 9% (at 19.49) in Monday’s after-hours trade after reporting better-than-expected Q1 results. Talbot’s (TLB) swings to a loss on smaller sales and is cutting jobs. The company also guides for a slimmer Q2 loss than the Street expects.

Commodities -

SPDR Gold Shares (GLD) is up 0.2%. iShares COMEX Gold Trust (IAU) is flat. The Market Vectors Gold Miners fund (GDX) is up 1.4%. Gold is up for the first day in three sessions as the dollar declines against its European counterparts. At last check, gold for August delivery rose $6.10, or 0.6%, to $958.60 an ounce in early North American electronic trading.

Silver for July delivery gained 24.5 cents, or 1.6%, to $15.20 an ounce. iShares Silver Trust (SLV) is up 1.6%.

ETF Power Play -

The United States Oil Fund (USO) is up 1.6%. After a pause to start the week, oil futures are back on track toward $70, up nearly 2% early Tuesday. A steady to weaker dollar is boosting the appeal of oil. Several reports due this week will keep focus on the commodity. The U.S. Energy Information Administration will release its short-term energy outlook later today. The International Energy Agency and OPEC will release similar reports later this week.

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Bank of America, Microsoft, and IBM Continue Earnings Parade

bankamericaStocks ended their sixth straight week with gains, but a number of financial companies, including Bank of America (BAC) and U.S. Bancorp (USB) still have yet to report results. Aside from banks, technology companies will also dominate earnings this week as investors hear from IBM (IBM), Microsoft Corp. (MSFT), and Advanced Micro Devices Inc. (AMD).

Goldman Sachs (GS) and Wells Fargo (WFC) have eased some investors concerns after posting earnings improvements in the first-quarter, however, some of the optimism was reigned in last week after UBS AG (UBS) said it expects to report a first-quarter loss of nearly $1.75 billion and will cut 8,700 jobs worldwide by the end of next year. Citigroup (C) also reported better-than-expected first-quarter results Friday, though the company continues to take charges to reserve for consumer defaults.

On Monday, IBM reports its first-quarter results in after-hours trading, and analysts polled by Reuters expect a profit of $1.66, up 1.2% from a year ago, on revenue of $22.6 billion. The stock is down 16% over the past 12 months.

Investors trading into earnings should know that IBM favors a long-term reversal pattern in its session-to-session performance, crossing narrower next-day percentage closing levels following after-hours earnings events in 11 of the last 19. However, the near-term is mixed, with the stock widening once, narrowing once, and reversing twice its rafter-hours move in the following regular session. On January 20, the stock rose 4% in after-hours trading when IBM guided for higher 2009 earnings. The stock widened its move in the following trading session, ending up 11.5%.

Yahoo! (YHOO) is due with its first-quarter results after the close on Tuesday and is expected to report earnings of $0.08 per share, down 27% from a year ago, on revenue of $1.2 billion. Yahoo shares are down 50% over the past 12 months and are trading slightly above their 50-day moving average.

Investors trading into earnings should know that in the near-term, Yahoo is trending toward widening its after-hours move, doing so in two of the last four quarter. On January 27, the stocks rose 4.2% in after-hours trading after earnings beat the Street. The stock widened its move in the following regular session, ending up 7.9%.

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Google, Intel, Citigroup Kick Earnings Into Full Swing

google1Earnings season steps into high gear this week as a number of financial and technology companies report results including Intel Corp. (INTC), Goldman Sachs (GS), Citigroup (C) and Google Inc. (GOOG). Investors will also hear from bellwether General Electric (GE) on Friday.

This week will also give investors an idea about housing and inflation when the government releases the latest report on housing starts and the consumer price index.

 Google is one company that investors like to trade going into earnings. On Thursday, the owner of the largest search engine is expected to report first quarter earnings of $4.96 per share, up 2.5% from a year ago, on revenue of $4.09 billion, according to analysts polled by Thomson Reuters. Google shares broke back above their 50-day moving average of $330 on March 20th and have a lot of room to move higher.

Investors trading into Google earnings on Thursday should know that shares lean toward a reversal pattern between the sessions in its long-term performance, cutting back its post-earnings evening share direction in next-day trade in 10 of the last 18 quarterly reports. However, in the near-term, the stock favors widening, extending its evening share move in the next day’s session in three of the last four quarters. On January 22, shares rose 2% in after-hours trading and extended their gains in the following regular session, ending up 5.9%.

On Tuesday, Linear Technology (LLTC) is scheduled to report its third-quarter results after the close and is expected to report earnings of $0.21 per share, down 52% from a year ago, on revenue of $203 million. Over the last 52 weeks, the stock has ranged from a low of $17.69 to a high of $37.77. The stock has been showing support around $22.78 and resistance in the $23.98 range.

Linear likes to widen it’s after hours move in the following regular session, doing so in the past 11 of 16 after-hours earnings releases. The near-term pattern also shows wider moves in the last six consecutive quarters. On January 13, the stock lost 2.6% in after-hours trading and widened its move the next regular session, ending down 4.1%.

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