MORNING UPDATE: PriceWatch Alerts for YHOO, NOK and More... for 2012-04-17 |
| ----------------------------------------------------------------- MORNING UPDATE: PriceWatch Alerts for YHOO, SGP, BMET, CC, TTWO, NOK, SEPR, CY, ADBE and KBH. Dec 17 - 8:30 AM EDT - Before the open... PriceWatch Alerts for YHOO, SGP, BMET, CC, TTWO, NOK, SEPR, CY, ADBE and KBH, Market Overview, Put/Call Alert, FuturesWatch, Today's Economic Calendar, Expected Earnings Reports, and the Quote Of The Day. QUOTE OF THE DAY ----------------------------------------------- "The costs of frivolous lawsuits in some cases make it prohibitively expensive for a small business to stay in business." -- George W. Bush, President. PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS ----------- -- Yahoo Inc. (Nasdaq: YHOO) Last Price 37.08 - APR 32.50 CALL OPTION@ $6.20 -> 5.2 % Return assigned* -- Schering-Plough Corp. (NYSE: SGP) Last Price 20.46 - FEB 20.00 CALL OPTION@ $1.25 -> 4.1 % Return assigned* -- Biomet Inc. (Nasdaq: BMET) Last Price 43.26 - APR 40.00 CALL OPTION@ $4.90 -> 4.3 % Return assigned* -- Circuit City Stores Inc. (NYSE: CC) Last Price 15.28 - JAN 15.00 CALL OPTION@ $1.00 -> 5.0 % Return assigned* -- Take-Two Interactive Software Inc. (Nasdaq: TTWO) Last Price 33.47 - JAN 32.50 CALL OPTION@ $2.35 -> 4.4 % Return assigned* -- Nokia Corp. ADR (NYSE: NOK) Last Price 15.17 - APR 15.00 CALL OPTION@ $1.15 -> 7.0 % Return assigned* -- Sepracor Inc. (Nasdaq: SEPR) Last Price 55.30 - JAN 55.00 CALL OPTION@ $2.75 -> 4.7 % Return assigned* -- Cypress Semiconductor Corp. (NYSE: CY) Last Price 11.00 - MAR 10.00 CALL OPTION@ $1.60 -> 6.4 % Return assigned* -- Adobe Systems Inc. (Nasdaq: ADBE) Last Price 61.11 - APR 60.00 CALL OPTION@ $5.00 -> 6.9 % Return assigned* -- Kaufman and Broad Home Corp. (NYSE: KBH) Last Price 105.59 - APR 90.00 CALL OPTION@ $19.20 -> 4.2 % Return assigned* *For more details on covered calls and how you can use them to enhance your portfolio performance go to http://www.poweropt.com/cchelp.asp NEWS LEADERS AND LAGGARDS------------------------------------- So far today, American Financial Realty and Actuant Corp. lead the list of companies with the most news stories while AMDL Inc. and Telekom Austria AG are showing a spike in news. Lincare Holdings Inc., Sprint FON Group., and Quiksilver Inc. have the highest srtIndex scores to top the list of companies with positive news while Symantec and Veritas Software Corp. lead the list of companies with negative news reports. Nike Inc. has popped up with a high positive news sraIndex score. MARKET OVERVIEW------------------------------------------------ Overseas markets are painting a bleak picture this morning with only the Nikkei and the Straits Time Index in positive territory. The FTSE is currently down by 0.40% dragged lower by Cairn Energy which shed 25% on negative news. The Hang Seng ended down by 0.23% with the Reit case continuing to distract traders. Profit taking pushed the BSE Sensex lower by 74 points. The December future contract on the 30-year was down 1-11/32 in yesterday's trading. Treasuries were significantly lower after the government reported a much steeper than expected drop in U.S. jobless claims. Given that employment is one of the key metrics the Federal Reserve has been watching in regards to determining future monetary policy moves, the news greatly increased the chances that the central bank will be able to continue raising short-term interest rates. When interest rates rise, the prices of outstanding bonds fall. The yields on the 2-year and 10-year notes stood at 2.995 percent and 4.186 percent respectively, rising as the notes fell. The 2-30 year yield spread stood 183 basis points. DYNAMIC MARKET OPPORTUNITIES------------------------------------- Another remarkable day in the world of corporate mergers on Thursday, with four more big deals taking place. Johnson & Johnson bought Guidant for US$25 billion. Symantec acquired Veritas Software for US$13.5 billion. And United Technologies Corp bought British-based Kidde PLC for US2.8 billion. At the Taipan investment group, one of the companies in Martin Denholm?s portfolio, travel operator and real estate firm Cendant, was also in buyout action. The firm agreed a deal to buy British company Gullivers Travel Associates. The buyout is for US$1.1 billion in cash and follows Cendant?s acquisition of UK travel operator E-Bookers for US$404 million a couple of weeks ago and the US$1.25 billion acquisition of Orbitz in September. This is excellent news for Cendant, who said the deal will likely boost 2005 revenue to US$230-255 million and 2006 revenue to US$360-395 million. The stock closed down 24 cents (1%) at US$22.46, but with extra revenues on tap through these acquisitions, its future prospects look bright. With just two weeks remaining 2004, this year certainly seems to be the ?Year of the Merger,? with over 9,800 deals concluded so far. That?s up 15% over the same period in 2003, according to Mergerstat. And in value terms, the combined total of the deals is a massive US$789 billion ? a 43% surge over the US$552 billion posted this time last year. PUT/CALL ALERT ------------------------------------------------- Equity option activity on the CBOE yesterday had 263,896 put contracts trade compared to 546,189 call contracts. The resultant 0.483 single-session put/call ratio has allowed the 21-day moving average to drop down to 0.637. The CBOE Market Volatility Index, SPX implied (VIX - 12.27) fell 0.65 percent (OEX implied, VXO - 13.01, down 1.14 percent). The Nasdaq-100 Trust Volatility Index (QQV - 18.46) gained 2.16 percent and the CBOE Nasdaq Market Volatility Index (VXN - 18.60) slid 0.91 percent. FUTURES WATCH -------------------------------------------------- The futures markets are trading a bit lower this morning as traders await the release of the CPI numbers. Yesterday saw an attempt at a setback late in the session after some early buying in the S&P's at the expense of the Russell and NASDAQ contracts. The markets continue to show their ability to come back from these attempts time after time, as institutions and speculators alike make their way off the sidelines and back to the equity markets. The recent rally in the crude oil has put a bit of a damper on the current rally but as long as that market stays below the $47.00 level my guess is that the rally will continue. Watch for the S&P's to move back to the recent highs is that market can trade above the 120750 level and the NASDAQ market can trade back above the 162500 level. If the crude oil can trade back below the 4350 level in the JAN FUTURES, it would act as a catalyst to the buyers in the equities. TODAY'S ECONOMIC CALENDAR --------------------------------------- 8:30 a.m.: November CPI (last plus 0.6 percent) 8:30 a.m.: November CPI, ex-food and energy (last plus 0.2 percent) EARNINGS EXPECTED TODAY (w/current estimates) ------------------ CarMax Inc. (KMX) 3Q 0.17 Circuit City (CC) 3Q -0.08 Family Dollar (FDO) 1Q 0.33 Steelcase Inc. (SCS) 3Q 0.04 This Morning Update was prepared with data and information provided by: Motley Fool Investing Alert for 2005 ? ?The Case Against Mutual Funds? ? 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For a free Trader's Resource CD click the following link or paste it into your browser address bar: http://www.poweropt.com/manseccd 247profits.com: You'll get exclusive financial commentary, access to a global network of experts and undiscovered stock alerts. Register NOW for the FREE 247profits e-Dispatch. Go to: http://www.poweropt.com/247 Schaeffer's Investment Research - Market information that combines unique data with insightful commentary, enabling you to navigate in any market conditions and invest wisely http://www.poweropt.com/sirmmo All stocks and options shown are examples only. These are not recommendations to buy or sell any security. PriceWatch Alerts do not take into account your trade size, brokerage commissions or taxes which will effect actual investment returns. Stocks and |
