MORNING UPDATE: PriceWatch Alerts for BRCD, NOVL and More... for 2012-04-16 |
| ----------------------------------------------------------------- MORNING UPDATE: PriceWatch Alerts for BRCD, GT, OPWV, APOL, BBBY, NOVL, KRB, GS, UVN and CCL. Dec 16 - 8:30 AM EDT - Before the open... PriceWatch Alerts for BRCD, GT, OPWV, APOL, BBBY, NOVL, KRB, GS, UVN and CCL, Market Overview, Put/Call Alert, FuturesWatch, Today's Economic Calendar, Expected Earnings Reports, and the Quote Of The Day. QUOTE OF THE DAY ----------------------------------------------- "The deficit is clearly going to be the centerpiece issue for the second term, it's the linchpin of the second-term economic policy." -- John Snow, Treasury Secretary. PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS ----------- -- Brocade Communications Systems Inc. (Nasdaq: BRCD) Last Price 7.60 - APR 6.00 CALL OPTION@ $1.85 -> 4.3 % Return assigned* -- Goodyear Tire & Rubber Co. (NYSE: GT) Last Price 14.23 - APR 12.50 CALL OPTION@ $2.40 -> 5.7 % Return assigned* -- Openwave Systems Inc. (Nasdaq: OPWV) Last Price 16.11 - JAN 15.00 CALL OPTION@ $1.75 -> 4.5 % Return assigned* -- Apollo Group Inc. (Nasdaq: APOL) Last Price 85.33 - JAN 85.00 CALL OPTION@ $4.20 -> 4.8 % Return assigned* -- Bed Bath & Beyond Inc. (Nasdaq: BBBY) Last Price 40.33 - FEB 40.00 CALL OPTION@ $2.05 -> 4.5 % Return assigned* -- Novell Inc. (Nasdaq: NOVL) Last Price 6.93 - MAY 5.00 CALL OPTION@ $2.20 -> 5.7 % Return assigned* -- MBNA Corp. (NYSE: KRB) Last Price 27.70 - MAR 27.50 CALL OPTION@ $1.40 -> 4.6 % Return assigned* -- Goldman Sachs Group (The) (NYSE: GS) Last Price 109.25 - APR 110.00 CALL OPTION@ $4.50 -> 5.0 % Return assigned* -- Univision Communications Inc. (NYSE: UVN) Last Price 29.53 - JAN 30.00 CALL OPTION@ $1.00 -> 5.2 % Return assigned* -- Carnival Corp. Class A (NYSE: CCL) Last Price 54.85 - APR 55.00 CALL OPTION@ $2.80 -> 5.7 % 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 Gateway Inc .and Cypress Semiconductor lead the list of companies with the most news stories while Ceragon Networks Ltd., and CancerVax are showing a spike in news. Qualcomm Inc, Sprint FON Group., and Nextel Communications Inc. have the highest srtIndex scores to top the list of companies with positive news while Bearingpoint Inc. and Teva Pharmaceutical Industries Ltd. lead the list of companies with negative news reports. Verizon Communications has popped up with a high positive news sraIndex score. MARKET OVERVIEW------------------------------------------------ Overseas markets are painting a mixed picture, with European markets positive and Asian markets decidedly in the red. The FTSE is currently up 0.10% supported by the banks and telecom sectors. In Asian markets, the Nikkei is down 0.29% after putting in a three day rally. The Hang Seng lost 0.38% percent on fears that the much awaited $3 billion IPO may be delayed again. It?s a different story on the BSE Sensex as it appears that there?s not a bear in sight, with the index continuing to set new highs with rallies in the telecom, auto and pharmaceutical sectors. At 8:30 a.m., the weekly jobless claims will be released and it is expected to come in at 340,000 claims. Also at 8:30 a.m., the third- quarter's current account deficit should come in at minus 171.0 billion. Expect this one to move the gold and currency markets. Scheduled for the same time slot, we should see November housing starts come in at 1.98 million. DYNAMIC MARKET OPPORTUNITIES------------------------------------- US$48.1 billion sounds like a pretty gigantic number. But that figure was actually the smallest amount in a year by which foreigners increased their holdings of US assets in October. According to Commerce Department figures, the US$48.1 billion in October pales in comparison to the US$67.5 jump in foreign holdings in September. No doubt many were put off by the ?twin deficits? (budget and trade) that has sent the dollar into a nosedive recently. This seems to agree with what Federal Reserve chairman Alan Greenspan told the European Banking Congress back on November 19 ? that foreigners may eventually get weary of the US deficits and look for more lucrative investments elsewhere. That could include places like the UK, Australia and New Zealand, whose currencies are enjoying a hearty run, as well as emerging markets like Brazil and Malaysia. A chunk of the decline in new foreign holdings came from Asia, with the Japanese following a US$1.9 billion reduction in September with a US$5.1 billion decline in October. China also reduced its net purchases. Coming from Asia?s two biggest players, that?s not good ? especially considering the US needs to attract about US$1.8 billion in investment each day in order to sustain the value of the dollar. Fortunately, overall Treasury purchases jumped by US$18.3 billion, while demand for US corporate bonds remained strong, with a US$19.2 billion rise. PUT/CALL ALERT ------------------------------------------------- Equity option activity on the CBOE yesterday had 360,956 put contracts trade compared to 862,039 call contracts. The resultant 0.419 single- session put/call ratio has allowed the 21-day moving average to drop down to 0.569. The CBOE Market Volatility Index, SPX implied (VIX - 12.35) fell 2.99 percent (OEX implied, VXO - 13.16, down 2.16 percent). The Nasdaq-100 Trust Volatility Index (QQV - 18.07) rose 0.67 percent and the CBOE Nasdaq Market Volatility Index (VXN - 18.77) rose 1.02 percent. FUTURES WATCH -------------------------------------------------- The futures markets are steady to a bit lower this morning as traders digest the weekly jobless claims numbers that came in at 317K which is a bit lower that the 342k which was expected. The release of yet another Bin Laden tape also seems to have the markets on hold. Today is the last day of trading in the December contract ahead of tomorrow's expiration. That could lead to some strong volatility in the afternoon. Watch for a quiet opening up until the release of the Philadelphia Fed Index at 11:00 CST. That could set the tone for the afternoon session. In the meantime, the S&P futures need to trade below the 120530 level in order to bring about some profit taking while the NASDAQ futures need to trade back above the 163500 level in order to put that market back in the leadership role and maybe fuel yet another leg to the rally. TODAY'S ECONOMIC CALENDAR --------------------------------------- 8:30 a.m.: Initial Jobless Claims for the week ended December 11 (last plus 8,000) 8:30 a.m.: November Housing Starts (last plus 6.4 percent) 8:30 a.m.: Current Account for third-quarter (last minus $166.2 billion) 10:00 a.m.: DJ-BTM Business Barometer for the week ended December 11 (last minus 0.4 percent) 12:00 p.m.: December Philadelphia Fed Business Index (last 20.7) 4:30 p.m.: Money Supply for the week ended December 11 EARNINGS EXPECTED TODAY (w/current estimates) ------------------ This Morning Update was prepared with data and information provided by: Motley Fool Investing Alert for 2005 ? ?The Case Against Mutual Funds? ? New FREE report details a more successful way for you to invest your money. http://www.investorsobserver.com/phillips PowerOptionsPlus.com - The Best Way To Find, Compare, Analyze, and Make Money On Option Investments - Forbes Best of the Web Winner. 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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 |
