MORNING UPDATE: PriceWatch Alerts for XMSR and More... for 2005-03-02 |
| ----------------------------------------------------------------- MORNING UPDATE: PriceWatch Alerts for XMSR, TIBX, UVN, COST and PSS. Mar 2 - 8:30 AM EDT - Before the open... PriceWatch Alerts for XMSR, TIBX, UVN, COST and PSS, Market Overview, Put/Call Alert, FuturesWatch, Today's Economic Calendar, Expected Earnings Reports, and the Quote Of The Day. QUOTE OF THE DAY ----------------------------------------------- "Ambiguity about the Fed's long-run inflation intentions has outlived its usefulness." -- Jeffrey Lacker, Richmond Federal Reserve Bank. PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS ----------- -- XM Satellite Radio (Nasdaq: XMSR) Last Price 33.27 - APR 32.50 CALL OPTION@ $2.35 -> 5.1 % Return assigned* -- TIBCO Software Inc. (Nasdaq: TIBX) Last Price 8.90 - MAY 7.50 CALL OPTION@ $1.70 -> 4.2 % Return assigned* -- Univision Communications Inc. (NYSE: UVN) Last Price 30.00 - APR 30.00 CALL OPTION@ $1.25 -> 4.3 % Return assigned* -- Costco Companies Inc. (Nasdaq: COST) Last Price 46.71 - APR 47.50 CALL OPTION@ $1.05 -> 4.0 % Return assigned* -- Payless ShoeSource Inc. (NYSE: PSS) Last Price 14.68 - JUN 15.00 CALL OPTION@ $1.05 -> 10.1 % 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, Amylin Pharmaceuticals Inc., AutoZone Inc., and Costco Wholesale Corp. lead the list of companies with the most news stories while Iron Mountain Inc. and Crescent Real Estate Equities Co. are showing a spike in news. International Business Machines Corp., Dell Inc., and Hewlett-Packard Co. have the highest srtIndex scores to top the list of companies with positive news while Semtech Corp. and Fairchild Semiconductor Corp. lead the list of companies with negative news reports. Sun Microsystems Inc. has popped up with a high positive news sraIndex score. MARKET OVERVIEW------------------------------------------------ The April contract on sweet crude oil fell seven cents yesterday on the New York Mercantile Exchange on hopes that OPEC won't cut production at its meeting in two weeks. Helping to fuel this confidence were comments from OPEC Secretary General Shihab-Eldin that $50 a barrel oil "softens need" for a cut. There isn't much going on today, as the only major economic news is the Challenger, Gray & Christmas layoff survey. Other than that, Alan Greenspan testifies before the House Budget Committee at 10:00 a.m. on the economic outlook and budget. DYNAMIC MARKET OPPORTUNITIES------------------------------------- Gone are the days of judging what the Federal Reserve will do in terms of monetary policy, and predicting whether the bankers will leave, cut, or raise interest rates ? and by how much. It?s more a case of what they should now do regarding an inflation policy. Later this month, the Fed is expected to agree to its seventh consecutive rate hike ? one that will take the base rate to 2.75%. The more pertinent question these days is whether the bankers should now set a specific inflation target like the Bank of England does (2%) ? a tactic that has helped Britain maintain a stable inflation rate. And if the Fed does so, a new debate begins as to whether it should be a set figure or simply a numerical range. Minutes from the Fed?s February meeting show this is a subject ripe for more debate. Some members like Ben Bernanke, who is tipped by some to become the next Fed chairman when Alan Greenspan retires in 2006, think this is a good idea, as it would provide a clearer guide on policy and expectations. But others, like Greenspan, are more skeptical, saying a rigid target has no real benefits and could unnerve the market if inflation were to hit, or breach, that level. Greenspan prefers the flexibility that having no set inflation target gives him, because if there were to be a target, it could be difficult for the Fed to reconcile its twin goal of generating job growth, while also keeping inflation in check. PUT/CALL ALERT ------------------------------------------------- Equity option activity on the CBOE yesterday had 430,391 put contracts trade compared to 637,463 call contracts. The resultant 0.675 single-session put/call ratio has allowed the 21- day moving average to jump up to 0.594. The CBOE Market Volatility Index, SPX implied (VIX - 12.04) fell 0.33 percent (OEX implied, VXO -11.78, down 0.67 percent). The Nasdaq-100 Trust Volatility Index (QQV -16.89) lost 2.76 percent and the CBOE Nasdaq Market Volatility Index (VXN - 17.78) slipped 1.60 percent. FUTURES WATCH -------------------------------------------------- The futures markets are trading lower this morning after a strong surge to upside during yesterday's session. Traders seem to be taking some profits ahead of chairman Greenspan's testimony before Congress at 9:00 CST. The NASDAQ futures were strong leaders during yesterday's session but failed to close above the 153300 level, which would be a strong indicator of continued upside momentum. The S&P futures weren't able to make new highs on this fourth attempt at the 121340 area. Perhaps the weekly crude oil supply numbers due out at 9:30 CST could act as a catalyst if it shows expanded reserves. In either case, look for weakness to return below the 120600 level in the S&P's and below the 152000 level in the NASDAQ. TODAY'S ECONOMIC CALENDAR --------------------------------------- 7:00 a.m.: Last week's MBA Refinancing Index (last 0.1%) 10:00 a.m.: February Challenger Layoffs Survey (last minus 16.6%) This Morning Update was prepared with data and information provided by: PowerOptionsPlus.com - The Best Way To Find, Compare, Analyze, and Make Money On Option Investments - Forbes Best of the Web Winner. InvestorsObserver.com -- Better Strategies for Making Money -> For Investors With a Sense of Humor. Only $1 for your first month plus seven free bonuses worth over $800, see: http://www.poweropt.com/io Quote.com QCharts- Real time quotes and streaming technical charts to keep you up with the market. Analyze, predict, and stay ahead. for a Free 30 day trial go to: http://www.investorsobserver.com/MUQuote2 WallStreetSecretsPlus.com ? For Investors Who Need To Know -> Only $1 for your first month plus free bonuses worth over $269, go to: http://gowssp.com/go/mu/ Man Financial Inc - One of the world's major futures and options brokers and a leading option order execution firm for individuals and institutions. Member CBOE/NASD/SIPC (CRD#6731) http://www.poweropt.com/mansec. FuturesWatch provided by Man's Harry Michas www.manmarketmonitor.com. 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 |
