MORNING UPDATE: PriceWatch Alerts for EMC, F, QCOM and More...
-----------------------------------------------------------------
MORNING UPDATE: PriceWatch Alerts for EMC, TLAB, SLAB, XRX, COH,
F, BLS, SGP, MER, FCS, QCOM, ALTR, LXK, AKS and EAT.
Jan 25 - 8:30 AM EDT - Before the open... PriceWatch Alerts for
EMC, TLAB, SLAB, XRX, COH, F, BLS, SGP, MER, FCS, QCOM, ALTR,
LXK, AKS and EAT, Market Overview, Put/Call Alert, FuturesWatch,
Today's Economic Calendar, Expected Earnings Reports, and the
Quote Of The Day.
QUOTE OF THE DAY -----------------------------------------------
"I am comfortable with our gradual monetary policy adjustments --
at least for now."
-- Jack Guynn, President, Atlanta Federal Reserve Bank.
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS -----------
-- EMC Corp. (NYSE: EMC)
Last Price 12.84 - APR 12.00 CALL OPTION@ $1.40 -> 4.9 % Return
assigned*
-- Tellabs Inc. (Nasdaq: TLAB)
Last Price 7.65 - JUN 7.50 CALL OPTION@ $0.80 -> 9.5 % Return
assigned*
-- Silicon Labs (Nasdaq: SLAB)
Last Price 27.23 - MAR 25.00 CALL OPTION@ $3.70 -> 6.2 % Return
assigned*
-- Xerox Corp. (NYSE: XRX)
Last Price 15.29 - APR 15.00 CALL OPTION@ $0.90 -> 4.2 % Return
assigned*
-- Coach Inc. (NYSE: COH)
Last Price 52.82 - MAY 50.00 CALL OPTION@ $5.80 -> 6.3 % Return
assigned*
-- Ford Motor Co. (NYSE: F)
Last Price 13.07 - JUN 12.50 CALL OPTION@ $1.25 -> 5.8 % Return
assigned*
-- BellSouth Corp. (NYSE: BLS)
Last Price 26.56 - JUL 27.50 CALL OPTION@ $0.90 -> 7.2 % Return
assigned*
-- Schering-Plough Corp. (NYSE: SGP)
Last Price 20.03 - MAR 20.00 CALL OPTION@ $0.90 -> 4.5 % Return
assigned*
-- Merrill Lynch & Co. Inc. (NYSE: MER)
Last Price 56.80 - JUL 55.00 CALL OPTION@ $4.30 -> 4.8 % Return
assigned*
-- Fairchild Semiconductor International Inc. (NYSE: FCS)
Last Price 12.98 - MAR 12.50 CALL OPTION@ $1.15 -> 5.7 % Return
assigned*
-- QualComm Inc. (Nasdaq: QCOM)
Last Price 36.54 - APR 35.00 CALL OPTION@ $3.20 -> 5.0 % Return
assigned*
-- Altera Corp. (Nasdaq: ALTR)
Last Price 17.88 - FEB 17.50 CALL OPTION@ $1.05 -> 4.0 % Return
assigned*
-- Lexmark International Group Inc. Class A (NYSE: LXK)
Last Price 85.02 - MAR 85.00 CALL OPTION@ $3.50 -> 4.3 % Return
assigned*
-- AK Steel Holding Corp. (NYSE: AKS)
Last Price 13.91 - MAR 12.50 CALL OPTION@ $2.15 -> 6.3 % Return
assigned*
-- Brinker International Inc. (NYSE: EAT)
Last Price 35.65 - JUL 35.00 CALL OPTION@ $2.60 -> 5.9 % 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, AirTran Holdings, Inc., Schlumberger Ltd., and EMC
Corp. lead the list of companies with the most news stories while
Finisar Corp. and Integrated Silicon Solution Inc. are showing a
spike in news. Schlumberger Ltd., The Pepsi Bottling Group Inc,
and Health Management Associates Inc. have the highest srtIndex
scores to top the list of companies with positive news while
Lattice Semiconductor Corp. and Cell Genesys Inc. lead the list
of companies with negative news reports. Fairchild Semiconductor
Corp. has popped up with a high positive news sraIndex score.
MARKET OVERVIEW------------------------------------------------
Overseas markets are looking very strong this morning as 13 of
the 15 markets that we track are currently higher with the
cumulative average return standing at plus 0.368 percent. Strong
earnings last night and very oversold conditions are contributing
to the bounce.
As for today, earnings continue to pour in fast and furious. A
few of the major highlights before the bell are Merrill Lynch,
Johnson
& Johnson and Merck . Then after the bell we have Electronic
Arts and Texas Instruments. At 10:00 a.m., there are two major
economic reports due out. First, the consumer confidence index
in January should come in at 101.3, below last period's 102.3.
Then December existing home sales should make it to 6.80 million,
below last period's 6.94 million.
DYNAMIC MARKET OPPORTUNITIES-------------------------------------
With 152 companies due to release fourth quarter earnings reports
this week, it?s a busy time for Wall Street. But with reports
stating that corporate earnings are set to fall slightly, and
business spending growth consequently slowing from the third
quarter?s 13% clip to a more modest 8% during the fourth, as well
as the Iraq elections also looming, it?s an uncertain market
climate for investors. A report from Huron Consulting Group says
the Sarbanes-Oxley Act is causing a greater number of companies
to revise their earnings reports. In fact, restatements soared
28% in 2004, from 323 to 414. The Sarbanes-Oxley Act basically
aims to tighten corporate financial reporting following scandals
like Enron and WorldCom and other accounting discrepancies. And
the increased number of restatements seems to suggest it?s
working. January 28 will see the Commerce Department release its
preliminary estimate of fourth quarter GDP growth ? a figure that
could show a healthy 3.6% expansion. If so, it would make 2004
the best year for economic growth since 1999. But since this news
is probably already priced into the market, it won?t have much
effect on stocks. This leaves the market inching along in
trepidation of this weekend?s Iraq elections ? particularly given
al-Qaeda operative Abu Musab al-Zarqawi?s ominous warning of
fresh attacks on coalition forces. It?s also no surprise to see
oil prices taking their toll on consumers. Crude prices climbed
to US$49 per barrel Monday, just as the latest Lundberg Survey
said gasoline prices rose 5 cents per gallon over the past two
weeks. The average national price per gallon now sits at US$1.85
? not particularly cheap, but not really panic-worthy either. The
rise was the first in about three months, following a 25-cent
decline from levels over US$2 since mid October.
PUT/CALL ALERT -------------------------------------------------
Equity option activity on the CBOE yesterday had 570,729 put
contracts trade compared to 893,746 call contracts.
Interestingly, the resultant 0.639 single-session put/call ratio
has allowed the 21-day moving average remain at exactly the same
number - 0.639. The CBOE Market Volatility Index, SPX implied
(VIX - 14.65) rose 2.02 percent (OEX implied, VXO -14.53, down
0.14 percent). The Nasdaq-100 Trust Volatility Index (QQV -
19.18) gained 5.62 percent and the CBOE Nasdaq Market Volatility
Index (VXN - 19.87) rose 2.58 percent.
FUTURES WATCH --------------------------------------------------
The majority of earnings reports seem to be beating expectations
but the tech sector reflected in the NASDAQ futures has had a
very hard time putting together any sort of rally. Traders seem
to be concerned over escalating violence in Iraq ahead of the
Sunday elections as well as the FOMC meeting that will take place
next week. The futures markets are poised to open higher this
morning but that seems to be the pattern in the last few weeks
where a higher opening gives way to a lower close. There has
been some very strong institutional buying down here near the
lows but the NASDAQ is still going to have to be the force that
will usher this market out of the current state of weakness and
back to a state of optimism. So far, most of the rallies have
been short covering in nature with very little signs of support.
I don't see that changing unless the NASDAQ can lead the way for
two or three days in a row. Watch for a short covering rally to
develop in the early going if the NASDAQ futures can trade above
the 150200 level. All markets are very over-extended on the
short side that should help to fuel any rally that can develop.
TODAY'S ECONOMIC CALENDAR ---------------------------------------
7:45 a.m.: ICSC-UBS Store Sales Index for week ended January 22
(last minus 0.9 percent)
8:55 a.m.: Redbook Retail Sales Index for week ended January 22
(last plus 1.2 percent)
10:00 a.m.: January Richmond Fed Mfg Index
10:00 a.m.: January Conference Board Consumer Confidence Index
(last 102.3)
10:00 a.m.: December Existing Home Sales (last plus 2.7 percent)
12:30 p.m.: Kansas City Fed Pres Hoenig speaks on monetary
policy and the economy before the Oklahoma City Chamber of
Commerce
6:30 p.m.: ABC/Washington Post Consumer Confidence Index for
week ended January 22 (last minus 11)
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.
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
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
MORNING UPDATE: PriceWatch Alerts for EMC, TLAB, SLAB, XRX, COH,
F, BLS, SGP, MER, FCS, QCOM, ALTR, LXK, AKS and EAT.
Jan 25 - 8:30 AM EDT - Before the open... PriceWatch Alerts for
EMC, TLAB, SLAB, XRX, COH, F, BLS, SGP, MER, FCS, QCOM, ALTR,
LXK, AKS and EAT, Market Overview, Put/Call Alert, FuturesWatch,
Today's Economic Calendar, Expected Earnings Reports, and the
Quote Of The Day.
QUOTE OF THE DAY -----------------------------------------------
"I am comfortable with our gradual monetary policy adjustments --
at least for now."
-- Jack Guynn, President, Atlanta Federal Reserve Bank.
PRICEWATCH ALERTS - HIGH RETURN COVERED CALL OPTIONS -----------
-- EMC Corp. (NYSE: EMC)
Last Price 12.84 - APR 12.00 CALL OPTION@ $1.40 -> 4.9 % Return
assigned*
-- Tellabs Inc. (Nasdaq: TLAB)
Last Price 7.65 - JUN 7.50 CALL OPTION@ $0.80 -> 9.5 % Return
assigned*
-- Silicon Labs (Nasdaq: SLAB)
Last Price 27.23 - MAR 25.00 CALL OPTION@ $3.70 -> 6.2 % Return
assigned*
-- Xerox Corp. (NYSE: XRX)
Last Price 15.29 - APR 15.00 CALL OPTION@ $0.90 -> 4.2 % Return
assigned*
-- Coach Inc. (NYSE: COH)
Last Price 52.82 - MAY 50.00 CALL OPTION@ $5.80 -> 6.3 % Return
assigned*
-- Ford Motor Co. (NYSE: F)
Last Price 13.07 - JUN 12.50 CALL OPTION@ $1.25 -> 5.8 % Return
assigned*
-- BellSouth Corp. (NYSE: BLS)
Last Price 26.56 - JUL 27.50 CALL OPTION@ $0.90 -> 7.2 % Return
assigned*
-- Schering-Plough Corp. (NYSE: SGP)
Last Price 20.03 - MAR 20.00 CALL OPTION@ $0.90 -> 4.5 % Return
assigned*
-- Merrill Lynch & Co. Inc. (NYSE: MER)
Last Price 56.80 - JUL 55.00 CALL OPTION@ $4.30 -> 4.8 % Return
assigned*
-- Fairchild Semiconductor International Inc. (NYSE: FCS)
Last Price 12.98 - MAR 12.50 CALL OPTION@ $1.15 -> 5.7 % Return
assigned*
-- QualComm Inc. (Nasdaq: QCOM)
Last Price 36.54 - APR 35.00 CALL OPTION@ $3.20 -> 5.0 % Return
assigned*
-- Altera Corp. (Nasdaq: ALTR)
Last Price 17.88 - FEB 17.50 CALL OPTION@ $1.05 -> 4.0 % Return
assigned*
-- Lexmark International Group Inc. Class A (NYSE: LXK)
Last Price 85.02 - MAR 85.00 CALL OPTION@ $3.50 -> 4.3 % Return
assigned*
-- AK Steel Holding Corp. (NYSE: AKS)
Last Price 13.91 - MAR 12.50 CALL OPTION@ $2.15 -> 6.3 % Return
assigned*
-- Brinker International Inc. (NYSE: EAT)
Last Price 35.65 - JUL 35.00 CALL OPTION@ $2.60 -> 5.9 % 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, AirTran Holdings, Inc., Schlumberger Ltd., and EMC
Corp. lead the list of companies with the most news stories while
Finisar Corp. and Integrated Silicon Solution Inc. are showing a
spike in news. Schlumberger Ltd., The Pepsi Bottling Group Inc,
and Health Management Associates Inc. have the highest srtIndex
scores to top the list of companies with positive news while
Lattice Semiconductor Corp. and Cell Genesys Inc. lead the list
of companies with negative news reports. Fairchild Semiconductor
Corp. has popped up with a high positive news sraIndex score.
MARKET OVERVIEW------------------------------------------------
Overseas markets are looking very strong this morning as 13 of
the 15 markets that we track are currently higher with the
cumulative average return standing at plus 0.368 percent. Strong
earnings last night and very oversold conditions are contributing
to the bounce.
As for today, earnings continue to pour in fast and furious. A
few of the major highlights before the bell are Merrill Lynch,
Johnson
& Johnson and Merck . Then after the bell we have Electronic
Arts and Texas Instruments. At 10:00 a.m., there are two major
economic reports due out. First, the consumer confidence index
in January should come in at 101.3, below last period's 102.3.
Then December existing home sales should make it to 6.80 million,
below last period's 6.94 million.
DYNAMIC MARKET OPPORTUNITIES-------------------------------------
With 152 companies due to release fourth quarter earnings reports
this week, it?s a busy time for Wall Street. But with reports
stating that corporate earnings are set to fall slightly, and
business spending growth consequently slowing from the third
quarter?s 13% clip to a more modest 8% during the fourth, as well
as the Iraq elections also looming, it?s an uncertain market
climate for investors. A report from Huron Consulting Group says
the Sarbanes-Oxley Act is causing a greater number of companies
to revise their earnings reports. In fact, restatements soared
28% in 2004, from 323 to 414. The Sarbanes-Oxley Act basically
aims to tighten corporate financial reporting following scandals
like Enron and WorldCom and other accounting discrepancies. And
the increased number of restatements seems to suggest it?s
working. January 28 will see the Commerce Department release its
preliminary estimate of fourth quarter GDP growth ? a figure that
could show a healthy 3.6% expansion. If so, it would make 2004
the best year for economic growth since 1999. But since this news
is probably already priced into the market, it won?t have much
effect on stocks. This leaves the market inching along in
trepidation of this weekend?s Iraq elections ? particularly given
al-Qaeda operative Abu Musab al-Zarqawi?s ominous warning of
fresh attacks on coalition forces. It?s also no surprise to see
oil prices taking their toll on consumers. Crude prices climbed
to US$49 per barrel Monday, just as the latest Lundberg Survey
said gasoline prices rose 5 cents per gallon over the past two
weeks. The average national price per gallon now sits at US$1.85
? not particularly cheap, but not really panic-worthy either. The
rise was the first in about three months, following a 25-cent
decline from levels over US$2 since mid October.
PUT/CALL ALERT -------------------------------------------------
Equity option activity on the CBOE yesterday had 570,729 put
contracts trade compared to 893,746 call contracts.
Interestingly, the resultant 0.639 single-session put/call ratio
has allowed the 21-day moving average remain at exactly the same
number - 0.639. The CBOE Market Volatility Index, SPX implied
(VIX - 14.65) rose 2.02 percent (OEX implied, VXO -14.53, down
0.14 percent). The Nasdaq-100 Trust Volatility Index (QQV -
19.18) gained 5.62 percent and the CBOE Nasdaq Market Volatility
Index (VXN - 19.87) rose 2.58 percent.
FUTURES WATCH --------------------------------------------------
The majority of earnings reports seem to be beating expectations
but the tech sector reflected in the NASDAQ futures has had a
very hard time putting together any sort of rally. Traders seem
to be concerned over escalating violence in Iraq ahead of the
Sunday elections as well as the FOMC meeting that will take place
next week. The futures markets are poised to open higher this
morning but that seems to be the pattern in the last few weeks
where a higher opening gives way to a lower close. There has
been some very strong institutional buying down here near the
lows but the NASDAQ is still going to have to be the force that
will usher this market out of the current state of weakness and
back to a state of optimism. So far, most of the rallies have
been short covering in nature with very little signs of support.
I don't see that changing unless the NASDAQ can lead the way for
two or three days in a row. Watch for a short covering rally to
develop in the early going if the NASDAQ futures can trade above
the 150200 level. All markets are very over-extended on the
short side that should help to fuel any rally that can develop.
TODAY'S ECONOMIC CALENDAR ---------------------------------------
7:45 a.m.: ICSC-UBS Store Sales Index for week ended January 22
(last minus 0.9 percent)
8:55 a.m.: Redbook Retail Sales Index for week ended January 22
(last plus 1.2 percent)
10:00 a.m.: January Richmond Fed Mfg Index
10:00 a.m.: January Conference Board Consumer Confidence Index
(last 102.3)
10:00 a.m.: December Existing Home Sales (last plus 2.7 percent)
12:30 p.m.: Kansas City Fed Pres Hoenig speaks on monetary
policy and the economy before the Oklahoma City Chamber of
Commerce
6:30 p.m.: ABC/Washington Post Consumer Confidence Index for
week ended January 22 (last minus 11)
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.
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
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
