Moenning�s Daily State of the Markets: 10/11
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Fearing the Worst?
With earnings season about to really get rolling, traders appeared to be bracing for disappointment yesterday. Stocks dropped for the fifth time in the last six sessions as profit warnings were abundant. However, warning season will soon give way to reporting season and the good news should begin to flow. Analysts are looking for earnings growth of 17% for the S&P 500 this quarter, however, oil companies are said to account for about 60% of the earnings gains. The good news is stocks are now oversold and pessimism is running high, which may provide a nice springboard for a trading rally.
Alcoa (AA) kicked off earnings season with a �win� last night and Genentech�s (DNA) report is creating some enthusiasm this morning. There are no economic releases scheduled for today, but traders will be anxiously waiting for the minutes from the FOMC meeting in hopes to get some clarity on the Fed�s current view. Oil is up on an IEA report suggesting less supply from non-OPEC countries in Q4. Finally, stocks are looking higher at the open � but the question is: Will the enthusiasm last for more than 30 minutes?
Stocks "In Play" This Morning:
IBM � Upgraded at CSFB, target raised to $95. Also mentioned positively at Bernstein
INTC � DigiTimes reports the company will roll out PC System for Indian market priced at $220
DNA � Topped both earnings and sales forecasts
MSFT � May be close to settling antitrust suit with RNWK
RNWK � May be close to settling antitrust suit with MSFT
ERTS � Upgraded at Citigroup
MCD � UBS ups target price
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: IBM, INTC, ERTS
To see Mr. Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
With earnings season about to really get rolling, traders appeared to be bracing for disappointment yesterday. Stocks dropped for the fifth time in the last six sessions as profit warnings were abundant. However, warning season will soon give way to reporting season and the good news should begin to flow. Analysts are looking for earnings growth of 17% for the S&P 500 this quarter, however, oil companies are said to account for about 60% of the earnings gains. The good news is stocks are now oversold and pessimism is running high, which may provide a nice springboard for a trading rally.
Alcoa (AA) kicked off earnings season with a �win� last night and Genentech�s (DNA) report is creating some enthusiasm this morning. There are no economic releases scheduled for today, but traders will be anxiously waiting for the minutes from the FOMC meeting in hopes to get some clarity on the Fed�s current view. Oil is up on an IEA report suggesting less supply from non-OPEC countries in Q4. Finally, stocks are looking higher at the open � but the question is: Will the enthusiasm last for more than 30 minutes?
Stocks "In Play" This Morning:
IBM � Upgraded at CSFB, target raised to $95. Also mentioned positively at Bernstein
INTC � DigiTimes reports the company will roll out PC System for Indian market priced at $220
DNA � Topped both earnings and sales forecasts
MSFT � May be close to settling antitrust suit with RNWK
RNWK � May be close to settling antitrust suit with MSFT
ERTS � Upgraded at Citigroup
MCD � UBS ups target price
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: IBM, INTC, ERTS
To see Mr. Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
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