David Moenning�s Daily State of the Markets: 10/17
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Short-Term Relief
Stocks breathed an overdue sigh of relief on Friday. But even with positive inflation news, a solid earnings report from GE, and surprisingly good numbers on Retail Sales, it certainly wasn�t easy. It will suffice to say that the bears are pretty well entrenched at the moment, so it was tough to get them to yield, even for just a day. The second round of economic data was disappointing and resulted in the evaporation of early gains But with the decline in crude providing the tie-breaker, the bulls finally got something going to the upside and finished with a gain of +71 on the Dow.
This morning, it looks like D�j� vu all over again for storm watchers. Tropical Storm Wilma is forming in the Caribbean and the boys in the oil pits know all too well how to play this game. In response, oil is trading higher by $1.34 to $63.97. The economic news this morning is surprisingly weak. The Empire Manufacturing index came in at 12.1, which was well below the consensus reading of 19.0.
This week the earnings parade moves into high gear and we will get data on PPI, Housing Starts, LEI, and a report from the Philly Fed. So far this morning, it looks like stocks are looking mixed.
Stocks "In Play" This Morning:
VLO � Goldman believes the pullback in oil presents a buying opportunity. Likes AHC, MUR, NFX, and XTO
C � Reported $1.01 vs. $0.99 with revenues of $21.5B vs $20.47B
IBM � Reports after the close. Bernstein says could surprise to upside by $0.02 to $0.03.
SPX � UBS notes pullback may be overdone
AAPL � Speculation is the company is developing WiFi enable iPod
GM � Earnings of -$1.92 vs -$0.87. Company reached agreement with UAW
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: VLO, C, IBM
To see David Moenning�s Trading Record, his (Strong Buy) List, or the rank for any Top Guns Stocks, visit: http://www.AnotherWinningTrade.com/SI
Stocks breathed an overdue sigh of relief on Friday. But even with positive inflation news, a solid earnings report from GE, and surprisingly good numbers on Retail Sales, it certainly wasn�t easy. It will suffice to say that the bears are pretty well entrenched at the moment, so it was tough to get them to yield, even for just a day. The second round of economic data was disappointing and resulted in the evaporation of early gains But with the decline in crude providing the tie-breaker, the bulls finally got something going to the upside and finished with a gain of +71 on the Dow.
This morning, it looks like D�j� vu all over again for storm watchers. Tropical Storm Wilma is forming in the Caribbean and the boys in the oil pits know all too well how to play this game. In response, oil is trading higher by $1.34 to $63.97. The economic news this morning is surprisingly weak. The Empire Manufacturing index came in at 12.1, which was well below the consensus reading of 19.0.
This week the earnings parade moves into high gear and we will get data on PPI, Housing Starts, LEI, and a report from the Philly Fed. So far this morning, it looks like stocks are looking mixed.
Stocks "In Play" This Morning:
VLO � Goldman believes the pullback in oil presents a buying opportunity. Likes AHC, MUR, NFX, and XTO
C � Reported $1.01 vs. $0.99 with revenues of $21.5B vs $20.47B
IBM � Reports after the close. Bernstein says could surprise to upside by $0.02 to $0.03.
SPX � UBS notes pullback may be overdone
AAPL � Speculation is the company is developing WiFi enable iPod
GM � Earnings of -$1.92 vs -$0.87. Company reached agreement with UAW
Disclosure: At the time of publication Mr. Moenning and/or related companies are long the following positions: VLO, C, IBM
To see David 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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