Southwest Airlines (LUV) canceled 300 flights on Sunday, to inspect 79 Boeing (BA) 737-300 planes to address possible "skin fatigue". Overall option implied volatility of 29 is below its 26-week average of 32 according to Track Data, suggesting decreasing price movement.
KB Home (KBH) April put option implied volatility is at 52, May is at 45; compared to its 26-week average of 46 according to Track Data, suggesting larger near term price movement into its expected release of Q1 results on April 5.
Update is by Stock Specialist Paul Foster of theflyonthewall.com
U.S. stock futures are higher Friday morning as crude oil prices stabilized. Futures for the Dow Jones Industrial Average
gained 55 points to 12,092.00, while those for the S&P 500 index climbed 7 points to 1,309.70. Futures for the Nasdaq 100 index rose 15.50 points to 2,323.75.
U.S. stock market closed mixed yesterday, with the Dow Jones Industrial Average dropping 37.28 points, the Nasdaq Composite gaining 14.91 points and the S&P 500 declining 1.30 points.
Continue reading U.S. Stock Futures Up as Crude Oil Prices Stabilize
- Boeing (BA) to overweight from neutral at JPMorgan.
- Alcoa (AA) to buy from hold at Deutsche Bank.
- BP (BP) to outperform from market perform at Raymond James.
- Office Depot (ODP) and Staples (SPLS) to buy from neutral at Janney Capital.
- ON Semiconductor (ONNN) to buy from hold at Citigroup.
- Kennametal (KMT) and Polyone (POL) to buy from hold at KeyBanc.
- Airgas (ARG) to outperform from market perform at William Blair.
- EchoStar (SATS) to neutral from underperform at Macquarie.
Continue reading Analyst Calls: AA, BA, BP, BSX, COH, GM, INTC, NSM, STJ, TIF, TSN, UA ...
We at BloggingStocks and everywhere else make the full gambit of prognostications, suggestions, predictions, guesses, analogies, and so forth in an attempt to improve potential investment opportunities for all our readers and provoke discussion.
All of this has its limits, but, if you are a fan of Professor Nassim NicholasTaleb and his best seller The Black Swan
then you already have been warned that the events that have the greatest impact on our lives and our investments are most often unpredictable. We cannot predict the future nor can we anticipate the tragedies that will tank our portfolio's.
While I do believe predicting the future is, how should I say, futile, there are general clues as to which way the wind blows.
Continue reading Chasing Value: You Must Own Defense and Oil for Safety
- Goldman upgraded Eaton (ETN) to conviction buy from neutral.
- AECOM Technology (ACM) was upgraded to outperform from neutral at Macquarie.
- Piper Jaffray upgraded Hologic (HOLX), Gen-Probe (GPRO) and Qiagen (QGEN) to overweight from neutral.
- GeoMet (GMET) was upgraded to accumulate from neutral at Global Hunter.
- Accretive Health (AH) was upgraded to outperform from neutral at RW Baird.
- Morgan Stanley upgraded Reinsurance Group (RGA) to overweight from equal weight.
- BofA/Merrill upgraded Clearwire (CLWR) to neutral from underperform.
Continue reading Analyst Calls: BA, BBBY, CI, CLWR, DFS, DLTR, ETN, MET, MO, WSM ...
) closed down 2.6% after canceling all scheduled 787 flight tests in the wake of Tuesday night's emergency landing. Overall option implied volatility of 33 is near its 26-week average of 32, suggesting non-directional price movement.
) is expected to report Q3 EPS on November 16. November put option implied volatility is at 18, December and January is at 16; below its 26-week average of 19, according to Track Data, suggesting decreasing price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com
- Time Warner Cable (TWC) was upgraded to outperform from market perform at Bernstein.
- Citigroup upgraded MEMC Electronic (WFR) and Skilled Healthcare (SKH) to buy from hold at Citigroup.
- Administaff (ASF) was upgraded to buy from hold at Roth Capital.
- The Buckle (BKE) was upgraded to buy from hold at KeyBanc.
- BofA/Merrill upgraded DreamWorks (DWA) to neutral from underperform.
- Corrections Corp. (CXW) was upgraded to buy from neutral at SunTrust.
- Marvell Technology (MRVL) was upgraded to positive from neutral at Susquehanna.
Continue reading Analyst Calls: ARO, BA, BKE, DWA, MRVL, SGEN, TWC, WFR ...
Steve Jobs, the illustrious CEO and the heart and soul of Apple Inc. (AAPL
) would have you believe that Apple cannot issue a dividend to shareholders because of the scary competitive business environment. He conveys to us that they need the money to overcome hardship and if the right opportunity comes along make key acquisitions.
This is utter nonsense, a supreme untruth, wasted breadth and a failure to come to grips with reality. In the past quarter Apple increased its cash and short term investments to $50 billion as I wrote it would
six weeks ago.
Apple currently has 914 million outstanding shares. With the stock trading around $300 per share, a 2% dividend yield would require $6 per share or, $5.5 billion dollars annually to cover the distribution.
Continue reading Chasing Value: Apple Does Not Need $50 Billion
) is taking advantage of the improved sentiment this afternoon. At the time of this writing, shares of the aerospace concern were higher by 3% to $71.16. Volume, however, wasn't yet above average (it will be, though, before the regular session is through).
The 52-week low for the stock is $47.18, and the 52-week high is $76. The company is therefore in favor these days. The chart
, while not reflective of a smooth uptrend, nevertheless shows an equity that has been doing okay given the volatility we've seen in recent months.
Continue reading Boeing Sees a Bid on Q3 Data
) is expected to report Q3 EPS on October 20. November put option implied volatility is at 33, January is at 34, versus its 26-week average of 32, according to Track Data, suggesting non-directional near-term price movement.
Wells Fargo (WFC
) is reporting Q3 EPS on October 20. November put option implied volatility is at 43, January is at 40, versus its 26-week average of 36, according to Track Data, suggesting larger price movement.
Options Update is by Stock Specialist Paul Foster of theflyonthewall.com
The earnings crunch is back on this week. Third quarter reports are due from tech, financial and pharmaceutical companies, from airlines and from many others. Here's a day-by-day rundown of the coming week's earnings highlights, with a closer look at Apple (AAPL), Harley-Davidson (HOG), Boeing (BA) and Southwest Airlines (LUV).
Getting things started on Monday, analysts surveyed by Thomson Reuters expect Citigroup (C), Halliburton (HAL) and IBM (IBM) to post year-over-year earnings growth. But Monday's highlight no doubt will be Apple's (AAPL) quarterly results.
Continue reading Week in Preview: Return of the Earnings Crunch (AAPL, BA, HOG, LUV)
The defense sector is down, but don't count it out. We give lip service to the likelihood of defense being a target of budget hawks in Congress, but truth be told, the same fiscally conservative members are often the biggest supporters of defense.
Equally important is that unlike many other industries, this is one tech sector that keeps most of its jobs at home and well-distributed through the country. This, too, preserves defense spending.
The major players in the industry after 20 years of consolidation are General Dynamics Corp (GD
), Lockheed Martin (LMT
), Boeing Co (BA
), Northrop, Grumman (NOC
), and Raytheon Company (RTN
). In addition there are hundreds more making specialized parts in support of the majors and more still supplying basic elements like tires, wiring, computer processors, steel, aluminum, specialty glass, and ammunition. Then there are suppliers of manpower and smaller manufacturers producing unmanned aircraft drones and robots.
Continue reading Chasing Value: Scoping Out Defense Contractors -- Part 1
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