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FedEx Earnings 9.17.2012

Despite having lowered its forecast, however, the majority of analysts are still confident in the company, with 16 of 22 maintaining a buy rating on the stock. The company has a market capitalization of $28.48 billion, and is currently trading around $90.02 per share. So far this year, the stock is up 7.72 percent.

Ultimately, expect a tough reaction to disappointing earnings tomorrow. Going forward, the company needs to figure out how to reduce costs and improve efficiencies under the current uncertain global economic environment. The company remains fundamentally strong, but it has issues it needs to address, and expect that to reflected in the stock price the remainder of this week.

Brandon Kieltyka is currently an undergraduate studying Finance at Daytona State College.

Twitter: @kieltyka05

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Halftime Report 9.17.2012

Apple is trading up today gaining 5.84 (+0.83%).  Pre-sales of the Apple iPhone 5 have shattered the tech giant’s previous records with 2 million of the phone being sold in the first 24 hours they were available.  The record was held by the iPhone 4s which saw 1 million pre-orders on its first day of availability. Long line are already forming outside at New York City’s 5th Avenue Apple Store in anticipation of the product release.

Things to look for this week:

Tuesday- Housing Market Index, FedEx earnings

Wednesday- Existing Home Sales, AutoZone, General Mills, Adobe Systems, Bed Bath & Beyond

Thursday- Jobless Claims, Earnings from CarMax, ConAgra, Rite Aid and Oracle.

Friday- iPhone 5 Ships.

James Ramelli B.S. in Finance from UIUC. Email: james@keeneonthemarket.com Follow: @Jim_KOTM

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Morning Rage 9.17.2012

I expect the performance of US indices this week to have a more honest QE3 reaction after exploding upward last week. Indices futures for the Dow, S&P, and Nasdaq are all down 21.00, 3.25 and 4.25 points respectively.  Metals futures are all down slightly before the market opens with Platinum and Palladium losing the most, 16.10 and 11.70 respectively. Crude futures are down 0.20%.

One of my favorite ETFs to follow in the aftermath of QE3 announcements is SPDR Gold Trust (GLD | $171.8). GLD is down $0.35 in after hours trading after taking a $0.49 gain on Friday. The Oct ATM straddle is priced around $7.00 about a 4% expected move. After the QE3 announcement, a higher probability of currency manipulations around the world will have investors continue to invest in gold.

Apple stock (AAPL | $691.28) is up 2.68 points in pre-market trading to $693.99. Apple set a presale order record with the new iPhone 5. I expect the stock will jump over $700 before the end of the month but, due to the volatility over the past week or so, it may jump back and forth over the $700 line.

Google stock (GOOG | 709.68) was up three and a half points on Friday, only slightly short of its all time high. The stock has hit a resistance point below $715.00. 

Alex Kalish has a master’s in economics from Suffolk U.

Questions, comments and suggestions welcome: alexk@keeneonthemarket.com

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Market Recap 9.14.2012

In a statement released yesterday the FOMC outlined their plan to purchase $40 billion worth of mortgage bonds every month.  The Committee also announced its intention to continue purchasing long-term debt in an effort to put downward pressure on long-term interest rates. The program means that the Fed will add around $85 billion to its $2.8 trillion balance sheet every month until economic conditions improve.  The program has a more or less open-ended time frame.  The Fed will evaluate the strength of the economy and will continue to ease until economic conditions, mainly unemployment, improve. 

Apple (AAPL) hit a new all time high today of 696.98.  iPhone 5 pre-orders opened today selling out in less than a minute.  The tech giant now has a market cap of over $648 billion.  The iPhone 5 is scheduled to be shipped next Friday.

Consumer prices index saw its biggest gain in 3 years. Retail sales were higher for the second month in a row.

Earnings next week:

Tuesday- FedEx

Wednesday- Auto-Zone, General Mills, Adobe Systems, Bed Bath and Beyond

Thursday- CarMax, ConAgra, Rite Aid, Oracle

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