Bloomberg Interview 9.5.2012
Author: Andrew Keene
Apple (AAPL) and Google (GOOG) Pivot Points for 9.5.2012
S&P Emini Pivot Points for 9.5.2012
Morning Rage 9.5.2012
Some big movers last night were The Wendy’s Company (WEN | $4.52[+0.20]), gaining almost 5% in value. Wendy’s 52-week range moves a little more than a point from 4.16 – 5.58 and hasn’t hit a high since mid August. Dish network Corporation (DISH | $30.13 [-0.89]) fell 2.87%. DISH’s 52-week range low and high is 22.61 and 35.64 respectively. Dish has been gaining ground since the financial crisis in 2008, averaging positive gains, but is down almost 20% since 2007.
US futures are down. DOW, S&P, and NASDAQ are all down 0.21%, 0.27%, and 0.33% respectively. Metals futures are down, silver down the highest percentage at 0.68%. Crude futures are down 0.26%.
Productivity and costs reports will be released in an hour. Productivity measures the growth of labor efficiency in producing the economy’s goods and services and unit labor costs reflect the labor costs of producing each unit of output. Since the beginning of the year, non-farm labor productivity has grown at an average of 0.75% from the previous quarter and unit labor costs are up an average of 1.5%. Consensus has both levels gaining at least 1% this quarter.
Alex Kalish has a masters in economics from Suffolk University.
Big Week for Tech Announcements 9.4.2012
Amazon will launch their line of new Kindles featuring a new 10 inch Kindle Fire that will have boosted specs and a bigger display. Amazon also signed a deal with Epix today which will give Amazon Prime members access to more content.
The weeks crowded announcement schedule should be to Apple’s advantage. With nearly all of Apple’s major competitors introducing their new flagship devices this week, the individual visibility of these devices could be lost. Samsung and Sony held their events last week leaving Apple standing alone next week with the announcement for the iPhone 5. This should give Apple maximum visibility for the new iPhone and the much anticipated iPad mini. Some analysts believe that the new iPad mini could spell the death of other 7 inch tablets produced by Amazon and Google. Shares of Apple traded up today surging off of early session lows touching a session high of 674.80. Apple l closed up around 9.10.
However, this week will not be as kind to Google. In a joint marketing event with Microsoft, Nokia plans on announcing two additions to its line of Lumia smartphones. Both of these phones will feature Microsoft’s new Windows Phone 8 operating system. Samsung announced the introduction of their new Windows Phone 8 device last week. The Samsung announcement in particular is concerning for Google. Samsung likely introduced the new Windows Phone 8 device in order to better position themselves against any further legal action from Apple. With the threat of sales bans of android devices looming overhead more manufacturers could switch to operating systems other than Android. Google shares are trading down today coming off of session lows. The stock closed down around 4.05.
James Ramelli UIUC graduate in Finance Email: James@keeneonthemarket.com Follow: @Jim_KOTM
Trade of the Day (NFLX) 9.4.2012
UPDATE 9.16.2012 With the Calls appreciating in value more than the Puts, this would turn this delta neutral trade into a slightly bullish trade, but I am looking to hedge out of it just yet.
CBOE TV Interview 9.4.2012
BNN Interview 9.4.2012
Halftime Report 9.4.2012
This index printed 49.6 below the important 50; which is significant for it represents expansionary economic conditions. CAT’s dramatic move could also be attributed to the construction spending data that came out today too. This economic indicator printed a -0.9% month over month decline. The broader XLI industrial etf is weaker by 1.4%; top holdings include GE (12%), UPS (5.5%), and UTX (5.24%) among others.
On the positive side BIDU is up about 2.8% today; however the search giant had a rough August…for it was down nearly 9% as sellers stepped in. BIDU, the largest Chinese search provider by revenue, is currently above the intraday high of 8/30/12 and may be looking to retrace some of the August 29th sell-off.
NFLX dropped like a rock in the first 15 minutes of the trading day, but has since rallied back to down 7% on the day. News of AMZN and Epix getting together for a streaming deal is the reason behind today’s fall.
Earnings tonight include FRAN, GWRE, AVAV, FNSR, and TEA. Earnings before the open tomorrow include DG, HRB, PAY, NAV, and MW.
mark@keeneonthemarket.com
Bloomberg Interview 8.31.2012
