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Doherty at the Close 7.24.2012

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United Parcel Service (UPS) declined 4.61% after the package-delivery company’s second-quarter earnings and revenue missed estimates and it lowered its full-year earnings outlook, citing increasing economic uncertainty in the U.S. and continued weakness in Asia.
DuPont (DD) dropped -1.97% after the chemical company earnings topped estimates but revenue fell short of expectations. Blue chip  Texas Instrument (TXN)  fell -0.86% after the microchip maker reported second-quarter earnings that beat forecasts, but revenue fell short and it indicated that third-quarter revenue would be below current projections.

Total market losses widened around midday after a Reuters report that Greece will need to restructure its debt again, citing European Union officials. The reports on Greece accelerated declines across European markets, which were already lower after the Continent’s own discouraging manufacturing data. The Stoxx Europe 600 shed -0.5%, losing ground for the third session in a row.

In other corporate news, Whirlpool dropped 8% after the company’s profits fell short of street forecasts. Additionally, Cisco systems and Apple both fell, mirroring the market before their major announcements. Finally, DeVry (DV), the for profit education company, fell 24.56% after they reported eliminating 570 jobs following a decrease in demand for education and increased governmental restrictions on for profit education.

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Halftime Report 7.24.2012

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Gold futures were down $5.10 to $1572.30 and WTI crude futures started off down, but were trading up 23 cents ato $88.37.

The supply chain transport company Ryder System Inc. was up around 8% this morning after reporting a 17% rise in Q2 earnings.

Last night DeVry Inc. (DV) announced that they are cutting their guidance for Q4, resulting in shares trading down over 25% this morning. DV is not the only for-profit educational company that is experiencing a decline. Would this be a good time to by DV?

Peabody Energy Corp. (BTU) fell over 8%, following a weak month in coal stocks. BTU lowered their Q3 guidance to a range between 20 and 45 cents. Analysts were expecting earnings of 65 cents a share.

Shares of the technology networking company Cisco (CSCO) lost over 4.5% after announcing that they would cut 1,200 jobs, and the threat of industry competitor VMware’s acquisition of Nicira.

Lexmark (LXK) declined over 15% this morning after announcing  sub-par earnings, along with weak Q3 guidance. LXK is among one of the many stocks affected by weak European demand. United Parcel Service (UPS) reported strong earnings and weak guidance with shares trading lower by about 3%.

David Cornes holds a degree in economics from the University of Montana.

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Chris Cruises the Globe 7.24.2012

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The slump was led by CNOOC, the Chinese oil giant, after announcing plans to acquire Canadian oil producer NexenInc for 15.1B. The announcement was received with a 4% loss as investors think the company is overpaying.In the same sector China Petroleum & chemical corp fell .6% after agreeing to buy a 49% stake in Talisman Energy for 1.5B, another Canadian company.

Europe is again down on Spanish Banking concerns as the FTSEurofirst falls .2%. Financial shares were top decliners with the insurance sector down 1.2% and banking down 1%. Moody’s changed its outlook for Germany, the Netherlands and Luxembourg to “negative” from “stable” on pure speculation of Greece leaving the Eurozone. The Eurozone PMI fell to 44.1 from 45.1 in June touching a 37 month low and unemployment fell for a seventh consecutive month and at the fastest rate in 2.5 years.

Commodities look bleak to begin the session with crude, natural gas, gold and silver all starting in the red.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market. Comments can be directed to ryghcw19@uww.edu

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Movers and Shakers – SRPT – 7.24.2012

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This morning Sarepta announced that they posted statistically significant results after a 36-week study on their medication Eteplirsen, a treatment for DMD. Patients were issued doses of Eteplirsen once weekly during the study that ended with a successful 6-minute walk test relative to patients who received placebos. The study was performed at the Nationwide Children’s Hospital in Columbus, Ohio.

David Cornes holds a degree in economics from the University of Montana.

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Morning Rage 7.24.2012

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As for the state of the economy there are quite a few announcements today:
• ICSC Goldman Store Sales at 7:45am
• Ben Bernanke Speaks at 8:45am
• Redbook at 8:55am
• PMI Manufacturing Index Flash at 8:58am
• FHFA House Price Index at 10:00am
• Richmond Fed Manufacturing Index at 10:00am

In the stock market today the S&P 500 opens on the decline once again at 0.89%
while 10-year treasuries bounce back at 1.40%. Oil is down 0.17% and the dollar is
up again at 0.24%.

What earnings should you watch for today? Apple. The company announces their
earnings after the close and is expected to report earnings of $10.35. Some analysts
believe that Apple could actually break the $11 mark as well.

Make sure to check out our webinar next Monday, 30th and follow us on Twitter
@keeneonmarket.com!

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Trade of the Day (TXN) 7.23.2012

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Unprofitable:  I lose money on this trade if TXN closes under $25.22 or above $26.78 or July 27, 2012.  The most I can lose on this trade is the amount I bought the Spread for $.22.

Risk: $22 per 1 lot

Reward: $78 per 1 lot

Chart: Bearish overall , but looking for a good risk vs reward that it tests back lower and the measured move target of $25.73

Read more about futures by www.keeneonthemarket.com

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Doherty at the Close 7.23.2012

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Heading the decline are the six Spanish regions expected to request central government aid according to Spains El Pais newspaper. Leading the decline, McDonald’s (MCD) fell -2.85% after the fast food company reported a larger than expected drop in second quarter profits and warned of slowing same store sales growth.
European stocks also plunged, with the Stoxx Europe 600 sliding 2.5%. Spain’s IBEX 35 index fell 1.1%, trimming losses after the country’s financial regulator imposed a short-sale ban. Spanish borrowing costs rose to a euro-era high, with the country’s 10-year bond recently yielding 7.44%. The euro fell as far as $1.2067, a new two-year low against the dollar.

The CBOE VIX index, jumped 15%, the largest one day climb this summer.
In the corporate news, Haliburton rose 2.14% after the oil-services company reported better-than-expected second-quarter results. Wet Seal (WTSLA) slid after firing its chief executive and saying it expects to report a deeper-than-expected second-quarter loss than previously forecast.