Moreover, Goldman Sachs announces that it is now long on WTI. Maybe it is the time to fade WTI Crude! According to Nancy Pelosi, “speculators are pushing the price of oil up and killing our economy and consumer. In fact, US oil production is at its highest level since 2003. We need to take strong action to protect consumers from this speculation.” It appears that a WTI crude oil margin hike is inevitable. WTI is at a fresh year high trading around the $107 level and appears that their appears to be real buyers and not jest people short covering. Finally, EUR/USD broke out of its trading range and is close to the $1.332 level.
AFTER THE BELL EARNINGS:
DECK: Quarterly Earnings and Estimates (Q4E)- $3.13 Quarterly Revenue(Q4E)-$562M. Deckers offer luxury shoes such as UGGs and multiple types of UGG accessories. Deckers Management reiterated their guidance after last quarter and stated, “pre- spring orders looking strong.” Expect a big move in one direction or another.
GPS: Quarterly Earnings and Estimates (Q4E)- $.42 Quarterly Revenue(Q4E)- $4.3B. Despite Gaps annual sales growth of $-1.75 for the last five years, could Gap miss analysts expectations and still run like Abercrombie is doing? Also, Gap is expanding into high-growth markets such as China, opening 30 new stores.
by: Greg Zimny