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Movers and Shakers – WDC – 7.26.2012
The Irvine, California based hard-disk-drive maker’s adjusted earnings beat expectations of $2.47 a share by coming in at $3.35. WDC has a P/E ratio of 7.57 and had an increase in quarterly revenue of 97.8% since this time last year. The company shipped 71 million hard drives during the previous quarter with revenue of $4.75 billion, $.5 billion higher than expected. They reported a net income of $158 million or 67 cents a share.
Along with strong earnings, WDC and analysts project strong guidance for the coming quarter. Q1 sales are expected to be between $4.2 and $4.3 billion with an average adjusted EPS of $2.5.
David Cornes holds a degree in economics from the University of Montana.
Morning Rage 7.26.2012
In terms of the economy there are quite a few announcements today:
• Durable Goods Orders at 8:30am
• Jobless Claims at 8:30am
• Bloomberg Consumer Comfort Index at 9:45am
• Pending Home Sales Index at 10:00am
• EIA Natural Gas Report at 10:30am
• Kansas City Fed Manufacturing Index at 11:00am
The S&P 500 is down once again at 0.03% while the 10-year treasuries are up
1.43%. Oil is up as well at 0.74% and the dollar is down again at 0.83%.
What to watch for today in earnings? Facebook. After the company’s IPO was a
disaster the market isn’t looking for the company to do much stock wise.
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Today's Mid-Day Earnings Webinar Preview 7.26.2012
Chris Cruises the Globe 7.26.2012
After a back and forth battle the Hang Seng crawled up .1% today with defensive stocks outweighing
week second quarter earnings. Sands China dropped 4.9% closing at its lowest since December 20 th as
its parent corp, Las Vegas Sands Corp reported worse than expected earnings due to lower profits at
Casinos. Concerns over July revenue for the gambling sector push down SJM holdings, MGM China and
Wynn Macau 3.5, 3.4 and 3% respectively. The index’s largest gainer Li & Fung Ltd was up 3.75% on the
day.
The FTSEurofirst is beginning the day flat on mixed earnings reports. Unilever is the top gainer in Europe,
up 5.2% after not issuing profit warnings as its two main competitors have. Rolls Royce is up 4.8% as
it revealed a better than expected 7% rise in first half profit due to the airlines need to renew fleets
with more fuel efficient planes. Royal Dutch Shell and BP lost 3.6 and 1% respectively on lagging second
quarter earnings.
Italy’s market is up 3.7% and the Euro jumped 1% to 1.2274 as Mario Draghi promised to “do whatever
it takes to preserve the Euro.”
Nokia tossed a software project code named Meltemi, which was to compete with Google’s Android,
due to costs savings efforts.
Commodities are beginning with modest gains from crude and natural gas, gold is up .67% and silver
bucking the trend down .2%.
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
S&P Emini Pivot Points for 7.26.2012
Euro (6E) and Oil (CL) Pivot Points for 7.26.2012
Cornes at the Close 7.25.2012
Traders can look forward to playing Visa Inc. (V) and Zynga Inc.’s (ZNGA) earnings after the close. The earnings scheduled for tomorrow morning before the open include: Exxon Mobil Corp. XOM, 3M Company (MMM), Kimberly-Clark Coproration (KMB), Panasonic Corp (PC), Royal Dutch Shell (RDS), Siemens AG (SI), and Sprint Nextel (S).
I will keep my eyes out for and unexpected earnings results overnight along with tomorrow morning’s employment and durable goods numbers. The markets seemed to be teetering today. Maybe these releases with tilt the scale either way, in my opinion I think the
Grains gave back some of the previous week’s losses with corn futures gaining 3.4 cents, soybeans up a massive 44.80 cents and wheat gaining 25 cents.
Crude futures remained about flat on the day by trading up 32 cents to $88.82, even considering a release of a 2.717 million barrel increase in U.S. crude inventories. Gold futures gained $28.70 to $1604.90, rising above the significant $1600 level. EUR/USD futures not far behind gold’s gain, rising 87 pipps to $1.2158.
WellPoint Inc. (WLP) fell over 12% after releasing an 8% drop in earnings.
David Cornes holds a degree in economics from the University of Montana.
Halftime Report 7.25.2012
WTI crude oil futures fell over $1.00 to trade at $87.37 after a positive crude inventories number this morning. Gold futures rose with the 6E gaining $23.30 to $1599.50 and 61 pipps to $1.2132 respectively.
S&P 500 futures modestly gained .75 points to stay at 1330.25, NASDAQ futures fell 8.25 points to 2540.25 and Dow Jones Industrial futures gained 79 points to 12603.00.
Broadcom Corp. (BRCM) gained over 9% after a positive earnings release last night. The smartphone chip maker posted record revenue, while Apple Inc. (AAPL), a consumer of BRCM’s chips fell over 4.5% on weak revenues due to anticipation of the iPhone 5 and weakening demand in Western Europe.
Symanted Corp. (SYMC) gained 14.27% after posting weak earnings and news of a new CEO.
Netflix Inc. (NFLX) fell over 23% after reporting positive earnings and weak guidance. This happens to be one of my least favorite business models and services due to the hit or miss online movie selection.
Radio Shack Corp. (RSH) had a massive decline of 28.49% after losing 21 cents a share. Analysts expected a profit of 3 cents a share.
David Cornes holds a degree in economics from the University of Montana.
Movers and Shakers – AAPL – 7.25.2012
AAPL blamed their fall in earnings on slowing demand in Western Europe and sales of the iPhone 4 and 4S in anticipation for the new model iPhone 5 due to be released later this fall or winter. Although Apple’s Q3 earnings were lower than expectations, they are still impressive. They reported an increase of 23% in sales from this time last year to $35 billion, about $2 billion less than analysts expectations. Quarterly net income gained 21% over the year to $8.8 billion for an EPS of $9.32. Analysts were expecting an EPS of $10.37. In my opinion AAPL is a great buy when it reaches bottoms and that the release of the iPhone 5 will make record sales and accelerate growth.
David Cornes holds a degree in economics from the University of Montana.