Tuesday, October 23, 2007

Gappers Tuesday October 23rd

Following yesterday's rebound, futures indicate a higher open for the mkt. The PC sector is leading the way following Apple's (AAPL) blowout quarter. The co not only beat handily on both the top and bottom lines, but issued Q1 (Dec) guidance that was above consensus ests. Typically, the co guides conservatively and below expectations. Lexmark (LXK) is also providing a boost to the group after destroying its Q3 EPS consensus est, beating by $0.47. Not all earnings were good, though. Texas Instruments (TXN), which beat Q3 expectations by $0.02, is indicated lower by 6% after the co issued a rev warning for Q4 that was tied to increased competition. In turn, Target (TGT) cut its Oct same-store sales view to a rise of 2-4% from the earlier est of 3-5%. Outside of earnings, there's very little news out this morning. Dow futures are currently +60; Nasdaq futures are currently +24.3; S&P futures are currently +8.3. Notable pre-market Calls include Upgrades: TXN at Caris & Co, APOL at Robert W. Baird, ZRAN at CIBC and Needham, SPWR at Lehman; Downgrades: TXN at UBS, Jefferies, JP Morgan, Lehman and Credit Suisse... On the Earnings calendar, 66 cos are confirmed to report after the close including AMZN and BRCM... Today's Economic calendar is empty.

Gapping down on weak earnings/guidance:
LVLT -16.2%, TXN -7.4% (also downgraded at multiple firms), PCP -3.7%, COH -3.1%, TLAB -2.8%, BIIB -1.2%, AKS -1.1%, ... Other news: CSUN -5.8% (started with a Sell and $6 tgt at Lazard), ORA -4.2% (offering 3 mln shares of our common stock), BEAS -3.7% (ORCL announces "that BEA's board again rejected our proposed price of $17 per share in cash").

Gapping up on strong earnings/guidance: EDAC +13.2%, NFLX +12.8%, MICC +11.%, JDAS +10.9%, ZRAN +10.3% (also upgraded to Buy at Needham), PTEC +9.8%, AAPL +7.5%, JBLU +6.2%, LXK +2.9%... Other news: CNIC +33.2% (releases mobile update to include Apple iPhone optimization), GRRF +17.9% (obtains 100 mln Yuan R.F. order), MVIS +13.1% (enters development agreement with Asian consumer electronics manufacturer to create accessory pico projector for mobile phones and other devices), STV +5.7% (recent China IPO -- not seeing any news to account for today's move)

Courtesy of Briefing.com

Better late than not at all. Power failure.

2 comments:

Vivek Tomer said...

Hey Jamie

what do you think about AMZN ahead of the earnings?

TJ said...

Vivek,

I hear that they are expected to beat estimates handily. Traders/Investors are pumping the stock today ahead of earnings. However, I traded AMZN today and have since closed my position. I do not hold into earnings.