Interesting developments to come - See what made the cut...|
Earnings Season for Q3 Hammering Wall Street...
Over the past trading week, the market literally got whacked after earnings
released from many in the tech sector and provided sadly, little optimism, with
many lower than expected earnings reported. Seeing no signs yet to do a reversal
from recent short call on the tech-heavy NASDAQ. As we move forward into
full-blown earnings season, skepticism is riding high on the ranks for reports
to get better. The poor earnings the Street is seeing is proof in the pudding,
as the old saying goes, that the economic crisis is being felt by huge, major
corporations on Wall Street, just like the little mom and pops working on Main
Street - just on a much bigger scale. Last Friday, the markets felt the wrath to
the tune of the worst trading session not seen in months. After investors
evaluate the situation from last week, they will likely face the rude awakening
that recovery may be slower than anticipated. Or, it simply could be that the
tank on the Street could be enough to set off a rebound to the upside, when we
get through at least the first full month of earnings announcements. In the
upcoming trading week, investors face over 100 companies in the S&P 500 (SPX)
scheduled to report earnings, over a broad range of sectors. We could see a
borage of nail-biting in anticipation of concerns whether these sectors could
follow the poor performance of the tech sector earnings reported last week.
Another week of poor earnings, in a variety of sectors, will no doubt set the
stage for early panic. Investors must focus in on the fact that, regardless of
the upcoming reports, the economy remains in recovery mode.
Upcoming earnings scheduled for release from Yahoo (YHOO), Monday after the bell
- investors are considering a jump on the short end after Google's (GOOG)
weakness in earnings released last week. Harley-Davidson (HOG) on tap for
release of earnings Tuesday BMO with estimates of 58 cents a share. Quite a
downfall compared to actual year earlier of 78 cents a share. Share price is off
lows from a year ago surprisingly in light of the financial crisis, men and
women will continue to play with their toys. T.Rowe Price Group (TROW) coming in
on Wednesday with estimates on the board of 84 cents a share compared to actual
earnings same period 2011 of 71 cents a share. Recent trading activity appears
to be almost insider in movement as shares struck new 52 week high on Friday.
Time to go long T.Rowe ahead of earnings?
Apple (AAPL) earnings will be hitting the market Thursday with estimates of
$8.85 per share compared to same period last year of $7.05 per share. Such
highly anticipated earnings results on the street and win, lose or draw, the
news will definately have an adverse affect on stocks across the board.
Facebook Earnings on Tap for Tuesday...
After the debacle IPO launch of the phenom Facebook (FB) in May, investors in or
thinking about getting into the company will be listening to every word
revolving around their earnings scheduled for release on Tuesday. Facebook faces
a tough challenge for competition in the mobile advertising market. The mobile
advertising transition is likely to be slower then CEO Mark Zuckerberg would
like. Recently launched Facebook Ad Exchange created to help clients package and
present ads more effectively has won upbeat reviews. However, a major risk
factor for is that it is likely for advertising monetization to take years to
tweak and improve.
Banking Sector Trying to Claw Back...
While the techs took a smack last week, earnings released on the banking sector,
looked a little brighter. Capital One Financial (COF) reported earnings jumped
40% for Q3. J.P. Morgan (JPM) reported profit up 34% year-on-year to a record
$5.71 billion or $1.40 a share. The firm has $23 billion set aside for loan
losses. Bank of America (BAC) surpassed a quarterly loss with earnings of zero a
share. Investors are starting to like what they are seeing in the banking
sector. The Fed’s policy has boosted capital markets and housing, in particular,
both of which have boosted the banks. Current estimates show a potential
divergence in the banking sector. Is it time to nibble on the badly beaten down