The Prepared Mind 7.22.2013

“Chance favors the prepared mind.” — Louis Pasteur

It was a quiet week – relative to the previous three weeks.  The bull market continued unabated with the exception of the NASDAQ 100 (NDX.)   There was a mixture of good and bad.  Ben Bernanke testified before the House and Senate.  He managed to convince the market players that an end to easing would not necessarily Earnings and guidance brought both good and bad news to the market last week.  Honeywell, GE, and Whirlpool help push the S&P 500 to new all-time highs.  The NASDAQ 100 reacted negatively to revenue disappointment in IBM, Microsoft, Google, and Intel.  IBM posted  a revenue decrease for the fifth straight quarter.

The NASDAQ 100 (NDX) reflected the disappointment in tech sector earnings by being the sole losing index.  The NASDAQ 100 (NDX) closed at 3,044.93 losing 1.11% or 34.14 points The Russell 2000 (RUT) showed the strength in the small caps by gaining 1.56%, up 16.18 pointsto close at a new high 1,050.95.  The Dow Jones Industrial Average (DJIA) closed at 15,543.74 –   up 79.44 points or a gain of 0.51%.  The S&P 500 (SPX) is trading at 1,692.09 – up 11.90 points or a gain of 0.71%.  The S&P 100 (OEX) closed at 757.51 – gaining 4.57 points or 0.61%.  Bernanke’s statements concerning tapering resulted in weakness of the VIX and the other volatility indexes.  The VIX closed last week at 12.54 – a loss of 1.30 or 9.39%.  Options trading continued to be strong in the VIX.

Here is a capsule view of last week’s market numbers:

Index Close Weekly Change % Weekly % YTD Volatility of  Index
Dow Jones Industrials (DJIA)

15,543.74

79.44

0.51%

18.62% 11.66% (VXD)
S&P 500 (SPX)

1,692.09

11.90

0.71%

18.64% 12.54% (VIX)
NASDAQ 100 (NDX)

3,044.93

-34.14

-1.11%

14.43% 13.75% (VXN)
Russell 2000 (RUT)

1,050.95

16.18

1.56%

23.44% 16.35% (RVX)
S&P 100 (OEX)

757.51

4.57

0.61%

17.15% 12.58% (VXO)
CBOE Volatility Index (VIX)

12.54

-1.30

-9.39%

NA

This week will have the largest number of earnings announcements for the quarter.  Be aware of the impact of earnings as you to establish positions in July, August and September options.  Despite warnings , a number of readers have unintentionally placed themselves in earnings trades,  Earnings announcements include: Apple, NetFlix, Visa, , Qualcomm, Starbucks and Amazon.  The earnings announced to date have generally met profit expectations, but revenues are coming in light.  Earnings are not the only important factor.  There will be an increasing emphasis on revenue growth in guidance for the future.   Continue to be wary of trading any products where there is not adequate liquidity and narrow enough markets.  You should be aware of daily volume and open interest in any products you trade.   I am including a consensus earnings estimate for each stock.  Stick with your plan.    Remain disciplined.

Remember:

  “Chance favors the Prepared Mind.” – Louis Pasteur

“You can observe a lot just by watching” – Yogi Berra

This week’s economic news (All times are Eastern Daylight Time.) Events, dates and times are subject to change:

Monday July 22:

Economic:  Chicago Fed National Activity Index – 8:30, Existing Home Sales – 10:00.

International Economic:  No major announcements.

Optionable Earnings:

Symbol

Company Name

July 19 close

IV30

B/A

XEPS
GCI Gannett Co., Inc.

$26.36

36.4

B

$0.59

HAL Halliburton Company

$44.74

29.6

B

$0.72

HAS Hasbro, Inc.

$46.48

27.6

B

$0.35

LII Lennox International Inc.

$69.45

27.9

B

$1.19

SIX Six Flags Entertainment Corp

$36.04

40.5

B

$0.49

HLX Helix Energy Solutions Group Inc.

$25.97

34.3

A

$0.20

HXL Hexcel Corporation

$35.04

29.0

A

$0.47

NFLX Netflix, Inc.

$266.41

73.0

A

$0.41

RCII Rent-A-Center Inc

$39.46

29.6

A

$0.75

TXN Texas Instruments Incorporated

$37.60

25.2

A

$0.46

WERN Werner Enterprises, Inc.

$24.88

23.1

A

$0.37

ZION Zions Bancorporation

$30.32

27.4

A

$0.42

 

Tuesday July 23:

Economic:  ICSC – Goldman Sachs Store Sales – 7:45,  Redbook – 8:55,  FHFA House Price Index – 9:00m Richmond Fed Manufacturing – 10:00,

International Economic:  Japan International Trade – 7:50 PM.

Optionable Earnings:

Symbol

Company Name

July 19 close

IV30

B/A

XEPS

APD

Air Products & Chemicals, Inc.

$96.88

26.7

B

$1.36

BEAV

B/E Aerospace Inc

$69.99

27.6

B

$0.85

CIT

CIT Group Inc.

$48.61

22.1

B

$0.91

DD

E I Du Pont De Nemours And Co

$57.47

22.6

B

$1.27

FRX

Forest Laboratories, Inc.

$43.49

29.1

B

$0.07

FCX

Freeport-McMoRan Copper & Gold Inc.

$28.17

29.9

B

$0.40

LXK

Lexmark International Inc

$33.55

49.4

B

$0.87

EDU

New Oriental Education & Tech Grp (ADR)

$23.25

48.1

B

$0.15

PCAR

PACCAR Inc

$57.54

26.4

B

$0.75

PENN

Penn National Gaming, Inc

$54.08

27.5

B

$0.61

PNR

Pentair Ltd

$60.45

24.4

B

$0.90

PII

Polaris Industries Inc.

$103.17

30.9

B

$1.11

R

Ryder System, Inc.

$62.15

30.8

B

$1.22

ST

Sensata Technologies Holding N.V.

$36.53

31.3

B

$0.53

SAH

Sonic Automotive Inc

$22.83

40.2

B

$0.51

AMTD

TD Ameritrade Holding Corp.

$26.06

25.3

B

$0.31

VLO

Valero Energy Corporation

$34.22

36.5

B

$0.94

ALTR

Altera Corporation

$35.66

30.8

A

$0.31

AAPL

Apple Inc.

$431.76

29.2

A

$7.31

BRCM

Broadcom Corporation

$33.64

31.4

A

$0.49

BCR

C.R. Bard, Inc.

$113.24

20.3

A

$1.38

DFS

Discover Financial Services

$50.58

25.0

A

$1.16

EA

Electronic Arts Inc.

$24.16

41.8

A

($0.73)

FTI

FMC Technologies, Inc.

$57.18

30.4

A

$0.47

HTS

Hatteras Financial Corp.

$23.25

26.0

A

$0.64

ILMN

Illumina, Inc.

$74.90

36.7

A

$0.39

IGT

International Game Technology

$20.17

44.9

A

$0.32

IRBT

iRobot Corporation

$38.05

64.4

A

$0.20

LLTC

Linear Technology Corporation

$40.12

25.9

A

$0.42

NSC

Norfolk Southern Corp.

$77.64

22.2

A

$1.50

PNRA

Panera Bread Co

$187.00

29.3

A

$1.77

PEI

Pennsylvania R.E.I.T.

$20.56

25.0

A

$0.39

RKT

Rock-Tenn Company

$107.44

30.3

A

$1.66

UIS

Unisys Corporation

$24.83

57.6

A

$0.56

VMW

VMware, Inc.

$71.70

42.0

A

$0.53

JNPR

Juniper Networks, Inc.

$21.03

41.4

1

$0.18

 

Wednesday July 23:

Economic:  MBA Purchase Applications – 7:00, PMI Manufacturing Index Flash – 10:00,  New Home Sales – 10:00,  EIA Petroleum Status Report – 10:30.

International Economic: EU PMI Composite Flash – 4:00 AM.

Other:  Dell Shareholders’ vote on Michael Dell’s plan to take it private.

Optionable Earnings: 

Symbol

Company Name

July 19 close

IV30

B/A

XEPS
ATI Allegheny Technologies Incorporated

$26.81

38.4

B

$0.11

ABC AmerisourceBergen Corp.

$58.31

21.6

B

$0.74

ARMH ARM Holdings plc (ADR)

$41.35

47.4

B

$0.18

CP Canadian Pacific Railway Limited (USA)

$128.87

27.3

B

$1.48

CAT Caterpillar Inc.

$85.72

23.2

B

$1.70

CYH Community Health Systems

$47.31

39.7

B

$0.50

DAL Delta Air Lines, Inc.

$20.56

43.6

B

$0.94

LLY Eli Lilly & Co.

$49.92

24.9

B

$1.01

EMC EMC Corporation

$25.61

24.1

B

$0.34

GNTX Gentex Corporation

$23.71

33.8

B

$0.32

ICON Iconix Brand Group Inc

$31.75

40.4

B

$0.56

LAD Lithia Motors Inc

$59.40

44.3

B

$0.92

LL Lumber Liquidators Holdings Inc

$87.05

49.2

B

$0.62

MCO Moody’s Corporation

$61.75

31.9

B

$0.91

MSI Motorola Solutions Inc

$59.36

25.4

B

$0.92

NDAQ NASDAQ OMX Group, Inc.

$34.14

26.2

B

$0.63

OC Owens Corning

$40.34

32.7

B

$0.70

PLD Prologis Inc

$40.44

21.0

B

$0.38

RLGY Realogy Holdings Corp

$50.80

34.7

B

$0.74

RCI Rogers Communications Inc. (USA)

$40.61

21.3

B

$0.95

STX Seagate Technology PLC

$46.90

36.0

B

$1.19

SAVE Spirit Airlines Incorporated

$34.17

32.4

B

$0.60

BA The Boeing Company

$107.63

25.4

B

$1.58

MDCO The Medicines Company

$30.98

49.1

B

$0.31

TMO Thermo Fisher Scientific Inc.

$88.96

24.0

B

$1.30

TUP Tupperware Brands Corporation

$78.94

31.5

B

$1.44

WLP WellPoint, Inc.

$86.43

22.9

B

$2.08

WYN Wyndham Worldwide Corporation

$59.96

25.3

B

$0.90

AEM Agnico Eagle Mines Ltd (USA)

$27.08

51.3

A

$0.07

AKAM Akamai Technologies, Inc.

$45.34

55.5

A

$0.37

ARII American Railcar Industries, Inc.

$35.49

45.6

A

$0.81

ANGI Angie’s List Inc

$26.64

81.7

A

($0.25)

BIDU Baidu.com, Inc. (ADR)

$111.20

46.0

A

$1.22

CA CA, Inc.

$29.74

28.3

A

$0.67

COG Cabot Oil & Gas Corporation

$72.64

32.9

A

$0.28

CTXS Citrix Systems, Inc.

$64.76

36.4

A

$0.45

CCI Crown Castle International Corp.

$76.43

28.1

A

$0.16

EQIX Equinix Inc

$200.46

43.9

A

$0.69

FFIV F5 Networks, Inc.

$81.74

47.0

A

$0.85

FB Facebook Inc

$26.18

43.5

A

$0.09

FLS Flowserve Corporation

$56.74

22.8

A

$0.79

FTNT Fortinet Inc

$20.43

64.8

A

$0.10

FBHS Fortune Brands Home & Security Inc

$41.06

36.4

A

$0.38

LVS Las Vegas Sands Corp.

$56.17

31.0

A

$0.69

MLNX Mellanox Technologies, Ltd.

$51.48

77.7

A

($0.04)

NFX Newfield Exploration Co.

$27.07

38.5

A

$0.36

OII Oceaneering International

$79.08

27.9

A

$0.84

ORLY O’Reilly Automotive Inc

$117.03

25.7

A

$1.49

QCOM QUALCOMM, Inc.

$61.12

25.9

A

$0.91

RRC Range Resources Corp.

$77.50

32.7

A

($0.02)

RJF Raymond James Financial, Inc.

$43.89

27.7

A

$0.65

SKX Skechers USA Inc

$26.79

46.7

A

$0.03

TEX Terex Corporation

$29.17

48.7

A

$0.54

CAKE The Cheesecake Factory Incorporated

$43.70

24.3

A

$0.57

RYL The Ryland Group, Inc.

$41.15

46.4

A

$0.64

TSCO Tractor Supply Company

$120.75

30.5

A

$1.71

TRIP Tripadvisor Inc

$62.27

49.6

A

$0.41

VAR Varian Medical Systems, Inc.

$71.57

27.1

A

$1.01

V Visa Inc

$191.01

21.5

A

$1.79

WDC Western Digital Corp

$69.65

40.1

A

$1.79

WLL Whiting Petroleum Corp

$50.53

30.4

A

$0.88

 

Thursday July 25:

Economic:   Durable goods Orders – 8:30, Jobless Claims – 8:30, Bloomberg Consumer Comfort Index – 9:45, , EIA Natural Gas Report – 10:30, Kansas Fed Manufacturing Index – 11:00.

International Economic: Great Britain GDP = 4:30 AM, Japan CPI – 7:3-.

Optionable Earnings: 

Symbol

Company Name

July 19 close

IV30

B/A

XEPS
AMX America Movil SAB de CV (ADR)

$21.16

28.9

D

$0.43

ABB ABB Ltd (ADR)

$22.76

23.0

B

$0.36

ACT Actavis Inc

$124.35

26.1

B

$2.00

ALK Alaska Air Group, Inc.

$61.87

39.4

B

$1.51

ALXN Alexion Pharmaceuticals, Inc.

$111.58

56.1

B

$0.60

ALKS Alkermes Plc

$30.31

44.1

B

$0.16

ASH Ashland Inc.

$86.71

27.8

B

$1.82

BIIB Biogen Idec Inc

$223.12

35.2

B

$1.80

BMY Bristol Myers Squibb Co.

$43.95

22.8

B

$0.44

BC Brunswick Corporation

$36.53

44.7

B

$1.09

BG Bunge Ltd

$73.74

23.0

B

$1.58

CAB Cabelas Inc

$67.75

43.5

B

$0.60

CPN Calpine Corporation

$21.01

25.2

B

$0.09

CAM Cameron International Corporation

$64.97

27.9

B

$0.78

CRR CARBO Ceramics Inc.

$77.52

51.6

B

$0.68

CELG Celgene Corporation

$133.05

28.5

B

$1.30

CFX Colfax Corp

$52.72

28.9

B

$0.53

CNX CONSOL Energy Inc.

$29.53

36.6

B

$0.19

CS Credit Suisse Group AG (ADR)

$29.05

24.7

B

DHI D.R. Horton, Inc.

$21.67

51.6

B

$0.35

DO Diamond Offshore Drilling Inc

$72.24

20.4

B

$1.26

DNKN Dunkin Brands Group Inc

$43.26

26.1

B

$0.40

EQT EQT Corporation

$84.26

28.0

B

$0.55

GM General Motors Company

$36.84

29.0

B

$0.78

GNC GNC Holdings Inc

$47.24

37.2

B

$0.70

GG Goldcorp Inc. (USA)

$26.36

42.8

B

$0.28

HOG Harley-Davidson, Inc.

$56.25

31.1

B

$1.17

IMAX IMAX Corporation (USA)

$25.25

37.2

B

$0.22

IDCC InterDigital, Inc.

$39.62

40.5

B

$0.18

IP International Paper Company

$47.87

25.1

B

$0.55

ESI ITT Educational Services, Inc.

$27.14

74.8

B

$0.91

JAH Jarden Corp

$45.18

29.8

B

$0.88

LAZ Lazard Ltd

$33.38

30.7

B

$0.31

LM Legg Mason Inc

$33.81

27.4

B

$0.71

LINE Linn Energy LLC

$28.15

55.9

B

$0.24

LNCO LinnCo LLC

$32.44

55.0

B

$0.34

LO Lorillard Inc.

$46.53

28.4

B

$0.80

MHFI McGraw Hill Financial Inc

$57.95

23.5

B

$0.81

MJN Mead Johnson Nutrition CO

$72.02

32.9

B

$0.84

MGI Moneygram International Inc

$20.69

46.1

B

$0.30

NBL Noble Energy, Inc.

$65.66

25.9

B

$0.72

OHI Omega Healthcare Investors Inc

$33.87

25.6

B

$0.61

POT Potash Corp./Saskatchewan (USA)

$38.30

25.8

B

$0.82

PCP Precision Castparts Corp.

$233.11

26.9

B

$2.90

QSII Quality Systems, Inc.

$22.61

46.6

B

$0.22

O Realty Income Corp

$45.93

22.2

B

$0.59

RCL Royal Caribbean Cruises Ltd.

$36.77

32.2

B

$0.10

HOT Starwood Hotels & Resorts Worldwide, Inc

$66.88

25.5

B

$0.73

STRA Strayer Education Inc

$52.31

63.1

B

$1.38

TCK Teck Resources Ltd (USA)

$22.72

42.0

B

$0.31

TNC Tennant Company

$51.55

31.3

B

$0.73

DOW The Dow Chemical Company

$34.58

26.6

B

$0.63

TKR The Timken Company

$60.40

32.9

B

$0.98

UA Under Armour Inc

$61.11

32.6

B

$0.14

UAL United Continental Holdings Inc

$34.49

43.3

B

$1.44

UTHR United Therapeutics Corporation

$69.85

32.0

B

$1.48

USG USG Corporation

$26.11

44.5

B

$0.17

GRA W.R. Grace & Co.

$85.13

34.8

B

$1.10

WCC WESCO International, Inc.

$72.26

32.0

B

$1.35

WRLD World Acceptance Corp.

$82.07

42.2

B

$1.79

YNDX Yandex NV

$30.86

49.5

B

$0.24

ZMH Zimmer Holdings, Inc.

$82.21

22.8

B

$1.44

ABAX Abaxis Inc

$50.00

43.6

A

$0.23

AMZN Amazon.com, Inc.

$304.11

35.3

A

$0.04

BMRN BioMarin Pharmaceutical Inc.

$63.12

37.9

A

($0.28)

BCOR Blucora Inc

$20.79

51.7

A

$0.24

CBG CBRE Group Inc

$24.13

32.7

A

$0.34

CERN Cerner Corporation

$49.67

34.5

A

$0.32

DECK Deckers Outdoor Corp

$56.73

48.5

A

($1.06)

DLB Dolby Laboratories, Inc.

$34.03

31.8

A

$0.31

DRC Dresser-Rand Group Inc.

$65.16

44.6

A

$0.57

EW Edwards Lifesciences Corp

$67.01

46.0

A

$3.00

EXPE Expedia Inc

$65.52

49.8

A

$0.70

FII Federated Investors Inc

$30.21

32.8

A

$0.40

GILD Gilead Sciences, Inc.

$58.22

31.3

A

$0.48

GPN Global Payments Inc

$48.28

28.6

A

$1.02

AWAY HomeAway, Inc.

$31.39

52.0

A

$0.08

INFA Informatica Corporation

$39.23

43.6

A

$0.23

KBR KBR, Inc.

$33.10

35.3

A

$0.57

KLAC KLA-Tencor Corporation

$60.18

34.2

A

$0.79

LOGM LogMeIn Inc

$28.51

45.5

A

$0.02

MXIM Maxim Integrated Products Inc.

$27.40

29.5

A

$0.47

N NetSuite Inc

$93.74

42.7

A

($0.18)

NEM Newmont Mining Corp

$28.06

40.5

A

$0.41

OUTR Outerwall Inc

$62.69

48.5

A

$0.99

QLIK Qlik Technologies Inc

$31.87

64.4

A

($0.05)

RSG Republic Services, Inc.

$35.44

20.4

A

$0.49

SWI SolarWinds Inc

$42.53

54.5

A

$0.31

SBUX Starbucks Corporation

$68.48

24.2

A

$0.53

TPX Tempur Sealy International Inc

$43.86

50.4

A

$0.41

THRX Theravance Inc

$38.94

54.1

A

($0.59)

VRSN Verisign, Inc.

$45.88

28.0

A

$0.52

 

Friday July 26:

Economic: Reuter’s/University of Michigan’s Consumer Sentiment Index – 9:55, ECRI Leading Indicators – 10:30.

International Economic:  Japan Industrial Production – 7:50 PM.

Optionable Earnings:

Symbol

Company Name

July 19 close

IV30

B/A

XEPS
SCCO Southern Copper Corp

$28.42

28.8

D

$0.47

ABBV AbbVie Inc

$44.32

24.4

B

$0.79

AON Aon PLC

$67.51

21.1

B

$1.10

B Barnes Group Inc.

$32.98

23.3

B

$0.47

DLR Digital Realty Trust, Inc.

$64.36

31.5

B

$1.17

HP Helmerich & Payne, Inc.

$66.51

29.6

B

$1.35

KKR KKR & Co. L.P.

$20.45

30.2

B

$0.30

LYB LyondellBasell Industries NV

$67.54

28.7

B

$1.61

NWL Newell Rubbermaid Inc.

$27.03

22.9

B

$0.49

SWK Stanley Black & Decker, Inc.

$81.79

24.1

B

$1.19

TYC Tyco International Ltd.

$35.16

22.4

B

$0.48

VTR Ventas, Inc.

$72.16

22.6

B

$1.02

WY Weyerhaeuser Company

$29.60

24.5

B

$0.30

 

Monday July 29:

Economic:  Pending Home Sales Index – 10:00, Dallas Fed Manufacturing Survey – 10:30.

International Economic:  No major announcements.

Optionable Earnings:

Symbol

Company Name

July 19 close

IV30

B/A

XEPS
CYOU Changyou.Com Ltd (ADR)

$37.99

63.1

B

$0.36

BEN Franklin Resources, Inc.

$146.13

24.2

B

$2.56

SOHU Sohu.com Inc

$68.10

56.2

B

$0.49

TEN Tenneco Inc

$49.55

36.1

B

$1.09

AGNC American Capital Agency Corp.

$21.98

30.9

A

$0.91

APC Anadarko Petroleum Corporation

$90.26

31.7

A

$0.89

EMN Eastman Chemical Company

$74.87

27.4

A

$1.64

ESRX Express Scripts Holding Co

$66.47

23.5

A

$1.10

FMC FMC Corp

$63.10

23.2

A

$0.94

HIG Hartford Financial Services Group Inc

$31.93

28.0

A

$0.72

HLF Herbalife Ltd.

$54.44

80.9

A

$1.18

JEC Jacobs Engineering Group Inc

$59.19

26.1

A

$0.84

MTW Manitowoc Company, Inc.

$20.33

43.2

A

$0.36

MAS Masco Corporation

$20.47

46.2

A

$0.19

PCL Plum Creek Timber Co. Inc.

$49.74

22.6

A

$0.23

FIRE Sourcefire, Inc.

$60.25

57.6

A

$0.01

SPN Superior Energy Services, Inc.

$27.38

32.0

A

$0.43

VRTX Vertex Pharmaceuticals Incorporated

$86.79

48.6

A

($0.20)

XL XL Group plc

$32.71

22.5

A

$0.68

 

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