Despite a good earnings report out of Intel, their lack of guidance is putting pressure on the market this morning. Intel announced after the close that they easily beat analysts’ profit expectations. And what’s more, said that slumping computers sales are bottoming out. But, Wall Street is uneasy with the upcoming quarters as the company did not issue any visibility going forward. Intel is up about 30% off the March lows and hitting its head up against the 200-day moving average, which is clear resistance in the short-term.
Over the next few days many of the big money center banks will be reporting first quarter earnings. J.P. Morgan and Citigroup should be very interesting reports. Both companies made comments a few weeks ago that the first two months of the year was turning out better than expected and in fact, both banks were running in the black at that time. We’ll see if this early positive performance will be good enough to beat the Street’s expectations and more importantly show a first quarter operating profit.
General Electric will also report tomorrow before the market opens. This stock is also up big since the March lows and has traded much like the big bank stocks. Of course GE has huge financial exposure, which caused the company to have their credit rating downgraded last month. The stock traded below $6 a share on March 4th and has since almost doubled in value. Talk about the buy of the decade…
I added a few new ideas to the focus list. However, I do believe the market will continue to pullback in the short-term. Many of the individual stocks I follow are way extended above their respective moving averages. So please adhere to my stop levels for protection purposes.
And as always, have a great day…
| Tags: intel | ||
| Posted in News and Opinion |
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