Weekly Stock Market Update, April 20, 2009
The Week Ahead: The market managed its 6th straight up week, the largest since May of 2007 as CitiGroup and General Electric came in with better than expected bottom lines. Can it continue? The March leading economic indicators are due out on Monday while the oil and gas inventory numbers come out Wednesday. Jobless claims and existing home sales are reported Thursday, but durable goods orders and new home sales will wait until a Friday release.
Stocks to Watch: McGraw Hill Cos. (MHP) was upgraded by J.P. Morgan on the bright prospects of its Standard & Poor's unit. Another bank that beat estimates was BB&T (BBT), but like most stocks it's near resistance in the mid 20's. Tempur-Pedic (TPX) showed a 50% increase in earnings as revenues fell by 28%, but beware of the nearly tripling in price from the March low. Tyco Electronics (TEL) is selling its wireless systems unit to Harris Corporation for $675 million as the stock ballooned on this news.
Special Note: It's probably more than a coincidence that banks with loads of toxic assets on their balance sheets are suddenly reporting earnings right after the Financial Accounting Standards Board (FASB) changed the way banks can price these assets from mark-to-market to mark-to-model right before Q1 earnings releases. As the saying goes "buyer beware". Can these companies maintain profitability despite a financial collapse and broadening economic slowdown globally?
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
Click Here To Open An Account
NobleTrading Direct Access Trading
Stocks to Watch: McGraw Hill Cos. (MHP) was upgraded by J.P. Morgan on the bright prospects of its Standard & Poor's unit. Another bank that beat estimates was BB&T (BBT), but like most stocks it's near resistance in the mid 20's. Tempur-Pedic (TPX) showed a 50% increase in earnings as revenues fell by 28%, but beware of the nearly tripling in price from the March low. Tyco Electronics (TEL) is selling its wireless systems unit to Harris Corporation for $675 million as the stock ballooned on this news.
Special Note: It's probably more than a coincidence that banks with loads of toxic assets on their balance sheets are suddenly reporting earnings right after the Financial Accounting Standards Board (FASB) changed the way banks can price these assets from mark-to-market to mark-to-model right before Q1 earnings releases. As the saying goes "buyer beware". Can these companies maintain profitability despite a financial collapse and broadening economic slowdown globally?
Commentary provided by Barry Ward, Registered Principal, NobleTrading.com, Inc.
Click Here To Open An Account
NobleTrading Direct Access Trading
posted by Daniel Pipitone at
6:27 AM
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