Overall we face a negative market sentiment, even though the majority of the big companies came in with better earnings - mostly they did not meet the analyst estimates, but who are they to know. Key is: “we see progress in earnings and a falling market”. This is a great setup for a long play so the market starts t make a turn. For equity holders we recommend an easy defense policy and a leverage strategy so the market makes a potential turn towards the upside:
Reports in detail:
Healthcare product company Johnson & ; Johnson reported second quarter earnings of $1.23 per share, up from $1.15 per share in the same quarter last year. Analysts were expecting the company to report earnings of $1.21 per share this quarter. However, the company lowered its 2010 earnings guidance to a range of $4.65 - $4.75 per share from the earlier range of $4.80 - $4.90 per share.
Meanwhile, Goldman Sachs Group said its second quarter earnings dipped to $0.78 per share from $4.93 per share in the year-ago period, belying analysts expectations for earnings of $2.08 per share this quarter. However, excluding one-time items, Goldman's earnings per share were $2.75 for the quarter.
Yesterday, IBM and Texas Instruments reported disappointing quarterly numbers where the overall notion was negative: For us those do not look so bad:
IBM’s second quarter revenues rose merely 2% to $23.7 billion, missing the consensus estimate of $24.17 billion. The company reported second quarter earnings of $2.61 per share, up 13% year-over-year. The consensus estimates called for earnings of $2.58 per share. The company also raised its 2010 earnings guidance to at least $11.25 per share, while analysts estimate earnings of $11.27 per share.
Texas Instruments also receded in Monday’s afterhours session after it reported second quarter revenues of $3.50 billion, up 42% year-over-year but slightly off the mean analysts’ estimate of $3.52 billion. The company’s earnings per share rose notably to 62 cents from the year-ago’s 20 cents and came in line with estimates. For the third quarter, the company expects earnings of 64-74 cents per share on revenues of $3.55 billion to $ 3.85 billion. Analysts, on average, estimate earnings of 64 cents per share on revenues of $3.59 billion.
Key Economic News today: Housing Market
For us, this does not look to bad and we might be buyers of real estate related shares. We sure know that the first home buyers credit swiped the market empty. Considering that those numbers show a clear progress.
The U.S., the Commerce Department said housing starts fell 5% to an annual rate of 549,000 in June from the revised May estimate of 578,000. Economists were expecting housing starts to fall to 575,000 from the 593,000 originally reported for the previous month. At the same time, the Commerce Department said that building permits rose 2.1% to an annual rate of 586,000 in June from 574,000 in May, surprising economists who had expected building permits to edge down to 572,000.
Good Trading,
http://NeverLossTrading.com
Tuesday, July 20, 2010
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