Insurers Heat Up, Starbucks Stalls
Even when they report positive
earnings, Wall Street has shown itself cool to the tech sector of late. But the
markets were in a mood Thursday to reward insurers, even if they post declining
profits or only match estimates.
American International Group
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posted second-quarter operating net of 92 cents a share matching analyst
estimates according to First Call/Thomson Financial. St. Paul Cos.
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reported Q2 operating net of 69 cents a share, down from 72 cents a year ago but
topping expectations by a penny.
Both stocks have made three-day runs
into new high ground. That leaves shares in AIG and St. Paul extended. So how do
you use these leaders? As sector alerts, telling you to comb elsewhere in the
industry for stocks that are setting up.Â
Two candidates are AFLAC
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the leading supplemental insurer, and Safeco
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Of the two, I’d zero in on AFLAC, as
Safeco still faces considerable overhead supply. Ideally, we’d get a pullback
here and formation of a handle. The handle should drift lower as defined by the
session lows on low volume. That indicates that shareholders are largely content
at the current market price, obliging newcomers to bid up the stock to find
sellers in the event major demand comes to market.
Starbucks
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PowerRating) reported
earnings of 18 cents a share in the fiscal third quarter, up from 13 cents a
share a year ago and matching estimates. The stock behaved bearishly. After
trying to complete the right side of a correction-recovery base, Starbucks
shares have lost steam and reversed. On Thursday, the stock fell 1 9/16 to 36
1/8.
