Why Are Traders Buying Calls In This Stock?
Stocks were mixed on takeover speculation, GE
guidance and a good jobs report. April non-farm payrolls rose +275K,
much more than expected. The unemployment rate was 5.2%.
The Dow and S&P have been in a trading range for a month, but in the last 2
days, have broken out. Small caps have also done well this week, with the $RUT
making its first breakout in a long time.
For the week, the Dow Transports gained +3.2%, Russell 2000, +3.1%; Nasdaq,+2.4%,
and the Dow +1.7%.
Honeywell
(
HON |
Quote |
Chart |
News |
PowerRating) rose over 4% on takeover speculation.
ETrade
(
ET |
Quote |
Chart |
News |
PowerRating) and Ameritrade
(
AMTD |
Quote |
Chart |
News |
PowerRating) were both up on
speculation that a deal may be in the works. Options volume in ET usually runs
around 3000 daily contracts–today it was over 25,000. In AMTD, interest was in
the May 12.50 calls.
Citigroup said that Moody’s and\or Fitch will likely
downgrade GM debt in the next 30 days.
At its annual analysts meeting, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) said it would grow
by double digits in 2005.
Sportswear company IPO Zumiez (ZUMZ) gained 40% on the day.
Next week, look for earnings from Dell and Cisco.
Strong sectors were: Â Brokers
(
$XBD.X |
Quote |
Chart |
News |
PowerRating) +1.01%Â Â Â
Internet
(
$GIN.X |
Quote |
Chart |
News |
PowerRating) +0.97%Â Â Â Computer Hardware
(
$HWI.X |
Quote |
Chart |
News |
PowerRating)
+0.81%Â
Weak sectors were:Â Banks
(
$BKX.X |
Quote |
Chart |
News |
PowerRating) -1.00%Â Gold
(
$XAU.X |
Quote |
Chart |
News |
PowerRating)
-0.24%Â Â Â Drugs
(
$DRG.X |
Quote |
Chart |
News |
PowerRating) -0.62%Â
| Dow | +5.02 | 10,345.40 |
| Nasdaq | +5.55 | 1967.35 |
| S&P 500 | -0.75 | 1171.35 |
The dollar was +0.66 at
84.59
Crude Oil was +0.13 at
50.96
Gold was -5.10 at 425.60
1.52 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 1639 | Up Vol 889 |
| Declining | 1611 | Down Vol 655 |
| 1.01 | 1.35 | |
| Nasdaq |
||
| Advancing | 1573 | Up Vol 869 |
| Declining | 1436 | Down Vol 525 |
| 1.09 | 1.65 |
Stocks in the News
Activision
(
ATVI |
Quote |
Chart |
News |
PowerRating) beat estimates but guided lower for Q1,
forecasting a loss.
McAfee
(
MFE |
Quote |
Chart |
News |
PowerRating) beat and guided higher.
Northwest Airlines ordered 18 Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) 787 Dreamliners.
GE is restating earnings for 2002-2004 and guided higher.
Pixar’s
(
PIXR |
Quote |
Chart |
News |
PowerRating) earnings more than tripled.
Revlon
(
REV |
Quote |
Chart |
News |
PowerRating) missed by 0.06..
Brice Wightman