The amazing earnings posted by (GS) on Tuesday were not strong enough to charge the stocks forward after the retail indicators released in the morning showed poor data. This caused the stocks to fall in general with banks really coming down.

Its crazy to think that I had a text message on my cell phone around 11am from a friend of mine in New York telling me he was shorting the banks stocks and I failed to see his reasoning. With it all said and done, he made some good money and with stocks like (BAC) still lower after-hours, along with (C) to mention another, the money will be greater when he covers his short position on Wednesday.

For me, I was excited about my (C) position and about to get in on another batch but did have a trailing stop loss that literally was to activate at the open if I did not remove it. Sadly, I did not place a limit sell order and after (C) jumped up and came back down, I managed to sit with the same position. I will be getting into both (AIG) and (C) this week. Ultimately, if (C) can pull back further tomorrow, I will get in as my belief is that earnings will be better than the expected results. So far the CEO of Citigroup has already come public to say that Jan and Feb were both profitable months.

Here is the Market Summary for Tuesday:

Looking at Wednesday:

Earnings:
(ABT) 0.71 (ACGY) 0.19 (AMR) -1.52
(ATR) 0.38 (ASML) -0.35 (CCK) 0.21 (DTLK) -0.04
(LSTR) 0.3 (LUFK) 1.42 (MBWM) -0.03 (PJC) -0.18
(PLCM) 0.26 (STLY) -0.04 (PGR) 0.4 (UFPI) -0.21

Also, I got an email as to the significance of posting the stocks that are about to announce earnings. Well the reason I am doing this is that is makes it easier to compile a list of stocks you might want to trade on the day or even go long on after doing some research. Its hard to watch every single stock on the market and even I don’t always know what company is posting earnings.

Indicators:
*remember, these really influence market direction. Look at how the market reacted once the retail sales went public on Tuesday. Always keep these in mind when investing or looking to get into a sector!
7:00AM Weekly Mortgage Applications
7:30AM OPEC monthly report for April.
8:30AM Consumer Price Index for March.
8:30AM NY Manufacturers Survey for April.
9:00AM TICS Capital Flows for February. (shows how money is flowing in/out of USA)
-9am indicator is what tends to guide how interest rates will be and the strength of the US currency
9:15AM Industrial Production Index for March.
10:30AM Crude Inventories.

News to follow:
Ebay Inc. (EBAY) said it would spin off its Internet-calling business Skype through an initial public offering in the first half of next year, after the online auctioneer faced calls for months to unload the company, which has fallen short of expectations. Link.

Procter & Gamble Co. (PG) on Tuesday raised its quarterly dividend by 10% to 44 cents a share, the 53rd consecutive year that the consumer-products giant has increased its payout.Link.

U.S. stocks moved lower Tuesday. The Dow Jones Industrial Average fell 1.7% to 7920, while the S&P 500 slid 2% to 842 and the Nasdaq Composite dropped 1.7% to 1626. Among the companies whose shares are actively trading in the after-hours session are EBay Inc. (EBAY), Intel Corp. (INTC) and CSX Corp. (CSX). Link.

Standard & Poor’s Ratings Service bumped up the corporate credit rating on satellite radio company Sirius XM Radio Inc. one notch on Tuesday, based on a recent $530 million bailout by Liberty Media Corp.Link.

Read for summary for earnings results so far —> Shares of Intel fell more than 5%, even after reporting better-than-expected results in the first quarter. Link. So far, almost all have beat earnings estimates which is could start to life stocks as many stocks have been priced lower on the assumption that earnings would be low.

For Wednesday I will try to get a hold into the bank sector again before the earnings of Citigroup and Bank of America come out. If the markets really take a dive, (SKF) is a great play that goes up on the demise of bank stocks.

Happy Investing!

Aman, MBA

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