Daily Commentary from SIR Highlights the Following Stocks: NVIDIA, Pixar Animation Studios, Activision, Xlinx.Business Editors CINCINNATI--(BUSINESS WIRE)--Nov. 7, 2003 This daily report contains a brief commentary on the day's most notable activity and a table listing the most active calls and puts for the day. The Midday Options Update is published every day at SchaeffersResearch.com . For additional information about this report or to have it delivered to you via email everyday click on the following link: http://www.schaeffersresearch.com/addinfo . Today's Daily Commentary focuses on: NVIDIA (Nasdaq:NVDA NVDA NVIDIA Corp (stock symbol) NVDA Non-Violent Direct Action (direct resistance lobbying) NVDA NonVisual Desktop Access (open-source screen reader) ), Pixar Animation Studios (Nasdaq:PIXR), Activision (Nasdaq:ATVI ATVI Albuquerque Technical Vocational Institute ), Xlinx (Nasdaq:XLNX). Your wish has been granted! Investors had their wish come true this morning with the latest employment report from the Labor Department The Department of Labor (DOL) administers federal labor laws for the Executive Branch of the federal government. Its mission is "to foster, promote, and develop the welfare of the wage earners of the United States, to improve their working . I keep expecting to see Barbara Eden appear out of nowhere in her little pink genie outfit and do her head-bob thing matched with the tinkle tin·kle v. tin·kled, tin·kling, tin·kles v.intr. 1. To make light metallic sounds, as those of a small bell. 2. Informal To urinate. v.tr. 1. of music that goes along with anything magical that happens on TV. But I digress di·gress intr.v. di·gressed, di·gress·ing, di·gress·es To turn aside, especially from the main subject in writing or speaking; stray. See Synonyms at swerve. . Non-farm payrolls for October surged by 126,000 while the unemployment rate dipped to 6.0 percent from 6.1 percent. As if that wasn't enough, September's gain was revised from 57,000 to 125,000 - more than doubling the original figure. August's loss of 35,000 jobs was also revised to a gain of 41,000. Surprisingly, this stellar economic data has failed to lift spirits, as the market hovers close to breakeven, though many are saying that the positive news has already been factored into stock prices. Checking in on corporate news, tech stocks are struggling to keep the Nasdaq in positive territory this afternoon. NVIDIA (Nasdaq:NVDA) saw third-quarter earnings swing back to a profit with the company raking in $6.4 million, or four cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , for the quarter. This compares to the firm's loss of 32 cents per share for the same period a year ago. Pixar Animation Studios (Nasdaq:PIXR) logged a profit of $13.2 million, or 23 cents per share, which is down from earnings of 87 cents per share for the same quarter a year ago. However, the Street had expected a profit of only 13 cents per share. Video-game manufacturer Activision (Nasdaq:ATVI) suffered a second-quarter loss of 11 cents per share due to a "light release schedule," but managed to edge past the consensus estimate for a loss of 12 cents per share. The company also lowered its full-year earning guidance to 34 cents per share from 47 cents per share. At 1:19 p.m. eastern time, the Dow Jones Industrial Average Dow Jones Industrial Average The best known U.S. index of stocks. A price-weighted average of 30 actively traded blue-chip stocks, primarily industrials including stocks that trade on the New York Stock Exchange. (DJIA DJIA See Dow Jones Industrial Averager (DJIA). - 9867.0) is up 0.10 percent and the S&P 500 Index (SPX (Sequenced Packet EXchange) The transport layer protocol in the NetWare operating system. Similar to the TCP layer in TCP/IP, it ensures that the entire message arrives intact. SPX uses NetWare's IPX as its delivery mechanism. - 1058.77) is higher by 0.07 percent. The Nasdaq Composite The Nasdaq Composite is a stock market index of all of the common stocks and similar securities (e.g. ADRs, tracking stocks, limited partnership interests) listed on the NASDAQ stock market, meaning that it has over 3,000 components. It is highly followed in the U.S. (COMP - 1986.0) is up 0.49 percent. At 1:21 p.m. in the options pits, 1,421,398 calls and 1,031,907 puts traded for a composite put/call ratio across all five exchanges of 0.72. The CBOE CBOE See: Chicago Board Options Exchange CBOE See Chicago Board Options Exchange (CBOE). put/call ratio for equity options weighed in at 0.61. Options players have been rather complacent when it comes to Xlinx (Nasdaq:XLNX). The equity's Schaeffer's put/call open interest ratio has been relatively flat over the past month around the 0.91 level. This reading is also middle of the road in the 63rd percentile. However, today's trading has been focused on the put side. The equity's November 32.50 put has seen more than 4,200 contracts change hands, which is likely to be the initiation of a sizable position since open interest numbers only 1,629 contracts. And while short interest has plunged 19 percent over the past month, Wall Street is still harboring some doubts. According to Zacks, 13 of the 21 analysts following the company rate it a "hold" or worse. Any upgrades from this skeptical group could boost the shares higher. From a technical perspective, XLNX has risen along a trendline connecting a series of higher lows going back to October 2002. The recent rally has carried the security through former resistance at the 32 level while additional support waits below in the form of its 10-month moving average. This could prove to be an interesting situation if pessimism continues to build on this strong technical performer. Click the following link to see the Daily Chart of EAT since September 2003 with 10-Day and 20-Day Moving Averages: http://www.schaeffersresearch.com/wire?ID=8821. |
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