Schaeffer's Daily Market Blog Features: DreamWorks Animation, Chiquita Brands International, Peet's Coffee & Tea, JetBlue Airways, and Frontier Airlines.

CINCINNATI -- Among the stocks featured in the August 4 edition of Schaeffer's Market Blog are DreamWorks Animation (NYSE:DWA), Chiquita Brands International (NYSE:CQB), Peet's Coffee & Tea (NASDAQ:PEET), JetBlue Airways (NASDAQ:JBLU), and Frontier Airlines (NASDAQ:FRNT). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. For additional information about this report or to have it delivered to you free via email every day click on the following link. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB12M&PAGE=1

Schaeffer's Market Blog for Friday, August 4, 2006:

Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1

Posted 3:39 PM Free Financial Podcasts

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Posted 3:32 PM Dream Weaver: DreamWorks Earnings Spike Higher

Yesterday afternoon, DreamWorks Animation (NYSE:DWA) said it posted a second-quarter profit of 13 cents per share, with revenue spiking nearly 112 percent to $74.9 million. This compares with a year-ago loss of four cents per share. Analysts were expecting a per-share profit of two cents on $52.7 million in sales. Looking forward, the company envisions a more stable home-video market, which should positively impact the bottom line. In fact, chief executive Jeffrey Katzenberg said this stabilization was "comforting."

This morning, DWA shares shot higher out of the gate on heavy volume but have come back to earth during the course of the afternoon. Earlier today, the stock was on the north side of its 10-day and 20-day moving averages, but it is now back below these trendlines, posting a gain of 2.5-percent as we barrel toward the close. Walt Disney, the parent of chief DWA competitor Pixar, isn't benefiting from Katzenberg's cheery words about the industry; the blue-chip is down about 0.80 percent.

Posted 3:29 PM Chiquita Gets Juiced on Earnings

This morning, Chiquita Brands International (NYSE:CQB) was here to say that the company had banked a net profit of $22.9 million, or 54 cents per share, down from last year's $63.6 million, or $1.36 per share. However, the results still slipped past the Street's estimate for earnings of 36 cents per share. Investors also found the results appealing, as CQB was last seen higher by more than 23 percent. Checking on sentiment, investors were a bit split heading into this morning's earnings report. Options players were complacent, with CQB's Schaeffer's put/call open interest ratio (SOIR) of 1.79 ranking in the 49th percentile of its annual range. Wall Street was also rather vanilla, with only two analysts covering, both doling out holds. However, short sellers will probably need a banana daiquiri after today, since more than 23 percent of CQB's float is currently sold short. I think it is safe to say that a short-squeeze situation is at least partly responsible for today's rally, as bearish investors attempt to stem their losses.

Posted 3:24 PM Peet's Looks for Support

Before the open this morning, Peet's Coffee & Tea (NASDAQ:PEET) announced that second-quarter earnings came in at $1.7 million, or 12 cents per share, compared to its year-ago figure of $2.6 million or 18 cents per share. That figure includes a nickel a share in stock option expenses. Sales for the quarter rose 19 percent to $49.7 million.

The equity breached former support at the 28 level in trading yesterday, falling almost 2.4 percent. In trading today, the stock has retreated 5.9 percent and is currently set to notch it lowest weekly close since mid-May 2005. However, the equity may find a layer of support at the 25 level. This region halted the stock's pullback in November 2005 and could save the shares again.

Posted 3:19 PM Airlines Slip Lower

Sticking with the airline sector, JetBlue Airways (NASDAQ:JBLU) reported that traffic in July rose 11.2 percent to 2.2 billion revenue passenger miles from 1.98 billion a year ago. Load factor fell 7.2 percentage points to 83.9 percent. Capacity rose 20.8 percent to 2.62 billion available seat miles. The shares are currently down 1.5 percent after being rejected by resistance at their declining 20-day moving average. In fact, the stock has enjoyed only one daily close above both its 10-day and 20-day moving averages since June 30.

Elsewhere, Frontier Airlines (NASDAQ:FRNT) announced that its July revenue passenger miles rose 16 percent to 849.3 million and its monthly available seat miles increased about 12 percent to 996.4 million miles. The Denver-based carrier said its July load factor rose to 85.2 percent from 81.9 percent. The security has drifted 2.6 percent lower this afternoon, with the shares dropping back below their 10-day and 20-day moving average. Furthermore, the stock is currently battling resistance at its 10-week and 20-week trendlines. During the past year, FRNT has logged only three weekly closes above these moving averages.

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Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method.