Schaeffer's Daily Market Blog Features Wells Fargo, Krispy Kreme Doughnuts, Procter & Gamble, Boston Scientific, and Nucor.

CINCINNATI -- Among the stocks featured in the April 18th edition of Schaeffer's Market Blog are Wells Fargo (NYSE:WFC), Krispy Kreme Doughnuts (NYSE:KKD), Procter & Gamble (NYSE:PG), Boston Scientific (NYSE:BSX), and Nucor (NYSE:NUE). Schaeffer's Market Blog is just one of the many free market commentaries written everyday 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 Tuesday, April 18, 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

10:52 AM Wells Fargo Reports Earnings

Earlier today, Wells Fargo (NYSE:WFC) announced that first-quarter profit increased nine percent compared to the previous year. For the first time WFC topped $2 billion in quarterly earnings, as deposits increased and loan loss provision fell. The California-based bank saw net income tally $2.02 billion, or $1.19 per share. Revenue for the quarter increased six percent to total $8.56 billion. WFC's results included a $52-million charge (two cents per share) for a change in accounting for stock options paid to employees. According to Thomson First Call, the consensus was expecting earnings of $1.20 per share. WFC incurred a charge of $184 million for a change in valuation of mortgage servicing rights, along with a $127 million pretax gain from the sale of some Puerto Rican operations. The firm's total interest income increased to $7.53 billion in the quarter from the previous year's $5.87 billion as total interest expense increased to $2.66 billion from $1.42 billion. The result was an increase in net interest to $4.87 billion from last year's $4.45 billion. In a press release, WFC stated "first quarter credit results were strong and continued to show excellent performance across all our loan portfolios."

This morning, WFC has backed off from resistance at the 64.50 level. This resistance is bolstered by the equity's descending 20-day trendline. Today's development also thwarted an attempted bullish crossover of WFC's 20-day moving average by its 10-day moving average. However, the shares are above peak put open interest in the April series at the 60 strike.

12:10 PM Krispy Kreme Drops

After yesterday's closing bell, Krispy Kreme Doughnuts (NYSE:KKD) forecast revenue of $120 million for its current period. In the same quarter last year, the confections king reported revenue of $162 million. For the full year, the dean of donuts now expects revenue of $540 million, down sharply from fiscal 2005's revenue of $707 million. KKD blames the decrease on lower average sales per store, along with the fact that it now has fewer stores. The company also sold less to franchisees while collecting lower royalties and fees from them. KKD's average sales per factory store dropped in a range of nine to 10 percent for the quarter. According to a statement, "The company's financial results continue to be adversely affected by the substantial costs associated with the legal and regulatory matters previously disclosed," and it "expects to report a net loss for the fourth quarter and full year of fiscal 2006."

Lately, the company's performance has slumped. Yesterday's news caused the shares to gap below the eight level, which could have acted as support. Fortunately for KKD, its 20-month moving average rests slightly below eight, and appears to be holding as support ... for now.

12:50 PM Unusual Options Trading on Procter & Gamble

Procter & Gamble (NYSE:PG) is in the news today after the consumer-products behemoth reached an agreement with closely held Vi-Jon Laboratories over a private-label mouthwash. In February, PG filed a suit alleging false advertising and claims that Vi-Jon's packaging was strikingly similar to that of Crest Pro-Health rinse. The smaller company agreed to pull its product off the shelves and pay monetary damages, which were not disclosed.

PG shares have inched slightly higher today and are testing the support of their 80-week moving average. Overhead, the stock's 10-week and 20-week trendlines are preparing for a bearish crossover.

The equity is also seeing some unusual activity in its options pits. In fact, the action at the in-the-money April 50 call (PG DJ) has placed the stock on the most-active call list at the Pacific Exchange. More than 7,000 contracts have traded on this option today. Although the call will expire on Friday evening, much of today's volume could represent new positions, as there were fewer than 1,800 open contracts at this strike before today's activity. What's more, the volume took the form of two block trades of 3,501 contracts each, that traded at 11:00 a.m. between the bid and the ask prices at 6.00 per contract. The trades were indicated as "spreads," but there is not another series that has seen similar volume today.

12:50 PM Boston Scientific Reports Earnings

This morning, Boston Scientific (NYSE:BSX) reported first-quarter earnings of 40 cents per share. The quarterly earnings were negatively influenced by new accounting rules for stock-based compensation and a write-down for a gene therapy trial. Taking these charges out of the equation, BSX would have earned 46 cents per share, which is one cent better than the consensus estimate. Sales came in at $1.62 billion, well ahead of the Street's expected $1.596 billion.

Despite a jump greater than one percent today, BSX remains unable to break through overhead resistance. In fact, April is poised to be the 22nd straight month that BSX is unable to close above the resistance of its 10-month trendline. The round-number 20 level does rest below, ready to act as support. This level acted as resistance in the past and may provide a boost. However, BSX's Schaeffer's Equity Scorecard of 3.0 indicates that BSX should continue to struggle.

3:12 PM Steel at Another New High

Today is going to go down as one of the more bullish days in a long time. The Dow is up 170 points, volume is good, internals are ridiculously strong in fact, the SPX is less than 10 points from a new high. I'll say this about this market - the bulls are incredibly resilient. Leading the way today is more of the same - anything commodity based is doing great. Good old steel is once again rocking, as the SIG Steel Producers Index (STQ) is up 3.75 percent to another new all-time high. Tons of steel stocks are also making new highs - some names to check out are US Steel (X), Nucor (NYSE:NUE), and Allegheny Technologies (ATI).

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