Schaeffer's Daily Market Blog Features Starbucks, AutoNation, NETGEAR, Merck, and Genzyme.CINCINNATI -- Among the stocks featured in the April 7th edition of Schaeffer's Market Blog are Starbucks (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SBUX SBUX Starbucks Corporation (stock symbol) SBUX Starbucks Coffee Company ), AutoNation (NYSE NYSE See: New York Stock Exchange :AN), NETGEAR (NASDAQ:NTGR), Merck (NYSE:MRK MRK Merck & Company (stock symbol) MRK Mayer-Rokitansky-Kuster (anomaly) MRK Manual Remote Keying ), and Genzyme (NASDAQ:GENZ). 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 In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. 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=PROB PROB Probable/Probably PROB Problem PROB People's Republic of Bangladesh 12M&PAGE=1 . Schaeffer's Market Blog for Friday, April 7, 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 . 8:49 AM Jobs Figure Beats Expectations 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 announced this morning that jobs rose by 211,000 in March while the unemployment report slipped to 4.7 percent from 4.8 percent. Economists had expected jobs to grow by 187,000. Job growth in March was concentrated in services, where 202,000 jobs were created. Goods-producing industries added 9,000 workers. Government added 24,000. Wage growth was tame, rising 0.2 percent for the month. Average hourly wages are up 3.4 percent in the past year, down from 3.5 percent last month. The average workweek was steady at 33.8 hours. Total hours worked in the economy increased 0.2 percent. The labor force participation rate was steady at 66.1 percent. 11:53 AM Starbucks Posts Strong March Sales After the close last night, Starbucks (NASDAQ:SBUX) announced that March same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. soared 10 percent, besting the consensus estimate for a 7.6-percent increase. Overall sales were up 24 percent to $743 million for the five weeks ended April 2. As a result, JPM JPM J. P. Morgan Chase & Co. (stock symbol) JPM Juan Pablo Montoya (formula 1 driver) JPM Jabatan Perdana Menteri (Malaysia) JPM Journal of Property Management Securities reiterated its "outperform" rating on the shares. Technically speaking, the security is up roughly 1.3 percent on the positive news, tagging a new annual high at $38.96. The stock has been in a solid uptrend uptrend A series of price increases in a security or in the general market. Some investors believe a security tends to take on a certain inertia; as a result, these investors search for stock in an uptrend, thinking that it will probably continue to move in along its 10-week and 20-week moving averages since late September when SBUX bounced off former support at the 23 level. Since the start of 2006, the equity has rallied almost 27 percent. 12:08 PM AutoNation Lifts Earnings Expectations Last night, AutoNation (NYSE:AN) boosted its first-quarter earnings estimate from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the to a range of 36-38 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. from its prior forecast of 32-35 cents. The company stated that results were helped by strength in its premium luxury business. Analysts are currently forecasting a profit of 36 cents per share. What's more, the firm reported it expects its planned equity tender offer, debt tender offer, and consent solicitation Consent Solicitation A solicitation by one party to the stakeholders of a particular security for the consent of a material change. Notes: Should the majority of stakeholders provide valid consent prior to the consent expiry date, the issuer may then follow through with will add 13 cents to 15 cents per share a year in earnings. The equity has tacked on more than two percent in trading today, gapping above former resistance/support in the 22.20 region. However, the stock must still tackle resistance at the 23 level. This area has capped the equity's rally attempts since mid-December. From a long-term perspective, AN has been in a strong uptrend since December 2000. 12:21 PM NETGEAR Higher on This Dreary Day One of the few stocks on my screen that's green is NETGEAR (NASDAQ:NTGR). I wrote about it here in early March when the stock was challenging it's 80-day moving average near 18.50. The stock is up more than a point since then and is now above both its 50-day and 80-day moving averages. There's also an impending im·pend intr.v. im·pend·ed, im·pend·ing, im·pends 1. To be about to occur: Her retirement is impending. 2. bullish cross of these trendlines. If the stock overcomes chart resistance at 20, it might be a good long play. It certainly is noteworthy to be nicely higher on a day like today. 1:00 PM Merck May Not Have It That Bad A judge has denied pharmaceutical concern Merck's (NYSE:MRK) motion to dismiss a Vioxx punitive damages Monetary compensation awarded to an injured party that goes beyond that which is necessary to compensate the individual for losses and that is intended to punish the wrongdoer. case, yet the stock has not been negatively affected by the news. In fact, MRK shares are rebounding nicely after a brief sell-off. Pessimism seems to have become quite extreme toward the stock despite the trend higher during the past six months. With the shares shrugging off seemingly "bad" news, I'd say that the downside for the stock may be rather limited at this point barring an unforeseen negative shock. 2:12 PM Genzyme Under Pressure Genzyme (NASDAQ:GENZ) is trading in a support band between $65 and $66 a share. This stock has been under some pressure during the past several months, and optimism toward the issue is still running quite high. Options activity is heavily skewed skewed curve of a usually unimodal distribution with one tail drawn out more than the other and the median will lie above or below the mean. skewed Epidemiology adjective Referring to an asymmetrical distribution of a population or of data toward the call side with the current Schaeffer put/call open interest ratio on the equity of 0.44 below all readings taken during the past year. If the shares break 65, then we could see additional downside pressure as the traders praying for a rebound are forced to give up and throw in the towel. For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Also, for more information on what makes up these scores, or if you want more filters and screens, take a 30-day trial to our Schaeffer's Gold. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1 . Take advantage of the timely Schaeffer commentaries by signing up for their free e-newsletters -- Opening View, Market Recap and Monday Morning Outlook. Click here to have the Schaeffer's commentaries delivered to you free via email every day. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB12M&PAGE=1 . About Schaeffer's Investment Research (www.SchaeffersResearch.com) 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 . |
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