Wednesday October 26, 2016
Economic Calendar & Watch Lists
Morning Notes
US Futures are slightly lower this morning while European markets are trading modestly lower as AAPL is under pressure after an earnings release that left investors looking for more. The price of crude oil drifted lower by nearly -1.4%, dragging energy producers lower. Asian stocks closed mostly lower.
Technicals
The SPY traded on very light relative volume throughout yesterday’s session and closed back below its 100 day moving average. Support will lie at the low of yesterday’s range at $213.98, followed by $212.76, the support pivot at $212.50, then $212.17, $211.21, and $210.78. Resistance will lie at the 100 day moving average at $214.31, followed by the high of yesterday’s range at $214.98, then $215.32, $215.74, and the 50 day moving average at $215.83.
Small Cap Watch List
*Please refer to the momentum scanners displayed live in the chat room for potential plays at the market open.
**Others On Watch**
$AKAM
$EW
Economic Calendar
8:30 September wholesale inventories expected +0.1%
9:45 October Markit services PMI expected +0.2 to 52.5
10:00 September new home sales expected -1.5% to 600k
10:30 EIA weekly Petroleum Status Report
Notable Earnings Before Open
BIIB: Biogen – EPS Est. $4.99, Rev Est. $2.9B
BA: Boeing – EPS Est. $2.62, Rev Est. $23.41B
BSX: Boston Scientific – EPS Est. $.27, Rev Est. $2.07B
CMCSA: Comcast – EPS Est. $.92, Rev Est. $21.18B
EXAS: Exact Sciences – EPS Est. $(.43), Rev Est. $23.89M
GRMN: Garmin – EPS Est. $.53, Rev Est. $677.98M
GD: General Dynamics – EPS Est. $2.37, Rev Est. $7.9B
GRUB: Grub Hub – EPS Est. $.19, Rev Est. $118.29M
HLT: Hilton – EPS Est. $.23, Rev Est. $3.01B
MDLZ: Mondelez – EPS Est. $.43, Rev Est. $6.5B
NOC: Northrop Grumman – EPS Est. $2.81, Rev Est. $5.98B
LUV: Southwest Airlines – EPS Est. $.88, Rev Est. $5.13B
Notable Earnings After Close
BWLD: Buffalo Wild Wings – EPS Est. $1.23, Rev Est. $506.17M
CAKE: Cheesecake Factory – EPS Est. $.61, Rev Est. $556.09M
FFIV: F5 Networks – EPS Est. $1.94, Rev Est. $519.52M
NOW: ServiceNow – EPS Est. $.21, Rev Est. $352.30M
SFLY: Shutterfly – EPS Est. $(.95), Rev Est. $183.5M
TSLA: Tesla – EPS Est. $.07, Rev Est. $2.24B
October 26th Swing Watch List
$NEE – Looking for a breakout over 125 resistance. A lower IV setup before earnings run up could give us a quick profit here. Looking at a Nov16 125/130 bull call spread for a debit of 1.95. Alternatives are long the stock over 126.00, or long the Nov16 125 call for 3.20.
$NVDA – On short watch after crushing this long multiple times this year. Looking for a pull back to the 9ema. Going into this super high IV name with a credit spread/bear call spread. Looking at the Dec16 75/80 bear call spread for a credit of 1.45. Alternatives here are to short the stock with an entry under 71.25 or to buy a Dec16 70 put for 3.35.