Wednesday, February 14, 2007

Morning Market Comment

I generally place limit orders and yesterday at 3:58 pm I must have mis-read the screen and placed a limit order for a bunch of Feb100 DE calls which never went off. Oh well. Deere is a dear this morning, up 5% to $108.28 after posting q4 earnings of $1.04 vs estimates of 81 cents! Revs at $4.4 vs an expected $3.7 bln. As Barney would say - Super-dee-duper.

Those numbers are helping to lift stock futures a bit this morning, along with last evening's better than expectged results from Applied Materials which is up 3%.

Headwinds are being supplied by way of flat January retail sales. The gasoline and auto components held things in check last month. That on going auto weakness is a sure sign that the housing slump is spreading out.

Accredited Home Lenders is down 2% after posting a loss of $1.49 a share. Analysts were expecting a loss of 48 cents. More interesting, revenue, since consensus estimate may not be comperable to results, revenue slumped 60 percent to $60 million from $150.1 million from the year before. The company declined to offer guidance. I took a hard look at the options there yesterday. Febs were too expensive, too close to expiration and plenty of Feb25 and under put players may end up getting roasted.

Bernanke's on deck at 10 a.m.

Gold - creeping up toward $673.
Crude weak again. Inventory numbers due at 10:30.

1 comment:

mike said...

Wow as bad as LEND reported, it didn't fazed the retail investors at all. must be a lot of knife catchers out there.