LOW - Lowe’s Companies, Inc. – Shares in Lowe’s were hammered Monday after the home improvement retailer lowered its full-year earnings forecast and reported a smaller-than-expected increase in same-store sales. The stock is currently down 9.7% at $25.72 as of 12:30 p.m. ET following the company’s first-quarter earnings report this morning. Options activity in the front month is mixed, with some traders positioning for the stock to rebound, while others brace for further downside in the near term. Strategists constructing positions that benefit from a recovery in the shares homed in on the June $27 strike call, trading upwards of 5,800 contracts versus open interest of 18 positions. It looks like most of the calls were purchased for an average premium of $0.45 apiece, thus positioning longs to profit should LOW’s shares rally 6.7% to top $27.45 by June expiration. Meanwhile, put buying at the June $25 strike points to near-term bearish sentiment on the stock. Traders exchanged more than 2,300 of the $25 strike put options, purchasing most of the volume at an average premium of $0.65 each. The strategy may be profitable at expiration next month should Lowe’s shares decline another 5.3% to breach the average breakeven price of $24.35. Options volume of 30,715 on the second-largest U.S. home improvement retailer this afternoon today runs at twice the 90-day average options volume for the name.
CBE - Cooper Industries PLC – Shares in the Maynooth, Ireland-based maker of electrical products and tools rallied nearly 30.0% to a record-high of $71.73 today after diversified power management company, Eaton Corp., agreed to buy Cooper Industries in a cash and stock deal valued at $11.8 billion. Options on Cooper are more active than usual with just fewer than 800 contracts in play as of 1:00 p.m. ET versus the 90-day average options volume on the stock of 91 contracts. Open interest in July expiry call options on CBE suggests one…
Russell 8-0-0, Russell 8-0-0! Wherefore art thou Russell8-0-0? Deny thy dollar and refuse to fall, or, if thou spike not, be but consolidating at resistance and I’ll happily Capitulate….
If it's good enough for fair Juliet, it's going to have to be good enough for us as the Russell finally makes it over our 800 target – the last barrier that was keeping us on the bearish side. Above these lines – it's time to stop worrying and love the rally as we romanticize the deadly combination of QE2 the Obama tax cuts as: "A pair of star-crossed lovers take their life, whose misadventured piteous overthrows doth with their death bury their parents’ strife."
Of course Willie Shakespeare has nothing on Jimmy Cramer, who's pearls of wisdom are also sure to be repeated centuries from now. Last night the Bard of Wall Street sang a veritable sonnet in praise of the stock market and foretold a tale of woe for anyone dumb enough to take profits into this rally:
We got the correction this morning, Dow fell 35 points… Today's action was proof positive that you need to stop worrying and learn to love corrections… What scares me, and what should scare you, is that if you sell your stocks here, you won't be able to get back in. You should be worried about stocks getting away from you, because I think we can be on the verge of something big – something very positive. FORGET the fact that stocks have run up a lot in the last 6 months. For more than 10 years, this market has done nothing, THAT is the most important frame of reference…
What's changed? We are finally starting to see big breakouts from a slew of breakouts from several large cap companies including: CAT, UTX, FCX, SWK, CBE, ETN, CSX, UNP and so many other big industrials. Ladies and gentlemen, we have waited over a decade for this move and what do people want to do now that it has arrived? They want to sell! That's right, they want to sell. That's right. They want to dump the stocks (sell button sound effect) because they are up
In 2007, UPS dumped its pensioners into the Central States Pension Fund, a fund now destined for bankruptcy.
As part of the collective bargaining agreement, UPS agreed to pick up future payments if benefits are cut.
That provision may cost UPS $3.8 billion or more.
Let’s backtrack and fill in some details.
In December, the Central States Pension Fund informed the US Treasury department that the fund would run out of money in 10 years at the current rate of $3.46 in pension benefits for every $1 it receives from employers.
Yesterday we reported separately on the latest residential building permits and housing starts in the government's monthly report, courtesy of the Census Bureau and the Department of Housing and Urban Development. Despite the fact that both are monthly SAAR series (seasonally adjusted annualized rate), they are exceptionally volatile and subject to extensive revisions. Thus it is unwise to assign much credibility to a single month.
Over the long haul, however, the two offer a compelling study of trends in residential real estate, especially ...
By Jacob Wolinsky. Originally published at ValueWalk.
Goldman Sachs’ Favorite Books List
Goldman Sachs put together a list of the best books and it is impressive and long – unfortunately it is hard to sift through since it just has the title and the author without any information on the book so we are helping you out by filing in that info. If you want to find the full list go here we also list it below at the bottom along with descriptions. Note: we do not endorse the ...
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Do you remember when you were growing up and all your friends were allowed Atari game consoles but you weren’t?
Well, I do and the things seemed as foreign to me as Venus. Mostly because the little time I managed to spend on the gaming consoles when my friends weren’t hogging them I found it all a bit silly. I never “got” computer games, and to this day still have poor comprehension of things like Angry Birds.
I suspect that many people around the world view Bitcoin in the same way as I view Angry Birds: with mild amusement and a general lack of understanding as to what the hell all the fuss is about.
I was thinking of this since a buddy of mine recently started ...
After a three-year bull run that more than quadrupled its value by its peak last July, IBD’s Medical-Biomed/Biotech Industry Group plunged 50% by early February, hurt by backlashes against high drug prices and mergers that seek to lower corporate taxes.
Although we try to stay focused on finding and managing promising trade ideas, the comments in the comment section sometimes take a political turn (for access, try PSW — click here!). So today, Jean Luc writes,
The GOP debate last night was just unreal – are these people running to be president of the US or to lead a college fraternity! Comparing tool size? The only guy that looks semi-sane is Kasich. The other guys are just like 3 jackals right now.
And something else – if Trump is the candidate, that little Romney speech yesterday is probably already being made into a commercial. And all these little snippets from the debate will also make some nice ads! If you are a conservative, you have to be scared now.
Phil writes back,
I was expecting them to start throwing poop at each other &n...
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at firstname.lastname@example.org with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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