{"id":7558,"date":"2014-04-25T07:35:08","date_gmt":"2014-04-25T12:35:08","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=7558"},"modified":"2014-04-25T07:35:08","modified_gmt":"2014-04-25T12:35:08","slug":"before-the-open-apr-25-5","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=7558","title":{"rendered":"Before the Open (Apr 25)"},"content":{"rendered":"

Good morning. Happy Friday.<\/span>
\n The Asian\/Pacific markets leaned to the downside. Taiwan, Korea, Hong Kong and China dropped more than 1%. There were no big winners. Europe is mostly down. Russia, Amsterdam and Germany are down more than 1%. Spain, Italy, Austria, Prague and Greece are also down noticeably. Futures here in the States point towards a moderate gap down open for the cash market.
\n<\/span>
\n The dollar is down. Oil and copper are down. Gold and silver are down. <\/span>
\n This week may go down as the big week that wasn’t. It was supposed to be a big week. The market had moved down with force and then had bounced off a local bottom. It was decision time. The bulls had made progress to somewhat neutralize the negativity, but with options expiring, a few indicators lagging and the Nas and small caps lagging, the onus was on the bulls to keep pressing the issue and not quickly step aside. <\/span>
\n What we’ve gotten is a decent gain for the week but slow, methodical, low volume movement. The gain is nice, but there’s been a definite lack energy and conviction. <\/span>
\n You could call it a victory for the bulls since the gains have held, but it’s not a convincing victory because volume has been so light. <\/span>
\n Still, it’s a step. All rallies, legs up, up trends – whatever you want to call them – start with a few up days, and despite the lack of conviction, the bears are worried again. <\/span>
\n In the near term, anything goes. I don’t think the near term is obvious.<\/span>
\n In the intermediate term, the Dow and S&P seem intent on hitting a new high. Then the fun begins. <\/span>
\nStock headlines<\/strong> from barchart.com…<\/span>
\n Of the 15 of the S&P 500 companies that report earnings today, 11 have already reported. Results have been mixed. Better-than-expected results include Weyerhaeuser (WY +0.49%) (0.26 vs 0.24), Tyco (TYC -0.45%) (0.45 vs 0.41), Covidien (COV +0.58%) (0.96 vs 0.95), Aon (AON +0.16%) (1.28 vs 1.18), Moody’s (MCO -0.29%) (1.00 vs 0.91), VF Corp (VFC -0.66%) (0.67 vs 0.63), DTE Energy (DTE +0.34%) (1.69 vs 1.47). Weaker than expected results include: Whirlpool (WHR +0.74%) (2.20), Colgate-Palmolive (CL +0.85%) (0.68 vs 0.682), Ford (F +0.55%) (0.25 vs 0.31), and State Street (STT -0.27%) (0.99 vs 1.00).<\/span>
\n Under Armour (UA -7.38%) will replace Beam (BEAM -0.02%) in the S&P 500 as of the close of trading on Apr 30.<\/span>
\n Navient (NAVIV -0.89%) will replace Sallie Mae (SLM -0.62%) in the S&P 500 as of the close of trading on Apr 30.<\/span>
\n Universal Health (UHS +1.98%) reported Q1 adjusted EPS of $1.36, stronger than consensus of $1.22.<\/span>
\n Masco (MAS +1.35%) reported Q1 continuing operations EPS of 21 cents, better than consensus of 17 cents.<\/span>
\n Bloomberg reported that U.S. prosecutors are seeking more than $13 billion from Bank of America (BAC -0.18%) as part of a deal to resolve probes into the bank’s sale of residential mortgage-backed securities.<\/span>
\n Hanesbrands (HBI +1.36%) reported Q1 adjusted EPS of 76 cents, well above consensus of 58 cents, and then raises guidance on fiscal 2014 adjusted EPS view to $4.80-$5.00 from $4.60-$4.80, higher than consensus of $4.73.<\/span>
\n Chubb (CB +1.42%) reported Q1 adjusted EPS of $1.50, weaker than consensus of $1.56.<\/span>
\n Swift Transport (SWFT +0.64%) reported Q1 adjusted EPS of 12 cents, right on consensus, although Q1 revenue of $1.0 billion was slightly less than consensus of $1.02 billion.<\/span>
\n Visa (V +0.28%) reported adjusted Q2 EPS of $2.20, higher than consensus of $2.18.<\/span>
\n Edwards Lifesciences (EW +0.44%) reported Q1 adjusted EPS of 76 cents, better than consensus of 69 cents.<\/span>
\n Amazon.com (AMZN +3.87%) reported Q1 EPS of 23 cents, right on consensus, but Q1 revenue of $19.74 billion ws higher than consensus of $19.43 billion.<\/span>
\n Starbucks (SBUX +0.99%) reported Q2 EPS of 56 cents, right on consensus, although Q2 revenue of $3.87 billion was below consensus of $3.95 billion.<\/span>
\n Broadcom (BRCM +2.40%) reported Q1 adjusted EPS of 51 cents, stringer than consensus of 46 cents.<\/span>
\n Microsoft (MSFT +0.43%) reported Q3 EPS of 68 cents, higher than consensus of 63 cents.<\/span>
\n Las Vegas Sands (LVS +1.96%) reported Q1 adjusted EPS of 97 cents, better than consensus of 93 cents.<\/span>
\nEarnings and Economic Numbers<\/strong> from seekingalpha.com…<\/span>
\n Today’s economic calendar:
\n 9:45 PMI Services Index Flash
\n 9:55 Reuters\/UofM Consumer Sentiment<\/span><\/span><\/span>
\n Notable earnings before today’s open: AAN, ABBV, AEP, ALK, ALV, AON, B, BKW, CL, COV, CVLT, DAN, DTE, F, FLIR, HMC, IDXX, IMGN, LEA, LPNT, MCO, MDXG, SAIA, SIR, STT, TYC, VFC, VTR, WBC, WHR, WY<\/span>
\n Notable earnings after today’s close: none<\/span>
\nOther<\/strong>…<\/span>
\ntoday’s upgrades\/downgrades<\/a> from briefing.com<\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n