Falling Oil and Rising Dollar Fuel Morning Rally

123jump.com Staff
30 Nov, -0001
New York City

Apple shares trade higher on news of talks with Intel to acquire chips for Apple products. Several tech and Internet stocks trade higher in the morning rally. Tuesday Fed releases its May 3rd minutes of meeting transcript and NAR releases existing home sales. On earnings watch Campbell Soup, Costco, AutoZone, Petco, Boeing, Toll Brothers, Medtronics are scheduled this week.

Early morning trading is dominated by oil and dollar price movements. Oil is trading 35 cents lower in NY and U.S. dollar is trading higher against Euro, Pound and yen. Drop in oil prices is fueling early morning buying interest in large cap stocks, home builders, consumer durables and hardware and networking related stocks.

Shares of Pixar, Apple, Toll Brothers, Ryland Homes are trading higher by at least 2%. Shares of Wynn Resorts, Boyd Gaming and Corning are trading lower.

Earnings and Economic news are expected to dominate market. More than 65 companies are expected to release earnings with bulk of them reporting on Wednesday and Thursday. Manufacturing, retail medical and pharmaceutical related companies are to dominate earnings this week.

Monday

McData, Campbell Soup, On Track Innovations and Cash Systems are expected to release earnings on Monday. McData is expected to release 2 cents 1Q profit on $99 million revenue. Campbell Soup is expected to release 3Q earnings of 33 cents on $1.76 billion revenue.

Tuesday

Fed releases May 3rd minutes of meeting and existing home sales will be released by National Association of Realtors.

European broadcasting company with radio and TV stations in nine countries in Europe is expected to release 1Q loss of 36 cents on Tuesday.

Boeing is scheduled to report 62 cents for the 1Q earnings, Williams Sonoma to report 1Q earnings of 19 cents on $718 million in revenue, and Medtronic is expected to report 53 cents on $2.83 billion in revenue, and Hughes Supply is expected to release earnings of 51 cents on $1.24 billion in revenue.

Wednesday

Commerce Department will release April durable good orders, expected to rise 1%.

Auto parts retailer AutoZone is scheduled to report earnings of $1.80 per share on $1.37 billion. The stock is trading in mid-point of its 52 week range at $88. Brown Forman, diversified Consumer products is expected to report 49 cents on $658 million in revenue.

Petco Animal Supplies is expected to report 32 cents on revenue of estimates of $481 million. The stock trading at $33 and has traded in 52 week range of $27 and $40. Coldwater Creek is expected to report 11cents on $145 million revenue.

Thursday

8:30 AM Commerce Department releases 2Q GDP estimates.

Retailing companies Costco, Restoration Hardware, Chico’s, and Dollar General are expected to report earnings on Thursday. Other notable companies Hormel Foods Toll Brothers, CUNO, Tech Data, Computer Associates and Stewart and Stevenson are scheduled to report on Thursday.

Costco is expected to report 42 cent on $11.89 billion in revenue for the quarter; Dollar General is expected to report 22 cents on revenue of $1.96 billion.

Women’s apparel is expected to beat 25 cents of earnings on at least $325 billion in revenue for the quarter. Computer Associates is expected to report 20 cents on $919 million in revenue for the current quarter.

Toll Brothers is expected to report for the quarter $1.79 earnings per share on revenue of $1.26 billion. The stock has rallied from $37 to $85 in the last 52 weeks.

Friday

No major companies are scheduled to report earnings on Friday.