Our 2 larger regional banks both report tomorrow - BB&T (BBT) and PNC Financial (PNC); so far both have mostly held up well although the latter has been hit the past few days. We'll look for the same metrics as usual, bad loan allowance and how badly current loans are degrading. I'm hoping these are my Wells Fargo's (WFC).
Unfortunately Capital One Financial (COF) [credit cards] and Citigroup (C) [just a big mess but a government favorite] also report. Merrill Lynch (MER) too - although it's going to be part of Bank of America (BAC) . Zions Bancorp (ZION) is another regional bank which actually has done very well of late but I decided against due to quite a bit of CA exposure- but the market seems to like it of late.
In airlines, we have Continental (CAL) and Southwest Airlines (LUV) - in assessing these as investments you have to combat lower oil prices (pro) with the inability for anyone to afford to fly anymore (con) for these... if airlines are your game Delta (DAL) and AMR (AMR) reported today.
- A steep drop in fuel prices has not given airlines much reason to celebrate due to a worsening economy that threatens to curb demand for flights heading into next year. "People will defer those vacations, defer a lot of business trips," said Nathan Smith, an analyst for Frost & Sullivan. "We're already seeing that."
One of the few biotechs we watch Gilead Sciences (GILD) will report - no safe haven there as hedge funds own(ed) a ton of this one
In tech, Google (GOOG) reports - at their roots they are an advertising firm and the two biggest advertisers have been financial and automotive. I just keep waiting for the floor to drop here but maybe its been a slow motion destruction - other than one post earnings super rally this stock has been bad for a long time. IBM (IBM) already pre-announced so we know their story. Then there is Nokia (NOK) - my gosh I cannot even look at that chart; this was one of the biggest money makers for investors for many years; a safe, best of breed company. Nothing is safe anymore.
In consumer land, one of my favorite shorts noted last year is Harley Davidson (HOG) - the perfect big ticket item bought for through house ATM that is now simply an unaffordable luxury for many. Before this recent leg down, the "housing related" stocks were rallying on the "imminent recovery" in housing - Sherwin Williams (SHW) was one of those; I'll be interested in what they have to say about how "imminent" things are.
In the healthcare side is retail favorite Intuitive Surgical (ISRG) - there have been rumors the past few quarters that hospitals might cut back on new purchases of the high priced machines due to lack of credit so this has been hanging over the stock for a long time.
In commodity/global growth land we have steel maker Nucor (NUE) and coal giant Peabody Energy (BTU) - I don't think it really matters what they say anymore; hedge funds seem to have unlimited supply of these stocks to sell off.
In the large conglomerate land, we always like to take a peak at a United Technologies (UTX) which is basically General Electric (GE) without the TV station or financial arm.
5 comments:
Offtopic... just came across a couple of Greenspan quotes from 2004 that made me chuckle...
"Improvements in lending practices driven by information technology have enabled lenders to reach out to households with previously unrecognized borrowing capacities. -- Greenspan, October 2004"
He's talking about liar loans in case you are wondering....
"The use of a growing array of derivatives and the related application of more-sophisticated approaches to measuring and managing risk are key factors underpinning the greater resilience of our largest financial institutions .... Derivatives have permitted the unbundling of financial risks." -- Greenspan, May 2005"
Unbundling of risks, eh?? This old fool is the #1 villain to blame for this mess, and he goes around the world lecturing people :|
Greenspan's book should end up in the '50 cent bin' .. Volker warned him that the lending practices were out of whack as he handed him the keys to the executive bathroom. I never really was much of a fan anyway... His comments always seem so couched - Kinda like reading those horoscopes that could mean a variety of things.
Just noticed on CNBC that a lot of the airlines are showing green ... Can't figure that at all. Owning airline stock makes me itchy all over...
There are also a lot of interesting stocks that have come up through their weekly RSI 30 line... BTI, FRO, PDA .. Each one seems to have been pushed back down in the last hour of trading. Could be good for a buck tomorrow if we get a relief rally..
jegan
ISRG had a pretty monster quarter! These guys are consistently either good or better...although, a high flyer in regards to fundamentals needs only a smidgen of bad news in these times to take it down...
Down 5% after hours so the minions were not happy
at least Google came through- thats more important than ISRG to the market.
I guess you were right, fundamentals totally mean nothing in this market. Blows me away how GOOG explodes, and ISRG is down 18% on earnings beat and raised guidance. Obviously the credit crisis hasn't effected them Q3, but it's like the experts don't believe the numbers...on the other hand, with GOOG they do believe they are immune to the credit crisis. I give up.
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