Profits? Part 2

by Larry Levin

Today's activity was in a word: violent. There were wild swings both higher, then lower. Although Tax-Cheatin-Timmy of the Treasury was on television early this morning trying to pump the market again, he couldn't repeat yesterday's fireworks.

Today's early explosive lift-off came from a heretofore unknown government report on housing. The (FHFA) Federal Housing Finance Agency index said home prices rose for the second consecutive month, although prices are still down 6.5% from last year. Although this report had been scheduled to be released for a while, it's amazingly lucky how good it was the morning after a horribly bad earnings day.

What's next, the (FBFA) Federal Banking Finance Agency index that claims banks actually aren't insolvent? "Hey, where'd this report come from?" "Don't question authority dude, just shut up and buy." Yep, I can hear it now.

Let's see how yesterday's "profit/earning" reports affected today's action?

Here are a few snippets of (yesterday's) earnings results:

? YAHOO! Profit plummets 80%; closes +0.7%. That's good work if you can get it: being rewarded for losing 80%!

? Huntington Bancshares posts a staggering $2.49-billion 1st-Q loss; closes -2.9% today.

? Northern Trust's net income plummets 64%; closes -4.4% today.

? Norfolk Southern Corp's net income plummets 39%; closes +0.35% today.

? Gilead Sciences profits up 63-cents/share. Closes +5.69% today. Compare this to SanDisk below!

? Altera profits plummet 48%; closes -4.51% today.

? AMD profits worse than expected; closes -0.89% today.

? SanDisk losses a staggering 18.4 TIMES MORE than what it earned during the 1st-Q of 2008; CLOSES UP +13.4% today! Simply beyond amazing.

? Capital One Financial also reported astoundingly bad "profits" of -327%; closes -4.45% but traded higher multiple times during the day.

Here are a few snippets of today's earnings results and other news bullets:

? AAPL beats the Street (again) with 14% earnings gain over last Q. Well done.

? EBay profits fall 17.6%; stock closes +3.4%.

? Boeing announces 47% profit plunge; stock closes +1.8%.

? Continental Airlines posts a 34% INCREASE in losses above last year's 1st-Q losses; stock closes -8.91%.

? Novellus Systems losses a gut-wrenching 560% swinging from a gain to a large negative number; stock closes +3.7%.

? Xilinx profits fall 17.6%; stock closes +1.1%.

? Unlike other banks, Morgan Stanley may have a conscience; it reported a 1st-Q loss rather than using fraudulent gimmick-laden accounting tricks to pull a rabbit from its hat. MS posted ~150% profit plummet which was greeted with a 9% share drop.

? Japan's trade surplus dropped 99% in March!

? GM to bondholders: DROP DEAD! Government Motors told bondholders today that they had better swap their bonds for equity because GM won't be paying the scheduled $1-billion it owes on June 1st.

? Apparently GM has drawn a line in the sand: either the bondholders accept common equity in lieu of their bonds or GM folds its tent - bankruptcy!

? GM will idle ALL of its plants for 9-weeks.

Who needs profits when we have "hope" and TARP?

Having already downed a few power drinks, she turned around, faced him, looked him straight in the eye and said, "Listen here Good Looking; I screw anybody, anytime, anywhere, your place, my place...it doesn't matter to me."

Eyes now wide with interest, he responded, "No kidding. I'm a Wall Street auto analyst too. What firm are you with?"

But who needs profits when we have "hope" and TARP?



Previous Day's Trading Room Results:

Trade Date: 4/22/09

E-Mini S&P Trades*
(before fees and commissions):

1) OTF buy @ 10:00am at 851.25 = +4.25 (1 lot)

2) OTF sell @ 12:30pm at 850.75 = -2.00 (1 lot)

3) Algorithm positions (3)...combined Secret's and Algo total...-1.50


Electronic (YM) Mini-Dow:

1) None today



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