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Emerson Electric (EMR - 72) commented yesterday, in an effort to reassure investors that it is comfortable with the current Street consensus for first-quarter earnings. The company reaffirmed the 83-cents per share estimate and remains optimistic about fiscal year 2001. The shares had recently overcome strong resistance in the 75 range to reach a new high of 79-3/4. Yesterday, however, they fell over four percent to close beneath their 20-day moving average.
With the December options contract expiring today, it will be interesting to watch as shares approach the 70 mark. Although options are not hugely traded on EMR, traders have concentrated their bets on puts and calls at the 70 strike. Currently, there are 1,205 open December 70 calls and 1,307 open December 70 puts.