Schaeffer's Options Center
Sponsored by:
Schaeffer's Daily Option Blog

by 3/2/2001 9:49 AM
Stocks quoted in this article:
Last night, the nation's second-largest software seller, Oracle (ORCL 16-5/8), changed its guidance from the rosy report it had issued on February 13. Expected sales for this quarter have not materialized, leaving the company with a projection of earnings per share in the area of 10 cents, which is two cents below estimates.

For some companies, two cents would not make a huge difference. This is where investor expectations come into play. Expectations were so high for ORCL that this news has devastated the share price. ORCL traded as low as 25 percent off last night's closing price after hours and opened down about five points morning.

The announcement has also had a great fallout effect on its major competitor, Siebel Systems (SEBL 36-3/48), trading down several dollars on the news. SEBL has already reached a new 52-week low this morning, for the second day in a row. Other enterprise software providers may also feel ORCL's pain today.
permalink


by 3/2/2001 9:42 AM
Stocks quoted in this article:
Dow component SBC Communications (SBC 45.50) has now warned that it may miss earnings estimates for this quarter. The nation's second-largest phone company blamed the shortfall on additional expenses to upgrade Ameritech facilities. It now projects earnings for the quarter to fall into the 50-53 cents per share range, rather than the previously estimated 59 cents.

Last year SBC earned 56 cents during the same quarter, but it has gone through major business changes since then. The company expects to earn about 60 cents per quarter for the following three quarters, finishing the year with an 11-14-percent earnings growth rate on an eight-to-nine percent revenue growth rate. SBC expects capital expenditures to remain about even with last year's spending.
permalink


by 3/2/2001 9:09 AM
Stocks quoted in this article:
The PHLX Semiconductor Index (.SOX - 570.76) moved to a new 52-week low in yesterday's trading, but was able to stage a late-day comeback to avoid closing at a new 52-week low. The .SOX may be set to test these lows once again as the market grapples with an earnings warning from tech heavyweight Oracle (ORCL - 21-3/8). Intermediate-term resistance for the index stands at approximately 650, which the site of the overhead 20-week moving average. Even on the January rally in tech stocks, the index was not able to manage a weekly close above this trendline. The last weekly close by the .SOX above its 20-week moving average was in September.<
permalink

by 3/2/2001 9:08 AM
Stocks quoted in this article:
Rite Aid (RAD - 5.44) extended its winning streak to four sessions yesterday, finishing the day up 22 cents. The stock has now doubled in the year 2001, benefitting from a steady trend higher that has been supported by the stock's 20-day moving average. The shares are now trading at their highest level since mid-July. The April 5 call saw heavy activity Thursday, as nearly 9,000 contracts change hands with the large majority of the volume translating into new open interest.
permalink

by 3/1/2001 10:44 AM
Stocks quoted in this article:
The U.S. National Association of Purchasing Managers (NAPM) February manufacturing business index came in at 41.9, slightly ahead of the January figure of 41.2 and slightly below the Street's forecast of 42. This figure shows a deceleration of the recent decline in the manufacturing sector.

Additionally, the Prices Paid Index came in contradictory to what yesterday's Chicago APM portrayed. The current report showed a drop to 58.1, compared to January's 65.7 reading. This indicates that pricing pressure may be easing. Remember, any reading below 50 is indicative of contraction within the sector, while readings above 50 are indicative of growth.

Both the Nasdaq and the S&P 500 March futures contracts moved higher on the news, while the March 30-year treasury future contract moved lower. In early trading today, the 30-year future contract was nearing its high of 106'20 set on January 3.
permalink


Featured Brokers
ADVERTISEMENT
Unusual Option Volume
Option Flow
ADVERTISEMENT
ADVERTISEMENT
Most Active Stocks
Most Active Option Strikes
Largest Open Interest

Partner Center

© 2015 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.