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by 9/19/2000 11:12 AM
Stocks quoted in this article:
Broker/dealer Goldman Sachs Group (GS – 115-1/2) reported this morning that its third-quarter earnings came in at $1.62 per share, surpassing Street projections by 11 cents per share. In response to this positive earnings surprise, the equity rose as high as 121-1/4 before scaling back and is now down over three points in late-morning action.

With this decline, the shares have breached their ascending 10-week moving average, a trendline that has offered perfect support on a weekly closing basis since early June. GS remains beneath both its 10-day and 20-day moving averages, which appear on the verge of a bearish crossover. Such a technical development could have bearish implications for the security's near-term prospects.

In GS's options pit this morning, 1,000 contracts have crossed the tape on the out-of-the-money October 100 put.


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by 9/19/2000 10:48 AM
Stocks quoted in this article:
After a 34-percent run from its late-July lows to its early-September all-time high, Halliburton (HAL – 50-9/16) has pulled back to test its 10-week moving average.

It appears that a possible strangle has been initiated using the October 55 call and the October 50 put. Both options have seen over 3,000 contracts cross the tape this morning in large block transactions. A strangle involves either the purchase or sale of the equivalent number of call and put options with the same expiration but different strikes. Both of these contracts are among the most active on the CBOE. <
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by 9/19/2000 10:47 AM
Stocks quoted in this article:
This morning, FedEx Corp. (FDX – 38.29) reported fiscal first-quarter earnings of 58 cents per share, four cents ahead of expectations. The company said that "fuel remains a concern." Higher fuel prices pushed fuel costs up $55 million compared to the prior-year period.

The stock is having a subdued response to this news and is currently down fractionally. The shares have been mired in a long-term trading range between 33 and 47 since early August 1999.

Perhaps behind the muted response to the company's positive earnings surprise is overly high expectations. Schaeffer's put/call open interest ratio (SOIR) on FDX is showing high levels of optimism with a low reading of 0.32. This means that call open interest outweighs put open interest by a margin of over three to one for options expiring within the next three months. For more information on SOIR, please visit Schaeffer's Daily Sentiment. <
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by 9/19/2000 10:05 AM
Stocks quoted in this article:
This morning, online bookseller barnesandnoble.com (BNBN – 6-1/16) announced that it will be the primary bookseller for Yahoo!'s (YHOO – 107) online service. YHOO also said that it will develop an Internet service for Barnes & Noble (BKS – 19-7/8) customers.

BNBN investors have shown their approval of today's news, as the stock has raced nearly 33 percent higher so far this morning. This advance has carried the shares to their top intraday mark since July 24 and above their 10-day and 20-day moving averages. However, the security has yet to overcome its 20-week moving average, a trendline BNBN hasn't finished a week bove since late November.

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by 9/19/2000 10:02 AM
Stocks quoted in this article:
Papa John's International (PZZA – 22-3/8) operates around 2,400 restaurants nationally, making it the third-largest pizza chain in America. Last night, PZZA officials said that 2001 earnings should come in between $2.40 and $2.50 per share, below the First Call consensus estimate of $2.57. Additionally, the firm announced plans to open between 340 and 360 new locations next year. Same-store sales for 2001 should inch up one to three percent.

PZZA has been in a downward trend since mid-March, sloughing off 35 percent since a short-term peak reached on March 16. Despite last night's announcement, the shares are unchanged in early morning trading. <
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