Wednesday's Earnings Watch

There’s quite a few big-time names reporting today and you can expect they will have an impact on the market.

Amazon.com, (AMZN, $79.60, down $0.58). After beating estimates for a few quarters on its way to $100 a share, Amazon could face an uphill battle if earnings are only in-line.

Anheuser-Busch Companies (BUD, $47.40, down $0.77). The King of Beers could disappoint Wall Street as profits might come up short with rising commodity costs. What’s good for Potash is bad for Anheuser-Bush as the price of corn and other commodities used to make beer have just exploded over the past 12 months.

Apple (APPL, $160.20, down $7.96). By far, Apple will be the most closely watched stock. Look for stronger Mac sales and a drop in iPods sold. Of course, Apple is famous for pulling a rabbit out of the hat so anything is possible here.

Chipotle (CMG, $113.15, down $5.13). The burrito chain could either surprise Wall Street or say that rising food costs or other factors had an affect on their bottom line. It’s a coin-flip.

Delta Air Lines (DAL, $6.80, down $1.40). If it couldn’t get any worse, Delta drops 17% the day before it reports earnings. And get this, it could cost us more to fly in the future…one Airline CEO recently stated that they would have to up prices 15%-20% just to break even!

F5 Networks (FFIV, $21.31, down $0.62). This once high-flier is challenging its 52-week low of $17.70 after trading to a 52-week high of $46.94.

Philip Morris International (PM, $50.07, down $0.56). Barron’s likes the U.S. tobacco stocks.

Qualcomm (QCOM, $41.55, down $1.07). Does anyone remember the analyst who gave the stock a $1,000 price target back in 1999? Was it Prince? No, it was actually a broker at PaineWebber.

United Parcel Service (UPS, $71.90, down $0.62). What can Brown do for Wall Street is the big question today.

Rick Rouse
Rick@OptionsMentoring.com

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