The market is starting off the session with a triple-digit loss. The Dow is down 109 points to 8905 after a worse-than-expected ADP employment report. The futures were pointing toward a slightly higher start but that early morning sentiment was dashed once the news hit Wall Street. The report which is from a private sector indicated nearly 700,000 jobs were lost in December while many had expected a loss of 500,000 jobs.
The real story though comes Friday when the December U.S. nonfarm payrolls report will be released. Either way, the current theme is that unemployment remains sketchy. If this market has legs, it may be able to work through this but it is a major headwind.
The Nasdaq is notably lower in early action after Intel (INTC, $14.48, down $0.89) fessed up to Wall Street and lowered revenue guidance for the fourth quarter. The company now sees revenue of $8.2 billion versus expectations for $8.7 billion. As a result, the Nasdaq is leading the market lower by 30 points, to 1,620.
Most of the positions we were following have been closed and let’s go ahead and close out the casino trades as some of them have already hit their stops.
Las Vegas Sands (LVS, $7.63, down $0.77) is down 10% and the January 2010 10 calls (LNUAB, $2.80, down $0.50) were stopped out at $3. The average entry price was $2 so most of you made 50%.
MGM Mirage (MGM, $14.75, down $1.21) is slipping 8%. The January 2010 10 calls (YDMAX, $6.00, down $0.70) were profiled at $4.50 and our stop of $6.25 was hit on the way down.
Wynn Resorts (WYNN, $50.50, down $4.78) is also trading lower and the January 2010 40 calls (YPWAH, $17.00, down $1.00) could have been purchased for $10 and our stop is at $15. Don’t wait for it to fall another $2. Go ahead and close the trade. It’s the difference between making 70% or 50%…