9:10am (EST)

Home Depot (HD, $26.11) beat Wall Street’s expectations this morning although revenue dropped 7%.  The stock is up $1, or 4%, to $27 in premarket trading.  The company earned $1.12 billion, or $0.66 a share versus $1.2 billion, or $0.71 a share, a year earlier.  The Street had been looking for a profit of $0.59 a share.  The put options from yesterday will suffer but they don’t expire until Friday.

The futures are pointing towards are higher open but are off their highs after a weaker-than-expected housing report.  The Commerce Department reported that construction of new US homes fell 1% in July, missing analysts’ expectations but June’s numbers were revised that showed a 6.5% gain.  In other economic news, wholesale prices fell 0.9% in July.

The Financial stocks are bidding higher but today’s action could get choppy.  Apple (AAPL, $159.59) got a $250 price target from one analyst this morning…wow!

Rick@MomentumOptionsTrading.com