1:00pm (EST)   

The bulls have gotten off to another good start and appear ready to challenge our short-term targets we discussed in Sunday’s Weekly Wrap.

We mentioned the solid earnings report from Caterpillar (CAT, $71.91, up $3.13) this morning but Whirlpool (WHR, $116.38, up $14.16) absolutely crushed it and knocked their earnings out of the park.


The company announced earnings of $164 million, or $2.13 a share, up from $68 million, or $0.91 a share, in the year earlier period.  Revenue came in at $4.3 billion, up 20%.  Analysts had predicted a profit of $1.33 a share on $3.8 billion in sales. 

The key to Whirlpool’s 14% pop was also the fact that they raised their outlook and now expect earnings of $8.00-$8.50 a share for the full-year, up from its previous outlook of $6.50-$7.00 a share and above the average analyst estimate of $7.08.

Elsewhere, the Treasury Department said it would sell 1.5 million, or about 20%, of the common stock it holds in Citigroup (C, $4.68, down $0.18).  Shares recently traded above $5 and we think Citigroup is a great buy at these levels if you have a two-year time horizon.

The looming financial overhaul regulations could hurt the Financial stocks over the short-term but longer-term many of these names are still undervalued.

As we head to press, the Dow was up 28 points to 11,232 but has traded as high as 11,258.  The S&P 500 is down a point to 1,216 while the Nasdaq is off 3 points to 2,528.

We released a NEW TRADE this morning and we have another one lined up for our 1pm update.  We like the way the market is acting and we want to take advantage of a quick earnings trade.