Wal-Mart (WMT) Matches Estimates, Raises Guidance

8:50am (EST)

The bulls started Monday off with a strong showing but the market lost its momentum in late trading after reports swirled Moody’s (MCO, $27.90, up $0.18) might cut U.S. credit ratings. As a result, the dollar gained 0.8% and the news sent treasury prices tumbling as 10-year yields hit a three-month high.

The Dow managed to finish in the green as it gained nearly 10 points to close at 11,201. The index traded to a high of 11,280 (up 88) but gave back nearly all of its winnings by the bell. The close above 11,200 was nice but not convincing.

The S&P 500 plowed past 1,200 and traded up to 1,207 before giving back a little over a point to settle at 1,197. There is support in the 1,170-1,175 area and short-term resistance will be at 1,220.

The Nasdaq slipped 4 points to finish at 2,513 but closed just below its 20-day moving average for the first time since the beginning of September.

The Financial sector was showing some decent gains at one point yesterday (up 1.6%) but they finished mixed. Citigroup (C, $4.32, up $0.03), JPMorgan (JPM, $40.08, up $0.47), Goldman Sachs (GS, $167.22, up $1.39), and Wells Fargo (WFC, $27.65, up $0.11) ended the day with pops, while Bank of America (BAC, $12.10, down $0.02) (a stock we still can’t trust), MasterCard (MA, $242.93, down $0.24) and Visa (V, $76.36, down $0.58) closed with drops.

Turning to earnings, Wal-Mart (WMT, $53.95, down $0.18) reported a profit of $3.44 billion, or $0.95 a share, versus $3.15 billion, or $0.82 a share, in the year ago quarter. Revenue topped $101 billion. Wall Street had forecast earnings of $0.90 a share, on revenue of $102 billion.

Looking forward, Wal-Mart said it now expects 2011 earnings of $4.08-$4.12 a share, up from a previous forecast of $3.95- $4.05 a share. Analysts were expecting a profit of $4.02 a share for next year.

Shares are trading above $54 in pre-market action.

As we head to press, Dow futures are down 44 points to 11,129 while the S&P 500 futures are lower by 4 points to 1,192. The Nasdaq 100 futures are off by 12 points to 2,116.

We have a lot to cover in the Members Area so let’s get to it. Subscribers, check for the current trade updates.

]]>

Comments are closed.

CFTC Disclosure:

GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THESE METHODS MAY HAVE WORKED IN THE PAST, PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE PERFORMANCE. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH Momentum Options Trading, LLC CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CIRCUMSTANCE. THERE IS SUBSTANTIAL RISK IN TRADING. A LOSS INCURRED IN CONNECTION WITH FUTURES TRADING CAN BE SIGNIFICANT. WE MAKE NO CLAIM REGARDING PAST OR FUTURE PERFORMANCE. WE MERELY TRACK EVERY TRADE AND SHOW THE PERFORMANCE OF ALL TRADES THE SYSTEM OR NEWSLETTER PRODUCES. SIMULATED TRADING IS DIFFERENT THAN TRADING REAL MONEY. HYPOTHETICAL RESULTS ARE NOT REAL RESULTS. PLEASE CONTACT YOUR BROKER ABOUT THE RISK OR TRADING STOCKS, OPTIONS OR FUTURES. ALL COMMUNICATIONS ARE OPINIONS NOT ADVICE.

CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.

Blog

Wal-Mart (WMT) Matches Estimates, Raises Guidance

CFTC Disclosure: