1:20pm (EST)

The bears have pushed the market lower and the major indexes are right where we figured they would be heading into tomorrow’s jobs report.  Economic news was decent before the bell and the futures held up after hearing Initial Claims came in at 422,000, which was down 6,000 from the prior week but better than the expected forecast of 413,000.  Not too bad.  Continuing Claims fell just slightly from 3.712 million to 3.711 million. 

Elsewhere, Factory Orders showed a 1.8% pop versus expectations for an increase of 1.6%.  Labor Costs increased by 0.7%, which is slightly lower than the 0.9% increase that had been penciled in.

Turning to earnings, Joy Global (JOYG, $91.07, up $5.19) is up over 6% after beating Wall Street’s estimates.  The company reported profits of $162 million, or $1.52 a share, versus $120.4 million, or $1.15 a share, in the year-ago period.  Revenues jumped to $1.06 billion, up from $896.2 million.   

The suit-and-ties had expected earnings of $1.35 a share on revenue of $1.03 billion.

Going forward, Joy Global also lifted its full-year forecast and now expects to report profits of $5.30- $5.60 a share on about $4.2 billion in revenue, up from a previous forecast of $5.10- $5.40 and $4.1 billion.

Shares have traded to an intraday high of $91.89 and the 52-week high is $103+.  We figured shares would be on the move and we highlighted the stock as a potential earnings trade in our Weekly Wrap.  Although this publication is a little more conservative, it also serves as homework for those of you who have purchased our options trading course, How to Trade Options on Momentum Stocks

We BOLD the companies each week that we think are going to move 5%-10% (or more) on an earnings announcement.  This week we had Dollar General (DG, $31.99, up $0.18) at $34.66, and Vera Bradley (VRA, $40.94, down $6.72) which was at $50 to start the week making drops.

Dollar General fell over 10% yesterday, and Vera Bradley is getting taken out to the woodshed.  We have a few stocks we are eying today after the bell that could be making moves of 10% or more.

We talk about them in the Members Area but we doubt we take any action on the options we have profiled. 

Our point is, some of our students are hitting massive homerun trades by playing some of these earnings announcements and they are learning to do so by reading our option trading manual and watching our training videos.  Folks, you owe it to yourself to learn how the markets work and we make it easy for you when you purchase our options trading course.  Email us if you have further questions. 

Our current trades have played out well and we waiting until after Friday’s nonfarm payroll numbers and unemployment rate to hit the Street to see where the market could be headed.  We would love to see a blow-off the roof type rally tomorrow and the only other two scenarios are this; flat or lower.

As we head to press, the Dow is down 33 points to 12,257 and has kissed a low of 12,192.  The S&P is lower by 2 points to 1,313 and has dipped to 1,305 but holding 1,300.  The Nasdaq has just turned positive by a point and is at 2,770 after touching a low of 2,759.

We have a lot to cover in our Members Area so let’s get on it.  We will be back in the morning with the BIG update.

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