1:05pm (EST)
The market has remained in a tight range following Monday’s surge as mixed economic news has helped both the bulls and bears today. Headlines from across the pond have been relatively quiet but we are expecting news from Spain could be a pain later in the week.
As far as the numbers here at home, the Case/Shiller Home Price Index fell 0.8% while the Consumer Confidence report came in at 70.2, versus expectations for a reading of 70. The Richmond Fed Manufacturing Index came in with a print of 7, versus expectations for a reading of 18.
As far as stocks, Apollo Group (APOL, $39.78, down $3.42), a stock we love to hate on, is down 8% despite beating Wall Street’s estimates. The company reported a profit of $0.58 a share on revenue of $970 million versus expectations for a profit of $0.38 a share on revenue of $933 million. Overall degreed enrollment at the company’s University of Phoenix “campus” fell 12% while new enrollments were up 1%. However, Apollo Group said new enrollments could fall double-digits percentage wise for the current quarter.
Shares rallied to $58 earlier this year and at the end of February they fell from $51 to $43. We have talked about the company’s shady enrollment practices in the past but shares seem to trade to the beat of a different drum. Perhaps Wall Street is finally seeing the light as a couple of analysts have downgraded the stock today.
Although we were on the sidelines, we wished we would have placed the April 40 puts (APOL120421P00042000, $2.55, up $0.70) on our Watch List. The options are up 70% and could move further on a continued slide in Apollo Group’s stock.
No worries. We still have some nice pin going for our current trades.
As we head to press, the Dow is up 2 points to 13,240 while the S&P 500 is higher by a point to 1,417. The Nasdaq is showing a gain of 6 points to 3,129. We have profits to take on one of our current trades as we are closing HALF positions. The options are up 30% in just one day and the trade could be getting crowded. Subscribers, check the Members Area for the updates.