Friday, April 29, 2016 - 4:52am

Some of the stocks that may grab investor focus today are:

Wall Street expects Chevron Corporation (NYSE: CVX) to report a quarterly loss at $0.20 per share on revenue of $21.43 billion. Chevron shares gained 0.27 percent to $102.85 in after-hours trading.

LinkedIn Corp (NYSE: LNKD) reported better-than-expected results for the first quarter and issued a strong earnings forecast for the current quarter. The company posted quarterly EPS of $0.74 and revenue of $861 million, both beating the Street's consensus, by $0.14 and $32.53 million, respectively. LinkedIn shares surged 8.17 percent to $132.98 in the after-hours trading session.

Analysts expect Exxon Mobil Corporation (NYSE: XOM) to report its quarterly earnings at $0.31 per share on revenue of $45.42 billion. Exxon Mobil shares fell 0.44 percent to close at $88.07 yesterday.

Amazon.com, Inc. (NASDAQ: AMZN) reported upbeat results for the first quarter on Thursday. The company posted quarterly EPS of $1.07 and revenue of $29.13 billion, both beating the Street's expectation by $0.49 and $1.15 billion, respectively. Amazon.com shares gained 12.62 percent to $678.00 in the after-hours trading session.

Find out what's going on in today's market and bring any questions you have to Benzinga's PreMarket Prep.

Seagate Technology PLC (NASDAQ: STX) is estimated to report its quarterly earnings at $0.37 per share on revenue of $2.60 billion. Seagate shares gained 0.04 percent to $26.91 in after-hours trading.

Pandora Media (NYSE: P) reported stronger-than-expected results for its first quarter and raised its revenue outlook for the year. Pandora shares climbed 8.27 percent to $10.21 in the after-hours trading session.

Analysts are expecting Phillips 66 (NYSE: PSX) to have earned $0.87 per share on revenue of $22.64 billion in the latest quarter. Phillips 66 shares declined 1.30 percent to close at $87.79 yesterday.

Gilead Sciences, Inc. (NASDAQ: GILD) reported weaker-than-expected results for the first quarter on Thursday. Gilead Sciences shares dropped 5.47 percent to $91.69 in the after-hours trading session.

Wall Street expects Monster Beverage Corporation (NASDAQ: MNST) to report its quarterly earnings at $0.74 per share on revenue of $656.81 million. Monster Beverage shares gained 1.15 percent to $129.31 in after-hours trading.

Expedia Inc (NASDAQ: EXPE) reported a surprise profit for the first quarter on Thursday. The company posted adjusted earnings of $0.09 per share on revenue of $1.9 billion. Expedia shares jumped 10.76 percent to $118.50 in the after-hours trading session.


Friday, April 29, 2016 - 4:07am

Exxon Mobil Corporation (NYSE: XOM) is expected to report its quarterly earnings at $0.31 per share on revenue of $45.42 billion.

Chevron Corporation (NYSE: CVX) is estimated to report a quarterly loss at $0.20 per share on revenue of $21.43 billion.

Seagate Technology PLC (NASDAQ: STX) is projected to report its quarterly earnings at $0.37 per share on revenue of $2.60 billion.

Phillips 66 (NYSE: PSX) is expected to report its quarterly earnings at $0.87 per share on revenue of $22.64 billion.

Public Service Enterprise Group Inc. (NYSE: PEG) is estimated to post its quarterly earnings at $0.88 per share on revenue of $2.69 billion.

Monster Beverage Corporation (NASDAQ: MNST) is projected to report its quarterly earnings at $0.74 per share on revenue of $656.81 million.

VF Corp (NYSE: VFC) is expected to report its quarterly earnings at $0.58 per share on revenue of $2.83 billion.

Moody's Corporation (NYSE: MCO) is estimated to post its quarterly earnings at $1.06 per share on revenue of $852.11 million.

Cooper Tire & Rubber Co (NYSE: CTB) is projected to report its quarterly earnings at $0.97 per share on revenue of $673.18 million.

Royal Caribbean Cruises Ltd (NYSE: RCL) is estimated to report its quarterly earnings at $0.31 per share on revenue of $1.92 billion.

AMC Entertainment Holdings Inc (NYSE: AMC) is expected to report its quarterly earnings at $0.21 per share on revenue of $765.90 million.

Eaton Corporation, PLC (NYSE: ETN) is projected to post its quarterly earnings at $0.85 per share on revenue of $4.77 billion.

Embraer SA (ADR) (NYSE: ERJ) is expected to post its quarterly earnings at $0.33 per share on revenue of $1.26 billion.

Host Hotels and Resorts Inc (NYSE: HST) is projected to post its quarterly earnings at $0.38 per share on revenue of $1.35 billion.

Hill-Rom Holdings, Inc. (NYSE: HRC) is estimated to report its quarterly earnings at $0.70 per share on revenue of $651.80 million.

Cabot Oil & Gas Corporation (NYSE: COG) is expected to report a quarterly loss at $0.14 per share on revenue of $264.38 million.

AstraZeneca plc (ADR) (NYSE: AZN) is estimated to report its quarterly earnings at $0.49 per share on revenue of $5.96 billion.

Praxair, Inc. (NYSE: PX) is expected to post its quarterly earnings at $1.27 per share on revenue of $2.49 billion.

Calpine Corporation (NYSE: CPN) is projected to post a quarterly loss at $0.06 per share on revenue of $1.30 billion.

Aon plc Class A Ordinary Shares (UK) (NYSE: AON) is expected to post its quarterly earnings at $1.33 per share on revenue of $2.88 billion.

Newell Brands Inc (NYSE: NWL) is estimated to post its quarterly earnings at $0.37 per share on revenue of $1.45 billion.

Ingram Micro Inc. (NYSE: IM) is expected to post its quarterly earnings at $0.53 per share on revenue of $10.08 billion.

American Tower Corp (NYSE: AMT) is projected to report its quarterly earnings at $1.30 per share on revenue of $1.29 billion.

Tyco International plc (Ireland) (NYSE: TYC) is estimated to post its quarterly earnings at $0.45 per share on revenue of $2.34 billion.

KBR, Inc. (NYSE: KBR) is projected to report its quarterly earnings at $0.28 per share on revenue of $1.06 billion.

PNM Resources Inc (NYSE: PNM) is expected to post its quarterly earnings at $0.14 per share on revenue of $347.00 million.

LifePoint Health Inc (NASDAQ: LPNT) is projected to report its quarterly earnings at $0.88 per share on revenue of $1.57 billion.

Autoliv Inc. (NYSE: ALV) is estimated to post its quarterly earnings at $1.50 per share on revenue of $2.34 billion.

Ventas, Inc. (NYSE: VTR) is projected to post its quarterly earnings at $1.03 per share on revenue of $833.89 million.

Spirit AeroSystems Holdings, Inc. (NYSE: SPR) is estimated to post its quarterly earnings at $1.07 per share on revenue of $1.69 billion.

Tuesday Morning Corporation (NASDAQ: TUES) is projected to report a quarterly loss at $0.12 per share on revenue of $198.39 million.

TransCanada Corporation (USA) (NYSE: TRP) is estimated to post its quarterly earnings at $0.65 per share on revenue of $2.98 billion.

Legg Mason Inc (NYSE: LM) is expected to post a quarterly loss at $0.47 per share on revenue of $631.88 million.

Shire PLC (ADR) (NASDAQ: SHPG) is estimated to post its quarterly earnings at $3.05 per share on revenue of $1.71 billion.

Edgewell Personal Care Co (NYSE: EPC) is projected to report its quarterly earnings at $1.17 per share on revenue of $607.13 million.

Portland General Electric Company (NYSE: POR) is expected to report its quarterly earnings at $0.61 per share on revenue of $468.56 million.

Pinnacle West Capital Corporation (NYSE: PNW) is estimated to post its quarterly earnings at $0.12 per share on revenue of $692.61 million.

CNH Industrial NV (NYSE: CNHI) is expected to report its quarterly earnings at $0.04 per share on revenue of $5.58 billion.

Novo Nordisk A/S (ADR) (NYSE: NVO) is projected to report its quarterly earnings at $0.55 per share on revenue of $4.14 billion.

Sanofi SA (ADR) (NYSE: SNY) is estimated to post its quarterly earnings at $0.77 per share on revenue of $9.94 billion.

Aaron's, Inc. (NYSE: AAN) is projected to post its quarterly earnings at $0.75 per share on revenue of $865.93 million.


Thursday, April 28, 2016 - 6:17pm

The following are the M&A deals, rumors and chatter circulating on Wall Street for Thursday April 28, 2016:

Comcast's NBCUniversal to Acquire DreamWorks Animation for $41/Share Cash

The Deal:
NBCUniversal, a division of Comcast Corporation (NASDAQ: CMCSA) announced Thursday, the acquisition of DreamWorks Animation (NASDAQ: DWA) for approximately $3.8 billion or $41 per share in cash. The transaction is expected to close by the end of 2016, subject to antitrust approvals.

DreamWorks closed at $39.95 on Thursday, up 24.07%.

Abbott to Acquire St. Jude Medical for $46.75/in Cash, 0.8708 Shares

The Deal:
Abbott (NYSE: ABT) and St. Jude Medical, Inc. (NYSE: STJ) announced Thursday, an agreement, under which Abbott will acquire St. Jude for $46.75 in cash and 0.8708 shares of Abbott common stock. The total consideration is approximately $85 per share.

The transaction is expected to close in Q4 of 2016.

St. Jude Medical closed at $77.79 on Thursday, up 25.57%.

Sanofi Offers to Acquire Medivation for $52.50/Share in Cash

The Offer:
Sanofi (NYSE: SNY) announced Thursday, that it sent a letter to Medivation, Inc., (NASDAQ: MDVN), with a non-binding proposal to acquire Medivation for $52.50 per share in cash. The offer is not contingent on any financing condition.

Medivation confirmed it received the unsolicited, non-binding proposal from Sanofi and said it expects to complete its review of the proposal at a scheduled meeting on Thursday.

Medivation closed at $56.17 on Thursday, up 7.92%.

Qlik Technologies Said to have Received Preliminary Offers from Thoma Bravo, Bain Capital, Permira

The Rumor:
Qlik Technologies Inc. (NASDAQ: QLIK) is said to have received preliminary offers from private equity firms Thoma Bravo, Bain Capital and Permira, while Vista Capital Partners is considering an offer, according to sources as reported by Bloomberg on Thursday. The sources said Qlik is working with Morgan Stanley to find potential buyers.

Spokespersons for Qlik, Thoma Bravo, Bain and Permira declined comment on the report.

Qlik Technologies closed at $29.88 on Thursday, up 3.25%.

AbbVie Acquires Stemcentrx for ~$5.8B in Cash, Stock

The Deal:
AbbVie (NYSE: ABBV) announced Thursday, that it will acquire Stemcentrx for approximately $5.8 billion in cash and stock. Approximately $2.0 billion of the transaction value will be paid in cash, with the balance in stock. Stemcentrx investors are eligible to receive up to $4 billion in cash, based on milestone payments for the achievement of certain regulatory and clinical developments.

The transaction is expected to close in Q2 of 2016.

AbbVie closed at $61.20 on Thursday, up $0.50.

ABBV, ABT, CMCSA, DWA, MDVN, News, QLIK, SNY, STJ, M&A, Movers

Thursday, April 28, 2016 - 5:11pm

All kinds of news can affect the markets making them react and move, sometimes far with momentum and sometimes not.

Eight times a year, the US Federal Open Market Committee Statement and Federal Funds Rate are released and can get the market hopping, making for trade opportunities in the forex markets. Trading forex has unlimited risk, though. There is a strategy with low risk, that is easy to implement and takes advantage of markets making an up move or a down move.

The strategy is an Iron Condor using Nadex spreads expiring at different times in the same day.

The last US FOMC Statement was scheduled for Wednesday, April 26, 2016, at 2:00 PM ET, and there were multiple trade opportunities on multiple Nadex markets.

Below is a chart listing the markets with entry times, expiration times and profit potential for each Iron Condor setup. For example, as early as 11:00 AM ET, one could have entered for 3:00 PM ET expirations. 

fomc4-25-16.png


Thursday, April 28, 2016 - 5:10pm
MIYAZAKI HIROSHI & N73 via Foter.com / CC BY, 2.0

The Bank of Japan kept its interest rates unchanged in a surprise move, as market participants were widely expecting the central bank to introduce further stimulus measures.

Following the decision to stand pat, the question investors are now asking is if the Bank of Japan has lost its credibility.

According to Mohamed El-Erian, Allianz's chief economic advisor, the central bank is not only caught in a trap, but it has indeed lost policy credibility.

"Whatever they do, they get it wrong," El-Erian said during CNBC's "Halftime Report." "They ended up doing too much last time, and they suffered a currency appreciation. They did nothing this time, and they got the same outcome"

Related Link: CNBC's Bob Pisani Discusses Japanese ETFs Following Bank Of Japan's Meeting

He continued that the bank has fallen into a "trap" that is "unfamiliar" in advanced economies – losing policy credibility.

El-Erian further suggested that the Bank of Japan "now straddles the line that separates effective policy and counterproductive measures." He added that the next central bank to cross the hypothetical line is the European Central Bank, followed by China's Central bank – the People's Bank of China, and the U.S. Federal Reserve follows after.

Finally, the famed economist stated that central banks are beginning to show signs of becoming less effective in delving financial outcomes.


Thursday, April 28, 2016 - 5:06pm
jurvetson via Foter.com / CC BY, 2.0

Tesla Motors Inc (NASDAQ: TSLA)’s new Model 3 has logged more than 400,000 global pre-orders in about a month since its highly-anticipated unveiling. China is Tesla’s largest international market, generating $319 million in revenue last year.

However, the Model 3 may not have the same kind of game-changing potential in China that it could have in the United States.

“As the infrastructure for new-energy vehicles (NEVs) is not mature enough, [Chinese] customers will prefer cheaper models,” Automotive Foresight analyst Zhang Yu explained.

Related Link: How Green Is Tesla?

Although the Model 3 is expected to be much more affordable than previous Tesla models, Zhang said it won’t be cheap enough for the Chinese mass market.

“It may manage to draw people’s attention, but Model 3 won’t be able to be a game-changer in the Chinese market,” he concluded.

Tesla’s head of global sales and service Jon McNeill expects China to become the largest electric car market in the world. It remains to be seen just how much of that market Tesla will be able to conquer.

Last quarter, General Motors Company (NYSE: GM) generated $579 million in income and strong growth from its joint ventures in China. GM is set to begin shipping its answer to the Model 3, the Bolt EV, later this year.

Disclosure: The author holds no position in the stocks mentioned.


Thursday, April 28, 2016 - 4:59pm

Friday, April 29, 2016, at 4:30 AM ET, the Bank of England will release various reports including Net Lending to Individuals, M4 Money Supply and Mortgage Approvals. The release of this news can cause the market to react, offering a trading opportunity. Since this news is released early in the morning, which could be considered the middle of the night, one can use a strategy that is tradable during more conducive waking hours, like an Iron Condor using Nadex spreads.

The Iron Condor strategy is ideal because two spreads can be traded, one for each direction.

For this trade and strategy, one can enter as early as 11:00 PM ET the night before on Thursday for 7:00 AM ET expirations.

A spread has a floor and a ceiling that mark a range of a market you can trade long or short. The market can pass the ceiling or the floor, and may or may not pull back to return between the floor the ceiling again. When this happens, the trader doesn't profit or lose past the floor or ceiling, and if it’s before expiration and they haven’t exited, they are still in the trade.


Thursday, April 28, 2016 - 4:59pm

Shares of LinkedIn Corp (NYSE: LNKD) were trading up almost 7 percent in Thursday’s after-hours session, following the announcement of the company’s Q1 results. EPS of $0.74 and revenue of $861 million – up 35 percent year-over-year - both beat the Street’s consensus, by $0.14 and $32.53 million, correspondingly.

The professional networking company guided for second quarter revenue of $885 million to $890 million, on EPS of $0.74 to $0.77, above the Street’s estimate of $0.71. For the  year, management envisions sales of $3.65 billion to $3.7 billion and EPS of $3.30 to $3.40, compared to a consensus of $3.67 billion and $3.19.

The company attributed Q1 strength to increased demand of its hiring services.

  • Hiring revenue surged 27 percent year-over-year, to $502 million
  • Marketing Solutions (its ad business) sales rose 29 percent, to $154 million
  • Premium Subscriptions revenue spiked 22 percent, to $149 million
  • Learning revenue (formerly Lynda.com) came in at $55 million.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.


Thursday, April 28, 2016 - 4:48pm
Public Domain

Shares of Amazon.com, Inc. (NASDAQ: AMZN) are trading up almost 12 percent at $674.66 on Thursday’s after-hours session, following the announcement of the company’s Q1 results. EPS of $1.07 and revenue of $29.13 billion – up 28.2 percent year-over-year - both beat the Street’s expectation by $0.49 and $1.15 billion, respectively.

Operating income was one of the star figures, coming in at $1.1 billion, up from $255 million a year ago. Analysts were modeling operating income of $567 million.

Related Link: Mr. Wonderful: Here's What Matters For Amazon

CEO and founder Jeff Bezos pointed out that Amazon-branded devices were the company’s top-selling (and best-rated) products, partly responsible for the large top and bottom line beats.

"We're building premium products at non-premium prices, and we’re thrilled so many customers are responding to our approach," he stated.

Revenue was also helped by strength in Amazon’s cloud services business (Amazon Web Services or AWS) and an effective Prime loyalty program. AWS revenue rose 63.9 percent to $2.57 billion, making it the fastest-growing segment.

For the ongoing quarter, ending in July, management expects revenue between $28 billion and $30.5 billion, mostly above consensus of $28.14 billion.

E-commerce company ChannelAdvisor estimates the online retailer’s same-store sales rose 16.4 percent year-over-year.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.


Thursday, April 28, 2016 - 4:47pm

In a previously published article, several traders defined the three choices a trader has when trading in order to control risk. In the article, Three Choices In Risk, Size And Stop Management, the three choices were defined as more money, more risk or percentage or having a lower tick value. This article will seek to clarify further those three choices.

First of all, no one is going to tell you it’s okay to take on more risk than is laid out in the rules or guidelines found in the forum.

Taking on more risk is a personal decision that you are going to have to make. Let’s go over what the five percent rule means exactly.

The rule is: Five percent of your account size divided by six. This rule defines SIZE! Therefore, you take your account size, multiply it by five percent and then divide that number by six. This number is the maximum risk that you should take on any trade.

It does not define where your stop loss should be. (This is not a choice.) The stop loss is defined by the chart, based on the system. The markets do not care what your account size is. You must trade based on the chart, not on your account size.

What do you do if five percent divided by six is not enough to put the stop in the proper location? Should you tighten up the stop to equal the five percent divided by six number? NO! This is not an option since you will then not be following the system. (This is not a choice.)

Should you do just enough trades, possibly two or three net losses, until you hit the five percent and keep the stop on the chart? NO! This will ruin the statistics of allowing you to have the opportunity to grind profits out of the market. (This is not a choice.)

By this point, you may be feeling that you are out of choices. You can’t take fewer trades and you can’t set a tighter stop. So what can you do? Well, you have three choices that will still keep the system intact and allow the stats to work out.

  1. 1. Trade a small tick value instrument like a Nadex Spread or Micro Spot Forex.
  2. 2. Save money until you have the proper account size for proper risk management.
  3. 3. Be willing to risk a larger overall percentage of your account knowing that you are lowering your probabilities of success with more risk. Sometimes this works and sometimes it does not work. As your account grows, do not increase your contract size until you can keep the five percent divided by six rule in check.
  4. Remember that the five percent rule also applies to winning. As one experienced trader said, “We trade to live, not live to trade. Stopping at +5% allows us to step away from the computer, control greed and enjoy the rest of our day and actually have a life.”