#Premarket Prep For Friday - Coming Out Of Earnings Season, Action Is Sideways

Joel Elconin and Dennis Dick covered more retailers and have with the theme this quarter that low-end retailers are getting smashed while high-end retailers have seen all the bullish action.

For the broad market S&P 500, $1,900 is the level to break through, we keep hitting this level and selling off.  Gold remains at its new "magnet" level of $1,290.  Anytime the precious metal steps away from the level, it winds up trading back and has offered many traders a great intra-day trade.  Both the equity index and gold have been range bound as we come out of earnings season.

1-Year Performance in Percent

Hewlett-Packard HPQ released their earnings information early, most likely because of a time-zone error. The data hit at 15:30 Eastern time and promptly knocked 4% off the stock. The report had showed HPQ earnings coming in line with expectation, $0.88 EPS with sales missing at $27.3B actual versus $27.42B estimate. HPQ's low is $31.01 and the level to hold will be $32.44, which is 15 cents above yesterday's VWAP, if the stock is to rally from yesterday's beat-down.  If the stock falls below the $31 handle, the low will be around $29.69.

The Gap GPS beat buy one cent reporting 58 cents on revenue of $3.77B versus the $3.71B estimated.  The response to the release has been muted.  The premarket dip in the equity price to $40.10 is in line with the previous three lows in the lower 40 handles.  Resistance will be at $41.50. 

Aeropostale ARO lost less than expected by analyst reporting a loss of $0.52 in the face of an expected loss of $0.72 on revenues of $359.9 million whereas analysts were expecting a higher number of $409.44 million.  RBC has downgraded the stock and a cheap stock is now even cheaper.  $3.58 is the low this morning and resistance is around $4.30-$4.40.

GameStop GME had a very decent quarter.  Resistance is around $40 and as for the momentum needed to go that high, it's highly unlikely.  $39.58 is the premarket high to watch.  There doesn't appear any support until the stock slides back to the $36 handle.

Foot Locker FL reported a earnings beat of 5.71% coming in for Q1 with $1.11 EPS versus $1.05 est on revenue of $1.87B versus $1.79B est.  Currently Foot Locker is trading its all-time high in premarket trading, up $1.00, and is above its previous high of $49.63 on May 13th of this year.  With the nice round of $50 being so close there is the potential for some nice paper to come into the stock, as is the normal with the round psychological levels.