Daily Wrap
(Update officially published to site 3/12/13)
DJIA +50.22 (+0.35%) to 14,447.29; S&P 500 +5.04 (+0.32%) to 1,556.22; NASDAQ +8.50 (+0.26%) to 3,252.87
Today the market continued along its climb even amidst some negative economic data abroad. We had no major US economic news or data on the table so anything could have driven the move but with a lack of true catalyst it seemed the market was happy to continue along it’s recent path of higher. We still have the negative divergence on the MACD but as I have noted before, negative divergence is not a signal itself and only a condition to track. In the meantime the trend is your friend.
Stock of the day is a stock that was listed on my Watch List and I closed a piece last week and finally closed the last piece today as we moved toward my target, Citigroup (C). One of the main catalysts I saw for C’s move was a phenomenal upgrade at UBS where they went from Neutral to Buy and from a $43 price target to $62! Even with UBS’ optimism, I felt it was prudent to remove the idea but this is definitely a name to keep on the radar and if UBS is correct there is 50% more left in the name.
Also in the news today was Dell (DELL) which closed slightly after a report that Icahn Enterprises (i.e. Carl Icahn) entered into a confidentiality agreement with DELL in order to review the books. It is unclear if DELL is doing this because they are open to a suggestion like the one Mr. Icahn recently proposed with a special dividend or if they feel their path is the best and that this will provide it to Mr. Icahn. Regardless there will likely be some continued speculation and focus as this unfolds.
Dick’s Sporting Goods (DKS) lost over 10% today after the company not only missed Q4 earnings and revenue estimates but they also guided below Wall Street expectations. DKS actually might ultimately be a long candidate on this drop and I will be watching how this acts the next few days to see if there is an opportunity to use the drop as an entry.
Blackberry (BBRY) saw increased volume and an over 14% move higher after an announcement that AT&T (T) will carry the company’s new Z10 smartphone starting late March. I am really interested to get my hands on this device. While it will have no where even relatively close to the app market as Android and iOS, I have read some interesting reviews if this is a hit this could help BBRY remain viable and also could fuel speculation and true interest in BBRY as a takeover candidate.
The following noteworthy companies are scheduled to report earnings before tomorrow’s open: AMED, BONT, COST, KERX, RAVN, SYPR