Bob honestly does not know what he is talking about most of the time. At best he is plain stupid or at worst he is a tool of hedge funds. I can't even stand to see his mouth move anymore and turn CNBC off when he comes on. There are very few reporters on CNBC that even can think anymore. Most of them simply puppets that hedge funds manipulate to move particular stocks one way or the other.
I can't image that traders wouldn't close out their positions today. It is the end of the week and the end of the month. The whole thing yesterday was very unsettling. It was almost like a computer was stuck on sell. They were just leaning on the stock all day long. I am going to say we get a 34 close. :-)
It is stuff like this that makes people think that the market is rigged. Here are some tidbits I came across when researching this.
1.A trader placed a massive short bet against the SMH. This got things going at the open
2.Some insiders at INTC sold some stock. This is normal after the lockup period but traders reacted.
3.MCHP is announcing at the close today. Remember them? they pre-announced that they were going to come in light on earnings because business was bad the CEO trashed the sector to protect his job. It took down the chip sector then and people are trying to get out in front of a bad report now.
4. Folks mentioned Intersil
5 Tech in general was weak. A very strong dollar was partly to blame.
Bottom like this is a big over-reaction over nothing. It is a lot of noise.
This is just a group take down of semi's. SOXX is getting hit. Just blame SOXX traders for the drop. Really a buying opportunity. This is what is wrong with the market these days. Too many ETF traders.
I view Airlines the way I view most cyclical stocks. They are very hard to hold for a long period of time. Warren Buffet said investing in a airline is a good way to turn 2 million into 1 million. Look at how many have gone bankrupt over the last few decades. Airline have gotten better at managing their costs and with all the consolidation, there are fewer competitors out there. I think over the next couple of years you are probably ok but be careful about holding airlines over a long period of time. They are very cyclical. Out of the Airline stocks that I follow, DAL looks to have a better balance sheet and higher margins so it is the safest of the majors. Out of the discount airlines, LUV is the most solid. I own both DAL and AAL. I view AAL as having the most upside but of course the most risk.
Don't get hung up on AH trading. It is pretty crazy. The conference call started and people will react to everything in that. I don't care if it goes negative before the bell tomorrow. The report was outstanding and if you are investing for anything but the next 5 min, that is what you should be focusing on.
I get that AMZN has to spend money to grow their business but at some point you need to return money to your shareholder otherwise why ever invest in a company. It is like the greater fool theory run amok. "As long as someone is willing to pay more than I payed for the stock...". Management is making fools out of all the people that invest in this company. Seems to be no corporate governance these days. Shareholders exist only to make the board and CEO's fat and lazy.
Padre, not sure why you are bothering. These folks are like long tuned out background noise to me. They have been spreading their pathetic noise for months. Probably since I got in around the 26.5 level.
Ballmer wasn't bad but I feel some folks are badly underestimating how good Satya Nadella is as a CEO, the guy is a total out of the box thinker. He became head of cloud services when they were the laughingstock of the IT world. By the time he was tapped for CEO they hitting 100% annual growth in that unit. They are well on their way to becoming a Cloud powerhouse.
I had a small position in JBLU this a.m. and I blew it out early this morning and bought more AAL shares with the proceeds. Expenses were up a bit and earnings were light. A merger of the two may not be a bad plan because there isn't much overlap. I don't see LUV buying them out because they seem to prefer organic growth over takeovers. I don't think JBLU is a bad place to be but it is going to have some challenges on the expense side mostly debt and employee costs.
MSFT crushed it. As bullish as I am on them already I was astounded:
Beat bottom line number by 5% and Revenues by 10%
Sequential sales growth of MS 360 of 25%
Xbox sales growing at over 100%
Hardware up 10%
Server products up 13%
Cloud revenue up 128%
only weak spot was some consumer licensing was only up slightly.
I find it interesting that this so called news event happened when the Dow was up 300 points but before the close. I really think some hedge funds who were short were getting absolutely crushed and wanted to cover at a better price. I am very suspicious of this "news".
Well the initial earnings report was not bad at all, I really was confused at the tepid response in the stock price. Yes the revs were off a bit and maybe that was what folks were thinking of but their cost were well under control and this is really what I wanted to hear. I dived in and bought more early this a.m. because if cost are well under control and their costs are going to go down a lot more because of lower fuel prices then this seemed to be an awful good situation. If that is what what was said in the conference call then I guess folks had to hear it from AAL first to react but I have been beating that theme for a few days now on this board.
JBLU came in a little light. LUV said October looked a little choppy, so you can translate that to having issues with expenses. I think that comment in the conference call took down the group. LUV is twice as expensive as JBLU on a valuation basis so easy to see why they got hit so hard. LUV is best of breed in the discount air group but it is a bit expensive for my taste.
Seems like their costs went up a bit. They lost some money on hedging fuel. I sold this morning while it was still green. I decided to buy more AAL which doesn't hedge fuel costs.
You know less then you think about the Airline industry. The industry is under consolidation that is why ticket prices have been going up. Shale oil is killing OPEC. Saudi's are going to continue to pump because they want drive shale producers out of business. The market is about 3 million barrels of oil a day over supplied. Guess what, oil will drop into the 70's a barrel soon. I have been loading up on the Trannys and Airlines especially. Gulf airliners are out their but quite honestly they are not going to be a threat to most of the routes that DAL and AAL fly in.