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PreMarket Prep Recap: Earnings Movers, Finding Sellers In Johnson & Johnson

Joel Elconin

Despite the broad market being in a tight trading range this week, there were a few movers to discuss on today's PreMarket Prep Show.

Rally Continues For Now In Micron

After Wednesday's close, Micron Technology (NYSE: MU) announced inline EPS along with a slight revenue beat. At this time, the Street is not concerned with the guidance.

While being discussed on the show, the issue was hovering at the $55 area with the pre-market high in place off the release at $55.59. That marked the highest level for the issue since March 27 when it peaked at $55.47.

After a higher open, it peaked at $55.23 and had a quick decline to $53.90, which was just above the top of Wednesday's range. Since making that low, it rebounded and is approaching its high for the session.

Investors Looking For More Meat On The Bone From Darden After Q2 Beat

Before the open, Darden Restaurants (NYSE: DRI) announced an EPS beat of a nickel with inline sales. Obviously, the Street was looking for quite a bit more from the company as it's deep in the red in today's session.

It should be noted that immediate price discovery for fair value in the issue after the report took place in the first five minutes of the session. After a $4 lower open, it had a brief rally to $113 and then a wave a sellers engulfed the issue.

On the broadcast, the co-hosts identified $110 area a possible support area, as two of its previous declines -- one on Nov. 12 and the other on Oct. 25 -- both found support just above and below that area. Buyers stepped in ahead of the that as $110.35 stands as the low for the session and has rebounded to the $112 area.

Sniffing Out The Sellers In Johnson & Johnson After Barclays Upgrade

Barclays upgraded Johnson & Johnson (NYSE: JNJ) from Equal-Weight to Overweight and raised the price target to $173. That topped the target Morgan Stanley put on the issue by $3, when it had an upgrade on Wednesday.

Since Johnson & Johnson is traded on the New York Stock Exchange, large open limit orders can be identified through viewing the private feed of the NYSE book. Investors have absorbed the institutional sellers at $144 level and are attempting to do the same with large sellers at $145. At this time, $145 stands as the high for the session, but the issue has stayed bid just under that high, increasing the likelihood it will be taken out.

Ian Winer Joins The Show

Midway through the show, Ian Winer, formerly Managing Director at Wedbush Securities and currently a board member of Bellator Asset Management joined the broadcast.

In a lengthy interview, Ian discussed the factors behind this roaring bull market and the factors that may derail it. He discussed his bullish setups for Netflix (NASDAQ: NFLX) and Boeing (NYSE: BA) along with his negative forecast for Macy's (NYSE: M).

At 8:35 a.m. EST on Friday, Alan Brochstein, the author of the 420 Investor will discuss the prospects for a January rally in the beaten-down marijuana sector.


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