Saturday, July 13, 2013

Check The Buzz On Apple - Peak Earnings Season Kicks Off

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    By Sandra Ward

    The banking giant's new CEO vows to wring more profit from its global franchise. Asset sales and a tax break should get him there.

Barron's: The Electronic Investor: Check The Buzz On Apple
Jul 13 at 00:03

 Ever wonder what people are saying about your stocks? Tracking
social-media sentiment about companies has become a regular part of portfolio
management for many traders and investors in the last couple of years. If you're
one of them, or just curious, it's definitely worth looking at a new Website
from Market Prophit., which is free while in beta testing, displays
interpretations of conversations taking place on a variety of social media,
delivering bullish and bearish signals to members. It's an intriguing idea,
particularly because the signals are generated in real time, using quantitative
      Stocks that are the focus of social-media attention, primarily from
Twitter for now, show up on the Top Ten and Bottom Ten lists, where they are
ranked by a sentiment calculation that ranges from +1 to -1. The more positive
the reading, the more bullish the sentiment.
      These lists automatically update about once a minute, or you can refresh
your browser to get an up-to-the-second reading.
      Clicking on a ticker symbol in the list, or entering a ticker symbol in
the search box at the top of the screen, generates an entire page about that
particular stock showing the sentiment reading throughout the trading day as
well as traditional price and volume graphs. The company page also displays the
most recent posts on Twitter about that ticker symbol as well as its
fundamentals. The number of tweets posted per minute is interesting, especially
for much-discussed companies such as Apple (ticker: AAPL) or Google (GOOG).
There's a "word cloud" displayed for each company, which is a visual display of
the nouns and verbs most often used in tweets and other posts on social media.
      Heat maps show, by sector or by exchange, what's hot and what's not at any
given moment, using shades of green and red. There are quite a few sites and
online brokerages that use heat maps to indicate price movement and trading
volume, but this one shows the stocks, by sector, that are being talked about. A
recent sentiment heat map for technology stocks, for example, showed bright
green for Microsoft (MSFT), meaning the talk was positive, and bright red for
BlackBerry (BBRY), suggesting the opposite. The "Buzz" heat map gives an
indication of the most talked-about stocks; those with the most "Buzz" are
displayed in larger boxes.
      You can personalize a dashboard with the stocks you're most interested in,
either by typing in the symbols, or selecting from one of the Top/Bottom Ten
lists by clicking on the appropriate icon. You can also set up alerts for
specific stocks, which will send you an e-mail when triggered. For instance, you
might want to be notified if a stock you just bought has a sudden downturn in
sentiment, which would let you know it's time to consider setting a stop-loss
order. An upturn could provide an opportunity to write a covered call against
one of your current long positions.
      It's free, for now, and provides food for thought as well as some
actionable signals. I'd like to see a way to generate a graph that plots the
Market Prophit sentiment signals against stock prices as well as the ability to
add a sector to the dashboard.
      ETF Database offers traders and analysts numerous ways to slice and dice
the universe of exchange-traded funds. I like its list of the 100 highest
year-to- date ETF returns as an idea generator. Another great tool for those
considering exiting high-cost mutual funds is the mutual-fund-to-ETF-converter,
which suggests ETF alternatives.
      A recently launched tool for the budget-minded is ETFdb's ( list
of the cheapest ETFs, which displays the 100 funds with the lowest expense
ratios. Two Schwab-sponsored ETFs, the Schwab U.S. Broad Market ETF (SCHB) and
the Schwab U.S. Large-Cap ETF (SCHX) top this list with expense ratios of just
0.04% . For contrast, the site also lists the 100 ETFs with the highest expense
      On that list, the "winner" is the Teucrium Sugar fund (CANE), with a 2.32%
expense ratio -- which is a higher expense ratio than most actively managed
mutual funds.



Pretzel Logic at the Fed


Don't view the decline in the VIX as an all-clear sign for stocks. Betting on an earnings bump for CBOE.

Coming up this week: 

     -- Diamond Resorts International is set to price 15.5 million shares at
$16 to $18 each; also on the roster: Rexford Industrial Realty looks to price
16 million shares at $13 to $15 apiece; RetailMeNot, 9.09 million shares at
$20 to $22; and Silver Eagle Acquisition, 25 million shares at $10 each.
      -- A bankruptcy court in New York weighs a $10 million settlement of
litigation in Extended Stay's leveraged buyout.
      -- BB&T, Capital One Financial and Key Corp. report quarterly results.
      Friday 19
      -- G-20 finance ministers, central bank governors begin meetings in
      -- Electrolux meets investors in N.Y.
      Sunday 21
      -- Japan holds parliamentary elections.

Coming Earnings

 Day                    Quarter  Consensus   Year   Ticker
                                  Estimate    Ago
CitiGrp                   2Q       $1.18    $1.00    C
Johnson  &  Johnson       2Q        1.39     1.30    JNJ
Schwab (Charles)          2Q        0.19     0.20    SCHW
Coca-Cola                 2Q        0.63     0.61    KO
Goldman Sachs Grp         2Q        2.82     1.78    GS
Yahoo                     2Q        0.30     0.27    YHOO
CSX                       2Q        0.47     0.49    CSX
Abbott Labs               2Q        0.44     0.43    ABT
Kinder Morgan Holdco      2Q        0.33    -0.15    KMI
American Express          2Q        1.22     1.15    AXP
Int'l Business Mach       2Q        3.77     3.51    IBM
Intel                     2Q        0.39     0.54    INTC
eBay                      2Q        0.63     0.56    EBAY
PNC Fin'l Svcs            2Q        1.63     1.20    PNC
U.S. Bancorp              2Q        0.76     0.73    USB
Bank of America           2Q        0.25     0.17    BAC
Bank of NY Mellon         2Q        0.57     0.57    BK
Morgan Stanley            2Q        0.43     0.29    MS
Google                    2Q       10.79    10.12    GOOG
Philip Morris Intl        2Q        1.41     1.36    PM
Verizon Comm              2Q        0.73     0.64    VZ
Stryker                   2Q        1.03     0.98    SYK
BB & T                    2Q        0.74     0.72    BBT
Johnson Controls          3Q        0.75     0.64    JCI
Baxter Int'l              2Q        1.13     1.12    BAX
Capital One Fin'l         2Q        1.70     0.82    COF
BlackRock                 2Q        3.84     3.10    BLK
Microsoft                 4Q        0.75     0.67    MSFT
Union Pacific             2Q        2.35     2.10    UNP
Danaher                   2Q        0.85     0.81    DHR
UnitedHealth Grp          2Q        1.25     1.27    UNH
Schlumberger              2Q        1.11     1.05    SLB
Honeywell Int'l           2Q        1.21     1.14    HON
General Electric          2Q        0.36     0.38    GE
State Street              2Q        1.19     1.01    STT

(Earnings are diluted and report dates are tentative. All forecasts and
 historical numbers exclude extraordinary items by accounting definitions.)

Source: Thomson First Call

This Weeks Economic Calender:

Day   Time

                                                 Consesus Est  Last Period

M    8:30   June Retail Sales                       0.7%         0.6%
    10:00   May Business Inventories                0.1%         0.3%
T    8:30   June CPI                                0.3%         0.1%
     9:15   June Industrial Production              0.3%         0.0%
     9:15   June Capacity Utilization              77.7%        77.6%
W    8:30   June Housing Starts                   950,000      914,000
Th  10:00   June Leading Indicators                 0.3%         0.1%
    10:00   June Philadelphia Fed Survey            7.8         12.5

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