-0.69%
-0.80%
There was more of a burning off of the overbought condition yesterday as the bears just can’t muster up enough reasons to get the bulls to sell. Today news out of Europe leads us to believe that Greece and Germany are closer to an agreement on the disposition of Greek debt. That should keep an underlying bid in the market. Furthermore, as it appears that I am not alone in looking for a mild pullback of say 2 – 4%, the contrarian trade of a sustained upside move seems to be winning out.
I am still digesting last evenings’ banquet of restaurant related earnings. Buffalo Wild Wings (BWLD) once again proved that Barron’s is just a sensationalist and bearish publication. I doubt the writer of the bearish article ever visited a Buffalo Wild Wings store. BWLD looks higher by about $10. Panera Bread (PNRA) also put up some nice numbers and appears to have guided to the upside. The stock ran full speed into the earnings release and is likely to see some profit taking. These are stocks that I picked long ago and at significantly lower levels in my newsletter.
Blackrock (BLK) Chairman Larry Fink, for whom I have a great deal of respect is saying to be “all-in” equities given the bond market alternatives.
Today we will get earnings from Ralph Lauren (RL), Time Warner (TWX), Akami (AKAM), CVS Caremark (CVS), Moody’s (MCO), Whole Foods (WFM), News Corp (NWS), Prudential (PRU), and last but not least, Cisco (CSCO). Following up Disney’s (DIS) call last night, as you can see are other media companies. So be sure to check out Steve Birenberg’s commentary in the media space.
I would be a buyer of Ralph Lauren on weakness, if we get that chance.
Cisco will garner all the after hours’ attention. The company consistently better consensus estimates but you never know what will come out of John Chambers’ mouth when he talks on the conference call. Thus, CSCO is a tough stock to game going into the earnings report. I know that Brian Gilmartin and I have a common interest in Whole Foods (WFM). Check out Brian’s thorough Whole Foods preview and Cisco preview on Wall Street All-Stars. Also don’t forget Visa for which will benefit from all the strong retail and restaurant activity.
Other than crude inventories, there is nothing on the economic calendar to get us excited about today.
Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView Asset Management, LLC was long V, AKAM, PNRA and BWLD — although positions can change at any time.
Scott Rothbort is also the publisher of the LakeView Restaurant & Food Chain Report, a newsletter focusing in on food, restaurant and agricultural stocks. You can subscribe at www.restaurantstox.com
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You can email Scott at [email protected]
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