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Schaeffer's Daily Market Blog Features: Nokia, Boeing, Intel, IBM, and Emerson

Posted on: Tuesday, 28 November 2006, 15:00 CST

Among the stocks featured in the November 28 edition of Schaeffer's Market Blog are Nokia (NYSE:NOK), Boeing (NYSE:BA), Intel (NASDAQ:INTC), IBM (NYSE:IBM), and Emerson (NYSE:EMR). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an iPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1

Don't forget that many of our observations are available as audio presentations that you can hear on your computer or download from Apple's iTunes Music Store to play on a portable device such as an iPod. To see the full menu of podcasts, please visit http://www.schaeffersresearch.com/commentary/podcasts/

10:07 AM NOK-ing Nokia

Poor pre-market trading turned into poor trading this morning for Nokia (NYSE:NOK), as a 1.2-percent, pre-market loss is now a 1.7-percent loss. The reason for the drop is that the mobile-phone maker cut its operating margin forecast for the next two years after predicting slower growth in the global phone market. NOK's new overall operating margin outlook was cut to 15 percent in the next one to two years from a previous forecast of 17 percent, issued last December.

I would watch NOK to see if it closes below the 20 level and its 20-month moving average. This is a possibility, as the analyst community is rather bullish toward the company. Zacks shows that 12 of the 19 analysts following NOK rate it a "buy" or better. Watch for downgrades, which could serve to push the stock lower.

12:00 PM Boeing Receives an Order

While data is plentiful this morning, finding stocks that are making news is a bit tougher, but not impossible. Let's take a look at aerospace firm Boeing (NYSE:BA), which advanced slightly after Air Berlin announced plans to order 60 planes from the aerospace firm. Air Berlin's chief executive Joachim Hunold stated that the airline is "exploring alternatives" for financing the order and will decide next year whether or not to order and exercise options for 40 airbus A320s. This uncertainty over financing has kept investor enthusiasm in check.

Technically speaking, the stock's 10-month moving average stands as rock-solid support, a role that it has played since May 2003 with merely one hiccup. As the shares struggle with resistance at a new all-time high, watch for this moving average to help push them higher. There is some room for upgrades, but this is the only real attractive development in BA's sentiment backdrop. Of course, why wouldn't the Street be optimistic toward this outstanding performer?

12:50 PM Intel Heads Lower; Call Options Active

Intel (NASDAQ:INTC) call options are quite popular today, which is odd given the stock's run lower over the past few trading sessions. The stock is down a little more than one percent today, yet call volume is nearly five times that of put option volume. Perhaps the extreme one-sided action is suggesting that investors believe strongly the stock will soon continue on its intermediate-term trend higher. This is the kind of optimistic sentiment toward a stock with weak price action that we look for when selecting a candidate for a short position.

1:16 PM IBM Announced New Contract

IBM (NYSE:IBM) announced today that it has signed seven-year, $863 million contract with the Texas Department of Information Resources for data center services. The new agreement, which includes three optional one-year extensions, replaces an existing contract that had been in place since 1996. IBM will establish a new data center in Austin, working through sub-contractor Unisys.

Technically speaking, the stock has dropped through support at its ascending 10-day and 20-day moving averages, which had guided the equity higher since mid-August. However, the shares still have intermediate-term support in the form of their ascending 10-week moving average and former support at the 90 level.

1:37 PM Emerson Electric Warns

It's been a rough couple of sessions for Emerson Electric (NYSE:EMR). Today, the appliance and industrial systems-maker reported that its order growth had slowed to a five-percent three-month trailing average in October from five to 10 percent in September and 10 to 15 percent in August. The firm cited sluggish growth in its appliance and tools division and a drop in orders in its climate technologies division, where its North American air-conditioning business declined against "tough comparisons" in the year-ago period.

The stock is currently flat, but lost more than three percent in trading on Monday after the shares were downgraded by HSBC from "overweight" to "neutral." The equity's decline has also coincided with a rejection at resistance at the 89.50 level. The recent pullback has taken the security below former support at its 10-day and 20-day moving average. However, it appears that EMR has found a layer of support at its ascending 10-week trendline.

For more information on these stocks or any stock in your portfolio, feel free to visit our Schaeffer's Equity Scorecard feature. Click here to read all of today's Market Blog: http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13C&PAGE=1

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About Schaeffer's Investment Research (www.SchaeffersResearch.com)

Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a financial information and trading resources company. It publishes Bernie Schaeffer's Option Advisor, the nation's leading options subscription newsletter. The firm's contrarian approach focuses on stocks with technical and fundamental trends that run counter to investor expectations. The firm's website, http://www.SchaeffersResearch.com, is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Click here for more details about Schaeffer's trading methodology: http://www.SchaeffersResearch.com/method.

Source: Business Wire

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