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Market Insights from Schaeffer's Market Blog June 1, 2006

Strategic Insights

— 1 min read

Schaeffer's Market Blog, a daily feature of Schaeffer's Investment Research, provided insightful commentary on major market movers, including Wal-Mart Stores, Intel, Microsoft, Dollar General, and Federated Department Stores. The analysis, presented by Schaeffer's financial analysts and traders, offered timely observations on market activity from an options perspective. Key takeaways from the Market Blog highlighted specific stock movements, sector trends, and technical indicators that influenced investor expectations.

Key Takeaways:

  • Intel (NASDAQ:INTC) displayed weakness, with call volume five times that of put volume, despite the Nasdaq-100 Index (NDX) rising over one percent on the session.
  • Microsoft (NASDAQ:MSFT) calls traded actively, with peak open interest at the 25 strike, potentially exerting options-related resistance at $22.50.
  • Dollar General (NYSE:DG) reported mixed news, with a 1.3% increase in same-store sales, but a decline in earnings per share (EPS) to 15 cents, compared to 20 cents in the prior year.
  • Federated Department Stores (NYSE:FD) posted strong May sales, with a 9.2% increase in same-store sales, exceeding its forecast and leading to a rise in total sales to $2.03 billion.
  • Wal-Mart Stores (NYSE:WMT) was covered in the latest Trader's View podcast, discussing the iShares Lehman 20+ Year Treasury Fund (TLT) and the retailer's own performance.
  • Schaeffer's Equity Scorecard provided a comprehensive view of each stock's technical and fundamental trends, offering a contrarian approach to investing.

Statistics:

  • Intel (NASDAQ:INTC) call volume exceeded put volume by five times.
  • Microsoft (NASDAQ:MSFT) calls saw volume at 18,530 contracts for the June 22.50 call, with 16,865 contracts for the July 22.50 call.
  • Dollar General (NYSE:DG) reported a 1.3% increase in same-store sales, while earnings per share declined to 15 cents.
  • Federated Department Stores (NYSE:FD) saw a 9.2% increase in same-store sales, with total sales rising to $2.03 billion.

Sources:

  • Schaeffer's Market Blog, June 1, 2006
  • Schaeffer's Market Blog archives
  • Trader's View podcast, last week's edition
  • http://www.schaeffersresearch.com
  • Forbes, Barron's (cited as top options website)
  • Bernie Schaeffer's Option Advisor, subscription newsletter

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