Market Insights from Schaeffer's Market Blog on May 2, 2006

Strategic Insights -

Stocks discussed in today's Market Blog by Schaeffer's financial analysts include Visteon (VC), Ford Motor Company (F), Verizon Communications (VZ), Amgen (AMGN), and Canadian Pacific Railway (CP). The Market Blog provides quick insights to the day's most notable market activity from an options perspective.

Key Takeaways:

  • Visteon (VC) is nearly 23% higher in early trading after posting first-quarter earnings of two cents per share ($3 million), compared to a loss of $1.30 per share ($163 million) a year earlier. Sales for the period fell roughly 41% to $2.97 billion.
  • Ford Motor Company (F) is preparing to cut the sticker prices on 2007 models, accompanied with increased standard options on vehicles. The report did not give many details on the price cuts but noted that F will drop the manufacturer's suggested retail price on its Ranger pickup super cab models and Escape Hybrid SUV by $1,000.
  • Verizon Communications (VZ) reported a profit of $1.6 billion, or 56 cents per share, down from $1.8 billion, or 63 cents, a year ago. Revenue showed a 25% jump to $22.7 billion from $18.2 billion a year ago.
  • Amgen (AMGN) is down over one percent, despite call option volume nearly three times the stock's average daily call volume. This optimism toward a stock that is so weak technically could be a sign of further downside in the near-term.
  • Railroads, coal, and heavy machinery are doing well, with Canadian Pacific Railway (CP) up 1.77%, CSX (CSX) up 1.32%, and Canadian National Railway (CNI) up 1.42%.

Specific names, programs, initiatives, or stories mentioned in the text include Bernard Schaeffer, Schaeffer's Market Blog, Schaeffer's Investment Research, Ford Motor Company's "Bold Moves" program, Verizon Communications' profit and revenue reports, Amgen's weak technical trends, and railroads' strong performance.

Statistics:

  • Visteon (VC) shares are up nearly 23% in early trading.
  • Ford Motor Company (F) reported a 6.6% drop in April sales.
  • Verizon Communications (VZ) reported a 25% jump in revenue to $22.7 billion from $18.2 billion a year ago.
  • Amgen (AMGN) call option volume is nearly three times the stock's average daily call volume.
  • Railroads are up 1.77% to 1.42% with Canadian Pacific Railway (CP) up 1.77%, CSX (CSX) up 1.32%, and Canadian National Railway (CNI) up 1.42%.

Sources:

  • Schaeffer's Market Blog, May 2, 2006
  • Schaeffer's Investment Research (www.SchaeffersResearch.com)
  • The Detroit News
  • Forbes
  • Barron's