CINCINNATI -- Among the stocks featured in the June 19 edition of Schaeffer's Market Blog are CarMax (NYSE:KMX), Exxon Mobil (NYSE:XOM), F5 Networks (NASDAQ:FFIV), Alcoa (NYSE:AA), and 3M Company (NYSE:MMM). Schaeffer's Market Blog is just one of the many free market commentaries written every
Schaeffer's Market Blog for Monday, June 19, 2006:
Below are just a few of today's Market Blog entries. Click here to read all of today's Market Blog. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB1C&PAGE=1
11:50 AM CarMax Thumps Street Estimate
This morning, CarMax (NYSE:KMX) reported that first-quarter earnings climbed to 53 cents per share from 35 cents in the year-earlier period. Excluding items, earnings came in at 54 cents per share, crushing the Street estimate for earnings of 38 cents per share. Sales for the three-month period jumped 19 percent to $1.89 billion, while same-store sales grew 14 percent. Analysts had expected revenue of $1.82 billion. Looking ahead, the firm expects 2007 same-store used unit growth of two to eight percent, and earnings of $1.25 to $1.47 per share, encompassing the Street estimate of $1.36 per share.
The shares gapped higher on the positive news, hitting an intraday high of $35.25. The equity is currently trading above both its 10-week and 20-week moving averages, but is facing former overhead resistance at the 36 level. At last check, the stock was up 8.8 percent.
12:51 PM Optimism Toward Exxon
Option players seem to be jumping in Exxon Mobil (NYSE:XOM) call options, as the current put/call volume ratio of 0.35 equates to call volume of nearly three times that of respective put volume. The stock has been weak recently, and is down nearly two percent today. Such optimism for a bounce could be an indication of further weakness during the near term.
12:54 PM F5 Networks Upgraded
F5 Networks (NASDAQ:FFIV) has soared nearly 4.5 percent this afternoon following an upgrade from Robert W. Baird to "outperform" from "neutral." The group cited evidence that business spending trends have picked up for the lift. The stock has finally pushed through resistance at its declining 20-day moving average, which had capped the shares since early April. However, the equity is facing round-number resistance at the 50 level along with potential resistance in the form of its declining 10-week trendline. FFIV hasn't logged a weekly close above this moving average since the end of March.
3:17 PM Dow Component Breakdown
Alcoa (NYSE:AA) and 3M Company (NYSE:MMM) are among the top losers in the Dow Jones Industrial Average by Dow points. AA has shed 3.6 percent, as it was once again rejected by resistance at its declining 10-day moving average. In fact, the equity has been guided lower by its 10-day and 20-day trendlines since mid-May. MMM's technical picture looks similar to AA's, as it was also halted by resistance at its short-term trendlines. What's more, MMM has breached support at its ascending 20-week moving average.
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