Schaeffer's Daily Market Blog Features: Gannett, CNET Networks, Progressive, Bank of America,...

CINCINNATI -- Among the stocks featured in the October 11 edition of Schaeffer's Market Blog are Gannett (NYSE:GCI), CNET Networks (NASDAQ:CNET), Progressive (NYSE:PGR), Bank of America (NYSE:BAC), and E*Trade Financial (NYSE:ET). Schaeffer's Market Blog is just one of the many free market commentaries

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9:51 AM Gannett Falls Short on Revenue

Gannett (NYSE:GCI) announced this morning that third-quarter earnings declined 12 percent from a year earlier. The firm banked a profit of $261.4 million, or $1.11 per share. Excluding stock compensation expense, GCI would have earned $1.14 per share. Sales during the quarter rose 2.7 percent to $1.91 billion, as political advertising helped boost revenue at the company's 23 television stations. The Street had forecast a profit of $1.11 per share on revenue of $1.94 billion.

In early trading, the stock has backtracked more than three percent, falling below support at its 10-day and 20-day moving averages. However, it appears the security's decline has been stopped by support at its ascending 10-week moving average. The equity has suffered only one weekly close below this trendline since mid-August.

9:59 AM CNET Stumbles

The shares of CNET Networks (NASDAQ:CNET) have plummeted more than eight percent and is testing support at the nine level today. The company slashed its revenue outlook, citing the continuation of weak industry trends. The firm now forecasts third-quarter revenue of $92.8 million, below its previous forecast of $93 million to $96 million. For 2006, the company cut its revenue projection to $376 million to $386 million from $386 million to $403 million. Furthermore, CNET warned that it would not be able to file its quarterly report with the SEC on time as it continues to work on the completion of financial restatements related to an investigation into stock option granting practices.

In other news, CNET reported that a special committee investigating options granting practices found instances of backdating of option grants, option-related accounting errors, and a number of executives bearing varying degrees of responsibilities for the errors. Furthermore, co-founder Shelby Bonnie has resigned as chairman and CEO. The company has named Neil Ashe as its new CEO, effective immediately, and Jarl Mohn as non-executive chairman.

Technically speaking, the security has plunged on the news and is hovering around former support/resistance at the nine level. What's more, today's low has been caught by the stock's 20-week moving average. This intermediate-term trendline has helped to buoy the shares since the beginning of September.

11:03 AM Progressive Climbs on Earnings News

This morning, Progressive (NYSE:PGR) reported that September net income reached $138.1 million, or 18 cents per share, compared to its year-ago levels of $104.6 million, or 13 cents per share. Net premiums written inched one percent lower for the month to $1.05 billion, while net premiums earned rose one percent to $1.09 billion.

Meanwhile, the company announced that third-quarter earnings came in at $409.6 million, or 53 cents per share, beating the Street estimate of 50 cents per share. Net premiums written increased one percent for the quarter to $3.58 billion, while net premiums earned rose two percent to $3.54 billion.

Technically speaking, the stock has bounced off support at its ascending 20-day moving average and broken through short-term resistance at the 25.20 level. At last check, the shares were up more than two percent. However, the equity is facing potential resistance at its 20-month moving average near 26.

11:31 AM BAC Offers Free Online Trades

Online brokerage firms have dropped sharply this morning after Bank of America (NYSE:BAC) confirmed plans for its retail brokerage unit to offer customers free online equity trades, effective immediately. According to the Dow Jones Newswire, E*Trade Financial (NYSE:ET) has said that it has no plans to match BAC's free-trading offer and Fidelity Investments has no brokerage pricing changes to announce.

At last check, ET was down 9.5 percent, TD Ameritrade (AMTD) has plunged more than 10 percent, and Charles Schwab (SCHW) has retreated five percent. The AMEX Securities Broker/Dealer Index (XBD) is down almost four percent this morning, pulled lower not only by the drop in online brokers, but also Legg Mason's (LM) earnings warning.

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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 .