Schaeffer's Daily Market Blog Features: Walt Disney, American International Group, Boeing,...

CINCINNATI -- Among the stocks featured in the November 10 edition of Schaeffer's Market Blog are Walt Disney (NYSE:DIS), American International Group (NYSE:AIG), Boeing (NYSE:BA), Pacific Sunwear (NASDAQ:PSUN), and Intel (NASDAQ:INTC). 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 .

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10:15 AM Walt Disney "Under the Sea" Despite Strong Earnings

Walt Disney (NYSE:DIS) is proving today that sometimes your best just isn't good enough. The company reported earnings last night of 36 cents per share, topping the Street by three cents per share and besting the whisper number at WhipserNumber.com by two cents per share. But call activity was brisk heading into this report, suggesting that expectations may have been much higher than anyone was letting on. DIS's Schaeffer's put/call open interest ratio (SOIR) had fallen sharply from its November 6 reading of 0.86 in the 74th percentile to today's reading of 0.74 in the 64th percentile. This rise in call open interest can often be an indicator of elevated investor expectations on an earnings report. Meanwhile, the Dow Jones Newswires confirmed yet another potential negative for DIS today, reporting that analysts were disappointed that the company didn't adequately address how it will achieve growth in 2007. At last check, shares of DIS were down nearly four percent on the day.

10:29 AM American International Group Set to Battle the 70 Level

Blue-chip concern American International Group (NYSE:AIG) has jumped more than two percent so far today, after the company posted stellar earnings for the third quarter. For the period, AIG posted a profit of $1.53, excluding items, topping the analyst estimate by 11 cents per share, and edging past its whisper number, an indicator of investor expectations from WhisperNumber.com, by two cents per share. However, there appears to be a roadblock to AIG's advance, as the round-number 70 level has rejected the stock in the early going. This region has long been a thorn in AIG's side, allowing only two weekly closes above it since September 2004. Furthermore, more than 121,000 calls reside at this strike in the front three months of options. With options players focusing heavily on this strike in all three front months in today's activity, a breach of this region is becoming increasingly difficult for the shares going forward.

12:43 PM Boeing Back at it Again

Yesterday, Boeing (NYSE:BA) was selected by the U.S. Air Force to provide the military's next generation of combat search-and-rescue helicopters. According to BA, the contract is worth up to $10 billion. The terms of the contract call for BA to deliver 145 of its HH-47 helicopters, including four test aircraft, through 2019. The first aircraft is scheduled for deployment by 2012 and will gradually replace the military's existing fleet of HH-60G Hawk Combat Search and Rescue helicopters.

In a separate announcement, the Pentagon valued the initial HH-47 order at $712 million. However, the overall program, including maintenance and future orders, could be worth as much as $20 billion depending on future Defense Department funding. The Dow component has advanced more than one percent today thanks to this news. Of course, there are losers in this deal, like Lockheed Martin (LMT) and United Technologies (UTX), which were both edged out by BA.

1:03 PM PacSun Rallies Into Resistance

Pacific Sunwear (NASDAQ:PSUN) shot higher out of the gate today after visiting the earnings confessional last night. In the third quarter, the retailer of trendy apparel banked $8.98 million, or 13 cents per share, down from $40.5 million (54 cents per share) the previous year. The latest figure included a charge of 10 cents per share. Revenue edged fractionally lower during the period to $375.4 million, while same-store sales dropped 6.7 percent. Analysts were expecting per-share results of 25 cents on $380.3 million in sales. For the fourth quarter, PSUN expects to earn 45 to 50 cents per share; the company also plans to open 40 new stores and expand or relocate 35 additional locations during 2007. The news that store growth is supposed to be scaled back cheered Wall Street; Friedman Billings Ramsey upgraded the stock this morning to "outperform."

In midday trading, PSUN shares are higher by nearly nine percent on above-average volume. This move has taken the stock headlong into its overhead 10-month moving average, which has acted as resistance since February.

2:05 PM Intel Increases Investment in Vietnam

Intel (NASDAQ:INTC) has announced that it will more than triple its initial investment in a chip assembly and testing plant the company is building in Vietnam to $1 billion. The stock was up half a percent today at $20.52. I notice that its intraday low of $20.42 appears to coincide with its 10-week moving average. The 20.42 level is one to watch. If INTC breaches this, there could be a downside move.

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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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 .