Schaeffer's Daily Market Blog Features: Hewlett-Packard, Nymex Holdings, Johnson & Johnson,...

CINCINNATI -- Among the stocks featured in the November 17 edition of Schaeffer's Market Blog are Hewlett-Packard (NYSE:HPQ), Nymex Holdings (NYSE:NMX), Johnson & Johnson (NYSE:JNJ), Conor (NASDAQ:CONR), and Gap (NYSE:GPS). 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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10:30 AM Hewlett-Packard Slips on SEC Investigation

After the close last night, Hewlett-Packard (NYSE:HPQ) reported fourth-quarter earnings, excluding items, of 68 cents per share, topping the Street's estimate by four cents per share. However, the shares have slipped about two percent so far today after the Securities and Exchange Commission launched a formal inquiry into the company's boardroom "pretexting" scandal. There appears to be a bit of technical support for HPQ today, with today's decline halting near support at the stock's 20-day moving average. On the sentiment front, however, there is little sideline money available to turn things around. HPQ's Schaeffer's put/call open interest ratio (SOIR) of 0.75 ranks below 75 percent of those taken during the past year, short interest would take about two days to buy back, and 12 of the 19 analysts covering HPQ rate the shares a "buy" or better. Depending on the outcome of today's SEC investigation, things could get worse for the shares before they get better.

1:57 PM Talk About a Good First Day

One hundred and thirty years of privacy came to an end this morning, as Nymex Holdings (NYSE:NMX) debuted to the Street today. NMX vaulted more than 135 percent today, chiseling its name into the record books as the top-performing U.S. initial public offering (IPO) since 2000. The appeal of NMX is its role in the energy and metals businesses as well as its status as a major player in the global consolidation of financial marketplaces.

NMX Chairman Richard Schaeffer stated that the company's IPO has "wildly exceeded our expectations." It's not like the current market conditions weren't helpful, as the Dow continues to set new records, making this an ideal time for an IPO. In January, Chipotle Mexican Grill (CMG) gained 100 percent, and Transmeta (TMTA) advanced 115 percent in its late-2000 debut.

2:14 PM Flight of the CONR

This morning, Johnson & Johnson (NYSE:JNJ) announced that it will pay $33.50 per share for Conor (NASDAQ:CONR). The reported price represents a 22-percent premium to the California-based stent-developer's closing price yesterday. JNJ's Chairman for Cardiovascular Devices and Diagnostics, Nicholas Valeriani, stated that the acquisition "reaffirms our strong commitment to patients with cardiovascular disease and the physicians who treat them." Valeriani also noted that bringing CONR into the fold positions JNJ "to lead the development of next generation technologies aimed at advancing the standard of care in the treatment of coronary artery disease."

As a result of the purchase, JNJ will gain the drug-delivery technology from CONR's CoStar Stent System, which is currently sold outside of the United States. The Dow component expects to incur an after-tax charge of $600 million and believes that the deal will "modestly" cut per-share earnings in 2007. CONR will operate as a component of JNJ's Cordis franchise, which focuses on drug-eluting stents.

In today's market action, JNJ has advanced nearly one percent. As to be expected, CONR's move is much more pronounced. The company shot more than 18-percent higher following today's news.

2:37 PM Gap's Earnings Are In

Gap (NYSE:GPS) announced that its third-quarter earnings dropped nearly 11 percent after the bell yesterday. During the quarter, the fashionista earned 23 cents per share while total sales were flat at $3.86 billion. In addition, GPS announced that same-store sales dropped five percent. The retailer also cut its full-year earnings forecast, as it is now looking for cash flow of "at least" $800 million.

Analysts and investors were paying attention to GPS's results to see if its aggressive marketing plans were helping make any headway in the market. Furthermore, GPS has made efforts to make large gains in fashion and basics, all the while increasing its bodywear and show sales at its stores.

After dropping at the start of trading, GPS has advanced nearly one percent today. Technically, it seems that the shares have found a measure of support in the form of their 10-week moving average. The stock is consolidating into this trendline, which is pointed directly higher. Let's not get too excited here though, the 20 level looms overhead to provide resistance. In the past, this region provided support, and prior levels of support will often switch roles and act as resistance.

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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About Schaeffer's Investment Research (www.SchaeffersResearch.com)

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 .