This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Beware Corporate Sellouts

Meantime, Brian Belski, chief investment strategist at BMO Capital, discussed his firm's call that stocks are "likely to take a breather between now and year end" on Monday, saying it's "unfortunate" this has been interpreted as a sell signal since BMO's year-end target for the S&P 500 is 1425, below the index's close at 1440 on Monday.

"While we expect the market to trade in a fairly narrow range for the next several months, we believe it is inappropriate for investors to approach US equity investing with an 'am I in or am I out' strategy, particularly considering that correlation amongst stocks continues to decline near multiyear lows," he wrote, adding that "plenty of opportunities" still exist in equities for active and disciplined investors.

As for Tuesday's scheduled news, earnings season really starts to pick up in the a.m. with three Dow components releasing results before the opening bell: Coca-Cola (KO - Get Report), Johnson & Johnson (JNJ) and UnitedHealth (UNH).

Goldman Sachs's (GS - Get Report) numbers will hit the tape bright and early as well and Thomson Reuters has tabbed the bank as a likely candidate for an upside surprise. The firm noted its research shows the consensus view has been moving higher since September and that the analysts who have been the most accurate in the past are particularly bullish this time around.

The average analyst estimate is for earnings of $2.12 a share from Goldman in the third quarter on revenue of $7.3 billion but Thomson Reuters said: "Two StarMine-rated five-star analysts are betting Goldman will do even better, with estimates of $2.70 and $2.75. Goldman's Q3 revenue estimates have moved higher since September as well, with the current mean value at $7.301 billion, and the revenue SmartEstimate 1% higher at $7.372."

Thomson's StarMine estimate is looking for a profit of $2.20 a share, roughly 4% above the mean view, and the firm notes a variation of more than 2% in either direction has historically resulted in an earnings surprise in that direction more than 70% of the time.

Other early reporters include Domino's Pizza (DPZ), Forest Laboratories (FRX), Mattel (MAT), Omnicom (OMC), PNC Financial (PNC), State Street (STT), W.W. Grainger (GWW), and Wolverine World Wide (WWW).
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GS $177.01 0.00%
IBM $144.58 0.00%
INTC $30.51 0.00%
ISRG $464.87 0.00%
KO $40.39 0.00%


Chart of I:DJI
DOW 16,472.37 +200.36 1.23%
S&P 500 1,951.36 +27.54 1.43%
NASDAQ 4,707.7750 +80.6910 1.74%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs