This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Market Preview: Beware Corporate Sellouts

Stocks in this article: INTC IBM KO GS ISRG SPY ^GSPC ^IXIC ^DJI

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), Johnson & Johnson (JNJ) and UnitedHealth (UNH).

Goldman Sachs's (GS) 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

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs