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: A Warning Signal

"[W]ith the shares up 20%+ since reporting in late August and its P/E and EBITDA multiples now trading at a premium to 2-year averages, we think some of this outperformance is priced in," UBS said. "The company has the momentum at its side, but would we be more judicious with timing a buying opportunity."

Arguing that the shares have priced in "a beat and a raise," UBS said Williams-Sonoma has to, at the very least, add any upside in the third quarter to its full-year forecast.

"The outlook for the holidays will gain more credibility if WSM was able to generate a nice WS brand comp in 3Q (we are modeling a 1% increase)," the firm added. The shares closed Tuesday at $46.05, up nearly 20% so far in 2012.

Also slated to report on Wednessday are Abercrombie & Fitch (ANF), AGCO Corp. (AG), Bluegreen Corp. (BXG), DryShips (DRYS), FriendFinder Networks (FFN), Hot Topic (HOTT), Limited Brands (LTD), Millipore (MIL), NetApp (NTAP), New Frontier Media (NOOF), Petsmart (PETM), Retalix (RTLX), Spectrum Brands (SPB), Tyco International (TYC), and

Wednesday's economic calendar is pretty packed with the Mortgage Bankers Association's weekly mortgage application activity index at 7 a.m. ET; retail sales for October at 8:30 a.m. ET; the producer price index for October at 8:30 a.m. ET; business inventories for September at 10 a.m. ET; and the release of the minutes of the Oct. 23-24 policy meeting of the Federal Open Market Committee at 2 p.m. ET.

Jim O'Sullivan, chief U.S. economist at High Frequency Economics, expects the impact of Hurricane Sandy to start to show up in the data this week, specifically in tomorrow's retail sales number as well as initial jobless claims on Thursday.

"While we expect the net impact on Q4 GDP to be modest, some of the monthly and weekly data could be affected significantly, with extra weakness at the start of the quarter followed by catch-up later," he said. "The main candidates for a noticeable impact this week are retail sales and jobless claims -- with retail sales down and jobless claims up."

And finally, Cisco (CSCO - Get Report) shares were surging in late trades after the Dow component topped Wall Street's expectations for its latest quarter on both the top and bottom lines.

The networking giant reported non-GAAP earnings of $2.57 billion, or 48 cents a share, on revenue of $11.88 billion, up from a year-ago equivalent profit of $2.32 billion, or 43 cents a share, on revenue of $11.27 billion.

The performance topped the average estimate of analysts polled by Thomson Reuters for earnings of 46 cents per share on revenue of $11.77 billion. On CNBC, CEO John Chambers said the company's gross margin came in at 62.7% for the quarter. The stock was last quoted at $18.10, up 7.42%, on extended volume of 12.24 million, according to

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
3 of 3

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
CSCO $27.55 1.20%
SPLS $12.64 2.20%
WSM $78.70 0.45%
AAPL $110.72 -0.53%
FB $92.40 -0.43%


Chart of I:DJI
DOW 16,912.29 +122.10 0.73%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,791.1520 +42.7910 0.90%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs