Fed Chairman Ben Bernanke's comments on the Fed's game plan to revive the economy are not providing its usual lift to the markets. Stocks are beginning to lag a bit after an early uptick. Let's take a look at some potential opportunities.
BullishEarnings Winners - Legg Mason ( LM), UnitedHealth Group ( UNH), Merck ( MRK), Caterpillar ( CAT), TD Ameritrade ( AMTD) and Freeport McMoran ( FCX). Keep your eye especially on CAT to monitor if it can sustain its spike the morning. Eaton Corp ( ETN) worked as a gauge in a similar situation Monday. Analyst Upgrades - International Paper ( IP) and Expedia ( EXPE) are holding on to early gains. Treasuries ( TLT) - As the markets begin to see some red, bonds are looking strong. Monsanto ( MON) is an early winner in today's action.
BearishEarnings Losers - Continental Airlines ( CAL), Zions Bancorp ( ZION), Texas Instruments ( TXN), Lexmark ( LXK), United Technologies ( UTX), Quest Diagnostics ( DGX), Western Union ( WU), Comerica ( CMA), Hudson City Bancorp ( HCBK), Peabody Energy ( BTU), State Street ( STT), Lockheed Martin ( LMT), Coca Cola ( KO), Southwest Airlines ( LUV), AK Steel ( AKS), Sherwin Williams ( SHW), and Blackrock ( BLK) are all lower after posting this morning's results. Downgrade Losers - BB&T ( BBT), Regency Centers ( REG), and Anadarko Petroleum ( APC) are all seeing red after this morning's analyst moves. Transports - Another warning from trucking play Werner Enterprises ( WERN) is pulling down this key sector.
What's the Trade?As I wrote earlier today in the morning post, there are several names I would watch from this morning's earnings reports. Keep checking to see if Caterpillar's early stock strength begins to fade. I also would watch some of this morning's financials that reported (STT, ZION, RF, CMA, BLK). The weakness in those shares are pointing to see some potential selling later today. Also look at the ultrashort play SKF as a long idea to take advantage of, but I wouldn't want to hold it too long. I would make a quick register-ringing play on any rapid spikes higher.
As for other names that are getting into overbought territory, check out Agnico-Eagle Mines ( AEM) and U.S. Steel ( X). If you take a short trade on these two plays, be sure to use sell-stops to protect on any unexpected jumps in their stock prices. Gold ( GLD) and Oil ( USO) are slipping right now, but Treasuries ( TLT) look very strong. Be sure to visit our complete recommended list of the Best Dividend Stocks as well as a detailed explanation of our ratings system.