Earnings Countdown: Intel, Yahoo!, CSX, Abbott Labs

NEW YORK (TheStreet) - Today's Crunching the Numbers tables cover three stocks which report quarterly results after the closing bell today and one that reports before the opening bell on Wednesday.

Let's start with individual profiles, then get into the charts on page 3.

Abbott Labs (ABT) ($37.74, down 1.5% YTD): Analysts expect the healthcare giant to report earnings per share of 35 cents before the opening bell on April 16. The stock traded to an all-time intraday high at $40.49 on March 4, then traded as low as $36.65 on April 11, holding its 200-day simple moving average at $36.85.

The weekly chart is negative, with its five-week modified moving average at $38.16. A quarterly value level is $31.44, with a monthly pivot at $37.38 and weekly and semiannual risky levels at $38.19 and $44.91.

The medical sector is the biggest loser so far in April, down 5.8% on the month. The sector is up 2.4% year-to-date and is up 37.2% over the last 12 months.

Abbott has a diversified portfolio of science-based products in diagnostics, devices, nutritionals and generic drugs.

CSX (CSX) ($28.38, down 1.4% YTD): Analysts expect the railroad to report earnings of 38 cents per share after the closing bell on April 15. The stock traded to an all-time intraday high at $29.45 on March 25, then faded to its 50-day SMA at $28.06, with the 200-day SMA at $26.69. The Jan. 15 high at $29.24 and the high on March 25 appear as a potential double-top.

The weekly chart shifts to negative with a weekly close below its five-week MMA at $28.25. A quarterly pivot is $28.06 and monthly and semiannual risky levels at $29.64 and $30.46.

The transportation sector is down 2% so far in April and is down 0.8% year-to-date. However, the sector is up 25.9% over the last 12 months.

CSX provides rail shipping, container-shipping and logistic services in the southeastern U.S.

Up next on page 2: Intel and Yahoo!

Intel (INTC) ($26.56, up 2.3% YTD): Analysts expect the semiconductor giant and Dow component to report earnings of 37 cents a share after the closing bell on April 15. The daily chart shows a potential double-top at $27.12 on Jan. 15 and $27.09 on April 10. The in-between low is $23.50, set on Feb. 5, and temporarily below the 200-day SMA at $24.16.

The weekly chart is positive, with its five-week MMA at $25.62, with the 200-week SMA a major support at $23.05. Monthly and annual value levels are $25.57 and $20.78, with a semiannual pivot at $26.33.

The computer and technology sector is down 4.8% so far in April and is about break-even year-to-date. The sector is up 29.8% over the last 12 months.

Intel is the benchmark for semiconductors, with the PHLX Semiconductor Index up 5.6% year-to-date.

Yahoo! (YHOO) ($33.45, down 17.3% YTD): Analysts expect the Internet portal to report earnings of 29 cents a share after the closing bell on April 15. The stock set a multiyear intraday high at $41.73 on Jan. 8, then traded as low as $32.15 on April 11, which is below its 200-day SMA at $34.01.

The weekly chart is negative, with its five-week MMA at $35.59 and the 200-week SMA at $20.57. Semiannual value levels are $28.42 and $24.28, with weekly and quarterly risky levels at $34.24 and $39.40.

The Internet stocks have taken it on the chin so far this year, with the Internet software industry down 7.3% month-to-date and 6.9% year-to-date. This industry is still up 72.7% over the last 12 months.

Yahoo! is in the Internet services industry, which is down 6% so far in April and up 4.9% year-to-date, and up 26.5% over the last 12 months. This means that reaction to Yahoo! earnings could be quite volatile.

Our technical analysis charts follow on page 3.


Today's first table provides the five major moving averages and stochastic readings. The second table provides earnings estimates, value levels at which to buy on weakness and risky levels at which to sell on strength.

Crunching the Numbers with Richard Suttmeier: Moving Averages & Stochastics

This table provides the technical status for the stocks profiled in today's report.

There are five columns with moving average titles: Five-Week Modified Moving Average, 21-Day Simple Moving Average, 50-Day Simple Moving Average, 200-Day Simple Moving Average and the 200-Week Simple Moving Average.

The column labeled 12x3x3 Weekly Slow Stochastics shows the pattern on each weekly chart with readings from Oversold, Rising, Overbought, Declining or Flat.

Interpretations: (Stocks below a moving average listed in red are below that moving average.)

Five-Week Modified Moving Average (MMA) is one of two indicators that define whether or not a weekly chart profile is positive, neutral or negative. The other is the status of the 12x3x3 weekly slow stochastic.

A stock with a positive technical rating is above its five-week MMA with rising or overbought stochastics.

A stock with a negative technical rating is below its five-week MMA with declining or oversold stochastics.

A stock with a neutral technical rating has a profile that is not positive or negative.

The 200-Week Simple Moving Average (SMA) is considered a long-term technical support or resistance and as a "reversion to the mean" over a rolling three to five year horizon. (Even Apple declined to its 200-week SMA in June 2013.)

The 21-Day Simple Moving Average is a short-term technical support or resistance used by many hedge fund traders to adjust positions. A stock above its 21-day SMA will likely move higher over a rolling three to five day horizon and vice versa.

The 50-Day Simple Moving Average is also a technical support or resistance used by many strategists and commentators in financial TV.

The 200-Day Simple Moving Average is another technical support or resistance and I consider this level as a shorter-term "reversion to the mean" over a rolling six to 12 month horizon. (Even Apple tested or crossed its 200-day SMA in nine of the last 10 years.)


Crunching the Numbers with Richard Suttmeier: Earnings & Where to Buy & Where to Sell

This table presents the EPS estimates including date and before or after the close, and where to buy on weakness and where to sell on strength.

EPS Date is the day the company reports their quarterly results.

EPS Estimate is the earnings per share estimate from Wall Street analysts.

Value Levels, Pivots and Risky Levels are calculated based upon the last nine weekly closes (W), nine monthly closes (M), nine quarterly closes (Q), nine semiannual closes (S) and nine annual closes (A). I have one column for pivots, which is a magnet for the period shown. The columns to the left of the pivots are first and second value levels. The columns to the right of the pivots are first and second risky levels.

Investors who wish to buy a stock should use a good-until-canceled GTC limit order to buy weakness to a value level. Investors who want to sell a stock should use a GTC limit order to sell strength to a risky level.

At the time of publication the author held no positions in any of the stocks mentioned.

Follow @Suttmeier

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff

Richard Suttmeier is the chief market strategist at ValuEngine.com. He has been a professional in the U.S. Capital Markets since 1972, transferring his engineering skills to the trading and investment world.

Suttmeier has an engineering degree from Georgia Tech and a Master of Science degree from Brooklyn Poly. He began his career in the financial services industry in 1972 trading U.S. Treasury securities in the primary dealer community. He became the first long bond trader for Bache in 1978, and formed the Government Bond Department at LF Rothschild in 1981, helping establish that firm as a primary dealer in 1986. This experience gives him the insights to be an expert on monetary policy, which he features in his newsletters, and market commentary.

Suttmeier's industry licenses include, Series 7 and Registered Principal (Series 24). He has been the Chief Market Strategist for ValuEngine.com since 2008 and often appears on financial TV.

Click here for details on Suttmeier's "Buy and Trade" investment strategy.

Richard Suttmeier can be reached at RSuttmeier@Gmail.com

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