Archive for May, 2005|Monthly archive page

Tiptoeing Into June

Welcome to this week’s edition of The Growth Stock Report!

Traders,

This week’s report will be short due to holiday activities.

Please be sure to checkout our setups listed on our home site.

CLICK HERE

Our current position:

MARKET IN LIMBO


The market’s condition is relatively the same as where we left off last week.

We have more accumulation notched in on the major indexes, though are skeptical due to high volume at the end of rallies often being a sign of the wrong way crowd jumping on too late.

More to come soon!

Have a GREAT weekend, we know we will!

What Was Important About Last Week:

STOCKS:

  • There were no major earnings reports made for the week.

ECONOMY:

  • The Federal Reserve sees signs of stagflation, though believes it to be temporary.
  • The National Association of Realtors said sales of pre-owned homes, the biggest part of the housing market, rose in April to an annualized rate of 7.18 million units. This is the highest on record.
  • New home sales rose 0.2% in April to an annual rate of 1.316 million. This is the highest level ever recorded. New home sales are up 13.3% for the last 12 months
  • Real GDP was revised upward to a 3.5% annualized rate for Q1. The originally report cited a 3.1% gain. Real GDP has grown faster than its 20-year average for eight consecutive quarters.
  • Durable goods orders were up 1.9% in April. Defense orders declined 18.7%, transportation orders increased 8.2%, but computer and electronic product orders fell 5.8%. However, non-defense capital goods orders, excluding aircraft, increased by 1.6% in April and are 9.3% higher than a year ago.
  • Personal income rose 0.7% in April, this is the biggest gain since December.

What We Are Watching For This Week:

Key earnings releases:

  • MONDAY: none
  • TUESDAY:
    Hovnanian Enterprises, Inc. (
    HOV), Ryanair Holdings (RYAAY)
  • WEDNESDAY: Joy Global Inc. (JOYG)
  • THURSDAY: none
  • FRIDAY: none

On the economic front we have potential market movers with:

This Week’s Scans:

BREAKOUTS

READY TO BREAK OUT

BASES

SHORTS

This Week’s Word On Discipline:

“Your own mind is a sacred enclosure into which nothing harmful can enter except by your promotion.” — Ralph Waldo Emerson

DISCLAIMER:
Past Performance Is Not Indicative of Future Returns. All commentary provided
by The Growth Stock Report is for educational purposes only. The analysts and
employees or affiliates of The Growth Stock Report may hold positions in the
stocks or industries discussed here. This information is NOT a recommendation
or solicitation to buy or sell any securities. Your use of this and all information
contained in The Growth Stock Report is governed by the Terms and Conditions
of Use. Opinions expressed are our present opinions only. This material is based
upon information that we consider reliable, but we do not represent that it
is accurate or complete, and that it should be relied upon, as such.

Who We're Taking Orders From

Welcome to this week’s edition of The Growth Stock Report!

Traders,

Just like that we’ve taken off our bear hats and are now wondering what the market will order us to do next.

Our current position:

MARKET IN LIMBO

In this week’s edition you will find:

Where We Are:

Taking a look at the overall markets:

The major indexes came roaring back for the week, erasing what was previously an unarguably bearish scenario to one that could potentially turn bullish.

We’re not bulls just yet.

We need the market to demonstrate itself with quality leadership and institutional support.

We have experienced some sector rotation from tech names into more boring “old economy” type names.

Clearly market players are thinking defensively – which is not by any means bullish.

If we are in a true bull market there will plenty of time for us to identify an appropriate time to commit money.

If we are in a true bear market we need to remember the topping process can take months to play out. Sectors experiencing new money inflows my gather strength and head higher for the time being, but they will ultimately succumb to wherever technology lead us.

Technology sectors such as the semiconductors and the Internet leads the markets.

Technically speaking:

The Dow Industrial Average ($INDU) S&P 500 ($SPX) and Nasdaq ($COMPQ), have successful broken free from their downtrends and have retraced roughly half of the ground lost from highs made in the beginning of the year. All three major indexes are back above their 50-day moving averages.

With two days of accumulation apiece for the major indexes, volume indications tell us this may or may not be more than short covering. It’s not enough for us to believe there is real conviction just yet.

On our lookout for institutional support we have conflicting reports from AMG as they report net cash outflows, and TrimTabs which claims mutual funds took in $1.9 billion.

We now need to watch the volume on down days (assuming we’ll have them). If we see down volume dry up it will give us a sign this market is thought well of.

If we see selling volume pick up it will give us a clue their is little love for this market.

On the leadership front, our list of top stocks in breakout mode were on a tear for the week. This is no doubt a great sign, though we need to see this list expand. Unfortunately we do not have many good names setting up.

Key chart action for the week:


Charts courtesy of
Stockcharts.com.

We are seeing a clear preference for Consumer Staples ($CMR) over Consumer Cyclicals ($CYC). We mentioned the growing divergence here a few weeks ago, and saw real strength the past few days in related industry groups.



The Semiconductor Index ($SOX) put in another good week, though the index is lagging the overall market.

Banks ($BKX) came to life with the rest of the market, though remain technically weak as the sectors 50-day average remains below its 200-day average.

Retail ($RLX) and Internet ($IIX) outperformed the averages, though are also in a state of weakness with their 50-day averages below their 200-day averages.

Healthcare ($HCX) and Drugs ($DRG) were quiet, though are still strong.

Biotech (BTK) is poised to breakout and is looking technically strong .

REIT’s ($DJR) hit new highs for the year. Gads!

Airlines ($XAL) were big movers and have come off off what may be the bottom of a new base.

Defense ($DFX) has been consolidating very nicely for the year and is poised for new highs.

The top 10 industry groups from the 6 month RS screen are:

  1. GROCERY STORES
  2. RESIDENTIAL CONSTRUCTI
  3. DEPARTMENT STORES
  4. CONSUMER SERVICES
  5. SEMICONDUCTOR-SPECIALI
  6. DATA STORAGE DEVICES
  7. LONG-TERM CARE FACILIT
  8. PROPERTY MANAGEMENT
  9. HOSPITALS
  10. HEALTH CARE PLANS

New Highs & Lows: Highs took control as the week progressed, with the Lows not exactly quiet as they continued show a presence.

What We Like:

We are no longer stalking short opportunities.

Because we are not seeing many quality stocks setting up, we’re not looking to buy either.

It’s not easy to sit tight and do nothing, but we’d rather keep our money than be gamblers.

However, we do allocate a small portion of our portfolio to aggressive plays. As mentioned last week we saw opportunity in the airlines ($XAL) and they have rewarded us nicely.

Top fundamental names in the airline group include JetBlue (JBLU) RyanAir (RYYA), and Southwest (LUV).

We are essentially anticipating these stocks to begin carving out the right side of a base.

As always, we use a two tier money-management system where we take 20% profits with the first half of the position, and let the second half ride until conditions tell us to get out. WE ALWAYS TAKE THE SMALL LOSS, which is usually no more than 5%, and often breakeven.

We still like Healthcare, Drugs, and Biotech as a group. Sector ETF’s are an option here.

Action from our open positions:

RyanAir (RYAAY), First Target = 51.06. Original Buy Point = 42.55.

Southwest Airlines (LUV), First Target 18.06. = Original Buy Point = 15.05.

LCA Vision (LCAV), We came just a few pennies short of our First Target of 43.26. Original Buy Point = 36.5.

What Was Important About Last Week:

STOCKS:

  • Lowe’s (LOW) earned 74 cents, up 32% vs. a year ago, with sales rising 14% to $9.91 bil. Same-store sales were below internal targets and profits were 2 cents below expectations.
  • Hewlett-Packard (HPQ) reported first earnings at 33 cents a share for its fiscal second quarter,, up 9% from a year ago. Earnings beat Wall Street forecasts but guidance for the third-quarter earnings is slightly below estimates.
  • Home Depot (HD) , said its profit in the first quarter, was 14% higher than a year ago, beating the consensus estimate by two cents a share.
  • J.C. Penney (JCP) announced its first-quarter profit was four times higher than a year ago as it beat forecasts by two cents.
  • Merrill Lynch upgraded the whole technology sector. “Tech looks better technically,” strategist Steven Milunovich announced, though his call was only for the short term.

ECONOMY:

  • The Empire State Manufacturing Index slid to -11.1 in May from 2.03 in April and 20.18 in March. This is the first contraction in the index since April ’03 (the U.S. invasion of Iraq.)
  • The Treasury Department said that, in March, foreign investment in U.S. securities posted its lowest monthly gain since October 2003.
  • The producer price index came in higher than economists expected.
  • The Fed said industrial production was slowee in April, complimenting other signs of trouble in the factory sector.
  • The consumer price index rose 0.5% in April, on the heels of the biggest monthly gain in energy prices in more than two years. The “core” CPI, which excludes food and energy costs, was unchanged to give the index only its fifth 0.0% reading in 32 years.
  • The Philadelphia Fed’s index offell to its lowest level in 23 months in May.
  • China’s cheap textile exports have inspired protectionist moves by the U.S.

What We Are Watching For This Week:

  • Key earnings releases:
  • MONDAY: Campbell Soup (CPB), Engineered Support Systems (EASI).
  • TUESDAY: Computer Sciences Corporation (CSC), Network Appliance (NTAP). Williams-Sonoma (WSM).
  • WEDNESDAY: AutoZone Inc. (AZO), Michaels Stores (MIK).
  • THURSDAY: Chico’s FAS, Inc. (CHS), Dollar General Corp. (DG), H.J. Heinz Company (HNZ), Patterson Dental (PDCO), Toll Brothers (TOL).
  • FRIDAY: none
  • On the economic front we have potential market movers with:

This Week’s Scans:

BREAKOUTS

READY TO BREAK OUT

BASES

SHORTS

This Week’s Word On Discipline:

“The greater danger for most of us is not that our aim is too high and we miss it, but that it is too low and we reach it.” – Michelangelo

DISCLAIMER:
Past Performance Is Not Indicative of Future Returns. All commentary provided
by The Growth Stock Report is for educational purposes only. The analysts and
employees or affiliates of The Growth Stock Report may hold positions in the
stocks or industries discussed here. This information is NOT a recommendation
or solicitation to buy or sell any securities. Your use of this and all information
contained in The Growth Stock Report is governed by the Terms and Conditions
of Use. Opinions expressed are our present opinions only. This material is based
upon information that we consider reliable, but we do not represent that it
is accurate or complete, and that it should be relied upon, as such.


Suckers

Welcome to this week’s edition of The Growth Stock Report!

Traders,

The markets tend to play havoc on the emotions of most speculators, which is why we refuse to be sucked into the “game”.

Contrasting opinions of “dork analysts” and “talking-head goons” will drive you nuts unless you are using a clear strategy of your own.

Never let others, or even us, sway what you do. We feel this blog is best used for those who do their own homework and wish to collaborate or cross-check their findings with another.

While we make money in the market and feel our research is beneficial, it should be understood that experience carries a lot of weight in having long-term success. It is never wise to let another make important decisions for you.

“Give a man a fish and he will eat for a day, teach him to fish and he will eat for a lifetime.” — Chinese Proverb

Our current position:

MARKET VULNERABLE TO FURTHER SELLING!

In this week’s edition you will find:

Where We Are:

Taking a look at the overall markets:

We’ve seen countless times when the news gets people excited and things set up technically but only to fall apart. Right now tech is demonstrating strength, and while we always want to see leadership from this sector, we also know that it can lead people into thinking things are better than they are.

We have seen little to get excited about in the markets. There is no leadership and no solid evidence of institutional support.

Definitions of what makes a bull or bear market vary from trading desk to trading desk, so without complicating things we see markets as either good or bad. This is a bad market and we are currently in the hunt for shorts.

Shorting is a difficult strategy which requires the utmost patience in timing correctly. Market tops can take months to play out, and identifying just the right stocks and places to execute these trades is not for amateurs.

Technically speaking:

The Dow Industrial Average ($INDU), -1.98%, and S&P 500 ($SPX), -1.48%, lost ground for the week as the Nasdaq ($COMPQ), +0.48%, made a modest gain.

All three major indexes are below their 50-day moving averages, with the Nasdaq showing more bearishness as its 50-day average has now moved below its 200-day average for a “black cross”.

As we gauge whether or not the recent bounce will fall apart or pick up momentum, Volume indications say no. The Dow and S&P 500 were hit with three days of distribution apiece for the week, and while the Nasdaq did put in two days of accumulation, it’s not enough for us to put our bull hats on.

We wanted a Follow Through Day to give us better signal of institutional interest for this market.

Leadership is nowhere to be found.

Key chart action:


Charts courtesy of
Stockcharts.com.

The U.S. Dollar Index ($DCX) busted out of a long-term trendline for a 7-month high, while The Gold Miners Index ($XAU) fell to almost a 1-year low.

The Semiconductor Index ($SOX) looked good for the week, but keep in mind that looks may be deceiving. We see the 4/29 low on the index as pivotal, and if taken out will be a very strong bearish signal.

Banks ($BKX) couldn’t hold it together, and are now below their 20-day average. Not a good sign.


Healthcare ($HCX) and Drugs ($DRG) lost a little ground for the week. We’ve been positive on these sectors, and want to see consolidation with selling pressure dry up to feel better about it.

Biotech (BTK) shot higher for the week before selling off sharply into the close. Just a hunch, but we could see new money put to work here in the weeks to come.

Energy ($IXE) was whacked for the week as the price of crude dropped below the psychological $50 a barrel.

The top 10 industry groups from the 6 month RS screen are:

  1. DEPARTMENT STORES
  2. GROCERY STORES
  3. CONSUMER SERVICES
  4. RESIDENTIAL CONSTRUCTI
  5. LONG-TERM CARE FACILIT
  6. DATA STORAGE DEVICES
  7. SEMICONDUCTOR-SPECIALI
  8. CATV SYSTEMS
  9. HOSPITALS
  10. SEMICONDUCTOR EQUIP MA

New Highs & Lows: Lows continue their edge over the Highs on the NYSE and Nasdaq exchanges.

What We Like:

We are stalking shorting opportunities.

We perceive shorting as extremely aggressive, and don’t recommend it to anyone – but if you must, we have outlined our strategy on our home site.

Despite not seeing the market in good enough shape to buy, we are looking at these areas for potential leadership should a new upsurge emerge:

Healthcare and Drugs have behaved well against a weak market and is poised for more upside. As mentioned earlier it is not technically primed for a breakout just yet. Biotech is also behaving nicely.

This may very well be the final shoe to drop, but Cyclicals (CYC) continue to show relative strength. Think GROCERY STORES and CONSUMER SERVICES. Again, we do not commit money unless we get the signal. We are nowhere near ready to buy here.

Aggressive money may be played in the airlines. It is only in specific situations that we try to pick a bottom, and when doing so ALWAYS use very tight technical stops. This is not a place to focus a significant amount of portfolio money.

The Airline Index (XAL) sold off for the week, but did not take out its pivotal low made 43.27. The news for this sector was just horrible (see What Was Important About Last Week), which makes us think there could be a chance here. We love nothing more than buying when things are at their worst. For a technical trigger, look to buy above the 5/5 high.

Airline stocks with relatively decent fundamentals include RYANAIR HOLDINGS (RYAAY) and SOUTHWEST AIRLINES, (LUV).

Action from our open positions:

As we say goodbye to energy and wait for the next opportunity, we’re happy to have made the best of things while we had it. We took our 20% profits, then got out before experiencing any losses. Not exactly what we wanted, but who are we to argue?

Oil & Gas company Statoil ASA STO bit with the rest of the oil sector. We’re out of it. Original Buy Point = 15.81.

Oil & Gas company XTO Energy XTO was also whacked. Goodbye. Original Buy Point = 27.42.

Health company LCA Vision (LCAV), which develops and operates fixed-site laser vision-correction centers under the brand name LasikPlus, continues to consolidate to our liking. Original Buy Point = 36.5.

What Was Important About Last Week:

STOCKS:

  • Dell (DELL) , the world’s biggest computer maker, reported earnings of 37 cents a share for the first quarter. This is up 28% from a year ago, and in line with Wall Street forecasts. Looking forward to the second quarter, Dell said it expected to earn between 37 and 39 cents a share, with the average analyst expectation of 38 cents a share.
  • Wal-Mart (WMT), the world’s biggest retailer, announced fiscal first quarter profits rose to $2.46 billion, up 14% from a year ago. This is short of Wall Street forecasts. The company also warned that its second-quarter earnings would also disappoint.
  • Cisco’s (CSCO) earnings rose 21% to 23 cents a share for the third-quarter, which was a penny above estimates. Earnings and revenue growth has slowed for the last 3 quarters.
  • Morgan Stanley (MWD) CEO Philip Purcell said that Q2 results would miss projections.
  • Walt Disney (DIS) reported profits for its fiscal second quarter up 30% from a year ago, slightly beating Wall Street forecasts.
  • Toyota (TM), the world’s No. 2 auto maker, announced its revenue rose 7.3% in its fiscal year ending in March to $175 billion, a new record. Annual profit also set a record, rising slightly to about $11 billion.
  • Delta Air Lines (DAL), the No. 3 U.S. airline, said it expected to report a “substantial” loss in the remaining nine months of the year, and also warned it might not have enough cash to cover all its obligations for the year. The company reported a $1.1 billion loss for the first three months of the year and is feared to go bankrupt.
  • United Airlines (UAL), reported it needed to unload its $9.8 billion in pension obligations. This would be the biggest corporate pension default in history.
  • United Parcel Service (UPS), the world’s largest package delivery service , said U.S. volume growth for the second-quarter is “well ahead” of forecasts.

ECONOMY:

  • The U.S. trade deficit fell 9.2% in March to $54.99 billion. This is the biggest drop in three years.
  • The Dollar hit a 7-month high against the euro as it continued on the heels of the trade data.
  • Retail sales rose 1.4% in April vs. A consensus forecast +0.7% for the largest one-month gain since September 2004.
  • Worries about hedge fund losses tied to the debt of General Motors circulated the world markets.
  • The University of Michigan’s consumer sentiment report for early May fell more than analysts expected.
  • The 10-year T-yield fell 5 basis points to 4.12%, the lowest since Feb. 15. Yield spreads between short- and long-end maturities have hit a 4-year low to suggests a economic slow down.
  • Crude oil fell to a low of $47.75 before closing up at $48.67 a barrel.
  • Business Inventories rose 0.4% for March which is less than the 0.8% rise analysts were expecting.

What We Are Watching For This Week:

Key earnings releases:

  • MONDAY: Agilent Technologies Inc. (A), Goldcorp (GG), Lowe’s Companies (LOW),
  • TUESDAY: Abercrombie & Fitch Co. (ANF), Applied Materials (AMAT), Deere & Company (DE), Hewlett-Packard (HPQ), Home Depot Inc (HD), JCPenney (JCP), Staples, Inc. (SPLS)
  • WEDNESDAY: BEA Systems (BEAS), Brocade Communications Systems, Inc. (BRCD)
  • THURSDAY: Gap Inc. (GPS), Marvell Semiconductor, Inc (MRVL),
  • FRIDAY: none

    On the economic front we have potential market movers with:

This Week’s Scans:

BREAKOUTS

READY TO BREAK OUT: BEBE, GILD, VDSI, WDC

BASES

SHORTS

This Week’s Word On Discipline:

” Not to have control over the senses is like sailing in a rudderless ship, bound to break to pieces on coming in contact with the very first rock. ” — Gandhi

DISCLAIMER:
Past Performance Is Not Indicative of Future Returns. All commentary provided
by The Growth Stock Report is for educational purposes only. The analysts and
employees or affiliates of The Growth Stock Report may hold positions in the
stocks or industries discussed here. This information is NOT a recommendation
or solicitation to buy or sell any securities. Your use of this and all information
contained in The Growth Stock Report is governed by the Terms and Conditions
of Use. Opinions expressed are our present opinions only. This material is based
upon information that we consider reliable, but we do not represent that it
is accurate or complete, and that it should be relied upon, as such.

Observing, Not Thinking

Welcome to this week’s edition of The Growth Stock Report!

Traders,

The market continued its bounce last week, though we’ve yet to gather any real evidence that it will mature into something sustainable.

Our current position:

MARKET VULNERABLE TO FURTHER SELLING!

In this week’s edition you will find:

Where We Are:

Taking a look at the overall markets:

Maybe we consolidate to suck in buyers so it can all fall apart again, maybe we turn down again, maybe we rocket higher. The market does what it wants, but what we do is use a cautious and tested approach, not just randomly guess.

Employment data was better than expected, but when it comes to putting our money in the market this doesn’t really mean anything to us. We are not economists, and if anything, we have learned that economists more than often get it wrong. We also believe the market to be a forward looking vehicle that will turn before the economy.

There are many ways to make money in the market, but to us successful trading is about observing, not thinking. Our charts don’t lie.

Technically speaking:

The Dow Industrial Average ($INDU) is finding resistance at its 200-day moving average, the S&P 500 ($SPX) is finding resistance at its 50-day moving average as it trades above its 200-day average, and the Nasdaq ($COMPQ) remains convincingly below its 200-day and 50-day averages though has pierced its downward channel to the upside.

The 200 and 50-day moving averages are important bench marks closely watched by institutional money. It is safe to say the major indexes are in a state of bearishness with much to prove in order to remove that label.

Volume indications haven’t given us any strong signals of late, though we booked some accumulation for the week. We wanted a Follow Through Day to give us better signal of institutional interest for this market.

Consumer Staples (CMR) continue to solidify their dominance over Cyclicals (CYC), which means if this market can gain upside momentum it is a more attractive place to put money.

The U.S. Dollar Index ($DCX) continues to remain below a long-term trend line while The Gold Miners Index ($XAU) is attempting to reverse it’s sell-off.

Key chart action:


Charts courtesy of
Stockcharts.com.

The Semiconductor Index ($SOX) has been sluggish but has put in a reversal on a key trend-line. We’d prefer the semis to take charge and establish some leadership to be more confident of an overall market rally, but will consider this index in a state of reversal until proven otherwise. If the low made two weeks ago is taken out we’ll take this as a strong sell signal.

Banks ($BKX) looked like they were going to firm up going into last week but fell apart. Given the sector’s dominance in market-cap weighting we perceive failure to close strong as a sign of a tired market.


Healthcare ($HCX) and Drugs ($DRG) continue to look good as they notched in 10-month highs.

Biotech (BTK) remains another area with potential as the index put in a convincing move.

The Airline Index (XAL) is testing a long-term trend line and is posing an opportunity for aggressive money. Remember to always obey your stop loss – which in this case is below last week’s low.


Energy ($IXE) continues to consolidate. The way it usually goes is when the media gets tired of talking about energy prices we’ll see the index slowly creep back up, then as new highs are made and the “talking heads” start yapping about it again they will suck in the last buyers before another pullback comes.


Leadership: The top 10 industry groups from the 6 month RS screen are:

  1. DEPARTMENT STORES
  2. RESIDENTIAL CONSTRUCTI
  3. GROCERY STORES
  4. HEALTH CARE PLANS
  5. INTERNET INFO PROVIDER
  6. HOSPITALS
  7. CONSUMER SERVICES
  8. DATA STORAGE DEVICES
  9. LONG-TERM CARE FACILIT
  10. SEMICONDUCTOR-SPECIALI

New Highs & Lows: NYSE Highs took the edge over the Lows for the first time in three weeks, as the Nasdaq Lows held their reign over new Hows. No indication of anything here.

What We Like:

We continue to favor energy. Gauging ideal points to enter the sector while in pullback mode is NOT our forte. We buy high here. So until new buy points can be determined we will just monitor our positions. (See below.)

Healthcare and Drugs remain strong. We have our eye on names from these groups but won’t do a thing until proper buy points become clear.

Cyclicals (CYC) are gathering strength. Think GROCERY STORES and CONSUMER SERVICES.

Action from our open positions:

Oil & Gas company Statoil ASA STO is looking great as it forms a new base. Original Buy Point = 15.81.


Oil & Gas company XTO Energy XTO continues to pull back on lighter volume. We’re still alive here. Original Buy Point = 27.42.

Health company LCA Vision (LCAV), which develops and operates fixed-site laser vision-correction centers under the brand name LasikPlus, is consolidating in an orderly and healthy manner. Original Buy Point = 36.5.

What Was Important About Last Week:

STOCKS:

  • Kirk Kerkorian, billionaire owner of MGM Mirage, announced that he wanted to buy up to 28 million shares of GM (GM) at $31 a share.
  • IBM (IBM) plans to cut between 10,000 and 13,000 jobs world-wide.
  • Intel (INTC) CEO Paul Otellini said he expected the company to achieve double-digit revenue growth this year with strong demand for personal computers.

ECONOMY:

  • The Federal Reserve raised its target for the federal funds rate by 25 bps to 3%. This is the eighth consecutive hike which brings the rate to its highest level since October 2001.
  • The ISM index dropped 1.9 points to 53.3 for the month of April, the 9th drop in 11 weeks and the lowest since July ’03. Economists were looking for little change in the number. Orders and jobs also fell to near-2-year lows, giving evidence the economy is slowing.
  • The Treasury Department said it was considering issuing new 30-year bonds after a three years pause.
  • Nonfarm payrolls jobs grew 274,000 in April, this is above a consensus expectation of a 170,000 gain.
  • The labor force grew by 605,000 to contribute to the unemployment rate which remained at 5.2%. This is equal to its post-recession low.

What We Are Watching For This Week:

Key earnings releases:

  • MONDAY: Alcan Inc. (AL).
  • TUESDAY: Hansen Natural (HANS), The May Department Stores Company (MAY).
  • WEDNESDAY: Walt Disney (DIS).
  • THURSDAY: American Eagle Outfitters Inc (AEOS), Kohl’s (KSS), Target Corporation (TGT), Urban Outfitters (URBN), Wal-Mart Stores Inc. (WMT).
  • FRIDAY: Tiffany & Co. (TIF).

  • On the economic front we have potential market movers with:

This Week’s Scans:

READY TO BREAK OUT: ADEX, CEDC, ISSC, PHLY, TIE, TRMB, UNH.

RECENT BREAKOUTS

BASES

This Week’s Word On Discipline:

“First ask yourself what you will be, then do what you have to.” — Epictetus

DISCLAIMER:
Past Performance Is Not Indicative of Future Returns. All commentary provided
by The Growth Stock Report is for educational purposes only. The analysts and
employees or affiliates of The Growth Stock Report may hold positions in the
stocks or industries discussed here. This information is NOT a recommendation
or solicitation to buy or sell any securities. Your use of this and all information
contained in The Growth Stock Report is governed by the Terms and Conditions
of Use. Opinions expressed are our present opinions only. This material is based
upon information that we consider reliable, but we do not represent that it
is accurate or complete, and that it should be relied upon, as such.