This morning we're seeing weakness in stocks and some of this weakness is due to the latest earnings warnings from chipmaker Advanced Micro Devices (NYSE:AMD) and data storage giant EMC (NYSE:EMC). Late Thursday, Advanced Micro Devices (AMD) said it expects to earn between $0.03 and $0.05 per diluted share, which is considerably less than Wall Street's estimates for $0.27 per diluted share. On Thursday, shares of AMD finished the session at $28.64 and are currently traded at $24 in the pre-market.
Not to be left out of the profit warning party were shares of EMC (EMC). EMC warned that revenue of around $2 billion and earnings between $0.04 and $0.06 per share would miss Wall Street's estimates of $0.17. Yesterday, shares of EMC finished the regular session at $30.03 and currently trade at $25.29 in the pre-market.
Set for a lower open
Stock futures are lower this morning with S&P futures down 4 points, NASDAQ futures are off 18 points and Dow futures are off 45. Fair value for the S&P 500 for today is $6.82. Computers are set for buying at $8.51 and set for selling at $5.53. Traders that want to monitor these levels can type in the symbol ($PREM) if they're using Q-charts. Other trade stations may use the symbol (@PREM, PREM.X, $SPS, $SPINX). You can get more information on fair value by visiting www.programtrading com.
Fair value for the NASDAQ-100 for today is $14.50
NASDAQ-100 Tracking Stock (QQQ) - 60-minute interval
This morning a bearish trader in the QQQ might want to lower his/her stops to the $43.65 level, which is just above the 50% retracement bracket we've been monitoring. We'd try and let this trade run its course and now be targeting the $42.50 level. A trader with an even greater bearish perspective on things might be targeting the $41.50 level. Those looking to take a profit at the open can perhaps get an early start on the weekend with some cash in their pocket! Good trade!!