Tag Archives: CAT

Fridays Vital Data: General Electric Company (GE), International Business Machines Corp. (IBM) an

U.S. stock futures are trading higher heading into the open, as Wall Street brushes off concerns about a government shutdown. The House provided a bit of confidence yesterday, after passing a one-month spending bill, but the measure has little support in the Senate.

stock market todayThe economic calendar is thin this morning, with only January consumer confidence data on tap.

Heading into the open, Dow Jones Industrial Average futures are up 0.11%, S&P 500 futures have added 0.08% and Nasdaq-100 futures have gained 0.26%.

Turning to the options pits, volume remained above average but dipped well below the recent flurry of activity. Overall, about 21.1 million calls and 16.7 million puts changed hands. The CBOE single-session equity put/call volume ratio rebounded to 0.56. The 10-day moving average held at 0.55.

Taking a closer look at yesterday’s options activity, General Electric Company (NYSE:GE) continued to draw heavy put volume amid a four-day losing streak. Meanwhile, International Business Machines Corp. (NYSE:IBM) call traders are being burned this morning by a post-earnings selloff. Finally, Caterpillar Inc. (NYSE:CAT) is trading ex-dividend today with third-quarter earnings on tap next week.

Friday’s Vital Options Data: General Electric Company (GE), International Business Machines Corporation (IBM) and Caterpillar Inc. (CAT)investorplace.com/wp-content/uploads/2018/01/01-19-2018-Top-Ten-Options-300×137.png 300w, investorplace.com/wp-content/uploads/2018/01/01-19-2018-Top-Ten-Options-65×30.png 65w, investorplace.com/wp-content/uploads/2018/01/01-19-2018-Top-Ten-Options-200×91.png 200w, investorplace.com/wp-content/uploads/2018/01/01-19-2018-Top-Ten-Options-400×182.png 400w, investorplace.com/wp-content/uploads/2018/01/01-19-2018-Top-Ten-Options-116×53.png 116w, investorplace.com/wp-content/uploads/2018/01/01-19-2018-Top-Ten-Options-100×46.png 100w,https://investorplace.com/wp-content/uploads/2018/01/01-19-2018-Top-Ten-Options-110×50.png 110w, investorplace.com/wp-content/uploads/2018/01/01-19-2018-Top-Ten-Options-78×36.png 78w, investorplace.com/wp-content/uploads/2018/01/01-19-2018-Top-Ten-Options-170×77.png 170w” sizes=”(max-width: 547px) 100vw, 547px” />

General Electric Company (GE)

GE stock is looking to bounce back this morning after suffering its largest four-day losing streak in eight years. GE is down more than 11% since announcing more than $11 billion in charges due to its long-term care insurance portfolio and the new U.S. tax laws.

The decline has sparked considerable options speculation for GE stock, which hasn’t left the top ten most actives list all week. On Thursday, volume rose to over 457,000 contracts, with calls managing to scrape together 52% of the day’s take.

Most of these appear to be closeouts, however, as the February put/call open interest ratio has risen from 0.58 on Wednesday to 0.67 today. However, at least on large block of calls appears to have been purchased yesterday.

According to Trade-Alert.com, a block of 10,480 March $19 calls crossed traded yesterday at 21 cents, or $21 per contract. The price was listed near the bottom of the March $19 call strike price range, but implieds rose nearly 1% when the trade crossed, indicating a buy to open.

International Business Machines Corp. (IBM)

IBM stock is trading more than 3% lower heading into the open as investors fret over the company’s cautious 2018 guidance. Ironically, IBM posted it’s first rise in revenue in five years. Adjusted fourth-quarter earnings came in at $5.18 per share as revenue rose to $22.54 billion. Analysts were expecting earnings of $5.17 a share on revenue of $22.05 billion.

However, IBM expects 2018 operating profits of $13.80 per share, below the consensus estimate of $13.92. “Tax will be a headwind in 2018 year-to-year,” said CFO James Kavanaugh.

Options traders appear to have been caught flat footed. Volume rose to 214,000 contracts yesterday, with calls making up 71% of the day’s take. What’s more, the February put/call OI ratio arrives at 0.71 after having declined from a reading north of 0.80 last month.

Judging from February OI levels, IBM could be stuck between $160 and $170 through February expiration. Both the $160 strike and the $170 strike are home to more than 8,000 contracts in February, with only the deep out-of-the-money $230 strike sporting a higher level of open interest (10,000 contracts).

Caterpillar Inc. (CAT)

Caterpillar stock trades ex-dividend on Monday, which means that the stock is in for a heavy influx of call volume. That trend started yesterday, as volume surged to 171,000 contracts, more than five times CAT’s daily average. Calls gobbled up 92% of the day’s take.

Shareholders of record as of the close today are eligible for a dividend payment of 78 cents per share on Feb. 20.

There is another reason for CAT options traders to ramp up activity, however. Caterpillar will release its fourth-quarter earnings report on Thursday, Jan. 25. Analysts are expecting a profit of $1.77 per share on revenue of $11.97 billion. The whisper number arrives at $1.88 per share.

As of this writing, Joseph Hargett was long on General Electric Company (GE) stock.

Compare Brokers

Boeing Will Close 2017 as Top DJIA Stock

Boeing Co.’s (NYSE: BA) share price added less than half a point last week but it was not for lack of good news. With just a week to go in 2017, the aerospace giant is a sure thing to close out the year as the best performing stock among the 30 stocks that make up the Dow Jones Industrial Average (DJIA). Shares gained $1.76 last week to boost the year-to-date gain to nearly 90%.

Of the three other Dow stocks closest to Boeing’s yearly gain, Caterpillar Inc. (NYSE: CAT) rose by about 6.2% to a gain of nearly 68% for the year, Apple Inc. (NASDAQ: AAPL) added about 0.6% to close the week up just over 51% for the year to date, and Visa Inc. (NYSE: V) dropped about 1% to lower its annual gain to just over 44%.

Boeing’s week began with a final determination from the U.S. Department of Commerce on Boeing’s complaint against Canadian aircraft maker Bombardier for dumping the company’s CS-100 at below cost in the United States. The agency reiterated its 300% duty on imported Bombardier planes seating 100 to 150 passengers.

The U.S. International Trade Commission (ITC) will now rule on whether Boeing was harmed by Bombardier’s sale. If not, the complaint and the tariff disappear unless Boeing appeals. If the ITC does conclude that the sale harmed Boeing, Bombardier’s CS-100 planes imported into the United States will be charged the duty fees. Bombardier will certainly appeal.

On Thursday Boeing signed a firm order with UAE-based flydubai airlines for 175 of the company’s 737 MAX jets. The airline committed to the order at the Dubai Air Show last month, but the firm order adds the planes to Boeing’s backlog.

Boeing also confirmed on Thursday that it has discussed a “possible combination” with Brazil’s Embraer S.A. (NYSE: ERJ), a response to the deal Bombardier struck with Airbus in which the European company took control of Bombardier’s C Series program. A deal between Boeing and Embraer is no sure thing, mainly because the Brazilian government holds a controlling interest in Embraer.

On Friday, Boeing announced that it has sold a KC-46 refueling tanker to Japan on fixed-price contract valued at $279 million. This could be a big deal because it is the first KC-46 Boeing has sold to a non-U.S. buyer.

The U.S. Air Force also awarded Boeing a contract to sell 36 F-15 fighter jets to Qatar in a deal worth $6.1 billion. The sale had originally been set at 72 aircraft with a contract value of more than $21 billion.

Boeing stock closed at $295.10 on Friday, up less than 0.1% on the day, in a 52-week trading range of $154.96 to $97.37. The high was posted Friday morning. The 12-month consensus price target is $299.33, down about $7.80 from last week’s target. The low price target is $203 and the high is $350.

24/7 Wall St.
General Electric Will Certainly Be 2017’s Worst DJIA Stock

Visa, McDonald’s Buoy DJIA on Wednesday

December 27, 2017: Markets opened slightly higher Wednesday and all three major indexes traded in a narrow band not too far from the opening line. Among the S&P sectors, counter-cyclicals posted small gains while energy and telecom were the biggest daily losers. WTI crude oil for February delivery settled at $59.34 a barrel, down 0.6% for the day, partly due to news that the North Sea Forties pipeline has restarted. February gold added 0.3% on the day to settle at $1,291.40. Equities were headed for a narrowly higher close shortly before the bell as the DJIA traded up 0.08% for the day, the S&P 500 traded up 0.05%, and the Nasdaq Composite traded up 0.04%.

Bitcoin futures for January traded at $14,700, down about 6.9%, on the CME after opening at $15,655 this morning. Only 470 contracts had been traded in the session and open interest is just 491.

The DJIA stock posting the largest daily percentage gain ahead of the close Wednesday was Visa Inc. (NYSE: V) which traded up 0.92% at $114.04. The stock’s 52-week range is $77.93 to $114.75. Volume was about 20% below the daily average of around 7.3 million shares. The credit card issuer had no specific news.

McDonald’s Corp. (NYSE: MCD) traded up 0.70% at $172.48. The stock’s 52-week range is $118.18 to $175.78. Volume was about one-third the daily average of around 3 million. The fast-food giant had no specific news.

Caterpillar Inc. (NYSE: CAT) traded up 0.55% at $157.30. The stock’s 52-week range is $90.34 to $157.30 and the high was posted late this afternoon. Volume was 30% below the daily average of around 3.6 million shares. The company had no specific news.

UnitedHealth Group Inc. (NYSE: UNH) traded up 0.37% at $220.41. The stock’s 52-week range is $156.09 to $231.77. Volume was about a 65% below the daily average of around 3 million shares. The company had no specific news.

Of the Dow stocks, 14 are on track to close higher Wednesday and 16 are set to close lower.
24/7 Wall St.
Meet the Preliminary Dogs of the Dow for 2018

Boeing Will Close 2017 as Top DJIA Stock

Boeing Co.’s (NYSE: BA) share price added less than half a point last week but it was not for lack of good news. With just a week to go in 2017, the aerospace giant is a sure thing to close out the year as the best performing stock among the 30 stocks that make up the Dow Jones Industrial Average (DJIA). Shares gained $1.76 last week to boost the year-to-date gain to nearly 90%.

Of the three other Dow stocks closest to Boeing’s yearly gain, Caterpillar Inc. (NYSE: CAT) rose by about 6.2% to a gain of nearly 68% for the year, Apple Inc. (NASDAQ: AAPL) added about 0.6% to close the week up just over 51% for the year to date, and Visa Inc. (NYSE: V) dropped about 1% to lower its annual gain to just over 44%.

Boeing’s week began with a final determination from the U.S. Department of Commerce on Boeing’s complaint against Canadian aircraft maker Bombardier for dumping the company’s CS-100 at below cost in the United States. The agency reiterated its 300% duty on imported Bombardier planes seating 100 to 150 passengers.

The U.S. International Trade Commission (ITC) will now rule on whether Boeing was harmed by Bombardier’s sale. If not, the complaint and the tariff disappear unless Boeing appeals. If the ITC does conclude that the sale harmed Boeing, Bombardier’s CS-100 planes imported into the United States will be charged the duty fees. Bombardier will certainly appeal.

On Thursday Boeing signed a firm order with UAE-based flydubai airlines for 175 of the company’s 737 MAX jets. The airline committed to the order at the Dubai Air Show last month, but the firm order adds the planes to Boeing’s backlog.

Boeing also confirmed on Thursday that it has discussed a “possible combination” with Brazil’s Embraer S.A. (NYSE: ERJ), a response to the deal Bombardier struck with Airbus in which the European company took control of Bombardier’s C Series program. A deal between Boeing and Embraer is no sure thing, mainly because the Brazilian government holds a controlling interest in Embraer.

On Friday, Boeing announced that it has sold a KC-46 refueling tanker to Japan on fixed-price contract valued at $279 million. This could be a big deal because it is the first KC-46 Boeing has sold to a non-U.S. buyer.

The U.S. Air Force also awarded Boeing a contract to sell 36 F-15 fighter jets to Qatar in a deal worth $6.1 billion. The sale had originally been set at 72 aircraft with a contract value of more than $21 billion.

Boeing stock closed at $295.10 on Friday, up less than 0.1% on the day, in a 52-week trading range of $154.96 to $97.37. The high was posted Friday morning. The 12-month consensus price target is $299.33, down about $7.80 from last week’s target. The low price target is $203 and the high is $350.

24/7 Wall St.
General Electric Will Certainly Be 2017’s Worst DJIA Stock

Dividend Hike Helps Boeing Retain Position as Top DJIA Stock

Boeing Co.’s (NYSE: BA) share price added about 2.8% last week to maintain its position as the best performing among the 30 stocks that make up the Dow Jones Industrial Average (DJIA). Shares gained $8.04 last week to boost the year-to-date gain to nearly 89%.

Of the three other stocks closest to Boeing’s yearly gain, Caterpillar Inc. (NYSE: CAT) rose by about 1.9% to a gain of over 58% for the year, Apple Inc. (NASDAQ: AAPL) added about 2.7% to close the week up just over 50% for the year to date and Visa Inc. (NYSE: V) tacked on 1.8% to bring its annual gain to nearly 46%.

Last week was a busy one for Boeing, at least for its public affairs staff. The company raised its dividend, approved a new share buyback program, lost a military jet order to Canada, lost a multibillion passenger jet order to arch-rival Airbus and then read the news about the shake-up at the top of its European competitor.

As expected, Boeing lifted its dividend following Monday’s board of directors meeting. The 20% increase, from $5.68 to $6.84 annually per share, was accompanied by a new share repurchase plan valued at $18 billion. The company posted a new 52-week high on Tuesday.

In a request for bids on an order for 88 new military fighter jets, the government of Canada included language aimed squarely at Boeing in retaliation for the company’s complaint against Bombardier’s sale of 75 CS-100 passenger jets to Delta.

Thursday got off to a rocky start with the announcement from Delta Air Lines that it had placed an order for 100 Airbus A321neo single-aisle passenger jets, along with options on another 100. At list prices the deal is worth around $12.7 billion. Boeing competed hard for this one and the loss, though not welcome, is reasonably insignificant. The company’s backlog of single-aisle (737 family) jets totals more than 4,000.

The week ended with the announcement that Airbus CEO Tom Enders will not seek to extend his contract when it ends in April 2019 and COO Fabrice Br茅gier announced he will leave the company this coming February. These are just two of manytop executives who are retiring or leaving soon.

Boeing stock closed at $293.34 on Friday, up less than 0.1% on the day, in a 52-week trading range of $154.96 to $97.37. The high was posted Friday morning. The 12-month consensus price target is $290.43, up about $5 from last week’s target. The low price target is $203 and the high is $350.

24/7 Wall St.
General Electric Holds On as 2017’s Worst DJIA Stock