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October 19, 2007
Market Forecast
by Jack Lee
Friday, 19 Oct - Closing stock report, the dow was down 366.94 to 13522.02. NASDAQ comp drops 74.15. The energy sector was the hardest hit, losing a total of 3.8% on the day. The ten-year note closed up 26/32, pushing its yield down to 4.39%. One of todays big losers was Sandisk, (SNDK) closing at $42.71 down $7.60 (-15.11%). This was on news that the flash memory card maker reported a fiscal third-quarter profit of $84.6 million, or 36 cents a share. Revenue grew 38% to $1.04 billion. During the same period a year ago, the maker of flash memory and digital media devices earned $103.3 million, or 51 cents a share on $751 million in revenue. I think SNDSK could be a buy very soon, but would wait till to see how the market settles out.
Google Inc. shares surged and hit a new record. Can you believe it? The company said its third-quarter profit and sales both rose sharply from the same period a year earlier. Google said net income for the period ended Sept. 30 rose to $1.07 billion, or $3.38 a share, compared to $733.4 million, or $2.36 a share in the same quarter last year. Revenue rose 57% to $4.23 billion.
My market indicators say Monday should be an up day due to an "oversold" condition based on Friday's close. This should bring out the bargain hunters. However, the market will not stabilize until we see some good earnings; reports next due week from some market movers and we need a retreat in oil price.
Speaking of...Oil hit a high yesterday at $90 a barrel. Speculation says at $100 a barrel we could see $5 a gallon gas price. If that happens or anything close to it, watch the market head south like General Sherman to the sea.
Posted by Post Scripts at October 19, 2007 01:10 PM