Could it possibly be? At a time when headlines are dire, are
major averages on the verge of a rally into the end of the
It's too early to say at this point, but deviant markets tend
to rally when it's least expected so be open to the
Monday marked the second day of a rally attempt for the
indices after a bullish session Friday that saw major averages
finish near session highs. Volume came in higher than Thursday
but was skewed somewhat by options expiration. Still, it was a
solid session all around. A big percentage gain for the major
averages in higher volume on the fourth day or later of the rally
attempt would be a legitimate buy signal and confirmation of a
Don't forget it's a shortened week of trading this week. The
market will be closed Thursday for Thanksgiving, with a half day
of trading on Friday. It'll most likely be a quiet week
volume-wise, but three high-quality names with outstanding
fundamentals report earnings this week. Strong results could
result in renewed buying demand.
Headed into Monday, Chico's FAS (NYSE:
) was only nine percent off its recent high. The women's retailer
reports earnings Tuesday before the open. Its weekly chart shows
some erratic price swings recently which has weakened its
technical picture, but there's still a chance for a solid quarter
because it's a well-run company with a consistent track record of
In August, the company reported profit of $0.28 a share, up 32
percent from a year ago. Sales rose 16 percent to $641.7 million.
Sales at its Chico's/Soma Intimates rose 11 percent to $415
million. White House/Black Market increased 10 percent to $194
This time around, quarterly profit is expected to rise 22
percent to $0.22 a share with sales up 18 percent to $644
Meanwhile, cloud computing and customer relationship
management bellwether Salesforce.com (NYSE:
) reports Tuesday after the close. It's expected to earn $0.32 a
share, down six percent from a year ago but look for another
strong quarter of top-line growth with sales up 33 percent to
$776.5 million. Salesforce.com has always sold at a premium
valuation but it's deserved because of blistering growth. Annual
earnings growth is expected to slow a bit this year, up seven
percent from 2011, but accelerate in 2013, up 33 percent from
The stock's recent pullback has been fairly well contained.
Headed into today, it was only 12 percent off its recent high. It
could start building the right side its base soon if new money
starts to come in from the sidelines.
Finally, agricultural equipment maker Deere & Company
) has climbed to within five percent of its 52-week high and
continues to hold gains nicely ahead of its earnings report
Wednesday before the open. Most of its recent gains have come in
average or below-average volume which means that institutional
investors have not been the fuel behind the buying.
Still, its relative price strength lately says the market's
expecting a strong quarter. The consensus estimate calls for
profit of $1.88, up 16 percent from a year ago. Sales are seen
rising 12 percent to $8.8 billion.
(c) 2012 Benzinga.com. Benzinga does not provide investment
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