Goldman Sachs (GS) is on the earnings docket tomorrow. The Reuters consensus estimate for GS is EPS $4.37 and revenue $9.57 bln. With the stock trading at $205, the combination of a 210 call and a $200 put results in a debit of more than $6. A $200, or 210 straddle is priced at over $10, so a decent move is expected tomorrow.

Parts of the market of running warm today and some cold. The housing data threw cold water on stocks like home builder Hovnanian (HOV), a big winner yesterday, but down 10% today.

While the XLF is up a half-percent with some lingering excitement over the Fed rate cut, lifting names like Countrywide (CFC), Citigroup (C) is down around 1%, Bear Stearns is down 3%.

Even some of the high flyers have come in a bit. The ever amazing Baidu.com (great pick among many by Howard Lindzon) the stock is about $10 below the best levels of the day today.

Nike (NKE) is another that comes to the earnings confessional tomorrow. They will give us a decent indication of worldwide market conditions, at least for their business. Earnings of 87-cents a share are expected.

There’s been takeover chatter surrounding Sepracor (SEPR), the Lunesta sleeping pill maker. Johnson and Johnson (JNJ) the rumored suitor. This has led to a pop in SEPR options activity. Ahead of expiration I am always wary of mysterious rumors that conveniently pop up.

The mixed market activity could portend a fade for the market… but then again, maybe not.

Last 5 posts by Jim Kingsland

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