GE and the Wing Man

Posted: April 11, 2008 in Charts, Futures, Psychology, Stocks, Technical Analysis, Trading

Futures point to a negative start after erasing early gains. Bellwether General Electric (GE) provided a disappointing earnings report and outlook, citing weakness in financial services. GE said it earned $0.44 per share in the first quarter, which falls short of the consensus estimate of $0.51. Its revenue came in at $42.2 billion, which missed the consensus estimate of $43.7 billion. Looking ahead, GE expects its second quarter earnings per share will be $0.53 to $0.55 per share, which misses the expected earnings of $0.58. For full year 2008, GE expects to earn between $2.20 and $2.30 per share, versus the $2.43 consensus. European markets fell into the red after GE’s report, with the FTSE shedding 0.9% and the Dax down 1.2%. Also the airlines are falling apart on so many levels. Is this indicitive of the infrastructure problems our country will have with rails/roads/bridges/buildings over the next few years? Something to think about for sure.

Futures took a dump on the GE news and dropped 10, they are now down 20 from that news and trading @ 1348. New lows for this move, remember 1345 is the %50 retrace from the 1310 to 1390 recent FED rally move, so we could start to see some support at these levels.

GE is trading down 4 bucks @ 32.58, remember the March low here was 31.83. Bellweather for the market indeed.

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