Companies Reporting Earnings 
for the
Week Beginning January 21, 2019

4 out of 5 winners last week!

by Ian Harvey

January 21, 2019


A Quick Review of Last Week’s Market…..

The Dow and S&P 500 posted their fourth straight week of gains, their longest since August. They both gained more than 2 percent. Stocks are also up sharply to start the year. In fact, 13 trading days in, it's the best start to a year for the S&P 500 since 1987.

Boosting the stocks for the week came from several factors offsetting a negative earnings reaction for Netflix …..

  • ….. a fresh batch of U.S.-China trade headlines fueled investors' appetite for risk,
  • …..Treasury Secretary Steven Mnuchin had floated the idea of easing tariffs on Chinese goods as the two countries continue to negotiate on trade.
  • ….. also, New York Federal Reserve President John Williams called for "patience and good judgment" before raising rates, adding he expects "strong" and "healthy" economic growth for this year.
  • …..and, manufacturing data released by the Fed also showed the sector's biggest gain in 10 months in December. Those numbers were boosted by strong production in motor vehicles and other goods.

For the week, the Dow Jones Industrial Average (DJI) finished up 3.0% at 24,706.35 closing out of correction territory, as the materials and industrials sectors outperformed.

The S&P 500 Index (SPX) was up 2.7% at 2,670.71 for the week.

And the Nasdaq Composite (IXIC) also up 2.6% for the week at 7,157.23.

Moving Ahead…..

If the trade deal issue is resolved to satisfaction it would aim to reduce the annual U.S. deficit to zero by 2024.

If this occurs it will boost business and consumer confidence, and  there is still plenty of room for the market to do really well.

As for the upcoming week, markets will be closed on Monday for Martin Luther King Jr. Day, but the shortened week will still have plenty of corporate earnings reports that could move stocks.

Merck & Co Inc (NYSE:MRK) could be one to watch for bulls, but Starbucks could be problematic, while bears should consider these two retailers, American Eagle Outfitters (NYSE:AEO) and Abercrombie & Fitch Co (NYSE:ANF).

Earnings to Watch…..


Markets closed for Martin Luther King Jr. Day


Johnson and Johnson, Travelers, IBM, Capital One, Stanley Black and Decker, UBS, Fifth Third, Halliburton, TD Ameritrade, Steel Dynamics


Abbott Labs, Comcast, Procter and Gamble, United Technologies, Northern Trust, Kimberly-Clark, Ford, Las Vegas Sands, F5 Networks, Raymond James, Texas Instruments, Varian Medical, Citrix, BancorpSouth


Intel, Starbucks, Bristol-Myers Squibb, Union Pacific, Freeport-McMoRan, Intuitive Surgical, JetBlue, Southwest Air, Textron, ETrade, Discover Financial, Alaska Air, Western Digital, Norfolk Southern


Colgate-Palmolive, Synchrony Financial, NextEra Energy, Air Products, Vodafone, DR Horton, Lear, LM Ericsson, Iberiabank

Economic Data to Watch…..

Markets closed for Martin Luther King Jr. Day


  • 8:30 a.m. Philadelphia Fed survey
  • 10:00 a.m. Existing home sales


  • 8:30 a.m. Jobless claims
  • 9:45 a.m. Manufacturing PMI
  • 9:45 a.m. Services PMI



Reviewing the Earnings Predictions from Last Week…..

Here is a look at theEarnings Predictionssent to members last week.

The article “UnitedHealth Group Climbs After Reporting Earnings!showed a potential return of 84% the day after reporting earnings. But, by the end of the trading week the potential return had climbed to 228%; and more is likely in the week ahead if the stock market continues to continue its rally.

Video-entertainment veteran Netflix, Inc. (NASDAQ:NFLX), a provider of Internet television network, reported earnings after the market closed on Thursday, and the stock went downwards – according to our predictions – but because of the rally earlier in the week, it did not reach the necessary target.



“Winners for Last Week’s Earnings”!

January 15, 2019 DAL FEB 15 2019 50.000 CALL P.P: 38%
January 15, 2019 UNH FEB 15 2019 260.000 CALL P.P: 228%
January 15, 2019 WFC FEB 15 2019 47.500 PUT P.P: 41%
January 16, 2019 CSX FEB 15 2019 65.000 CALL P.P: 35%


Options Trades to Consider Based on Expected Earnings Reports:

Tuesday, January 22, 2019

The struggling info tech giant International Business Machines Corp. (NYSE:IBM) will report earnings after the market closes. The consensus earnings estimate is $4.81 per share on revenue of $21.75 billion; but the Whisper number is for $4.88 per share. Consensus estimates are for earnings to decline year-over-year by 7.14% with revenue decreasing by 3.52%.

International Business Machines Corp. is looking at a second straight quarter of revenue declines. And Wall Street remains skeptical of IBM’s turnaround program. The company failed to make the gains in cloud computing and artificial intelligence that it has been working to for years, which led to the massive $34 billion acquisition of RedHat announced last year. A lot of analysts believe IBM overpaid for RedHat and it will take many years to recoup the cost.

The stock was already showing weakness before the announcement and fell sharply on the news. The stock drop was compounded by a correction in the overall market. There is a lot of negativity priced into the stock at this time. IBM shares have fallen nearly 16% since the company’s previous earnings report, in which revenue fell short of Wall Street estimates.

Instinet analyst Jeffrey Kvaal, who has a buy rating on IBM and reduced his price target to $160, said a strong dollar still presents a headwind for IBM and will likely continue into 2019. Even as revenues slip, IBM’s focus is shifting revenue into that “strategic imperatives” column. Kvaal expects that balance to be even for the year.

……..Read the rest of the report to see what options trades we are considering......

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Don’t miss out – check out further options trades recommended for the week ahead by becoming a member of Stock Options Made Easy “Earnings Predictions”.

An Important Note: That these suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.

It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented.

If you wish to receive more options trading recommendations similar to this, which will help boost your portfolio strategy, check out the other  memberships available at Stock Options Made Easy.

When To Exit A Trade Based On Earnings?.....

It is also worth considering, when options trading earnings reports – “Do we exit on already existing profits or leave the companies to report their earnings and hope for bigger profit?” 

As most traders realize, there is a 50/50 chance that the company stock price could go either way after reporting earnings – even if the report is good, the stock price could reverse – and if you hold a call option, means depletion of an already good profit if it exists. A similar situation can be found if you hold a put option, and a report is not that sound (and you expect a profit from this) but the stock price can, at times move upwards due to traders bias or other external conditions......READ MORE.....

The Decision Is Yours!

Before You Trade Consider This Strategy……

"Trading Capital Management" is a key component of your trading strategy. The strategy, on which we base our trades to achieve maximum profit, and to minimize loss, is contingent on using an equal amount of money for each trade.

……continue reading this article……

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!

Options traders are not successful because they win.

Options traders win because they are successful.

Best of Trading,
Ian Harvey
Director of Stock Options Made Easy


”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.

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