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Heavy Volume Movers For Oct. 21

By Chris Seabury

Tickers in this Article: SGP, CME, LMT

Everyday in the markets there are stocks that are moving on heavy volume. This can be based on news, earnings and upgrades or downgrades. To find good long- and short-term situations we must first watch to see if the stocks can hold the gains or losses on the news. If the stock can hold its gains/losses then it is a good long or short candidate. If it can't, then it's time to look elsewhere.

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Three stocks that come up on the radar are: Lockheed Martin Corporation (NYSE:LMT), CME Group (NYSE:CME) and Schering-Plough (NYSE:SGP).

Lockheed Martin Raises Guidance
Lockheed Martin beat earnings estimates coming in at $1.92 compared with analysts expectation of $1.89. The company also raised its guidance to $7.55-7.70 versus the previous estimate of $7.45-7.60. What all of this means is that Lockheed Martin is continuing to see an acceleration in earnings. The increase in guidance only confirms this fact. It would not be surprising to see the stock continue to do well both in the short and long term. Lockheed Martin is trading at $87.04 down $6.04. (Explore the controversies surrounding companies commenting on their forward looking expectations in Can Earnings Guidance Accurately Predict The Future)

CME Acquisition
Meanwhile, CME group announced that it will eliminate 150 jobs as a result of the recent acquisition of NYMEX Holdings. The cuts will take place over the next 18 to 24 months and NYMEX will continue to maintain its headquarters in New York. The acquisition gives CME a foothold in the lucrative oil derivatives trading market. This will allow the company to increase its national and international exposure. Causing earnings to grow and the company to become a dominate player in the World trading markets. Look for shares of CME to continue to do well over the long term. CME is trading at $334.49 down $26.31.

Schering-Plough Beats Estimates
Schering-Plough beat Wall Street estimates coming with earnings of 34 cents versus the Thompson Reuters estimate of 31 cents. This increase came despite a 15% decrease in sales of drugs Zetia and Vytorin. CEO Fred Hassan said, "While the U.S. market remained difficult, we continued to take advantage of our growing international presence and opportunities." Schering-Plough is very diversified and is continuing to deliver solid earnings despite the sales drop in two of its major drugs. This is a sign of a financial strength and diversification. It would not be surprising to see the company continue to do well over the long term. Shares of Schering Plough are trading at $14.90 up 40 cents. (For more on analyst estimates, read Analyst Recommendations: Do Sell Ratings Exist?)

Bottom Line
It is clear that news events can have an affect on the price of the stock both in the long and short term. However, to profit on this it is important to watch and see how the stock trades. If it can hold its opening losses or gains then it might be a good candidate to take a long or short position in. If can not hold the price levels then it would be advisable to wait and see what happens.

By Chris Seabury

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