Schaeffer's Daily Market Blog Features: JoS. A. Bank Clothiers, Apple Computer, Hovnanian Enterprises, KB Home, and Nucor

Business Wire, Sept 7, 2006

CINCINNATI -- Among the stocks featured in the September 7 edition of Schaeffer's Market Blog are JoS. A. Bank Clothiers (NASDAQ:JOSB), Apple Computer (NASDAQ:AAPL), Hovnanian Enterprises (NYSE:HOV), KB Home (NYSE:KBH), and Nucor (NYSE:NUE). Schaeffer's Market Blog is just one of the many free market commentaries written every day at www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. The Market Blog is written throughout every trading day by Schaeffer's financial analysts and traders. They are quick insights to the day's most notable market activity from an options perspective. To have this report delivered to you free via email every day click on the following link and you'll also get an opportunity to win an IPod Nano. http://www.schaeffersresearch.com/redirect.aspx?CODE=PROB13M&PAGE=1

4:10 PM JoS. A. Bank Clothiers Makes Bank

JoS. A. Bank Clothiers (NASDAQ:JOSB) had a solid session despite today's rather dour mood on the Street. The stock clambered more than three percent higher after announcing that second-quarter net income rose to $7 million, or 38 cents per share, topping analyst expectations for 35 cents per share. However, despite the rather positive session, JOSB remained solidly capped by resistance in the 25 area. In fact, the shares finished the session pinned at this level. Not helping matters any, the stock's 10-week moving average has taken up residence at the 25 level, providing another layer of potential resistance for the shares. Should the stock manage to break above this key resistance level, we could see quite a short-covering rally for JOSB, as more than 44 percent of the stock's total float is sold short.

1:33 PM Apple Computer Soars

Apple Computer (NASDAQ:AAPL) was gifted with a nice pick-me-up this morning. Analyst Benjamin Reitzes at UBS said he believes the company will unveil on September 12 "a major move into the digital home," which may have the potential to multiply its revenue streams. Reitzes said the move could also result in higher sales of Mac computers. Reitzes reiterated his "buy" rating on the stock and lifted his price target to $92 from $80. Furthermore, he boosted his fourth-quarter earnings estimate to 50 cents per share from 49 cents and his revenue forecast to $4.65 billion from $4.63 billion.

The shares are up more than 3.6 percent this afternoon at $72.55, breaking through resistance at the 70 level. Since the equity's mid-July low of $50.16, the security has rallied more than 44 percent along the support of its 10-day and 20-day moving averages. Furthermore, the equity's recent strength has pulled its 10-week and 20-week trendlines into a bullish cross.

11:41 AM Housing Sector Foundation: Shaken not Stirred

The housing market is getting pounded this morning, with a pair of negative earnings reports counterbalancing the one bright spot in the sector. In the news, KB Home (NYSE:KBH) lowered its 2006 earnings estimate to $8.00-$8.50 from $10 per share. The company noted that orders "continue to be adversely affected by higher cancellation rates" in many markets. Elsewhere, Beazer Homes USA said in expects to close fewer homes in the fourth quarter, trimming its 2006 forecast to a range of $8 to $8.50 per share from $9.25 to $9.75 per share.

But it wasn't all bad news, as Hovnanian Enterprises (NYSE:HOV) topped analyst earnings expectations for earnings of $1.10 per share when it reported third-quarter earnings of $1.15 per share. However, the company did list a 34-percent drop in third-quarter net income, which (in combination with today's earlier reports) has some industry watchers pointing to further signs of a slow down in the housing market. As a result of today's flood of news for the sector, the PHLX Housing Sector Index has pulled back nearly one percent, dipping further below former support at the 200 level and its 10-week moving average.

10:42 AM Nucor Drops Despite Strong 3Q Outlook

This morning, Nucor (NYSE:NUE) announced that it expects third-quarter earnings of $1.50 to $1.60 per share, citing continued strong business conditions. Analysts are currently forecasting a profit of $1.48 per share. However, the news hasn't exactly excited investors this morning, as the shares have retreated more than two percent to $49.32. The equity has dropped back below its 10-day and 20-day moving averages. Furthermore, NUE was recently capped by its 20-week trendline and has pulled back below its 10-week moving average. Since mid-May, the security has logged only three weekly closes above these intermediate-term trendlines.

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