RIMM Earnings Announcement Thursday After the Close

The big news this coming week is Research in Motion (RIMM) announcing their earnings Thursday after the close. October Options Call activity on Friday was strong at the $85 strike price and the $90 strike price. With little interest on the Put side. Analyst have raised their profit targets from 97 cents to $1 over the past three months. Sales growth remains strong at 40.5% with earnings growing at 16.3% for the current quarter year over year. A current price to earnings ratio of 23 makes the stock a little pricey but traders are looking for a decent pop this coming week.

Economic Calendar

The economic calendar is a little light this week with a Federal Research rate decision coming on Wednesday afternoon. No one is expecting a change in rates from the current historically low .25% rate. Initial Claims will be released Thursday morning with the possibility of a slight uptick in the number of American’s filing for unemployment claims the first time. Continuous Claims will be released at the same time with the expectation of a slight reduction.

Other reports of note at the end of the week include a decrease in Durable Orders compared to last month’s report, an increase in Michigan Sentiment, and a slight dip in New Home Sales. The reports are not great overall at the end of the week but an early week rally and a post RIMM rally in the overall market should offset any late week economic softness.

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