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AFTER HOURS ACTION: ERTS
On Thursday after the bell, Electronic Arts reported reported better-than-expected results, led by sales of "Battlefield: Bad Company 2" and "Mass Effect 2," and the video game publisher affirmed its outlook for the current quarter and fiscal year.
Taking a closer look at the numbers, Electronic Arts swung to a net profit of $30 million, or 9 cents a share, in the fiscal fourth quarter ended March 31, versus a year-ago net loss of $42 million, or 13 cents a share.
Excluding items, EA earned 7 cents a share, ahead of the consensus analyst estimate for earnings of 5 cents a share, according to Thomson Reuters I/B/E/S.
Revenue rose 14 percent to $979 million. Non-GAAP revenue came in at $850 million, better than Wall Street's target of $836.5 million.
However, the company's shares fell 5.3 percent in extended trading, after climbing 3.1 percent during the regular session.
What’s the trade?
I’d let this one shake out a little, counsels Guy Adami. But it’s probably a buy on the dip.
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AFTER HOURS ACTION: VERIZON
After the bell, a report in the Wall Street Journal said, Verizon Wireless was working on tablet computer with Google.
Verizon Wireless chief executive Lowell McAdam told the newspaper in an interview the tablet computer project is part of a deepening relationship between Verizon, the largest US wireless carrier, and Google, whose Android operating system is used by a number of mobile handset makers.
"We're looking at all the things Google has in its archives that we could put on a tablet to make it a great experience," McAdam said.
What’s the trade?
I'd go downstream; think the play is Clearwire, counsels Brian Kelly.
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CHAOTIC TRADING
Volatility continued to be a main theme in the markets on Tuesday with stocks once again experiencing big intraday swings.
What levels should you be watching?
On the downside, I’m watching 1121 in the S&P, which is the 150-day moving average and on the upside I’m watching 1171 the 50-day, says Steve Grasso. I think we bounce around between the two.
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FINANCIAL FALL OUT
US financials including Morgan Stanley and Citigroup followed their European counter-parts lower, but weakness at home was largely triggered by a proposal to ban proprietary trading activity at large banks.
What’s the trade?
The firm that would be hardest hit if it passes is Goldman , says Anthony Scaramucci. But from what I’m hearing prop trading probably won’t go away all together.
If you’re trading Goldman my pivot point is $147.81, says Guy Adami.
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CONTRARIAN CALL: EUROPE'S BAILOUT WILL WORK
Despite a growing chorus of nay-sayers one market maven is going against the crowd. Deutsche economist Joe LaVorgna believes Europe’s bailout will work.
He tells the desk “it will provide both liquidity and solvency and help restore order to markets. Does LaVorgna see something that the Street is missing?
Watch the video and find out!