Markets Could See A Summer Dip (BA, EMC, MO, CREE, ECPG)

While stocks by and large have kept their bullish momentum, given the recent investor reaction to earnings, it does appear this bull market is starting to lose some steam. The market could very well be set up for a summer dip, which could create some good investing opportunities later this year.

The Bill Collector Stocks Index was the top performing tickerspy Index on the day, led by Encore Capital Group (ECPG) with a 10% gain.

Stocks ended mixed, as the Dow rose 8 points to 11,125 and the Nasdaq added 4 points to 2,505. The S&P lost -1 point to 1,206. Oil slipped -17 cents to $83.68 a barrel, while gold climbed $9.60 to $1,148.20 an ounce.

In earnings news, shares of Boeing (BA) rose 3.9% after the company’s Q1 profit beat estimates. For the quarter, the airplane maker earned $519 million, or 70 cents a share, down from $610 million, or 87 cents a share, last year. Despite the drop in quarterly profit, impacted by the loss of a tax deduction related to the federal healthcare reform, it still topped the 64-cent consensus. Revenue dropped -7.8% to $15.2 billion. For 2010, Boeing guided for EPS of $3.50-$3.80, less than the $3.70-$4.00 it had previously forecast.

Shares of EMC Corporation (EMC) moved up 2.3% after the data storage company announced that its net income soared 92%. The company also raised its 2010 guidance. For Q1, EMC posted a profit of $373 million, or 17 cents per share, up from $194 million, or 10 cents per share, a year ago. Adjusted EPS was 26 cents, 2 cents higher than estimates. Revenue grew 23% to $3.9 billion. Looking forward, the company forecast 2010 adjusted EPS of $1.18 on revenue of $16.5 billion versus the consensus of $1.14 on revenue of $16 billion.

Altria Group (MO) reported a 38% rise in its Q1 profit. Its shares rose 1.4% on the news. For the first quarter, net income was $813 million, or 39 cents a share, compared with $589 million, or 28 cents a share, a year earlier. Adjusted EPS came in at 42 cents, which beat analyst estimates of 40 cents. Revenue excluding excise taxes was $3.95 billion; analysts had been looking for revenue of $3.83 billion. The cigarette company reaffirmed its full-year outlook for adjusted EPS of $1.85-$1.89. Nearly 40 pro investors counted the stock among their top-15 holdings at the start of Q1, while over 2,200 tickerspy members included the stock in their portfolios.

Shares of Cree (CREE) dipped -7.2% despite the company posting better-than-expected Q3 results. The LED light maker said its profit jumped to $44.6 million, or 41 cents per share, from $4 million, or 5 cents per share, last year. Adjusted EPS was 47 cents, topping the Street’s estimate by 3 cents. Revenue soared nearly 79% to $234.1 million. For Q4, Cree expects EPS of 48-51 cents on revenue of $255-$265 million. Analysts were predicting EPS of 47 cents on revenue of $241.8 million. Ten pro investors counted the stock among their top-15 holdings at the start of Q1, while over 400 tickerspy members included the stock in their portfolios.

Tags: BA, CREE, ECPG, EMC, MO