General Electric (GE) Earnings Preview: Will GE Cut Its Dividend?
The threat of reduced cash payouts to shareholders is weighing on the company and its stock. Industrial conglomerate General Electric (GE, $23.19 as of Oct. 18) stunned income investors in 2009, in the wake of the financial crisis and bear market, with a then-unthinkable cut to its longstanding dividend.
But after years of trying to regain Wall Street’s trust by rebuilding its payout to shareholders, fears of another reduction are mounting just as the company prepares to release its latest quarterly earnings report. GE is expected to unveil its results for the second quarter before the opening bell Friday, Oct. 20.
In a year in which General Electric’s stock has collapsed 27% to four-year lows, one would think that signs of an operational turnaround would be the first thing on investors’ earnings watch list.
GE stock options point to big move after earnings, dividend cut
‘Straddle’ pricing in a 4% one-day, post-earnings move in GE’s stock, which would be the biggest in over four years. General Electric Co.’s investors should expect to be surprised when the industrial conglomerate reports results Friday, as the options market is pricing in the biggest one-day post-earnings move in over four years.
But for those worried that GE may cut its dividend, at least they won’t be shocked. GE GE, +1.99% is scheduled to report results before Friday’s opening bell. The company usually beats earnings expectations, but its stock has fallen on the day the last six quarterly reports were released.
GE: Getting Excited For The Future
Shares of General Electric Co. (GE) have had a disastrous 2017, to say the least, with the stock down by 26 percent, versus an S&P 500, which is up over 14 percent.
The problems have just been getting worse, and with the company set to report third-quarter results on October 20 before the start of trading, rumors have been swirling about the safety of GE’s dividend and thousands of corporate job cuts.
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Today's Trading Lesson
Struggling Traders Pay for Losses Instead of Continuing Education
(Reprint from 2016)
Continuing education is a monster part of trading for a living. Could you imagine going to see a doctor or lawyer who hasn’t kept up with regulations or changes?
Yet that’s exactly what most traders do. They stop learning and they pay the price.
A good trading education starts with learning what to look at, but ultimately, it’s the screen time and really understanding the right questions to ask.
- “What just unfolded?
- What did I miss?
- What didn’t I see?”
- I got filled, what do I plan to do if it moves in my favor? If it moves against me?
- When should I trade for cash flow versus hold trades longer? How do I know the difference?
- Stock Trading is not a 9-5 Job… It’s Time to Stop Whining
The more prepared you are to answer these types of questions, the more distinctions you can make in price action, the more consistent your trading results will be.
It’s time to stop whining about trading a tough stock market.
If you’re a frustrated trader I have some news for you. This is the new normal Deal with it. Day traders need to admit the market is lacking a bias. This causes weak conviction.
This means you need to be a stock picker. Is this news? No. Look at the chart of the $SPY for the last 18 months. There are spurts in price action but for the most part it’s a trading range. The market has not been obvious, save for a few pockets as opposed to a few quarters.
Why the tough talk? Because too many traders are complaining. “I bought the high and it went lower… I shorted the low and it went higher…”
That happens to all of us. You stop focusing on the losing trades and ask yourself why you don’t earn more on the winners.
Trading is challenging, but very rewarding when you finally have a trading plan that makes sense for you. If you want a guarantee, get a job.
For me. I like it here in front of my charts. It’s not always easy but I didn’t sign up for easy. I signed up to be in control.
How about you?
Today's Trade of the Day | 10-20-17
NFLX-Netflix traded into a perfect bullish u-turn that closed in the top 10% of the trading range. This sets up a new swing trade long with the previous high as the initial profit target. Game planning a $195.75 buy stop for entry. Target comes in at $203.75. Stop loss on a close below $194.
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Stock Market Sector Performance
Stocks to Trade | Friday Edition 10-20-17
Bullish Momentum: ADBE, EVHC, XL, NUE, MYL, X
Bearish Momentum: ctrp, nclh, omc
Bullish Order Flow: LYB, JNJ, COF, CRM, LLY, XLNX, ABBV, MCD, UTX, LRCX, WMT, CAT, DG, NVDA, CVX, TXN, VLO, AMAT, DLTR, AXP, ADI, NFLX, CAR, V, MAR, MU, MA, FB, BIDU
Bearish Order Flow: pm, slb, aap, wba, dish, jwn, cvs, agn, mnk
Double Normal Volume: UAL, CTRP, SLB, ADBE, PCG, IBM, PM, DHR, NCLH, AGN, EVHC, HCA, AXP
Inside Days: orcl, ibm, pcg, mrk, gps, m, bmy, abt, gis, esrx, gs, hbi, pgr, fast, lv, kss, jwn