EB Watch List Update Report

Dear Members, KEY EARNINGS REPORTS: Friday: None Monday: CPB, PBY MARKET NOTE: For the second straight session, we've received not-so-good news on the economic front. This morning, the government's August nonfarm payrolls showed a significant contraction to 142,000 jobs, well below consensus estimates that called for 230,000. Still, our major indices have rallied off earlier lows as it shows that market participants still believe that bad news could be good news in the sense that more Fed accommodation could be right around the corner. It's a crazy way of thinking about things, but it's consistent with how the market has reacted to bad news the past few years. ADDITIONS TO WATCH LISTS: We're adding four stocks to our Watch Lists today, as follows: Large Cap: BIDU - $79.4 billion market cap HSP - $9.1 billion market cap Mid Cap: DSW - $2.75 billion market cap SNCR - $1.8 billion market cap We are simply adding these stocks to our Watch Lists at the moment and we'll wait for weakness to potentially enter. Annotated charts and suggested entry, stop and target prices will be provided over the weekend. BRIEF COMMENTS ON SELECT WATCH LIST STOCKS: Short Watch List: There are no Short Watch List stocks at this time. Large Cap Watch List: FDX - Dropped to the top of the price support range provided yesterday before bouncing. After consolidation, I expect FDX to break to fresh highs. CRM - This narrow 58-60 trading range lives on as CRM now tests the top of it again. Mid Cap Watch List: No comments at this time. Small Cap Watch List: There are no Small Cap Watch List stocks at this time. DELETIONS FROM OUR WATCH LISTS: There are no deletions today unless closing stops are violated. Happy trading! Tom Bowley Chief Equity Strategist EarningsBeats.com