Schaeffer's Daily Market Blog Features: Target, Saks, Openwave

Systems, Altria Group, and Reynolds American 
Among the stocks featured in the July 6 edition of
Schaeffer's Market Blog are Target (NYSE:TGT), Saks (NYSE:SKS),
Openwave Systems (NASDAQ:OPWV), Altria Group (NYSE:MO), and Reynolds
American (NYSE:RAI). Schaeffer's Market Blog is just one of the many
free market commentaries written every day at - the home of Bernie Schaeffer and
Schaeffer's Investment Research. The Market Blog is written throughout
every trading day by Schaeffer's financial analysts and traders. They
are quick insights to the day's most notable market activity from an
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Schaeffer's Market Blog for Thursday, July 6, 2006: 
Below are just a few of today's Market Blog entries. Click here to
read all of today's Market Blog: . 
10:15 AM Target Beats the Street 
Same-store sales data have rolled in this morning. Discount-store
chain Target (NYSE:TGT) announced that June same-store sales rose 4.8
percent from the same period a year ago. Analysts had predicted an
increase of 4.3 percent. The retailer also stated that it is now
confident it can meet, or even beat, its earnings goal of 69 cents for
the second quarter. What's more, the firm reported that it expects its
July same-store sales to rise in a range of four to six percent. In
the year-ago period, same-store sales rose 5.5 percent. 
In early trading, the shares are up 1.9 percent, as they jumped
off support at the 48 level and have clambered above their 10-day and
20-day moving averages. 
10:34 AM Saks: It's in the Bag 
Sticking with retailers for a while, Saks (NYSE:SKS) also
presented its monthly sales data. The retailer reported that June
same-store sales rose 4.7 percent, thumping the Street estimate for a
rise of one percent. Total sales for the five weeks ended July 1
dropped 43.8 percent to $306.8 million from $546.1 million in the same
period a year earlier. 
Technically speaking, the security is up more than one percent on
the news, but remains locked in a sideways channel. The stock has been
trapped between resistance in the 17 area and support in the 15.40
region since the equity gapped lower on May 2. 
11:23 AM Openwave Systems Leads List of Nasdaq Decliners 
Wireless software developer Openwave Systems (NASDAQ:OPWV) has
lost nearly one-third of its value today, plunging into single-digit
territory and pegging a new annual low. The firm said its
fourth-quarter loss is expected total between 13 and 14 cents per
share, with sales of $90 million to $92 million. On an adjusted basis,
OPWV officials expect to break even. Analysts were targeting per-share
results of 22 cents per share on $122 million in revenue. The firm's
president noted that these fourth-quarter projections are
"disappointing" but affirmed that "we (OPWV) continue to see customer
momentum worldwide and are confident in our strategy as we enter
fiscal 2007." Today's decline ushered the security into territory not
visited since July 2003. Options activity is modest, despite the
dramatic move in the underlying equity. Among the most actively traded
options today are the January 2007 10 put, where nearly 4,700
contracts have changed hands, and the July 7.50 put, where 2,100
contracts, likely new positions, have crossed the tape. 
11:29 AM Altria and Reynolds American on Fire Following Court
I just happened to glance over my shoulder and see breaking news
on CNBC that the Florida Supreme Court threw out a $145 billion
punitive damage award against cigarette makers, and decertified the
case as a class action. The court stated, "we unanimously conclude
that the punitive damages award is excessive as a matter of law." This
judgment is considered a major victory for the tobacco industry, and
my colleague, Joseph Hargett, was quick to point out the jump for both
Altria (NYSE:MO) and Reynolds American (NYSE:RAI) . 
In fact, MO is challenging its all-time high of 78.68 after
vaulting nearly seven percent. In the process, MO took out resistance
at the 75 and 78 levels. RAI actually hit a new all-time high of
120.99, but has since backed down a bit. Let's see if the shares
regroup and take another run at breaking through 121. Currently, RAI
boasts a gain of nearly five percent on the day. 
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