Daily Stock Pick of the Day - Thurs., Oct 28, 2010

Stocks opened lower today due to the uncertainty regarding the Fed's stimulus plan, mixed economic data and a higher dollar.  However, the Nasdaq tacked on 0.2% for a sixth straight gain, closing above the 2500 level for the first time since April 29. Semis were an area of strength. The Philadelphia semiconductor index surged 3.1% to a three-month high.  On the other hand, the Dow lost 0.4% and S&P 500 lost 0.3%. Volume was a bit higher on both major exchanges.

Apple (AAPL) reported today that they expect gross margins to decrease next year due to the fact that the iPad contributes in large part to their annual revenue.  They expect margins to fall approximately 36% in the current quarter (down from 39% prior).  Apple stock was lower in after-hours trading.

In other tech news, Broadcom (BRCM) rose 11% in trading today.  The catalyst:  strong quarterly sales of their chips that are used in (you guessed it) smartphones, like the iPhone.  They had a 44% rise in quarterly revenue.

The stock pick I'm looking at today is Jet Blue (JBLU).  Jet Blue provide passenger air transport in the US, Puerto Rico and 11 other countries.  This stock trades under $10 and lately, it was trading in a range between $5.40 and $6.40.  However, on Oct 20, it broke out of it's base and swung to just over $7 per share.   Over the past two weeks, shares have been under accumulation.  My target for JBLU is $8.50.

Thursday will bring an update on jobless claims and Friday will bring GDP numbers and consumer sentiment.   Until then, happy trading and definitely take some time to check out Wall Street Survivor below.  It's fun and it's free!  Compete for cash prizes!

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