Daily Stock Pick of the Day, Fri., October 22, 2010

Stocks ended the day a little bit higher after the bounce on Wednesday looked like it was taking a breather.  At one point during the day, The Dow climbed as much as 100 points only to close up 38 points, at 11,146, at the end of the session.  Both the S&P 500 closed at 1,180, up 2 points and the Nasdaq closed at 2,459, up 2 points. The CBOE Volatility Index rose above 20.  Among the key S&P 500 sectors, utilities, telecom and energy fell, while consumer discretionary stocks rose.

Stocks in the news today included Netflix (NFLX) which wowed investors Wednesday when they reported strong third-quarter subscriber growth and retention.  Earings fell a penny short of Wall Street's target, however.  They earned $0.70 a share, an increase of 35% compared to a year ago. Revenue was $553.2 million, an increase of 31%.  Netflix netted a lot of new customers over the summer while spending less to secure them. They raised their guidance for Q4. Shares rose 12% today in fast trading and closed the day at $172.69.

Today's stock pick of the day is Checkpoint Software (CHKP).  They're an Israeli provider of internet security software, hardware and services for consumers and businesses.  On Wednesday, their earnings report showed that the beat expectations, both on top line growth and bottom line.  Sales increased not just here in the states, but across the globe as well.  Consider also that as more people work from remote locations using more mobile technology (smart phones, tablets), it will increase the threat potential to networks and their users.  As computer hackers get more clever in their attempts to break through secure networks, Checkpoint will continue to benefit from these trends by expanding their offerings within their cutting edge software and hardware lines to meet customer needs.  It closed today at $40.58 and looks like it has a little room to grow into the $42-$44 range.

As always, stay cautious and happy trading!

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