Good morning- today and tomorrow will be very busy days for earnings (about 10% of my database will report each day).  The 3 highest rated companies (all with scores of 50/out of 60) reporting this morning include Chicago Mercantile Exchange (CME), Building Materials Holding (BMHC), and The St. Joe Company (JOE).

As the popular of futures and options trading explodes, CME continues to benefit big time.  After losing money in ’01, the company has been on a torrid pace and that growth accelerated in ’04 with a 77% increase in earnings.  ’05 is also expected to be a solid year with 37% earnings growth.  Its a company with no debt and rising margins & ROE.  This morning the company is reporting net income of 2.36/share, a 44% increase over the year ago quarter, but missed estimates of 2.38 a share.  Revenue came in at 239 mill, good for a 60% increase, but again just missing analysts estimates.  Great results again, but if you’re a company with a high flying stock and you miss estimates, you’ll get hammered.  While a 4% drop isn’t exactly considered hammered (down in premarket), that may just be the beginning.  Areas of support to look for would include 270 (filling the gap) and 260 (support of the 50 day moving average).

As a leading supplier to the homebuilders, it’s no wonder that Building Materials Holdings doubled profits in ’04, with the company expected to come close to that gain in ’05. It’s reflected in the stock with a more than 4 fold increase from last year, trending along the 50 day moving average the entire time.  Yes, the stock is long overdue for a significant correction and base formation, but it looks like that will have to wait for now.  The company smashed estimates this quarter of 1.85/share by posting 2.28/share, good for a 148% increase over last year.  Sales rose 29% to 702 million, beating estimates of 690 million.  The stock is up nearly 6% premarket and continues to climb and will break through the top of that long term channel.  Hmm… may be a good time to take profits off the table on this one if you have them.

• St Joe Company (JOE):  Another company benefitting from the explosion in real estate, particularily in Florida is St. Joe Company, a real estate development company.  This morning the company smashed estimates and raised views for ’05.  No surprise here – stock up nearly 3% in premarket trading.   Technically, the stock continues to look very strong, up 10% since breaking out at the beginning of June.

Three Leading Oil Companies Reporting…VLO, UNT and BJS

• Valero (VLO): Smashed estimates again this quarter and rose 34% over last year.  Stock up just a bit premarket.  Technically, the stock has not carved out a great looking base with a sharp V like curve and lackluster volume in the right side.  It is currently in a buyable range after breaking out on July 5th.
• Unit Corp (UNT): Reporting a revenue increase of 67% and earnings increase of 97% over the year ago quarter, nearly identical to results last quarter.  Clearly no signs of slowing down for Unit Corp.  No change to report premarket.
• BJ Services (BJS): BJS is reporting an earnings growth decline over the year ago quarter, but that can be attributed to a one time gain in the year ago quarter as well as increasing operating expenses in the latest quarter.  The company did smash estimates of .60/share by posting .71/share and the stock is up nearly $2 in premarket trading.  The stock just broke out to new highs last Friday, but its Relative Strength rating isn’t great at 62.

Other Notable Earnings… Black and Decker (BDK), Stanley Works (SWK), Wabtec (WAB), Starwood Hotels (HOT), Pentair (PNR) – down 10% premarket, Anixter International (AXE), Seven Eleven (SE), MTC Technologies (MTCT), Legg Mason (LM), LCA Vision (LCAV) – up 4% premarket and Fargo Electronics (FRGO).