Amazon (AMZN) NewsBite - AMZN Falls on Consumer Spending Worries

Wednesday, July 09, 2008 10:01 AM EDT

Amazon.com Inc (AMZN) opened at $74.60. So far today the stock has hit a low of $73.42 and a high of $74.9. AMZN is now trading at $74.08, down 0.96 (-1.28%). After hitting a one-year high of $101.09 in October, the stock hit a one-year low of $61.20 in March. AMZN shares are declining with other retailers this morning, as rebounding oil prices have investors worried that rising energy costs will cut into consumer spending. Technical indicators for AMZN are bearish and steady, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating. If you’re looking for a hedged play on this stock, consider an August bear-call credit spread above the $95 range. AMZN hasn’t been above $95 for more than just a few days in the past year and has shown resistance around $85 recently. This trade could be risky if the company's earnings (due out on 7/23) are a positive surprise, but even if that happens, this position could be protected by resistance AMZN might find at its 200 day moving average, which is currently around $81 and falling. [LHF- Seven Summits Strategic Investments NewsBite]

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