Stocks to Watch Tomorrow 01/18

Apple (Nasdaq: AAPL) reported a blow out quarter after the close. EPS was $1.14, versus the consensus of $0.78 and revenue was $7.1 billion versus the consensus of $6.42 billion. After an initial pop (post-halt) the stock is now below the close. Sceptics may point at the lower Mac numbers and guidance that is below the street ($0.54-$0.56, versus the consensus of $0.60). I say the iPod numbers were huge and will lead to higher Mac numbers and guidance was conservative (the company guided Q1 to $0.70-$0.73 and reported $1.14!). The stock looks to have big psychological resistance at $100.

Star Scientific Inc. (Nasdaq: STSI) was today's everyone-knows-we-can-move-this-little-piece-of-crap-on-any-decent-news micro cap stock of note. The company disclosed in an 8-K filing that the presiding judge in its patent infringement lawsuit against RJ Reynolds Tobacco notified the company that decisions on three pending summary judgment motions will be available on the Court's website on Friday, January 19th. The stock closed 30% higher.

IBM (NYSE: IBM) is reporting earnings after the close tomorrow and will be the one to watch. Also look for Continental Air (NYSE: CAL), Harley-Davidson (NYSE: HOG) and Merrill Lynch (NYSE: MER) (all before the open)

The big loser today was Rackable Systems Inc. (Nasdaq: RACK), down an astonishing 38% after warning on earnings. We will have to be on the look-out for a dead-cat bounce here.