Like the Lakers’ buzzer beater win to take the lead on Phoenix in this year 2010 NBA Playoffs, the markets continue to surprise investors and traders throughout the month of May.

Similarly to the last second turnarounds from loser to winner of a crucial NBA Playoff game, Guess? Inc. (NYSE: GES) issued their earnings report yesterday with just as mixed a signal as the pre-market futures this morning.

The fashionable apparel retailer delivered profit of $50.3 million, or $.54 cents per share, compared with earnings of $32.5 million, or $.35 cents a share, in the same period a year ago.

Revenue rose 22% to $539.3 million, up from 2009′s first-quarter sales of $441.20 million.

The Cheat Sheet: Guess? reported 1st quarter earnings that beat consensus analyst estimates, however forecast 2nd quarter guidance missed consensus analyst expectations. Guess? reduced its full-year earnings per share estimate to a range of $2.80 to $2.85 per share, down from a previous forecast of between $2.87 and $2.95 per share. The stock is trading flat-to-up this morning, yet another sign of the mixed confidence in the retail recovery.

Disclosure: No positions in the companies mentioned.

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Minnesota-based Best Buy Inc. reported Q3 earnings that blew through analyst expectations Tuesday before the bell.  The retailer earned $0.53 / share, compared to expectations of $.043, on net income of $227 million, compared with just $52 million for the same period last year.

However, as details of the report began to unfold, it became clear that a large portion of BBY’s Q3 income had come from strong sales of lower-end notebooks and flat screen televisions, threatening to cut significantly into gross margins.

Analysts interpreted these results to indicate a continuance of an already competitive holiday season, pressuring Best Buy to further lower prices and thus their margins as well.

Shares traded down more than 8% following the report, finishing the week down over 13% from Mondays close.  The stock gapped down to below its 20-day moving average on Tuesday but was able to hold its 50-day MA, an indication that investors may have been willing to step in and support prices at around $41.50.  However, such support proved fleeting, as shares opened below the 50-day MA Friday and closed the week well below the important technical indicator.

At this point, shares are essentially a falling knife, and only the bravest should be willing to step in and try to catch it.  Support exists in the $36 – $38 region, notably including the 200-day MA at a shade under $38.  Until it tests those support levels and holds up, you would be prudent to avoid this one.

Disclosure: No positions in BBY.

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BlackBerry manufacturer Research In Motion exceeded analyst expectations when it reported Q3 earnings Thursday after the close.  Earnings came in at $1.10 / share, a $0.06 surprise, and forecasts for the next Q were raised to $1.23 – $1.31 / share, strongly outpacing analyst estimates of $1.12.

Perhaps of even greater importance is the apparent resurgence in investors’ confidence in the smart-phone maker. RIMM, once the apple in the eye of the street, had fallen demonstrably out of favor after reporting a lackluster 2^nd Quarter in late-September.  After gapping down from the low-$80’s into the $60’s, shares traded into the $50’s before embarking on a bit of a comeback leading into yesterdays report.

Having assuaged the fears of many that the onslaught of competition in the smart-phone arena had proven too much for the Canada-based company, it looks as if shares may be poised to resume a leadership role in the NASDAQ, as well as the market in general.

Shares closed the day off their high, but still maintained much of the strong gap up from the open, trading in the highest daily volume the shares have seen since RIMM last reported earnings.  Then, shares followed the direction of the gap for more than a month before beginning to become more range bound, and it wouldn’t be surprising if the same happened here.  Shares won’t begin to hit resistance until about the $78-level, and if they can break through, there’s a relatively clear path into the mid-$80’s.

Disclosure: Long RIMM.

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Gildan Activewear (GIL), marketer and manufacturer of, well, activewear, reported Q4 earnings of $0.42 / share Thursday before the bell, beating estimates by $0.09.  Shares gapped up 10% on the day, inciting no less than 9 analysts to raise their targets on the stock, with target prices ranging as high as $27.  Still, shares traded down 3% on Friday.

Thursdays pop pushed GIL above resistance dating back to late August, but by Fridays close it was a hair below the old supply/demand battlefront.  Unlike Fridays pullback, Thursdays move was on high volume, and all of GIL’s moving averages are in good shape.

So, while the stock remains in a good position, you’ll want to see at least a couple consecutive closes above August resistance before you jump in headfirst.

Disclosure: No positions in the companies mentioned.

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