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Stocks were higher Wednesday. The Fed
raised rates by 1/4 point to 2.5%, as expected; the policy statement was
unchanged..
Volume was heavier, the A/D line was positive and the new high list is
expanding. The Dow made made it three up-days in a row--something that hasn't
happened yet this year--and has also retraced half of its 2005 losses.
Google (GOOG | Quote | Chart | News | PowerRating) shot up almost 10% after reporting blow out earnings yesterday...0.85 vs a 0.77 consensus estimate. Revenues were $634 million vs. a $590 million estimate. Google commands 40% of the search market. Forty-eight percent of the revenue came from non-Google websites. The company has not provided any guidance. The stock rallied over 10 points after the close. Merrill Lynch raised its 2005 revenue forecast to $3.11 billion. Jeffries raised to a 'Buy.' Goldman lifted its earnings per share estimate by 25%. GOOG hits an all-time high of 216.80 intraday, and at $58 billion, now surpasses EBAY in market cap. FYI, on Valentine's Day, 177 million shares come off lock up.
Boeing (BA | Quote | Chart | News | PowerRating) reported earnings that beat by 0.18, but Q4 profit was lower on charges related to the closing of its 717 program and the cancellation of an Air Force tanker order. Net income fell 84%; revenue rose 1%. The company expects to deliver 320 planes in 2005.
Harrah's (HET | Quote | Chart | News | PowerRating) beat by a penny as net income jumped 118%.
Sears (S | Quote | Chart | News | PowerRating) will list on the Nasdaq after the merger with KMart is complete. The letter 'S' has been Sears' NYSE symbol since 1910; this will leave that symbol open for another company to use. Not only that, but after AT&T (T | Quote | Chart | News | PowerRating) merges with SBC Communications, 'T' will be available as well. And don't forget 'G.'
After the close, Amazon (AMZN | Quote | Chart | News | PowerRating) reported 0.35 vs 0.40, pro forma. Revenues beat 2.54 billion vs a 2.4 expectation. The stock fell 14% after hours.
Tonight at 9 PM ET (6 PM PT), look for the State of the Union address.
Happy Groundhog Day! Punxsutawney Phil saw his shadow, which predicts six more weeks of winter.
Strong sectors were: Airlines (XAL.X | Quote | Chart | News | PowerRating) +1.85% Oil Services (OSX.X | Quote | Chart | News | PowerRating) +1.83% Natural Gas (XNG.X | Quote | Chart | News | PowerRating) +1.43%
Weak sectors were: Healthcare Providers (HMO.X | Quote | Chart | News | PowerRating) -1.02% Biotech (BTK.X | Quote | Chart | News | PowerRating) -0.65% Computer Hardware (HWI.X | Quote | Chart | News | PowerRating) -0.76%
| Dow | +44.85 | 10,596.79 |
| S&P 500 | +3.77 | 1193.19 |
| Nasdaq | +6.36 | 2075.06 |
The dollar was +0.05 at 83.53
Crude Oil was -0.42 at 46.70
Gold was +0.20 to 421.50
Volume was 1.5 billion on the NYSE and 1.9 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 2019 | Up Vol 943 |
| Declining | 1302 | Down Vol 501 |
| 1.55 | 1.07 | |
| Nasdaq | ||
| Advancing | 1653 | Up Vol 931 |
| Declining | 1432 | Down Vol 870 |
| 1.15 | 1.43 |
Stocks in the News
Nvidia (NVDA | Quote | Chart | News | PowerRating) raised its Q4 forecast to $560-570
Devon Energy (DVN | Quote | Chart | News | PowerRating) beat by 0.09.
Rohm & Haas (ROH | Quote | Chart | News | PowerRating) beat by .07 and guided higher.
Fox Entertainment (FOX | Quote | Chart | News | PowerRating) beat by 0.05.
Monster Worldwide (MNST | Quote | Chart | News | PowerRating) earnings more than doubled; the company said it has acquired a 40% stake in ChinaHR.com
Brice Wightman
