Trading Lower After The Close, Plus, FDA Panel Votes

October 15, 2003
Brice Wightman

Stocks were
lower Wednesday. The major indices
gapped open to new highs after better-than-expected third-quarter results from
chip giant Intel
(
INTC |
Quote |
Chart |
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PowerRating) as well as a very positive regional manufacturing
report. Stocks immediately dipped, then traded flat before a late day drop and
then rally into the close. Late yesterday the Dow component reported third-quarter results that
more than doubled from year-ago levels. The chip giant earned 25 cents a share
or 2 cents above analysts’ estimates. Intel CFO Andy Byrant expects full-year
revenues and earnings to show a “substantial improvement.”

Manufacturing activity in
the New York region grew to a record level in October as the NY Empire State
Index came in more than double expectations. Both the Dow and S&P rose further
into their 16-month highs as the Dow hit the 9805 level while the S&P cracked
the 1050 resistance level. Meanwhile, the Nasdaq hit a high of 1966.87, which is
a level of angular resistance. Both bonds and gold are lower today.

In economic news, the NY Empire
State Index for October surged to 33.7 vs. expectations of 16.0. Retail Sales in
September fell 0.2% vs. expectations of a drop of 0.1%. Excluding autos, sales
rose 0.3% vs. expectations of 0.4%.

Bonds were -17 at 106
12.

The dollar
was +0.64 at 92.47.

Gold was -2.80 at 372.80.

Crude Oil was -0.07 at
31.86.

Volume was
1,467,116,000 on
the NYSE, and 1,966,099,000 on the Nasdaq.

Market breadth was negative,
with NYSE declining issues over advancing issues by 1.54 and down over up volume
by 1.71; Nasdaq declining issues over advancing issues at 1.47, and up volume
over down volume at 1.17.

Top Dow stocks were:

Stocks in the news:

An FDA panel voted 9-6 to approve
Inamed’s
(
IMDC |
Quote |
Chart |
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PowerRating) silicone breast implants with conditions, including a
consent form, and a patient education program, and follow-up screening. They
will have to report to the FDA every year, keeping a patient’s registry.

Harley Davidson
(
HDI |
Quote |
Chart |
News |
PowerRating)
beat estimates by .08, but shares fell on concerns of production goals and Q4
profit.Â The company said it had met its third-quarter production goal of
67,500 motorcycles, but analysts and investors are accustomed to the company
exceeding its goals.

Biotech company Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating) gained 3% despite unveiling a loss in its latest quarter.
The company reported a third-quarter loss of 43 cents a share compared to
earnings of 25 cents a share in the year-ago quarter. However, excluding
acquisition and amortization costs, the company would have earned 37 cents a
share or 3 cents above analysts’ estimates. Looking ahead, the company sees
fourth-quarter earnings between 35 to 37 cents a share, compared to consensus
estimates of 35 cents a share. Genzyme also expects to exceed its fiscal 2003
revenues and earnings guidance.

The world’s biggest
semiconductor company Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) rose 2% after the
company reported third-quarter results that topped expectations. Late yesterday,
the company reported earnings of 25 cents a share compared to 10 cents a share
in the year-ago quarter. The results topped estimates by 2 cents. Intel’s
revenues of $7.8 billion also topped estimates of $7.7billion. The company has benefitted from the shift from desktops to laptops.

Semiconductor equipment maker Novellus
Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating) added 3% after its latest quarterly
results. The company reported a third-quarter loss of 64 cents a share compared
to earnings of 3 cents a share in the year-ago quarter. Excluding charges and
items, Novellus earned 4 cents a share while analysts were expecting breakeven
results. Looking ahead, the company is expecting earnings between 2 to 7 cents a
share, current consensus estimates are calling for a nickel a share.

Used vehicle retailer Carmax

(
KMX |
Quote |
Chart |
News |
PowerRating) skidded 17% after the company lowered its third-quarter
guidance. Due to weaker-than-expected sales, the company now sees earnings of 16
to 18 cents a share compared to its prior forecast of 19 to 21 cents a share.
The company also lowered its full-year outlook from $1.11 to $1.16 a share to
$1.08 to $1.13 a share.

Flash memory product maker
Sandisk
(
SNDK |
Quote |
Chart |
News |
PowerRating) rose 4% after the company reported
third-quarter results that more than tripled. The company posted earnings of 60
cents a share compared to year-ago profits of 16 cents a share. Sandisk also
raised its full-year revenue projections to $1 billion from $950 million.

If you have any comments or
questions, please feel free to email me.

Brice
Wightman

bricew@tradingmarkets.com

Trading Lower After The Close, Plus, FDA Panel Votes

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