Traders Watching Earnings From This High-Flyer
Stocks were mixed a day ahead of Greenspan’s testimony before Congress. Synopsys
(
SNPS |
Quote |
Chart |
News |
PowerRating)
will terminate its merger agreement with Monolithic Systems
(
MOSY |
Quote |
Chart |
News |
PowerRating).
MOSY fell 40% on the news. Synopsys will pay a $10 million termination fee and
gave no reasons for the move. McDonald’s
(
MCD |
Quote |
Chart |
News |
PowerRating) CEO Jim Cantalupo
death of an apparent heart attack sent shares down
3% before MCD recovered most of its losses. Current COO Charlie Bell was named
CEO.
Eli Lilly
(
LLY |
Quote |
Chart |
News |
PowerRating)
reported earnings of $400.4 million with revenue up 17% at $3.38 billion. Total
net income fell by 2% with global sales volume up 10%. Excluding one-time
charges, Lilly earned 70 cents, 4 pennies ahead of consensus. Its Zyprexa sales
rose 15% with Gemzar sales up 19%.
After the close, Kraft
(
KFT |
Quote |
Chart |
News |
PowerRating) beat by 0.02,
ex-items and guided Y04 inline; JDA Software
(
JDAS |
Quote |
Chart |
News |
PowerRating) beat by 0.03,
ex-items; Powerwave
(
PWAV |
Quote |
Chart |
News |
PowerRating) missed by 0.03 and missed on revenues;
Cendant
(
CD |
Quote |
Chart |
News |
PowerRating) neat and guided in-line; j2Global beat by 0.02 and
guided Y04 higher; the stock traded higher in the aftermarket; National Semi
(
NSM |
Quote |
Chart |
News |
PowerRating) announced a 2:1 split; Lincare
(
LNCR |
Quote |
Chart |
News |
PowerRating) beat by 0.06;
Taser
(
TASR |
Quote |
Chart |
News |
PowerRating) will report earnings before the
openTuesday. The stock has been a favorite among daytraders in recent months and
has made a large run-up. Consensus is 0.22.
| Dow | -14.12 |
10437.85 |
| S&P 500 |
+1.23 | 1135.84 |
| Nasdaq | +24.67 |
2020.41 |
The day’s leading sectors were
Biotechs
(
BTK.X |
Quote |
Chart |
News |
PowerRating) +2.83%, Disk Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) +1.74%,
Internet
(
ECM.X |
Quote |
Chart |
News |
PowerRating) +2.32%, and Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) +1.43%
Weak today were Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) -1.29%, Homebuilders
(
HGX.X |
Quote |
Chart |
News |
PowerRating) -0.88%, and Gold
(
XAU.X |
Quote |
Chart |
News |
PowerRating) -0.50%.
Economic news releases today
included leading indicators up 0.3%.
10-year Notes were -065 at
111 135
The dollar
was -0.12 at 89.82
Gold was -4.02 at 400.15
Crude oil was -0.26 at
36.73
Volume was 1,194,052,000 on
the NYSE, and 1,678,154,000 on the Nasdaq.
Market breadth was mixed.
| NYSE | Issues | |
| Advancing |
1626 | Up Vol 593 |
| Declining | 1660 | Down Vol 586 |
| Ratio | 1.02 | 1.01 |
| Nasdaq |
||
| Advancing |
1789 | Up Vol 1268 |
| Declining |
1392 | Down Vol 389 |
| Ratio | 1.28 | 3.25 |
Stocks in the news:
ImClone Systems
(
IMCL |
Quote |
Chart |
News |
PowerRating) traded higher after the FDA agreed to review its Erbitux plant. Banc
of America Securities initiated coverage on IMCL and set a price target of $90.
Printer maker Lexmark
(
LXK |
Quote |
Chart |
News |
PowerRating) reported
earnings of $121 million with revenue up at $1.26 billion. For the next quarter
it expects earnings to reach 93 cents a share with revenue growth in the high
single digits.
3M
(
MMM |
Quote |
Chart |
News |
PowerRating) posted earnings of $722
million with revenue up at $4.94 billion. Full year EPS was also raised to
$3.60-$3.70.
Wachovia’s
(
WB |
Quote |
Chart |
News |
PowerRating) net income rose to
$1.25 billion on revenue of $5.68 billion. Its capital management division
experienced a 90% increase in profit with corporate and investment banking up
62%.
Brice Wightman
bricew@tradingmarkets.com