Big Earnings Plus 2 Stock Splits
Stocks fell after Alcoa issued a
disappointing earnings report and violence continued in Iraq. Mortgage
applications dropped 3 straight weeks with homebuilders continuing to sell off.
Boeing
(
BA |
Quote |
Chart |
News |
PowerRating) chose General Electric
(
GE |
Quote |
Chart |
News |
PowerRating) and
Rolls-Royce to build engines for its 7E7 jetliner.
Analysts expect the deal to worth as much as $60 billion.
Kerr-McGee
(
KMG |
Quote |
Chart |
News |
PowerRating)
will acquire Westport Resources
(
WRC |
Quote |
Chart |
News |
PowerRating) for $2.5 billion, creating one
of the largest US independent oil and natural gas producers. Westport
shareholders will receive 0.71 shares of KMG share for each WRC share they own.
KMG fell 5% on the news.
After the close Research in
Motion
(
RIMM |
Quote |
Chart |
News |
PowerRating) beat by 0.06, non GAAP, and revenues exceeded
expectations; the company also announced announced a 2:1 split. RIMM was halted
after the close. Yahoo
(
YHOO |
Quote |
Chart |
News |
PowerRating) reported 0.14, beating by 0.03
and announced a 2:1 stock split.
Revenue was $550 million vs $501 million estimate. The stock traded up 9% in
after hours trading.
Genentech
(
DNA |
Quote |
Chart |
News |
PowerRating) beat by 0.07Â — non GAAP earnings of 0.38 — but
marketing expenses ate into profits — $250 million for Q1, $110 million over
last year’s number. Constellation Brands
(
STZ |
Quote |
Chart |
News |
PowerRating) was in-line.
Electronic Arts
(
EERTS |
Quote |
Chart |
News |
PowerRating) traded lower after the close after the company
announced that President and COO John Riccitiello is resigning.
| Dow | -90.66 |
10480.15 |
| S&P 500 |
-7.65 | 1140.51 |
| Nasdaq | -9.66 |
2050.24 |
The day’s leading sectors were
Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +1.03%, Hardware
(
HWI.X |
Quote |
Chart |
News |
PowerRating) +0.97%, Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) +0.57%, and
Disk Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) +0.48%, .
Weak today were Retail
(
RTH |
Quote |
Chart |
News |
PowerRating)
-1.24%, Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) -1.22%, and Chemicals
(
CEX.X |
Quote |
Chart |
News |
PowerRating) -1.15%.
Economic news releases a much
bigger rise in export prices of 0.9% and import prices that rose by 0.9%.
10-year Notes were +85 at
113 020
The dollar
was -0.47 at 88.28
Gold was +3.34 at 422.28
Crude Oil was +1.21 at
36.15
Volume was 1,765,999,000 on
the NYSE, and 1,461,781,000 on the Nasdaq.
Market breadth was mixed.
| NYSE | Issues | |
| Advancing |
1610 | Up Vol 490 |
| Declining | 1687 | Down Vol 947 |
| Ratio | 1.04 |
1.92 |
| Nasdaq |
||
| Advancing |
1561 | Up Vol 891 |
| Declining |
1559 | Down Vol 791 |
| Ratio | 1.00 |
1.12 |
Stocks in the news:
Sirius
(
SIRI |
Quote |
Chart |
News |
PowerRating) signed an agreement
with Chrysler to equip 2005 Chrysler, Jeep and Dodge vehicles with its radio
systems. Sirius will be also be available as a factory option on BMW 7 series
vehicles for $595.
Seagate Technology
(
STX |
Quote |
Chart |
News |
PowerRating) fell after it
lowered third-quarter earnings forecasts to 6 cents a share on high inventories
and competitive industry pricing.
The FDA approved Guidant’s
(
GDT |
Quote |
Chart |
News |
PowerRating)
Vitality 2 device to treat patients at risk for sudden cardiac death.
Brice Wightman
bricew@tradingmarkets.com