Will This Become A Trend In Earnings Reports?
Stocks are mixed on earnings
disappointments from several companies.
J.P. Morgan Chase
(
JPM |
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PowerRating) missed by 0.14; revenues also missed
expectations. The company took a hit in bond trading. Last month, Morgan Stanley
missed as a result of its bond trading operations.
Motorola
(
MOT |
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News |
PowerRating) reported
0.20, beating by 0.01, on $8.62 billion revenues, a little light. The company
guided slightly lower. Electronic Arts
(
ERTS |
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News |
PowerRating) reported $0.31 vs. a
0.35 estimate. Net income was $97 million; the company lowered guidance. Note:
ERTS rarely misses on earnings.
Not all the earnings news was bad, though. The
following companies had rosier reports:
Pfizer
(
PFE |
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News |
PowerRating) beat by a penny, but revenue was lighter than
expected. Pfizer makes Lipitor, the world’s best selling drug.
Eastman Kodak
(
EK |
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Chart |
News |
PowerRating) beat by 0.07,saying sales of digital products
rose +39%.
General Dynamics
(
GD |
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Chart |
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PowerRating) reported 1.60 vs 1.50 estimate. The
Gulfstream business rebounded.
United Technologies
(
UTX |
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PowerRating) reported 1.43, beating estimates. The
company expects double-digit earnings growth for 2005.
Rising raw materials costs are being cited in earnings reports. Whirlpool
(
WHR |
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Chart |
News |
PowerRating) warned and said it would raise prices to combat rising raw materials
prices. On Monday, Kraft
(
KFT |
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Chart |
News |
PowerRating) said that rising commodity costs
caused a 3.8% fall in earnings. Swift Transportation
(
SWFT |
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Chart |
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PowerRating) said
that fuel costs are 30% than last year.
New mortgage applications rose 7.9% last week.
The 10-year note broke below the 4% level.
eBay
(
EBAY |
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Chart |
News |
PowerRating) reports tonight, with a
0.27 estimate.
Crude oil inventories rose +1.2 million barrels;
gasoline stocks fell -700,000 barrels; distillates fell -1.9 million barrels.
| Dow | -77.76 | 9878.89 |
| S&P 500 | -0.51 | 1102.49 |
| Nasdaq | +9.08 | 1931.79 |
Strong sectors are: Gold
(
XAU.X |
Quote |
Chart |
News |
PowerRating)
+2.60%, Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +3.18%, Healthcare Providers
(
HMO.X |
Quote |
Chart |
News |
PowerRating) +2.96%.
Weak sectors are:Â Banks
(
BIX.X |
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Chart |
News |
PowerRating), -1.38%, Airlines
(
XAL.X |
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Chart |
News |
PowerRating) -1.88% and
Brokers
(
XBD.X |
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Chart |
News |
PowerRating) -0.91%.
10-year notes are: -040
at 113 035
The dollar is -0.68 at
86.16
Gold is +4.10 at 423.60
Crude Oil is +1.94 at 54.58
866 million on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing | 1409 | Up Vol 321 |
| Declining | 1715 | Down Vol 447 |
| Ratio | 1.21 | 1.39 |
| Nasdaq |
||
| Advancing | 1369 | Up Vol 462 |
| Declining | 1506 | Down Vol 344 |
| Ratio | 1.10 | 1.34 |
Stocks in the News
Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating) reported 0.20, beating by 0.01, on $8.62 billion
revenues, a little light.
Electronic Arts
(
ERTS |
Quote |
Chart |
News |
PowerRating) reported $0.31 vs. a
0.35 estimate. Net income was $97 million; the company lowered guidance. Note:
ERTS rarely misses on earnings.
Ameritrade
(
AMTD |
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Chart |
News |
PowerRating) beat by 0.03.
Wyeth
(
WYE |
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Chart |
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PowerRating) beat by 0.06, reversing last year’s loss.
Cummins
(
CMI |
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Chart |
News |
PowerRating) beat and guided higher. The company makes truck
engines. CMI is at a 7-year high.
MGM Mirage
(
MGG |
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Chart |
News |
PowerRating) guided lower.
Harrah’s
(
HET |
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Chart |
News |
PowerRating) beat by 0.05.
Honeywell
(
HON |
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Chart |
News |
PowerRating) was in-line at 0.43. Q3 profits rose 8%.
Teradyne
(
TER |
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Chart |
News |
PowerRating) missed by 0.02 and said customers have sharply
lowered capital spending.
Lucent
(
LU |
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Chart |
News |
PowerRating) reported its first profitable year since 2000.
Countrywide Financial
(
CFC |
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Chart |
News |
PowerRating) had a big miss. Refinancing volume
fell 55%; net income fell 47%.
Monster.com
(
MNST |
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Chart |
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PowerRating) beat by a penny and beat on revenues.
XM Satellite
(
XMSR |
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Chart |
News |
PowerRating) announced a $650 million, 11-year deal with
Major League Baseball to broadcast games. A Lazard analyst said the company paid
two times what Sirius Satellite paid for NFL.
eBay
(
EBAY |
Quote |
Chart |
News |
PowerRating) reports tonight, with a 0.27 estimate. Analysts will
be looking at the revenue growth number.
Brice Wightman