Earnings After The Close…
Stocks were sharply lower, closing at the lows for
the year. The Dow fell by triple digits, or 1.2% and
the Nasdaq–down 1.1%–is now down about 5% so far for 2005. A strong
number from Apple allied the market early on, but worries about Q4
earnings and a warning from GM sent the market lower in the last hour.
General Motors
(
GM |
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PowerRating) said it sees 2005 EPS at $4-$5 for 2005; the
previous estimate was $4.78. Higher crude prices–at six-week highs–and mixed
economic data also put a damper in the market. Retail sales rose +1.2%, more
than expected; ex-auto, +0.3%, but jobless claims rose unexpectedly by 10,000 to
367,000.
Apple
(
AAPL |
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PowerRating) reported 0.70 vs a 0.49 estimate, beating by 0.21.
The company sees revenues of $2.9 billion vs the consensus of $2.75 billion.
1.046 million Macs were shipped, more than the estimated 984,000. Bank of
America boosted the stock to a buy from neutral. Â
Taser
(
TASR |
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PowerRating) guns are safe, according to a Wall Street Journal
article citing the Defense Department. Separately, The Cardiac Journal
said the guns were not dangerous to cardiac patients.
Homebuilder Hovnanian
(
HOV |
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PowerRating) said that 0.20 would come off its
$1.40 earnings forecast due to the recent California storms. Excavation,
landscaping and exterior finishing will be delayed; the company expects to make
up the losses next quarter.
After the close, Sun Micro
(
SUNW |
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PowerRating) came in at 0.01, in-line, but
revenues were light. Cree
(
CREE |
Quote |
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PowerRating) missed by 0.04.
Strong sectors were: Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +1.75%, Natural
Gas
(
XNG.X |
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Chart |
News |
PowerRating) +0.72%, Oil
(
XOI.X |
Quote |
Chart |
News |
PowerRating) +0.58%.
Weak sectors were: Airlines
(
XAL.X |
Quote |
Chart |
News |
PowerRating) -2.94%, Biotech
(
BTK.X |
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Chart |
News |
PowerRating)
-2.29%, Pharmaceuticals
(
DRG.X |
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PowerRating) -1.69%.
Â
| Dow | -111.95 | 10,505.83 |
| S&P 500 | -10.25 | 1177.45 |
| Nasdaq | -21.97 | 2,070.56 |
The dollar was +0.37 at
82.46
Crude Oil was +1.54 at
48.10
Gold was -1.40 to 427.40
1.0 billion on the Nasdaq.
Market breadth was mixed.
| NYSE | Issues | |
| Advancing | 1476 | Up Vol 478 |
| Declining | 1848 | Down Vol 875 |
| 1.25 | 1.83 | |
| Nasdaq |
||
| Advancing | 1111 | Up Vol 653 |
| Declining | 1984 | Down Vol 1292 |
| 1.78 | 1.97 |
Stocks in the News
TheStreet.com
(
TSCM |
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PowerRating) has hired investment bankers to help it
explore strategic options.
HCA, Inc.
(
HCA |
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PowerRating) guided higher for Q4.
Radio Shack
(
RSH |
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Chart |
News |
PowerRating) said sales rose 7%, and 3% on a same store sales
basis; the company also reaffirmed its guidance.
Home Depot
(
HD |
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Chart |
News |
PowerRating) is meeting with analysts.
Brice Wightman
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