Strong Tech Earnings Batter Naz Futures

  • July 19, 2000
  • Marc Dupee

America’s largest technology companies beat Wall Street
earnings expectations, but traders sold equities Wednesday, throwing Nasdaq 100 futures
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for a second consecutive day of losses. 

In other markets, energies meats and coffee fell. 

Microsoft
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per share that analysts polled by First Call/Thomson Financial had expected. But
the better-than-expected earnings, came not from sales–which were flat at $5.8
billion–but from investments. Wall Street did not
like this development and the stock sold off, ending 5 3/8 lower at 73
1/8. 

Intel
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world’s largest semiconductor company beat its earnings estimates, but also sold
off, ending 4 7/8 lower at 138 1/8. Other Nasdaq blue chips
also closed in the red, with Qualcomm
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account for 25% of the movement in the Nasdaq 100 Index. 

The assault on tech sent the Naz futures down one limit
trading curb before settling 110.00 lower at 3913.50. September S&P futures
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closed 11.20 lower at 1500.30 and
Dow futures
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T-bonds
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signaling the market is satisfied bonds are correctly priced in the wake of
Tuesday’s CPI report and ahead of Thursday’s scheduled statements from Fed
Chairman Greenspan. September closed down 1/32 at 96 29/32.

From the Momentum-5
List, dollar index futures
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.25 to 109.31 after Germany reported weaker-than-expected business sentiment.
The DXU0 left a Doji cross, a candlestick pattern portending a change in
direction.

Gold sank nearly $5 early in the session in thin trade on a
stronger dollar. World gold is priced in dollars and a rising dollar makes gold
relatively more expensive, curbing demand. A tame “core” Consumer
Price figure Tuesday also tempered the appetite for gold, a traditional
inflation hedge. August
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Sufficient supplies and caution before Friday afternoon’s
U.S. Department of Agriculture monthly cold storage report sent lean hogs
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down 1.350 to 64.900. Pork bellies followed suit and closed at a four-month low,
hitting limit-levels, down 3.000 at 80.900.  

Grains bounced off fresh contract lows with
soybeans
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1/4. The rebound in the rest of the grain complex was more tepid and soybean oil
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from the Implosion-5 List,
sank 2.9 to 153.5.  

Finally,
coffee
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run-up sparked by freeze temperatures in the primary growing regions of 
Brazil. September closed 7.30 lower at 111.75.