Another IPO – Here’s Who Debuts Tomorrow
Stocks were
lower Wednesday, in a particularly choppy
day. A lowered second-quarter revenue forecast from
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) as well as lower-than-expected earnings from Cree
(
CREE |
Quote |
Chart |
News |
PowerRating) weighed on the tech-heavy Nasdaq, which found some support at its
20-day moving average. Bonds bounced back
after a four-day slide. The recent sell off in bonds have pushed yields to near
one-year highs. The dollar was higher today while gold sold off.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) fell 4.41 t0 9200.05. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
slid 1.63 to 987.65. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) dropped 9.42 to 1721.95.
The day’s leading sectors were
REITs
(
$DJR.X |
Quote |
Chart |
News |
PowerRating), +1.31%, Oil Service
(
$HGX.X |
Quote |
Chart |
News |
PowerRating),
+1.10%, Home Builders
(
$HGX.X |
Quote |
Chart |
News |
PowerRating),
+0.82%, Healthcare
(
$HCX.X |
Quote |
Chart |
News |
PowerRating), +0.72%, and Pharamaceuticals
(
$DRG.X |
Quote |
Chart |
News |
PowerRating), +0.75%.
Weak today are Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), -2.56%, Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), -1.49%, Gold & Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), -1.37%,
Transportation
(
$TRANX.X |
Quote |
Chart |
News |
PowerRating), -1.15%, Hardware
(
$GHA.X |
Quote |
Chart |
News |
PowerRating),
-1.32%, and Internet Commerce
(
$ECM.X |
Quote |
Chart |
News |
PowerRating), -1.35%.
In economic news today, US
growth “increased a notch” according to the
Fed Beige Book. Tomorrow look for Initial Claims, GDP, and the Chicago PMI.
The 10-year U.S. Note
was +130 at 111 300.
The dollar gained +0.87 at
96.20.
Gold fell -4.10 at 356.50.
Crude Oil +0.46 at
30.68.
Volume was
1,362,517,000 on
the NYSE, and 1,508,197,000 on the Nasdaq.
Market breadth was negative,
with NYSE declining issues over advancing issues by 1.09, and down volume up
volume by 1.34. Nasdaq declining issues over advancing issues at 1.24, and down
volume over up volume at 1.95.
Top Dow stocks were:
SBC
(
SBC |
Quote |
Chart |
News |
PowerRating), +0.06 at 23.63,
Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating), +1.10 at 66.45, Boeing
(
BA |
Quote |
Chart |
News |
PowerRating), +1.02% at
32.38, Coca Cola
(
KO |
Quote |
Chart |
News |
PowerRating), +0.52 at 45.38, and McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating),
+0.25 at 22.40.
Stocks in the news:
After the close, Chubb
(
CB |
Quote |
Chart |
News |
PowerRating) said
its quarterly profit rose 20%, reporting 1.45/share; Applebee’s
(
APPB |
Quote |
Chart |
News |
PowerRating)
posted a lower quarterly profit due to a charge, coming in for the second
quarter at 0.35/share.
Tomorrow, Netgear, a LAN company,
goes public, priced at $12-14, by Lehman Brothers. This is the 7th consecutive
week there has been an IPO brought to market..
Andrx Group
(
ADRX |
Quote |
Chart |
News |
PowerRating)
gained 2.98. The drugmaker reported
second-quarter earnings of 20 cents a share compared to a loss of 42 cents a
share in the year ago period. Its latest results topped consensus estimates by a
penny.
Drug research and development
company Charles River Labs
(
CRL |
Quote |
Chart |
News |
PowerRating) traded higher after the
company reported second-quarter results that topped analysts’ estimates. Profits
jumped 26% to 42 cents a share from 34 cents in the year-ago period. Excluding
charges, the company earned 43 cents a share, topping consensus estimates of 41
cents a share. CRL rose 4.42 to 37.13.
J.P. Morgan upgraded financial
media giant Dow Jones
(
DJ |
Quote |
Chart |
News |
PowerRating) from “underweight” to “neutral”. J.P.
Morgan cited a “less demanding valuation and signs of life in the IPO market and
national advertising.” JPM fell 0.18 to 35.06.
Telecom equipment maker
Tekelec
(
TKLC |
Quote |
Chart |
News |
PowerRating) rose after the company reported
second-quarter income that topped estimates by a penny. The company earned 7
cents a share compared to 11 cents a share in the year-ago quarter. Revenues
fell 7.5%. TKLC gained 2.46 to 14.85.
Women’s apparel and accessories
retailer BeBe Stores
(
BEBE |
Quote |
Chart |
News |
PowerRating) fell slightly after the company reported
a decrease in its fourth-quarter earnings. In its latest quarter, Bebe earned 13
cents a share compared to 15 cents a share in the year-ago period. However the
results did top estimates by a penny. Looking forward the company is expecting
results between 18 to 21 cents a share or within analysts’ estimates of 21 cents
a share. BEBE fell 0.34 to 22.00.
Semiconductor equipment maker
Cree
(
CREE |
Quote |
Chart |
News |
PowerRating) fell after the company missed its
fourth-quarter earnings estimate by a penny. In its latest quarter, Cree earned
15 cents a share compared to a loss of 31 cents a share in the year-ago quarter.
However revenues of $64.1 million were higher than estimates of $63.4 million.
Shares of Cree have been suppressed after the filing of a $3 billion lawsuit
from its former chief executive. CREE closed at 13.43, down 3.18.
Integrated circuit maker
Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) dropped after the company reported
first-quarter results that topped estimates by a penny. The company earned 4
cents a share compared to a loss of 13 cents a share in the year-ago quarter.
However, the shares are under pressure today as the company sees second-quarter
sales between $44 to $48 million compared to current estimates of $55.7 million.
If you have any comments or
questions, please feel free to email me.
vincentm@tradingmarkets.com