Big Number At The Close, And The Stock Is Trading Up After-Market

July 17, 2003
Vincent Mao

Stocks were
lower Thursday.
The major indices fell for a third straight session as tech weakness
triggered a broad-based decline. Stocks were weak from the open as the latest results from IBM
(
IBM |
Quote |
Chart |
News |
PowerRating) and
Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) weighed heavily on the markets. On Wednesday, Dow component IBM reported an
impressive increase in second-quarter results, but the bulk of the increase came from favorable currency fluctuations. Finnish
mobile phone maker Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) reported results in-line with estimates but
warned that third-quarter sales would be flat to lower than second-quarter
sales, due to increasing competition and the rising dollar.

In economic news, Weekly
Jobless Claims fell by 29,000 to a three-month low of 412,000. This was
better than economists’ expectations of 425,000. Building Permits in June
came in at 1.817 million or better than expectations of 1.790 million.
Housing Starts in June came in at 1.803 million compared to estimates of
1.750 million. Lastly, the Philly Fed Index for July came in at a reading
of 8.3 or better than estimates of 7.0.

Bonds were +03 at 112
14.

The dollar was +0.17 at
96.89

Gold was +1.30 at 345.40.

Crude Oil +0.34 at
30.72.

Volume was
1,091,733,000 on
the NYSE, and 1,312,822,000 on the Nasdaq.

Market breadth was negative,
with NYSE declining issues over advancing issues by a ratio of 3.29, and down
volume over up volume by a 3.86:1 ratio. Nasdaq declining issues over advancing
issues is 3.88, and down volume over up volume is 9.79.

Top Dow stock(s) were:

Stocks in the news:

After the close, Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating)
reported .23, before charges, missing the .24 estimate (after charges, .18).
Revenue was up 11% from the same period last year. The stock traded up in after
hours trading on the news.

Peoplesoft
(
PSFT |
Quote |
Chart |
News |
PowerRating) came in
in-line with estimates at .14.

Media giant AOL Time Warner

(
AOL |
Quote |
Chart |
News |
PowerRating) gained .04 after Merrill Lynch upgraded the stock from
“neutral” to “buy.” Merrill based the upgrade on AOL’s improving costs structure
and its focus on advertising. AOL closed at 16.40.

Apple Computer
(
AAPL |
Quote |
Chart |
News |
PowerRating)
rose after the company unveiled third-quarter profits that topped
estimates. The company reported earnings of 5 cents a share vs. consensus
estimates of 3 cents a share. However the results were 40% off from the same
quarter a year ago. CEO Steve Jobs cited strong customer responses to new
products such the ITunes online music store and the IPOD portable music players.
The company also released its new Power Mac G5. AAPL closed at 20.90, up 1.03.

With an impressive wide-range
bar up, heavy equipment maker
Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating) was one of the few bright spots in the Dow today as
the company reported second-quarter earnings nearly double a year ago. The
company earned $1.15 a share, up from 58 cents a share a year ago. Analysts had
expected the company to earn 66 cents a share. The Dow component attributed the
strong results to lower operating costs and favorable currency effects. Looking
ahead, the company sees full year results between $2.75 to $2.90 a share
compared to Street estimates of $2.30 a share.

Beverage giant Coca-Cola
(
KO |
Quote |
Chart |
News |
PowerRating) traded higher after the company reported an 11% rise in
second-quarter earnings. Coke reported results including a two cent charge of 55
cents a share compared to year ago period of 49 cents a share. The company also
topped estimates by a penny. KO was 44.76, up 1.85.

General Motors
(
GM |
Quote |
Chart |
News |
PowerRating)
was fractionally lower after the company reported second-quarter results that
topped estimates. The auto giant reported income of $1.58 a share compared to
Street estimates of $1.19. However the results were lower than year-ago results
of $2.43. The company blamed the results on increasing pricing pressure.

After the close yesterday, computer giant IBM
(
IBM |
Quote |
Chart |
News |
PowerRating)

reported third-quarter results
in-line with estimates. The company reported results of 97 cents
a share compared to just 3 cents a share a year ago. Revenues jumped 10% to 21.6
billion. However most of the gains were due to favorable currency fluctuations.
IBM fell 3.41 to 83.33.

Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) was lower on very heavy volume after the cell phone maker reported second-quarter
results in line with estimates. The company reported pro forma results of 14
euro cents compared to 19 euro cents for the same period a year ago. The company
attributed the weak results to a rising dollar and increased competition from
entry-level phone sales. NOK closed at 14.40, down 3.55.

If you have any comments or
questions, please feel free to email me.

Vincent Mao

vincentm@tradingmarkets.com

Big Number At The Close, And The Stock Is Trading Up After-Market

BUY THE FEAR, SELL THE GREED

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