CSCO Trades Lower In After-Market – Here’s What Happened

August 5, 2003
Vincent Mao

Stocks were
lower Tuesday despite a much stronger
than expected ISM services report. The Dow, SPX, and Nasdaq all closed below
their respective 50-day moving averages, and the SPX made its lowest close since
May 30. Costco
(
COST |
Quote |
Chart |
News |
PowerRating) lowered guidance, which further weighed on stocks.Â Costco
(
COST |
Quote |
Chart |
News |
PowerRating)
lowered its fourth- quarter and full-year outlook due to rising healthcare and
worker’s compensation costs. Bonds are lower after a one-day countertrend rally.

The day’s leading sectors were:
Gold
(
$HUI.X |
Quote |
Chart |
News |
PowerRating), flat.

In economic news today, ISM
Non-Manufacturing Survey in July came in at a reading of 65.1 compared to
last month’s 60.6. This was much better than economists estimates of 58.5.

The 10-year U.S. Note
was -260 at 110 270

The dollar was +0.01 at
96.37Â Â Â .

Gold was +1.00 at 351.10.

Crude Oil was +0.43 at
32.22.

Volume was
1,267,989,000 on
the NYSE, and 1,676,968,000 on the Nasdaq.

Market breadth was negative,
with NYSE declining issues over advancing issues by 2.21, and down volume over
up volume by 4.96. Nasdaq declining issues over advancing issues at 2.15, and
down volume over up volume at 3.36.

Top Dow stocks were:

Stocks in the news:

After the close, Cisco
(
CSCO |
Quote |
Chart |
News |
PowerRating)
reported .15 per share, inline, as were revenues, but cash flow came in on the
light side. At press time, the stock traded down to 17.98 in after-market
trading.

Drug maker Alexion
Pharmaceuticals
(
ALXN |
Quote |
Chart |
News |
PowerRating) fell by 21% after the company’s
heart drug, Pexelizumab, failed to meet its goal of reducing heart attacks and
improve survival rates in patients undergoing coronary bypass surgeries. However
Pexelizumab did meet a secondary goal. First Albany also downgraded the stock
from “Buy” to “Neutral”.

Cable operator Cablevision
Systems
(
CVC |
Quote |
Chart |
News |
PowerRating) lost 8% after the company reported its
second-quarter results. The company reported earnings including gains of 56
cents a share compared to a loss of 30 cents in the year-ago quarter. Without
the gain, the company would have incurred a loss. Revenues rose by 8% to $973.3
million or below analysts’ estimates of $992.1 million. CVC closed at 19.27.

Membership wholesale retailer
Costco
(
COST |
Quote |
Chart |
News |
PowerRating) fell 18% after the company lowered its
fourth-quarter and full-year year forecasts. Due to rising employee healthcare
costs and declining sales margins, the company now sees fourth-quarter results
coming in between 46 to 48 cents a share or down from its previous forecast of
54 to 56 cents a share. Full-year results are now expected to come in between
$1.48 to $1.50 or down from a previous forecast of $1.56 to $1.58. COST closed
at 30.06.

Electronics manufacturer
Emerson Electric
(
EMR |
Quote |
Chart |
News |
PowerRating) fell 1.51 after the company
lower-than-expected second-quarter results. In its latest quarter, the company
earned 85 cents a share compared to 67 cents a share in the year-ago quarter.
However, excluding items, the company earned 66 cents a share or 7 cents below
consensus estimates. Revenues rose just 0.6% to $3.57 billion or slightly below
estimates of $3.58 billion. Looking ahead, the company sees full year results
coming in above $2.52 compared to current estimates of $2.49. EMR closed at
52.30.

Online travel company
Expedia
(
EXPE |
Quote |
Chart |
News |
PowerRating) lost 6.00 despite reporting better-than-expected
earnings. The company reported second quarter results of 38 cents a share
compared to 21 cents a share in the year-ago quarter. Expedia beat consensus
estimates by 7 cents. EXPE closed at 70.48.

Consumer product giant
Gillette
(
G |
Quote |
Chart |
News |
PowerRating) was down slightly after the company reported
second-quarter earnings that topped analysts’ estimates. The company earned 33
cents a share compared to 28 cents a share and topped consensus estimates by 4
cents. Gillette attributed the results to strong razor blade sales as well as
favorable exchange rates. However the company added that competition from Schick
could cut into its earnings.

Online job search site
Monster.com
(
MNST |
Quote |
Chart |
News |
PowerRating) fell after the company announced that it
has ended its advertising campaigns on both AOL and MSN. The company said that
it will “redirect approximately $50 million per year on targeted, national and
local advertising initiatives”.

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

Vincent Mao

vincentm@tradingmarkets.com

CSCO Trades Lower In After-Market – Here’s What Happened

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