Do You Own AMAT? Here’s What’s Happening With The Stock
Stocks are
lower this midday. After yesterday’s
late-day reversal, the major indices are failing to show follow through. After a
five-day run, both the Dow and S&P are modestly in the red despite a
stronger-than-expected retail sales report. Separately, Wal-Mart
(
WMT |
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PowerRating),
Tiffany’s
(
TIF |
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PowerRating), Federated
(
FD |
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PowerRating), Abercrombie & Fitch
(
ANF |
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PowerRating), and
Payless ShoeSource
(
PSS |
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PowerRating) all checked in with better-than-expected quarterly
results. However, drug issues are weighing down the broader markets as
Astrazenca’s Crestor is expected to give significant completion to both Pfizer
(
PFE |
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News |
PowerRating)
and Merck
(
MRK |
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PowerRating). Both indices appear to be retreating after rising to near
the upper end of their two-month-long trading channels. Tech stocks are faring
better today despite cautious comments from the world’s largest maker of
semiconductor manufacturing equipment, Applied Materials
(
AMAT |
Quote |
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PowerRating). Bonds are
taking it on the chin today after the retail sales report. Yields are climbing
back near their one-year highs set on August 1st.Â
The Dow Jones Industrial
Average
(
$INDU.X |
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PowerRating) is -0.52% at 9261.19. The S&P 500
(
$SPX.X |
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PowerRating)
is -0.61 at 984.22. The Nasdaq
(
$COMPQ |
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PowerRating) is +0.13% at 1684.68.
The day’s leading sectors are
Gold & Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), +2.18%, SemiconductorsÂ
(
$SOX.X |
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Chart |
News |
PowerRating),
+1.44%, Networking
(
$GIP.X |
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Chart |
News |
PowerRating), +0.29%, Oil
(
$XOI.X |
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Chart |
News |
PowerRating),
+0.20%. and Disk DrivesÂ
(
$DDX.X |
Quote |
Chart |
News |
PowerRating), +0.16%.
Weak today are Health Care
(
$HCX.X |
Quote |
Chart |
News |
PowerRating), -1.91%, Home Builders
(
$HGX.X |
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Chart |
News |
PowerRating), -1.78%,
Drugs
(
$DRG.X |
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Chart |
News |
PowerRating), -1.77%, Telecom
(
$XTC.X |
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Chart |
News |
PowerRating), -1.12%, and
Internet Commerce
(
$ECM.X |
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Chart |
News |
PowerRating), -1.00%.
In economic news, Business
Inventories in June rose 0.1%, compared to forecasts of -0.1%. Export Prices
excluding agriculture in July fell by 0.1%. Import Prices excluding oil rose by
0.1%. Retail sales in July rose by 1.4% vs. expectations of a 1% rise. And
excluding autos, sales rose by 0.8% compared to estimates of 0.6%.
The 10-year U.S. Note
is -120 at 110 205.
The dollar is -0.12 at
96.22.
Gold is +4.10 at 364.10.
Crude Oil -0.62 at
31.30.
Volume is 600,000,000 on
the NYSE, and 750,000,000 on the Nasdaq.
Market breadth is mixed,
with NYSE declining issues over advancing issues by 1.31, and up down over up
volume by 1.33. Nasdaq declining issues over advancing issues at 1.07, and up
volume over down volume at 1.10.
Top Dow stocks are:
Intel
(
INTC |
Quote |
Chart |
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PowerRating), +0.82% at 24.57,
Hewlett Packard
(
HPQ |
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Chart |
News |
PowerRating), +0.81% at 21.12, 3M
(
MMM |
Quote |
Chart |
News |
PowerRating), +0.25%
at 144.34, Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating), +0.22% at 27.16, and Home Depot
(
HD |
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Chart |
News |
PowerRating),
+0.15% at 33.18.
Stocks in the news:
The
world’s largest maker of semiconductor manufacturing equipment,
Applied Materials
(
AMAT |
Quote |
Chart |
News |
PowerRating) is higher by 2.4% despite reporting a loss in
its latest quarter. Late yesterday, the company reported a loss of 2 cents a
share compared to a profit of 7 cents a share in the year-ago quarter. Consensus
estimates had called for a profit of 4 cents a share. Sales slipped almost 25%
from year-ago levels. Looking ahead, the company sees fourth-quarter earnings of
4 to 5 cents a share and revenues to be flat or slightly higher. .Â
Drug maker AstraZeneca
(
AZN |
Quote |
Chart |
News |
PowerRating)
is higher by 1.6% after the company received FDA approval for its cholesterol
drug, Crestor. After a year-long delay, the FDA approved doses of as much as 40
milligrams. Crestor is expected to take significant market share in the $20
billion market of cholesterol-lowering drugs. The drug is also expected to
challenge Pfizer’s
(
PFE |
Quote |
Chart |
News |
PowerRating) Lippitor and Merck’s
(
MRK |
Quote |
Chart |
News |
PowerRating) Zocor. Â
Biotech firm Chiron
(
CHIR |
Quote |
Chart |
News |
PowerRating)
is higher by 3.7% after J.P. Morgan upgraded the stock from “underweight” to
“neutral”. Morgan raised its rating due to the belief that the second half of
the year will be “significantly more than is currently expected,” thanks to its
acquisition of PowderJet. Morgan also raised its full-year forecast from $1.54
to $1.76.
Footwear retailer Payless
ShoeSource
(
PSS |
Quote |
Chart |
News |
PowerRating) is higher by more than 5% after the company reported
better-than-expected second-quarter results. In its latest quarter, the company
earned 8 cents a share compared to a year-ago profit of 69 cents a share.
However, results did top consensus estimates by 3 cents. The company attributed
the drop in earnings to weak sales of its seasonal items such as sandals and
canvas shoes.Â
Catalina Marketing
(
POS |
Quote |
Chart |
News |
PowerRating)
is lower by more than 7% after the resignation of its president and chief
operating officer, Michael Bechtol. He resigned due to personal reasons.Â
The world’s largest retailer
Wal-Mart
(
WMT |
Quote |
Chart |
News |
PowerRating) is fractionally lower after reporting second-quarter
results in line with estimates. In its latest quarter, the company earned 52
cents a share compared to 45 cents in the year ago period. Revenues jumped 11.3%
to $62.6 billion. Â
If you have any comments or
questions, please feel free to email me.
vincentm@tradingmarkets.com