First Half Expectations
U.S. stocks rose as better-than-expected profit
reports and a drop in jobless claims encouraged investors who are anticipating
an economic rebound in the first half of this year.
Citigroup
(
C |
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PowerRating) earned more than forecast in the fourth quarter, and
General Electric
(
GE |
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PowerRating), the largest company by market value, met profit
expectations. This good news sparked a rally in the S&P 500 index.
Computer companies advanced after Compaq Computer
(
CPQ |
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PowerRating) and Apple
Computer
(
AAPL |
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Citigroup
(
C |
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News |
PowerRating), the largest financial services firm, reported
fourth-quarter profits rose 36% as lending to consumers increased. Like J.P.
Morgan, Citigroup had to write off losses from Enron’s collapse and Argentina’s
default. Yesterday, J.P. Morgan took a hit on that news. Citigroup is doing well
today, trading up 1.06 to 49.92. Citigroup’s net income rose to $3.88 billion,
or 74 cents a share, from $2.84 billion, or 55 cents, a year earlier. Revenue
rose 12% to $22 billion.
The DJIA
(
$INDU |
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PowerRating) is up 128.77 to
9841.04. The Nasdaq
(
$COMPQ |
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PowerRating) is higher by 24.90 to 1969.34, and
the S&P 500
(
$SPX |
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PowerRating) has added 10.24 to 1137.81.
Cubist Pharmaceuticals
(
CBST |
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PowerRating) is down to 16.66, a drop of 15.09. The
drugmaker said its Cidecin antibiotic failed in a study to help patients recover
from a severe form of pneumonia. Cidecin is Cubist’s most advanced experimental
drug.
Yahoo!
(
YHOO |
Quote |
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News |
PowerRating) is trading higher at
20.09, up 2.22. The Internet network owner said fourth quarter profit was 3
cents a share before asset writedowns, reorganization charges, and some other
expenses.
Apple Computer
(
AAPL |
Quote |
Chart |
News |
PowerRating), the
maker of the iMac personal computer, had a profit in the first quarter ended
Dec. 29, compared with a loss a year earlier, and said earnings for the second
quarter will top analysts’ forecasts. AAPL is trading up 1.41 to 22.19.
Cognos
(
COGN |
Quote |
Chart |
News |
PowerRating) is pulling back from
its highs. COGN is rallying above its 20-day MA and has a TradingMarkets.com
3-month RS ranking of 91. COGN is currently up .31 to 25.19.
Iona Technologies
(
IONA |
Quote |
Chart |
News |
PowerRating) is pulling back from its
highs. IONA has a TradingMarkets.com 3-month
RS ranking
of 98. It is currently resting on its support line.
IONA is up .14 to 23.59.
As earnings season continues, there will be two
BIG GUNS reporting after the bell today, Microsoft
(
MSFT |
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PowerRating) and IBM
(
IBM |
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PowerRating).
IBM’s EPS estimate is 1.32, and Microsoft’s EPS estimate is .45. Both MSFT and
IBM are trading higher on the good news reported by Compaq and Apple.
A partial list of other companies reporting after
the bell today includes: Harley Davidson
(
HDI |
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News |
PowerRating), Callaway Golf
(
ELY |
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Chart |
News |
PowerRating),
Catalina Marketing
(
POS |
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Chart |
News |
PowerRating), Greenpoint Financial
(
GPT |
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Chart |
News |
PowerRating),
Network Associates
(
NETA |
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PowerRating), Nortel Networks
(
NT |
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Chart |
News |
PowerRating), Powerwave
Technologies
(
PWAV |
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Chart |
News |
PowerRating), Scientific Atlanta
(
SFA |
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Chart |
News |
PowerRating), Zions
Bancorporation
(
ZION |
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Chart |
News |
PowerRating) and Zoran
(
ZRAN |
Quote |
Chart |
News |
PowerRating).
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