Here’s What’s Holding Back The Dow

October 21, 2003
Vincent Mao

Stocks are
mixed this midday. Both the broader S&P
and Nasdaq Composite are enjoying modest gains to the upside, while the Dow is
slightly lower after weak results from communications giants AT&T
(
T |
Quote |
Chart |
News |
PowerRating) and SBC
Communications
(
SBC |
Quote |
Chart |
News |
PowerRating). Ma Bell reported third-quarter income of 58 cents a
share compared to 67 cents a share in the year-ago quarter. Revenues dropped 8%
to $8.65 billion, the fifteenth straight quarter decline. SBC Communication
reported results of 37 cents a share compared to 51 cents in the year-ago
quarter. Analysts were looking for 39 cents a share. SBC also reported that
revenues declined for the twelfth straight quarter.

Earnings news continue to be
the focus of the market as more third-quarter report cards continue to flow in.
Economic reports will be light this week with the only remaining report being
Thursday’s jobless claims. Tech stocks are once again outperforming today after
strong results from Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating) and Altera
(
ALTR |
Quote |
Chart |
News |
PowerRating). Also
boosting techs today, preliminary data from the Semiconductor Materials &
Equipment International trade group showed that the September book to bill ratio
came in at 0.95 to 1, up from August’s 0.92 to 1.

No economic news today.

10-year Bonds are +120
at 111 265.

Dollar is -0.28 at
92.45.

Gold is +6.50 at
380.980.

Crude Oil is +0.05 at
30.48.

Volume is 773,000,000 on
the NYSE, and 959,000,000 on the Nasdaq.

Market breadth is positive,
with NYSE advancing issues over declining issues by 1.51 and up over down
volume by 1.65; Nasdaq advancing issues over declining issues at 1.52, and up
volume over down volume at 2.49.

Top Dow stocks are:

Stocks in the news:

Altera Corp.
(
ALTR |
Quote |
Chart |
News |
PowerRating)
is higher by 1.3% after the company reported third-quarter results that nearly
doubled from year-ago levels. The company earned 11 cents a share or in line
with estimates compared with 6 cents a share in the year-ago quarter. Revenues
rose 16.3% to $209.4 million which was slightly below estimates of $210.2
million. Looking ahead, the company sees revenues coming in between $214 million
to $220 million. Analysts are looking for $216.65 million.

Software maker JDA Software

(
JDAS |
Quote |
Chart |
News |
PowerRating) is higher by 19% after the company reported results that tripled
from year-ago levels. The business software maker reported earnings of 11 cents
a share compared to 3 cents a share in the third quarter. The results topped
analysts’ estimates by 4 cents. Revenues rose 17% to $58 million compared to
estimates of $50.45 million.

Texas Instruments
(
TXN |
Quote |
Chart |
News |
PowerRating)
is trading higher by 6.7% after the semiconductor company reported its
third-quarter results. TI reported earnings of 25 cents a share compared to 11
cents a share in the year-ago quarter. Revenues rose 12.4% to $2.53 billion. CFO
Kevin March stated, “We are encouraged by the good momentum in semiconductor
growth and profitability in the third quarter and expect this momentum to carry
forward into the fourth quarter.” The company is projecting fourth-quarter
revenues between $2.49 billion to $2.7 billion and earnings between 14 to 19
cents a share. Consensus estimates are calling for 11 cents a share.

Fargo Electronics
(
FRGO |
Quote |
Chart |
News |
PowerRating)
is lower by 14% after the maker of printing systems for plastic identification
cards reported in line results but guided below consensus estimates. The company
reported third-quarter results of 19 cents a share or flat with last year’s
levels. Looking ahead, the company is projecting fourth-quarter results of 12 to
16 cents a share or below consensus estimates of 20 cents a share.

Messaging and communications
services company J2 Global Communications
(
JCOM |
Quote |
Chart |
News |
PowerRating) is lower by nearly
20% after the company guided fourth-quarter and full-year results below
consensus estimates. The company did report third-quarter results of 28 cents a
share compared to 16 cents a share in the year-ago quarter. Revenues jumped
51.2% to $18.9 million. Looking ahead, the company sees fourth-quarter and
full-year results of 31 cents a share and $1.03, respectively. Current
consensus estimates are calling for 34 cents a share in the fourth quarter and
full-year results of $1.44 a share.