Here’s What’s Holding Back The Nasdaq
Stocks are
higher this midday. The major indices
gapped open to new highs after better-than-expected third-quarter results from
chip giant Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) as well as a very positive regional manufacturing
report. However, stocks soon dipped in the red, but are now fighting back into
the green. Late yesterday the Dow component reported third-quarter results that
more than doubled from year-ago levels. The chip giant earned 25 cents a share
or 2 cents above analysts’ estimates. Intel CFO Andy Byrant expects full-year
revenues and earnings to show a “substantial improvement.”
Manufacturing activity in
the New York region grew to a record level in October as the NY Empire State
Index came in more than double expectations. Both the Dow and S&P rose further
into their 16-month highs as the Dow hit the 9805 level while the S&P cracked
the 1050 resistance level. Meanwhile, the Nasdaq hit a high of 1966.87, which is
a level of angular resistance. Both bonds and gold are lower today.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) is +0.14% at 9826.97. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
is +0.06% at 1050.12. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) is +0.45% at 1951.97.
The day’s leading sectors are
Disk Drives
(
$DDX.X |
Quote |
Chart |
News |
PowerRating), +1.36%, Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating),
+1.09%, Computer Boxmakers
(
$BMX.X |
Quote |
Chart |
News |
PowerRating), +0.87%, Computer Hardware
(
$HWI.X |
Quote |
Chart |
News |
PowerRating), +0.74%,and Health Products
(
$RXP.X |
Quote |
Chart |
News |
PowerRating), +0.56%.
Weak today are Oil Services
(
$OSX.X |
Quote |
Chart |
News |
PowerRating), -2.26%, Health Providers
(
$RXH.X |
Quote |
Chart |
News |
PowerRating), -1.68%,
Internets
(
$INX.X |
Quote |
Chart |
News |
PowerRating), -1.60%, Gold Bugs
(
$HUI.X |
Quote |
Chart |
News |
PowerRating), -1.49%
and Internet Commerce
(
$ECM.X |
Quote |
Chart |
News |
PowerRating), -1.40%.
In economic news, the NY Empire
State Index for October surged to 33.7 vs. expectations of 16.0. Retail Sales in
September fell 0.2% vs. expectations of a drop of 0.1%. Excluding autos, sales
rose 0.3% vs. expectations of 0.4%.
Bonds are -200 at 110
010.
The dollar
is +0.75 at 92.90.
Gold is -3.40 at 372.80.
Crude Oil is -0.10 at
31.72.
Volume is 820,000,000 on
the NYSE, and 1,200,000,000 on the Nasdaq.
Market breadth is mixed,
with NYSE declining issues over advancing issues by 1.38 and down over up volume
by 1.26; Nasdaq declining issues over advancing issues at 1.14, and up volume
over down volume at 1.39.
Top Dow stocks are:
Intel [INTC|INTC],
+3.41 at 32.14, Home Depot [HD|HD],
+2.70% at 36.29, Microsoft [MSFT|MSFT],
+2.10% at 29.12, Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating),
+1.82% at 21.78, and IBM
(
IBM |
Quote |
Chart |
News |
PowerRating), +1.76% at 94.36.
Stocks in the news:
Biotech company Genzyme
(
GENZ |
Quote |
Chart |
News |
PowerRating) is higher by 4.30% despite unveiling a loss in its latest quarter.
The company reported a third-quarter loss of 43 cents a share compared to
earnings of 25 cents a share in the year-ago quarter. However, excluding
acquisition and amortization costs, the company would have earned 37 cents a
share or 3 cents above analysts’ estimates. Looking ahead, the company sees
fourth-quarter earnings between 35 to 37 cents a share, compared to consensus
estimates of 35 cents a share. Genzyme also expects to exceed its fiscal 2003
revenues and earnings guidance.
The world’s biggest
semiconductor company Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) is higher by nearly 4% after the
company reported third-quarter results that topped expectations. Late yesterday,
the company reported earnings of 25 cents a share compared to 10 cents a share
in the year-ago quarter. The results topped estimates by 2 cents. Intel’s
revenues of $7.8 billion also topped estimates of $7.7billion. The company has
benefitted from the shift from desktops to laptops.
Semiconductor equipment maker Novellus
Systems
(
NVLS |
Quote |
Chart |
News |
PowerRating) is trading higher by 4.5% after its latest quarterly
results. The company reported a third-quarter loss of 64 cents a share compared
to earnings of 3 cents a share in the year-ago quarter. Excluding charges and
items, Novellus earned 4 cents a share while analysts were expecting breakeven
results. Looking ahead, the company is expecting earnings between 2 to 7 cents a
share, current consensus estimates are calling for a nickel a share.
Used vehicle retailer Carmax
(
KMX |
Quote |
Chart |
News |
PowerRating) is lower by 16% after the company lowered its third-quarter
guidance. Due to weaker-than-expected sales, the company now sees earnings of 16
to 18 cents a share compared to its prior forecast of 19 to 21 cents a share.
The company also lowered its full-year outlook from $1.11 to $1.16 a share to
$1.08 to $1.13 a share.
Flash memory product maker
Sandisk
(
SNDK |
Quote |
Chart |
News |
PowerRating) is higher by 6.08% after the company reported
third-quarter results that more than tripled. The company posted earnings of 60
cents a share compared to year-ago profits of 16 cents a share. Sandisk also
raised its full-year revenue projections to $1 billion from $950 million.
If you have any comments or
questions, please feel free to email me.
vincentm@tradingmarkets.com