Here’s Why ORCL Gapped Down
Disappointing economic
data and a weak revenue forecast from Oracle pressured the market on
the open. Oracle
(
ORCL |
Quote |
Chart |
News |
PowerRating) reported
in-line, but forecast weaker applications revenue. Profits were up 28%, but new
license sales declined 7%, and it was this latter number that traders focused
on. ORCL traded down to 12.69 mid-day. Bonds are rallying on the weaker economic
data. A petition is being circulated among NYSE traders to remove Chairman
Richard Grasso; some traders are angered by his $140 million benefit package.
August retail sales expectations were for a 1.5%
rise, and when the figure came in at 0.6%, traders were wary. The University of
Michigan September consumer sentiment came in low — at 88.2 — and lower than
the 90.3 estimate and down from 89.3 in August.
Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating)
announced a doubling of its annual dividend — to .16 from .08. MSFT traded up
fractionally.
Cisco’s
(
CSCO |
Quote |
Chart |
News |
PowerRating)
price target is $24, according to CSFB, who cite improving earnings expectations
for the networking group in 2004 and 2005.
Merrill Lynch raised its opinion on
Qualcomm
(
QCOM |
Quote |
Chart |
News |
PowerRating) to “buy” from neutral.
Bear Stearns upgraded
Palm
(
PALM |
Quote |
Chart |
News |
PowerRating) to “peer perform” pointing to demand, and the
possibility of increasing estimates due to new product launches.
Today’s Market
Indices:
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating), 9415.33 -44.43
The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating),
1011.84 -4.58
The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating),
1833.27 -12.76
NYSE Advancing
Issues 1,394
NYSE Declining
Issues 1,689
NYSE Trading
Volume 622 mln
NASDAQ Advancing
Issues 1,175
NASDAQ Declining
Issues 1,795
NASDAQ Trading
Volume 1000 mln
Today’s Leading
Sectors:
S&P Chemical Index
(
$CEX.X |
Quote |
Chart |
News |
PowerRating), +.44
Morgan Stanley
Healthcare Index
(
$HMO.X |
Quote |
Chart |
News |
PowerRating), +.33%
Airline Index
(
$XAL.X |
Quote |
Chart |
News |
PowerRating),
+.31%
Today’s Weak
Sectors:
GSTI Software Index
(
$GSO.X |
Quote |
Chart |
News |
PowerRating), -1.86%
Biotechnology Index
(
$BKL.X |
Quote |
Chart |
News |
PowerRating), -1.72%
S&P Insurance Index
(
$IUX.X |
Quote |
Chart |
News |
PowerRating),
-1.13%
GSTI Semiconductor
Index
(
$GSM.X |
Quote |
Chart |
News |
PowerRating), -1.12%
Key Futures:
The 10-year U.S. Note:
+305 at 112 100
The dollar: -.66 at
95.90
Gold: -.21 at 378.8
Crude Oil: -.78 at
28.04
Dow Stocks:
Merck
(
MRK |
Quote |
Chart |
News |
PowerRating), -.48% at 53.50
Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), -1.35% at
27.62
Citigroup
(
C |
Quote |
Chart |
News |
PowerRating), +.27% at 44.31
Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating), +.43% at
27.96
If you have any comments or questions, please
feel free to email me.
bricew@tradingmarkets.com