Kodak’s Picture Weighs Down Dow…Here’s Why

June 18, 2003
Vincent Mao

Stocks
are mixed this midday.Â After chopping their way to new highs
yesterday, stocks started the day on a negative note as profit taking appeared
to set in after the major indices’ recent run. Stocks however are recovering off
earlier lows and are currently mixed. Both the S&P and Nasdaq are showing slight
gains while the Dow is slightly in the red. A second-quarter revenue warning
from Eastman Kodak is weighing on the Dow. The New York Times
(
NYT |
Quote |
Chart |
News |
PowerRating), Clorox,
(
CLX |
Quote |
Chart |
News |
PowerRating), and Tupperware
(
TUP |
Quote |
Chart |
News |
PowerRating) also issued earnings warnings. The fact that
there was buying into this morning’s pullback is definitely a positive, but many
experts suggests that the “easy money” has been made. Bonds are pulling back for
the third straight session. Meanwhile the dollar is showing modest gains and
gold is giving back much of yesterday’s gains.Â

No economic news today.Â

The 10-year U.S. Note
isÂ -150 at 118 145.

The dollar is +0.56 at
93.63.

Gold is -5.30 at 358.70.

Crude OilÂ -1.17 at
28.30.

Volume is at 714,000,000
on the NYSE, and at 1,012,000,000 on the Nasdaq.

Market breadth is mixed,
with NYSE declining issues over advancing issues by a ratio of 1.50, and downÂ
volume over up volume by a 1.21 ratio. Nasdaq declining issues over advancing
issues at 1.07, and up volume over down volume is at a 2.26 ratio.

Top Dow stocks are:

Stocks in the news:

American Airlines
(
AMR |
Quote |
Chart |
News |
PowerRating)
is higher by more than 5% after Merrill Lynch upgraded the stock from “neutral”
to “buy”. Merrill based the upgrade on the company’s turnaround plan and also
has a 12-month price target of $13 for the stock.Â Â

Electronics For Imaging
(
EFII |
Quote |
Chart |
News |
PowerRating) is higher by 1.8% on heavy volume. The company raised its
second-quarter forecast to 15 to 16 cents a share from a previous forecast of 14
cents a share. Electronics For Imaging raised its forecast on strong demand and
improving gross margins.Â Â

Find What.com
(
FWHT |
Quote |
Chart |
News |
PowerRating)
is higher by 20% on more than double its average volume after the company lifted
its second-quarter forecast. The company now sees earnings of at least 14 cents
a share on $17 million in revenues. Previously the company expected earnings of
10 cents a share on revenues of $16 million.Â Â

Bear Stearns
(
BSC |
Quote |
Chart |
News |
PowerRating)
is lower by 1.50% on heavy volume after reporting its second-quarter results.
Bear Stearns reported $2.05 a share compared to $2.59 a share during the same
period a year ago. However results came in 33 cents higher than estimates.Â Â

Best Buy
(
BBY |
Quote |
Chart |
News |
PowerRating) is
fractionally higher after reporting first quarter results of 21 cents a share,
besting estimates by a penny. Looking ahead the company sees earnings of 27
cents a share for the next quarter which is inline with estimates.Â Â

Clorox
(
CLX |
Quote |
Chart |
News |
PowerRating) is
lower by 4% on double its average volume. The company said that they now see
fourth-quarter results of 67 to 68 cents a share compared to analysts estimates
of 69 cents a share.Â Â

Eastman Kodak
(
EK |
Quote |
Chart |
News |
PowerRating)
is lower by 10% on very heavy volume after the company warned that
second-quarter results would be about half of previously expected.Â Â

New York Times
(
NYT |
Quote |
Chart |
News |
PowerRating)
is lower by 6% on heavy volume after the company warned that second-quarter
earnings will fall short of previous estimates. The Times now expects results
between 43 to 47 cents a share. Analysts were expecting 54 cents. The company
cited increased costs and lower advertising growth.Â Â

Vincent MaoÂ

Kodak’s Picture Weighs Down Dow…Here’s Why

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