Lots Of Earnings After The Close – Here They Are

July 16, 2003
Vincent Mao

Stocks
closed lower Wednesday.
The high tick was on the open, with cautious
comments from the tech sector weighing on the markets. Investors focused on comments from Intel
(
INTC |
Quote |
Chart |
News |
PowerRating), Lucent
Technologies
(
LU |
Quote |
Chart |
News |
PowerRating), and Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating). The semiconductor giant reported
better-than-expected results late yesterday, but its CFO was cautious
about a recovery in IT spending. Shares of Intel were up 1.21, and in a doji.
Lucent said it would not return to profitability this year, and Motorola warned
of a wider-than-expected third-quarter loss. Fed chairman Greenspan continued
his testimony before the Senate Banking Committee today, saying that the Fed
would consider buying Treasury notes in order to combat deflation. After
yesterday’s plunge, bonds closed a fraction lower, but on a decent up-bar at the
top of the range.

In economic news, Business
Inventories in May fell 0.2% compared to an expected flat reading. CPI
in June rose by an expected 0.2%. The Core CPI for June came in flat
compared to a 0.1% rise. Capacity Utilization in June came in as expected
at 74.3% and Industrial Production rose by an expected 0.1%.

The 10-year U.S. Note
fell -090 at 114 235.

The dollar lost -0.22 at
97.00

Gold was +0.70 at
343.50.

Crude Oil rose +0.13 at
31.18

Volume was
1,665,882,000
on the NYSE, and 1,914,071,000 on the Nasdaq.

Market breadth was negative, with NYSE declining issues over advancing issues by
a ratio of 2.20, and down volume over up volume by a 2.37:1 ratio. Nasdaq declining
issues over advancing issues was 1.33, and down volume over up volume was 1.64.

Top Dow stocks were:

Stocks in the news:

After the close, IBM reported in-line
at .98. AMD reported a loss of .40, which beat estimates by .14. Apple
Computer
(
AAPL |
Quote |
Chart |
News |
PowerRating) beat the street, reporting 0.05 vs. a 0.03
estimate; this compared with 0.09 last year. At press time, the stock was
trading up after hours. ETrade reported .03 vs .09 a year ago. Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) reports on Thursday. Finally, Guidant
(
GDT |
Quote |
Chart |
News |
PowerRating) said the FDA
approved a chromium cobalt stent for patients with clogged arteries. The stock
traded up after hours on the news.

General Dynamics
(
GD |
Quote |
Chart |
News |
PowerRating)
broke out on good volume after the company reported second-quarter results that topped
analysts’ estimates. The company reported earnings of $1.22 a share compared to
estimates of $1.17. However the results were still down from the year-ago period
of $1.29 a share. GD closed up 3.49 at 77.49.

Harley Davidson
(
HDI |
Quote |
Chart |
News |
PowerRating)
gapped up and closed in a doji after the motorcycle manufacturer reported second-quarter
results that topped estimates. The company reported earnings of 66 cents a share
compared to estimates of 58 cents a share. For the same quarter a year ago,
Harley had earned 47 cents a share. Harley did caution that gross margins for
the second half of the year could come under pressure due to costs of its new
plant in Pennsylvania. HDI rose 2.19 at 45.87.

Intel
(
INTC |
Quote |
Chart |
News |
PowerRating) was higher
after the chip giant reported second-quarter results that beat expectations. The
company reported earnings of 14 cents a share or double from
same quarter from last year. Intel also beat estimates by a penny. Going
forward, the company set a third-quarter revenue target of $6.9 to $7.5 billion.
However, Intel CFO commented that they are not seeing any signs of a economic
recovery, a big upgrade cycle, or rising IT budgets.

Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) fell after the company announced that CEO Sandy Weill will be stepping
down. However, Mr. Weill will remain as chairman of the board until 2006. He will
be replaced by Charles Prince. Citigroup closed at 45.52, down 1.31.

Lucent Technologies
(
LU |
Quote |
Chart |
News |
PowerRating)
fell 0.24 after the company warned that it will not
return to profitability until 2004 due to weakness in the wireless market. The
company also warned of a wider-than-expected third-quarter loss of 5 to 8 cents
a share compared to estimates of a 5 cents a share loss. LU closed at 1.68.

Motorola
(
MOT |
Quote |
Chart |
News |
PowerRating) fell after the company reported a recently lowered loss of 5 cents a
share compared to a loss of $1.02 a share a year ago. The company also warned
that it doesn’t see much of an improvement for the second half of the year and
added that third-quarter results would fall short of expectations. MOT lost 0.45
to close at 9.33.

If you have any comments or
questions, please feel free to email me.

Vincent Mao

vincentm@tradingmarkets.com

Lots Of Earnings After The Close – Here They Are

BUY THE FEAR, SELL THE GREED

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