Market Fades This Big News

August 22, 2003
Vincent Mao

Stocks are
mixed this midday.Â Intel’s higher third
quarter revenue guidance ignited a rocket under the major indices early on. The
chip giant raised its third quarter sales forecast to between $7.3 to $7.8
billion from $6.9 to $7.5 billion. Better than expected quarterly results from
retail issues: Nordstorm
(
JWN |
Quote |
Chart |
News |
PowerRating), Gap
(
GPS |
Quote |
Chart |
News |
PowerRating), and Borders Group
(
BGP |
Quote |
Chart |
News |
PowerRating)
also lent support. However, the rally is fizzling out. The major indices are
currently mixed with only theÂ Nasdaq in the green. The Dow was higher by some
76 points and got within a hair of the 9,500 level before turning back. The
9,500 level marked an important level of resistance that was previously
mentioned. Bonds are rallying today with the ten-year gaining more than a full
point. The dollar index also rose to a three-month high.

No economic news to report
today.

The 10-year U.S. Note
is +105 at 111 005.

The dollar is +0.28 at
98.98.

Gold is +2.70 at 364.50.

Crude Oil +0.25 at
30.95.

Volume is 712,000,000 on
the NYSE, and 1,000,000,000 on the Nasdaq.

Market breadth is negative,
with NYSE declining issues over advancing issues by 2.01, and down over up
volume by 2.09. Nasdaq declining issues over advancing issues at 2.01, and down
volume over up volume at 1.52.

Top Dow stocks are:

Stocks in the news:

Drafting software maker
Autodesk
(
ADSK |
Quote |
Chart |
News |
PowerRating) is higher by 9.5% after the company reported its second
quarter earnings grew 190%. Late yesterday, the maker of the popular AutoCad,
reported earnings of 29 cents a share compared to 10 cents a share in the year
ago quarter. Revenues rose from $211.4 million to $211.7 million. Most of the
rise in earnings was due to a $19.7 million tax benefit. Without it, Autodesk
would have earned 11 cents a share. Looking ahead, the company sees third
quarter revenues between $216 to $221 million and earnings between 13 to 16
cents a share. Currently consensus estimates are calling for 15 cents a share.Â

Semiconductor giant Intel

(
INTC |
Quote |
Chart |
News |
PowerRating) is higher by 7.6% after the company lifted its third quarter
revenue guidance. The world’s largest chipmaker raised its sales outlook from
between $6.9 to $7.5 billion to $7.3 to $7.8 billion. Intel CFO raised revenue
its revenue target due to strength in its chips, chipsets, and motherboards
businesses. However, he added that demand for communications products remains
soft. Intel also lifted its gross margin forecast to 56 percent from 54
percent.Â

Retailer Nordstorms
(
JWN |
Quote |
Chart |
News |
PowerRating)
is higher by more than 5% after the company reported quarterly results that
topped analysts’ expectations. The clothing retailer reported second quarter
earnings of 48 cents a share compared to 27 cents a share in the year ago
quarter. Analysts had expected the company to earn 39 cents a share. The company
also upped its third quarter and full year results to between 16 to 20 cents a
share and $1.33 to $1.37Â a share.Â

Drug store chain Duane Reade

(
DRD |
Quote |
Chart |
News |
PowerRating) is lower by 3% after the company said that last week’s blackout
will negatively impact earnings. The company said that the two-day blackout will
reduce earnings by 3 cents a share.Â Â

Drug maker Schering Plough

(
SGP |
Quote |
Chart |
News |
PowerRating) is lower by 12% after the company announced a number of cuts. Late
yesterday, the company warned that earnings for the rest of the year and
thorough 2004 would likely fall. The company also cut its quarterly dividend
from 17 cents a share to 5.5 cents a share. In addition the company is expected
to cut more than 1,000 jobs and has also launched a voluntary retirement
program.Â

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

Vincent Mao

vincentm@tradingmarkets.com

Market Fades This Big News

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