More Big Names Reporting Monday

July 18, 2003
Vincent Mao

Stocks were
up Friday. After a three-day
pullback, the market rallied from an oversold condition. A mixed fourth quarter
earnings report from Microsoft and a better-than-expected consumer sentiment
report inspired some buying.
Dow component Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) helped out — the company missed its fourth quarter estimates by a
penny, but revenues were higher than expected, and the company raised
its full year outlook. The University of Michigan Consumer Sentiment Index rose
for the third straight month and surpassed estimates. The Dow
(
$INDU |
Quote |
Chart |
News |
PowerRating) was
the top performing major index today as the Blue Chip index was boosted by an
upgrade in McDonalds
(
MCD |
Quote |
Chart |
News |
PowerRating) and continued strength in shares of Caterpillar.
Meanwhile the Nasdaq
(
$COMPX |
Quote |
Chart |
News |
PowerRating) was the laggard today despite Microsoft’s
outlook and Ericsson’s
(
ERICY |
Quote |
Chart |
News |
PowerRating) narrower-than-expected loss.The Dollar
is also lower, while gold is inching back up after hitting a two-month low on
Wednesday.

In economic news, the
University of Michigan Consumer Sentiment Index rose to 90.3 from 87.2 last
month. This topped estimates of a reading of 89.7.

Bonds fell -04 to 112 10

The dollar lost -0.29 to
96.57.

Gold gained +2.40 to
347.40.

Crude Oil rose +0.31 to
31.03.

Volume was
1,363,185,000 on
the NYSE, and 1,596,192,000 on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by a 2.12, and up volume over
down volume by a 4.26. Nasdaq advancing issues over declining issues is at 1.41,
and up volume over down volume at 1.84.

Top Dow stock(s) were:

Stocks in the news:

Media and entertainment giant,
AOL Time Warner
(
AOL |
Quote |
Chart |
News |
PowerRating) rose after the company announced
that it will sell it its CD and DVD manufacturing and distribution business to
Canada’s Cinram International for $1.05 billion in cash. The companies also have
entered an agreement in which Cinram would manufacture and distribute CDs and
DVDs for AOL.Â AOL closed up .34 to 16.74.

Callaway Golf
(
ELY |
Quote |
Chart |
News |
PowerRating)
gained after the company reported a decline in second quarter income, but
results did soar past estimates. The company reported earnings of 52 cents a
share, down from 55 cents last year. However, Callaway easily topped consensus
estimates of 38 cents a share. The golf equipment maker also boosted third
quarter estimates to 95 cents a share from 88 cents a share. ELY closed at
15.17, up 1.06.

Scientific Atlanta
(
SFA |
Quote |
Chart |
News |
PowerRating)
rallied after the company reported fourth quarter results that
easily topped estimates. The cable TV set top box maker reported earnings of 31
cents a share compared to a loss of 10 cents a share a year ago. The company
also beat estimates by a health 12 cents. However Deutsche Bank downgraded the
company from “hold” to “sell” due to valuation. SFA rose 4.96 to 29.96.

Zions Bancorp
(
ZION |
Quote |
Chart |
News |
PowerRating)
gained after the company reported better than
expected second quarter earnings. Zions reported earnings of $1.02 a share
compared to 87 cents a year ago. The results also topped estimates by 4 cents.
Merrill Lynch also upgraded the company from “neutral” to “buy”. ZION rose 2.80
to 54.40.

Alcoholic beverage maker
Constellation Brands
(
STZ |
Quote |
Chart |
News |
PowerRating) fell slightly after the company said that
it expected second quarter results between 61 to 64 cents a share or below
consensus estimates of 65 cents a share.

Internet hardware equipment
maker Packeteer
(
PKTR |
Quote |
Chart |
News |
PowerRating) was lower on heavy volume despite
reporting second quarter results inline with estimates. The company earned 8
cents a share or up from just 2 cents a share a year ago.

Software giant Microsoft
(
MSFT |
Quote |
Chart |
News |
PowerRating) was fractionally higher today. Yesterday, the world’s largest
software maker reported earnings that missed estimates by a penny. The company’s
reported revenues of $8.07 billion did beat estimates of $7.88 billion. For its
full fiscal year, the company expects to earn between $1.09 to $1.11 (excluding
charges) compared to analysts’ estimates of $1.09. MSFT gained .39 to close at
27.08.

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

Vincent Mao

vincentm@tradingmarkets.com

More Big Names Reporting Monday

BUY THE FEAR, SELL THE GREED

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