Retail In Focus With These Earnings Reports After The Close
Stocks were
higher Thursday. After yesterday’s quiet
session, the major indices are all in the green after a trio of healthy economic
reports. Positive comments from Intel CEO Craig Barrett as well as the capture
of the notorious “Chemical Ali” boosted stocks. More data suggesting
stabilization in the job market and recovery came in, as jobless
claims again were under the critical 400K level, the Conference Board’s index
of economic indicators expanded for the fourth straight month, and the
Philadelphia Fed Index rose for a third straight month. Bonds were lower after the economic
reports.
The Dow Jones Industrial
Average
(
$INDU.X |
Quote |
Chart |
News |
PowerRating) gained 26.17 to 9423.68. The S&P 500
(
$SPX.X |
Quote |
Chart |
News |
PowerRating)
added 0.92 at 1003.27. The Nasdaq
(
$COMPQ |
Quote |
Chart |
News |
PowerRating) rose 17.01 to 1777.55.
The day’s leading sectors were Computer Hardware
(
$HWI.X |
Quote |
Chart |
News |
PowerRating),
+3.40%;
Semiconductors
(
$SOX.X |
Quote |
Chart |
News |
PowerRating), +3.17%; Internet
(
$INX.X |
Quote |
Chart |
News |
PowerRating),
+3.15%, and Airlines
(
$XAL.X |
Quote |
Chart |
News |
PowerRating), +2.29%.
Weak today were Gold Bugs
(
$HUI.X |
Quote |
Chart |
News |
PowerRating), -3.50%, Gold & Silver
(
$XAU.X |
Quote |
Chart |
News |
PowerRating), -3.45%,
Insurance
(
$IUX.X |
Quote |
Chart |
News |
PowerRating), -1.47%, Pharmaceuticals
(
$DRG.X |
Quote |
Chart |
News |
PowerRating),
-1.15%, and Health Care
(
$HCX.X |
Quote |
Chart |
News |
PowerRating), -0.50%.
In economic news, Initial
Jobless Claims for the week ended August 16 fell by 17,000 to 386K. This was
better than expectations of 395K. This was the lowest level since February 8.
The less volatile four-week moving average fell to 394,250 from a revised
395,500. This was the lowest level since February 15. The Leading Economic
Indicators in July came in as expected at a +0.4%. Lastly the Philly Fed
Index came in much better than expected at 22.1 vs. expectations of a
reading of 10.
The 10-year U.S. Note
was -220 at 110 220.
The dollar was +1.30 at
98.67.
Gold was -4.60 at
361.40.
Crude Oil was
+0.82 at 31.88.
Volume was
1,404,995,000 on
the NYSE, and 1,704,056,000 on the Nasdaq.
Market breadth was positive,
with NYSE advancing issues over declining issues by 1.64, and up over down
volume by 2.111. Nasdaq advancing issues over declining issues at 1.82, and up
volume over down volume at 3.18.
Top Dow stocks were:
United Technologies
(
UTX |
Quote |
Chart |
News |
PowerRating), +1.79
at 79.41, Caterpillar
(
CAT |
Quote |
Chart |
News |
PowerRating), +1.15 at 73.41, General Electric
(
GE |
Quote |
Chart |
News |
PowerRating), +0.71 at 30.16, Boeing
(
BA |
Quote |
Chart |
News |
PowerRating), +0.58 at 34.94, and General
Motors
(
GM |
Quote |
Chart |
News |
PowerRating), +0.62 at 39.13.
Stocks in the news:
After the close, Nordstrom
(
JWN |
Quote |
Chart |
News |
PowerRating) reported 0.39, in line; The Gap
(
GPS |
Quote |
Chart |
News |
PowerRating) reported .22 vs. a
.21 estimate; Autodesk
(
ADSK |
Quote |
Chart |
News |
PowerRating) beat by .01; Aeropostale
(
ARO |
Quote |
Chart |
News |
PowerRating)
beat by .01; Novell
(
NOVL |
Quote |
Chart |
News |
PowerRating) beat by .04; Marvel
(
MRVL |
Quote |
Chart |
News |
PowerRating)
beat by 0.01; Serena
(
SRNA |
Quote |
Chart |
News |
PowerRating) beat by 0.01; Electronics Boutique
beat by 0.03.
Doughnut maker Krispy Kreme
(
KKD |
Quote |
Chart |
News |
PowerRating) fell despite reporting stronger-than-expected
second-quarter results. This morning, the popular doughnut maker reported
earnings of 21 cents a share compared to 15 cents a share in the year-ago
quarter. The results topped analysts’ estimates by a penny. Revenues jumped 41%
to $161.7 million. Looking ahead, the company raised full-year guidance to 91
cents a share or 2 cents above current consensus estimates.
OmniVision Technologies
(
OVTI |
Quote |
Chart |
News |
PowerRating) fell 2.00 after disclosing its latest quarterly
results. The maker of chips used in digital cameras reported earnings of 23
cents a share or more than triple first-quarter 2003 results of 7 cents a share.
Revenues jumped 177% to $46.5 million. Looking ahead, the company sees
second-quarter revenues between $48 to $50 million and earnings of 22 or 23
cents a share. Analysts are forecasting revenues of $46.8 million and earnings
of 22 cents a share.
Software maker Synopsys
(
SNPS |
Quote |
Chart |
News |
PowerRating)
reported earnings of 60 cents a share compared to a loss of $1.93 in the
year-ago quarter. Excluding acquisition expenses, Synopsys earned 82 cents a
share or 2 cents above analysts estimates. Looking ahead, the company sees
fourth-quarter revenues between $305 to $320 million and earnings of 77 to 84
cents a share. This is within analysts’ estimates of revenues of $318.5 million
and earnings of 84 cents a share.
Security and inspection systems
maker OSI Systems
(
OSIS |
Quote |
Chart |
News |
PowerRating) fell 5% after the company reported
better-than-expected earnings but lower revenue guidance for next quarter. For
its fourth quarter, the company earned 35 cents a share compared to 22 cents a
share in the year-ago quarter. Revenues jumped 43% to $50.9 million. Looking
ahead, the company sees first-quarter revenues between $40 to $42 million,
compared with analysts’ estimates of $47.1 million.
Video game maker THQ
(
THQI |
Quote |
Chart |
News |
PowerRating)
dropped after the company warned that the delay of two software
titles will negatively impact its second-quarter results. The world’s
third-largest software maker cut its second-quarter estimates from 8 cents a
share to a penny a share.
If you have any comments or
questions, please feel free to email me.
vincentm@tradingmarkets.com