Warnings Woes Continue
An earnings warning from Apple Computer is weighing heavily on stocks Friday,
as traders await the Chicago Purchasing Managers report due out at 10:00 AM ET.
Analysts look for a Chicago PMI of 48.9%.
In other economic news, personal spending rose 0.6% and personal income rose
0.4% which were each 0.1% higher than expectations.
The Nasdaq futures are down 51 points, and the Dow futures are down 58
points.
The S&Ps look to open down 6.80 points while the yield on the 10-year
Treasury is 5.79%.
Monday Movers
Apple Computer
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PowerRating) said after the close Thursday that it expected its
third-quarter earnings to fall significantly below analyst expectations, and
that sent Apple plunging in after-hours trading. Apple had finished the regular
session up 4 9/16 to 53 1/2, but is trading down to 27 1/2 in pre-market
activity.
Dell Computer
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trading down more than a dollar to 32 1/2 following Thursday’s close at 33 7/16.
UAL
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PowerRating) also warned that its third quarter earnings would fall short of
analyst expectations. UAL closed Thursday down 1 5/16 to 44 and is being bid at
41 11/16. UAL also has received an analyst down grade from Merrill Lynch which
will likely weigh on the airline sector.
Thursday Follow-up
Earnings warning casualty Intel
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PowerRating) managed to gain 5/8 to 44 1/2 for
it second positive finish in a row. Intel has weakened in pre-market action and
is currently trading down to 43 1/2.
Adobe Systems
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PowerRating) hit all-time highs on more than double volume to
finish up 12 1/8 to 160 1/2. Adobe is giving back some of those gains Friday and
is trading down 6 1/2 to 154 in pre-market activity.