Who’s Talking About Big Blue?
With the exception of the
retail sector, there hasn’t been a great deal of interest in today’s market. The
indices for the most part have spent the majority of their time in red figures
as valuation concerns have kept buying efforts in check. In addition,
Briefing.com reported rumors that IBM
(
IBM |
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earnings. However, rumors about IBM are heard virtually every quarter so they
should be taken with a grain of salt. Also, tomorrow Fed Chairman Alan Greenspan
will be talking about the economy. Many traders will be hoping that his speech
might provide some clue as to the likely course of Fed action at the Jan. 29-30
FOMC meeting.
The Dow
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$INDU |
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is lower by 58.77 to 10035.62. The Nasdaq
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$COMPQ |
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2037.63, down 7.26. And the S&P 500
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$SPX |
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down 2.45.
Wal-Mart Stores
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WMT |
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LTD |
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TLB |
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PowerRating), and other U.S. retailers beat December
same-store sales forecasts in what analysts thought would be the worst holiday
season since at least 1986.
Sales at Wal-Mart in the period ended Jan. 4 rose 8% from a year earlier. As
late as Dec. 31, the biggest retailer said the gain would be at the high end of
a 4% to 6% range. The Limited said sales fell 1%, compared with analysts’
estimates for a 5% drop.
Retailers kept inventories lean and offered discounts early in the holiday
season to attract shoppers in the wake of the recession and the Sept. 11
terrorist attacks. The strategy helped some companies sustain profit margins
even as sales fell. Several chains, including The Limited, raised quarterly
earnings forecasts.
The Gap’s
(
GPS |
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PowerRating) fiscal fourth-quarter
loss will be narrower than expected, as the largest U.S. clothing chain’s
December same-store sales fell less than forecast. The company’s shares rose as
much as 17%. The loss, excluding certain costs, will be no worse than the 6-cents-a-share
loss in the third quarter ended Nov. 3, the company said. The retailer owns the
Gap, Banana Republic and Old Navy stores.
Pacific Sunwear
(
PSUN |
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accessories and footwear that targets active teens and young adults. This
morning the company reported December total sales of $118.8 million, an increase
of 19.4% over the comparable period a year ago.
Other retailers with stronger-than-expected same-store
sales that are raising guidance include Sears
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S |
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TGT |
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Williams-Sonoma
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WSM |
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MIK |
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ROST |
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Intimate Brands
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IBI |
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CLE |
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PowerRating).
Identix
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IDNX |
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PowerRating) announced that five
new airports have selected its Live Scan fingerprint biometric technology for
rapid processing of employee background checks; the company also announced that
Raleigh-Durham Int’l Airport has ordered a second system. Terms of the deals
were not disclosed. IDNX is up .58 to 12.55.
Tellabs
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TLB |
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PowerRating) announced that its
CVM410 EMTA high-speed cable device has received DOCSIS 1.1
certification from the CableLabs industry consortium. TLB is up 1.04 to
37.98.
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