All Eyes On IBM…Here’s What To Expect
Stocks are
higher on a mix of economic data.
Business inventory rose less than expected at 0.4% with PPI that fell
unexpectedly by 0.3%. Initial claims edged up 40K to 349K with capacity
utilization falling to 77.2%. Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) reported earnings fell to
$1.14 billion after a $5 billion legal charge. Excluding one-time charges,
earnings rose to $1.02 a share. Total revenue rose 15% to $22.3 billion.
Apple
(
AAPL |
Quote |
Chart |
News |
PowerRating) reported earnings that beat expectations on strong iPod sales with
overall sales up at $2 billion. Earnings rose to $61 million, iPod sales rose to
860,000 units. The company expects earnings of 16 cents for Q4 and revenue of
$2.1 billion. Sandisk
(
SNDK |
Quote |
Chart |
News |
PowerRating)
reported Q2 sales that rose 85% to $433 million with earnings at $71 million.
For Q3, it is seeking revenue of $450 million. Cypress Semiconductor
(
CY |
Quote |
Chart |
News |
PowerRating)
rose after reporting earnings of $22 million with revenue up 30% to $264.3
million with strength in its wireless terminals.
OPEC cancelled next week’s
scheduled meeting, confident they can implement a quota increases without it.
Martha Stewart is
scheduled to be sentenced on Friday.
After the bell, IBM will
report; analysts are looking for $1.12. The company has beaten revenue
expectations for the past seven quarters; margins are expected to be 36.6%.
Analysts are looking for performance in the software division.
| Dow | +11 | 10219 |
| S&P 500 | +1 | 1112 |
| Nasdaq | +8 | 1923 |
Strong today are: Disk
Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) +4.12%, Hardware
(
HWI.X |
Quote |
Chart |
News |
PowerRating) +1.73%,
Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +1.47%, Transport
(
$TRAN |
Quote |
Chart |
News |
PowerRating) +1.29%.
Weak today are: Insurance
(
IUX.X |
Quote |
Chart |
News |
PowerRating) -0.63%, Internet
(
ECM.X |
Quote |
Chart |
News |
PowerRating) -0.46%.
Economic news release include
Business Inventories that rose by 0.4%, Initial Claims that rose to 349K, NY
Empire State Index rose to 36.5. PPI prices fell by 0.3% and Core PPI rose by
0.2$. Industrial Production fell by 0.3% with Capacity Utilization also falling
to 77.2%
10-year Notes are -025
at 110 105
The dollar
is +0.19 at 87.95
Gold is -0.40 at 406.50
Crude Oil is +0.17 at
40.40
Volume is 660 million on
the NYSE, and 820 million on the Nasdaq.
Market breadth is positive.
| NYSE | Issues | |
| Advancing | 1780 | Up Vol 304 |
| Declining | 1257 | Down Vol 303 |
| Ratio | 1.42 | 1.01 |
| Nasdaq |
||
| Advancing | 1543 | Up Vol 543 |
| Declining | 1291 | Down Vol 215 |
| Ratio | 1.20 | 2.53 |
Top Dow stocks are:
Alcoa
(
AA |
Quote |
Chart |
News |
PowerRating), +1.39%,
United Tech
(
UTX |
Quote |
Chart |
News |
PowerRating), +0.79%, 3M
(
MMM |
Quote |
Chart |
News |
PowerRating), +0.76%, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating),
+0.49%,
Stocks in the news:
Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) warned that
earnings would be below consensus and sales from April – June would be around
$8.20 billion.
Harrah’s
(
HET |
Quote |
Chart |
News |
PowerRating) said they would purchase Caesar’s
Entertainment
(
CZR |
Quote |
Chart |
News |
PowerRating) for $5.2 billion in a stock and cash deal; it would
create the world’s largest casino operator.
Fairchild Semiconductor
(
FCS |
Quote |
Chart |
News |
PowerRating) rose after posting
earnings of $17 million with revenue rising 19% to $414.3 million, which missed
estimates.
QLogic
(
QLGC |
Quote |
Chart |
News |
PowerRating) reported a profit of $32.2 million
on revenue of $129.8 million. Both numbers were either inline or beat the
consensus.
Brice Wightman
bricew@tradingmarkets.com