Big Blue Earnings Preview
Stocks are lower on continued fears over interest rates and unemployment.
Initial claims rose by a surprising 30,000 last week, the biggest jump in a
year.
Citigroup
(
C |
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PowerRating) reported earnings that rose
by 29% to 5.27 billion with revenue up 16% to 21.49 billion. The bank saw
strength in its fixed-income trading business and double-digit growth in all of
its overseas markets.
Apple Computer
(
AAPL |
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PowerRating)
reported earnings that rose more than 200% to $46 million on strong sales of its
iPod music player, with revenue rising to $1.48 billion. Apple expects to earn
12 cents in the third quarter on revenue of $1.925 billion.
Reliance Steel & Aluminum
(
RS |
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Chart |
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PowerRating) said continued
demand is allowing the company to pass along higher prices to its customers due
to rising metal prices. RS posted earnings that quintupled to $29.8 million with
revenue soaring 46% to $655.8 million.
After the bell, IBM
(
IBM |
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PowerRating)
is expected to report $0.93 a share with sales at $21.9 billion.
| Dow | -10.58 |
10368.72 |
| S&P 500 |
-2.92 | 1125.25 |
| Nasdaq | -22.42 |
2002.43 |
The day’s leading sectors are
Pharmaceuticals
(
DRG.X |
Quote |
Chart |
News |
PowerRating) +2.85%, Oil Services
(
OSX.X |
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Chart |
News |
PowerRating)
+1.97%, Natural Gas
(
XNG.X |
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Chart |
News |
PowerRating) +1.71%, and REITs
(
DJR.X |
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Chart |
News |
PowerRating)
+ 1.30%.
Weak today are Healthcare
(
HMO.X |
Quote |
Chart |
News |
PowerRating)Â -3.90%, and Semis
(
SOX.X |
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Chart |
News |
PowerRating) -2.82%.
Economic news releases today
higher initial claims at 360,000 and NY Empire State Index that rose to 36.05.
10-year Notes are 140 at
111 040
The dollar
is +0.45 at 90.63
Gold is -5.10 at 402.60
Crude Oil is -0.58 at
36.10
Volume is 688,000,000 on
the NYSE, and 915,000,000 on the Nasdaq.
Market breadth is negative.
| NYSE | Issues | |
| Advancing |
1502 | Up Vol 304 |
| Declining | 1643 | Down Vol 361 |
| Ratio | 1.07 | 1.19 |
| Nasdaq |
||
| Advancing |
1071 | Up Vol 239 |
| Declining |
1959 | Down Vol 659 |
| Ratio | 1.89 | 2.75 |
Top Dow stocks are:
Merck
(
MRK |
Quote |
Chart |
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PowerRating) +3.01%
at 46.82, Johnson & Johnson
(
JNJ |
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Chart |
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PowerRating), +2.75% at 54.06, SBC
Communications
(
SBC |
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Chart |
News |
PowerRating) +1.36% at 24.45, Coca Cola
(
KO |
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Chart |
News |
PowerRating), +0.62%
at 51.50, and Wal-Mart
(
WMT |
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Chart |
News |
PowerRating) +0.55% at 57.76.
Stocks in the news:
Tradestration
(
TRAD |
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News |
PowerRating)
reported earnings that beat estimates by a penny at 8 cents per share or $3.5
million, on revenue that rose 31% to 17.5 million. It reported a 32% increase in
new accounts with daily average revenue trades that doubled year over year.
PepsiCo
(
PEP |
Quote |
Chart |
News |
PowerRating) posted earnings of
$804 million with revenue of $6.13 billion. It increased its soft drink market
share by 0.4%. The company is seeking $2.29 a share for the full year with cash
from operating activities at $4.9 billion.
Continental Airlines
(
CAL |
Quote |
Chart |
News |
PowerRating) halved
its quarterly loss to $124 million despite rising fuel costs. The company
reported a $1.6 billion balance of cash and short-term investments at the close
of the quarter.
Advanced Micro Devices
(
AMD |
Quote |
Chart |
News |
PowerRating)
reported earnings of $45.1 million on revenue of $1.24 billion with strong
demand for its flash memory chips.
Brice Wightman
bricew@tradingmarkets.com