Big Earnings After The Close
Stocks were lower Monday
on
warnings from Colgate and Unilever, and a Citigroup
downgrade. while a rally in the semis has the Nasdaq in the green. The SOX
reclaimed the 400 level intraday, closing just below that level and is also
trading above its 50-day moving average; the index is up 15% since the beginning
of September.
Colgate
(
CL |
Quote |
Chart |
News |
PowerRating) warned for the second half, citing higher marketing
expenses. It was the first warning by Colgate in almost a decade; CL shares hit
a 4-year low. Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) was lowered to neutral at Merrill Lynch.
Of the 90 S&P companies that warned this quarter,
30 cited the recent hurricanes as a factor. Estimates for the damage are as high
as $20 billion, much of it in Florida. The construction industry could benefit
through rebuilding the damage. Nobility Homes
(
NOBH |
Quote |
Chart |
News |
PowerRating) builds
manufactured homes in Florida.
Yukos said it will suspend all deliveries
to China; deliveries to China are more expensive and Yukos faces a cash-crunch
situation. The news sent oil over $46.
CBS said they were ‘misled’ on the Air National
Guard documents and Dan Rather apologized. CBS is owned by Viacom
(
VIA |
Quote |
Chart |
News |
PowerRating),
which closed at 34.37, down 0.36 and near its 50-day moving average.
The Fed meets tomorrow; a 1/4 point increase is
expected.
Adobe Systems
(
ADBE |
Quote |
Chart |
News |
PowerRating) beat by 0.04 and guided higher. Red Hat
[RHAT|RHAT} beat by a penny but was light on revenues. Palm One
(
PLMO |
Quote |
Chart |
News |
PowerRating)
beat by 0.23, ex-items; gross margins were 33%. The stock traded higher after
horus. InVision
(
INVN |
Quote |
Chart |
News |
PowerRating) won a contract from the Department of
Homeland Security to develop an automated system to identify air-borne
pathogens. Books-a-Million
(
BAMM |
Quote |
Chart |
News |
PowerRating) lowered its Q3 guidance on
hurricane losses. Power Integrations
(
POWI |
Quote |
Chart |
News |
PowerRating) lowered guidance for Q3.
Silicon Storage
(
SSTI |
Quote |
Chart |
News |
PowerRating) lowered Q3 guidance and the stock was halted
after hours.
| Dow | -81.19 | 10203.27 |
| S&P 500 | -6.40 | 1122.15 |
| Nasdaq | -1.53 | 1908.56 |
Strong today were: Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating)
+2.94%, Computer Technology
(
XCI.X |
Quote |
Chart |
News |
PowerRating) 0.68%, Oil
(
XOI.X |
Quote |
Chart |
News |
PowerRating)
+0.46%.
Weak were: Consumer
(
CMR.X |
Quote |
Chart |
News |
PowerRating)
-1.48%, Brokers
(
XBD.X |
Quote |
Chart |
News |
PowerRating) -0.89%, Telecom
(
XTC.X |
Quote |
Chart |
News |
PowerRating)
-0.80%.
10-year Notes were +170 at 113 070
The dollar
was +0.08 at 88.97
Gold was -0.30 at 404.90
Crude Oil was +0.59 at 46.18
Volume was 1.12 billion on
the NYSE and 1.48 billion on the Nasdaq.
Market breadth was negative.
| NYSE | Issues | |
| Advancing | 1318 | Up Vol 1271 |
| Declining | 1952 | Down Vol 1805 |
| Ratio | 1.48 | 1.42 |
| Nasdaq |
||
| Advancing | 427 | Up Vol 740 |
| Declining | 677 | Down Vol 700 |
| Ratio | 1.58 | 1.05 |
Stocks in the News
Hewlett Packard
(
HPQ |
Quote |
Chart |
News |
PowerRating) bought back $1.3 billion in shares from Merrill
Lynch and the board approved an additional # billion buyback.
Unilever
(
UN |
Quote |
Chart |
News |
PowerRating) warned, citing bad weather.
Lennar
(
LEN |
Quote |
Chart |
News |
PowerRating) beat by 0.02 and raised guidance.
Novellus
(
NVLS |
Quote |
Chart |
News |
PowerRating) will expand its stock buyback to $1.1 billion.
OSI Pharmacueticals
(
OSIP |
Quote |
Chart |
News |
PowerRating) said Phase III trials of Tarceva met
its primary endpoint of improving survival.
MCI
(
MCIP |
Quote |
Chart |
News |
PowerRating) may be looking for potential buyers, according to
The New York Times.
Nike
(
NKE |
Quote |
Chart |
News |
PowerRating) beat by 0.10; first quarter profits rose 25%.
PMC Sierra
(
PMCS |
Quote |
Chart |
News |
PowerRating) lowered its Q3 outlook.
Carmax
(
KMX |
Quote |
Chart |
News |
PowerRating) beat by a penny and guided Q3 lower.
Maxim Pharmaceutical’s
(
MAXM |
Quote |
Chart |
News |
PowerRating) cancer drug Ceplene failed a trial.
Brice Wightman