Big Earnings Week, Here Are The Early Results


Stocks are lower as Wall Street awaits this week’s earnings reports from 1500
companies.
 Synopsys
(
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will terminate its merger agreement with Monolithic Systems
(
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.
MOSY fell 40% on the news. Synopsys will pay a $10 million termination fee and
gave no reasons for the move.
McDonald’s

(
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CEO Jim Cantalupo
death of an apparent heart attack sent shares down
3% before MCD recovered most of its losses. Current COO Charlie Bell was named
CEO.

Eli Lilly
(
LLY |
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reported earnings of $400.4 million with revenue up 17% at $3.38 billion. Total
net income fell by 2% with global sales volume up 10%. Excluding one-time
charges, Eli earned 70 cents, 4 pennies ahead of consensus. Its Zyprexa sales
rose 15% with Gemzar sales up 19%.

Dow
-32.58

10419.32
S&P 500
-1.82
1133.58
Nasdaq
+11.15

2006.92

The day’s leading sectors are
Biotechs

(
BTK.X |
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+2.09%, Disk Drives
(
DDX.X |
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+1.25%,
Internet

(
ECM.X |
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+1.06%, and Semis
(
SOX.X |
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+0.67%

Weak today are Airlines
(
XAL.X |
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-1.10%, and Gold and Silver
(
XAU.X |
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-1.08%

Economic news releases today
included leading indicators up 0.3%.

10-year Notes are -25 at
111 175

The dollar
is -0.14 at 90.10

Gold is +0.10 at 401.70

Crude oil is +0.21 at
37.20

Volume is 552,000,000 on
the NYSE, and 800,000,000 on the Nasdaq.

Market breadth is mixed.

NYSE Issues
Advancing
1383 Up Vol 217
Declining 1732 Down Vol 316
Ratio 1.29 1.47
Nasdaq
Advancing
1447 Up Vol 530
Declining
1551 Down Vol 249
Ratio 1.07 2.18

Top Dow stocks are:

Coca-Cola
(
KO |
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,
+2.52% at 53.25, Microsoft
(
MSFT |
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, +1.39% at 25.48, Altria
(
MO |
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,
+0.93% at 56.43, and Intel
(
INTC |
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+0.86% at 26.62.

Stocks in the news:

ImClone Systems
(
IMCL |
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traded higher after the FDA agreed to review its Erbitux plant. Banc
of America Securities initiated coverage on IMCL and set a price target of $90.

Printer maker Lexmark
(
LXK |
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reported
earnings of $121 million with revenue up at $1.26 billion. For the next quarter
it expects earnings to reach 93 cents a share with revenue growth in the high
single digits.

3M
(
MMM |
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posted earnings of $722
million with revenue up at $4.94 billion. Full year EPS was also raised to
$3.60-$3.70.

Wachovia’s
(
WB |
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net income rose to
$1.25 billion on revenue of $5.68 billion. Its capital management division
experienced a 90% increase in profit with corporate and investment banking up
62%.

Brice Wightman

bricew@tradingmarkets.com