CSCO’s In-Line: Will This Help The Markets Climb?
Stocks opened lower and proceeded to have a roller coaster ride throughout
the session on Tuesday.
Cisco
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CSCO |
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line with analysts’ expectations for Q4, with no surprises thus far as the
conference call is scheduled for later this evening.
NYSE advancers led decliners 1685 to
1408. As for the Nasdaq, advancers lagged decliners 1513 to 1662.
The broader markets ended the day
mixed as the Dow Jones Industrials closed higher 0.5% while the Nasdaq Composite
slid 0.3%
The VIX index closed lower 4.5%,
however not giving the markets any bias for tomorrow. The CSCO conference call
with John Chambers will undoubtedly play a role in what direction we will see
tomorrow.
The Semiconductor Index
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$SOX.X |
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violated and closed below its 200-period moving after Credit Suisse First Boston
downgraded a number of stocks in the sector. The index closed down 2.6%.
Also losing ground was the
Biotechnology Index
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$BTK.X |
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tight range below its 50- and 200-day moving averages.
Down for the day was the Oil Services
Index
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$OSX.X |
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PowerRating) as the index filled the gap made almost 13 days ago. The
index closed weak and indicates potential follow through downward. The index
closed down 2.3%
On the upside the Retail Index
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$RLX.X |
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gained 1.0% after a three-day pullback in price.
The Oil Index
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$XOI.X |
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support at its 200-day average and closed higher 0.6%
Also in the green was the Banking
Index
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$BKX.X |
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formation above its 50- and 200-day averages. It eked out a gain of 0.6%.
Individual stocks gaining
included:
Westwood One
(
WON |
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PowerRating) as it tacked on 11.3% as it reported earnings which were
in line with analysts’ expectations, and Sonic Automotive
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SAH |
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PowerRating)
which scaled
higher 8.0% after a two-day pullback off the automotive retailers high.
Barr Laboratories
(
BRL |
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2.96 points and rose 3.7% on news that the company’s Q4 profits more than doubled,
due to an increase in sales of the drug Tamoxifen which is used to treat breast
cancer.
Laboratory Corp of America
(
LH |
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PowerRating)
closed higher 2.9%, after Credit Suisse First Boston raised its price target for
the company from $83 to $95
Insurance carrier Chubb
(
CB |
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3.1%.
Option Care
(
OPTN |
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20.1% higher after the pharmaceutical service provider reported Q2 earnings
increase by more than 35%. The company reported earnings of 18 cents a share,
beating consensus estimates of 17 cents according to a poll taken by Thomson
Financial/First Call..
Integra Lifesciences Holdings
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IART |
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shot up 6.4%.
Computer graphics firm Global Imaging
Systems
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GISX |
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PowerRating) shares were lifted higher 11.4% to close at $16.80 for the
day.
Losing ground in the session
was
Conseco
(
CNC |
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PowerRating) which slid 17.6% after the insurance and loan company warned
on full year earnings.
Tycom Limited
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TCM |
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increasing volume.
Darden Restaurant
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DRI |
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restaurant stocks down, after the company said sales were flat in July. The stock
lost 9.7%.
Serena Software
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SRNA |
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were hammered by 22.7% after the company lowered Q2 earnings estimates to come in between
13 and 14 cents from analysts’ estimates of 23 cents a share.
Zygo Corp
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PowerRating) shares fell
17.1%
after being downgraded by ABN Amro from Add to Hold.