Google News! Plus, Earnings After The Close
Stocks fell
today with investors disappointed with earnings from several companies.
BellSouth
(
BLS |
Quote |
Chart |
News |
PowerRating) rose after reporting earnings from continuation
operations of $939 million which beat the Street consensus by a penny. Revenue
was flat at $6.65 billion. ImClone
(
IMCL |
Quote |
Chart |
News |
PowerRating) plunged after Smith Barney
downgraded the stock to Hold and lowered its price target to $72. The main
reason is related to their belief of the different accounting methods used to
account for its Erbitux royalty obligations. American Express
(
AXP |
Quote |
Chart |
News |
PowerRating)
reported earnings of $876 million with revenue up at $7.258 billion.
This is a busy week for earnings. ExxonMobil
(
XOM |
Quote |
Chart |
News |
PowerRating) is scheduled to
report on Thursday; Chevron Texaco
(
CVX |
Quote |
Chart |
News |
PowerRating) reports on Tuesday. Mylan
Labs
(
MYL |
Quote |
Chart |
News |
PowerRating) will acquire King Pharmaceuticals in a stock swap worth about
$4 billion.
Google said its IPO
would offer 24.6 million shares priced between $108 and $135/share, making the
deal worth as much as $3.3 billion with a market cap of 36.25 billion. The
company plans to list on the Nasdaq under the symbol “GOOG.” The company will be
coming in at 60 times earnings; Yahoo, by contrast, is trading at 110 times
earnings. The company will sell 14.1 million shares with insiders selling
another 10.5 million shares. After the offering, co-founders Sergey Brin and
Larry Page will retain about 16% each of Google voting power. Q2 profits for the
search engine company rose 24% for last quarter. The road show begins tonight in
New York.
After the close, Providian
(
PVN |
Quote |
Chart |
News |
PowerRating) beat by $0.02 and upped Y04 guidance; Vertex
(
VRTX |
Quote |
Chart |
News |
PowerRating) missed
by $0.03, ex items and reaffirmed their outlook. Pitney Bowes
(
PBI |
Quote |
Chart |
News |
PowerRating)
beat by a penny; Silicon Labs
(
SLABN |
Quote |
Chart |
News |
PowerRating) beat by 0.05 but guided
revenues below consensus. Genesis Microchip
(
GNSS |
Quote |
Chart |
News |
PowerRating) beat by 0.02 but
guided lower; SonicWall
(
SNWL |
Quote |
Chart |
News |
PowerRating) missed by a penny and was light on
revenues.
| Dow | -0.30 | 9961.92 |
| S&P 500 | -2.13 | 1084.07 |
| Nasdaq | -10.07 | 1839.02 |
Strong today were: Insurance
(
IUX.X |
Quote |
Chart |
News |
PowerRating) +0.85% Telecoms
(
XTC.X |
Quote |
Chart |
News |
PowerRating) +0.57%, Healthcare
(
HMO.X |
Quote |
Chart |
News |
PowerRating)Â
+0.44%
Weak today were: Healthcare
Provider
(
RXH.X |
Quote |
Chart |
News |
PowerRating) -2.69%, Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) -2.52%,
Â
The dollar
was -0.24 at 89.22
Gold was -0.10 at 391.60
Crude Oil was unch at
40.97
Volume was 1.4 billion
on the NYSE, and 1.6 billion on the Nasdaq.
Market breadth was negative
| NYSE | Issues | |
| Advancing | 1068 | Up Vol 411 |
| Declining | 2185 | Down Vol 980 |
| Ratio | 2.05 | 2.38 |
| Nasdaq |
||
| Advancing | 995 | Up Vol 449 |
| Declining | 2116 | Down Vol 1174 |
| Ratio | 2.12 | 2.61 |
Stocks in the news:
Tyson Foods
(
TSN |
Quote |
Chart |
News |
PowerRating) said its
quarterly earnings doubled from a year ago but the full year forecast
disappointed the Street. TSN is trading at 19.05, down 0.90.
Even after a large charge related to its
Taxus stent, the net at Boston Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating) nearly tripled.
Boston Scientific posted earnings of
$313 million with revenue rising 71% to $1.46 billion. The company experienced
growth across all sectors.
Merck
(
MRK |
Quote |
Chart |
News |
PowerRating) and Schering
Plough
(
SGP |
Quote |
Chart |
News |
PowerRating) won FDA approval to sell a 2:1 cholesterol pill, Vytorin,
which was found to be as effective as Pfizer’s
(
PFE |
Quote |
Chart |
News |
PowerRating) Lipitor. PFE is
trading at 31.48, down 0.82.
Brice Wightman
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