Google’s First Earnings Report!
Stocks were mixed Thursday,
with technology leading, boosted by a good report from eBay.
After the close, Microsoft
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reported $0.32 vs. a $0.30 estimate. Revenue was $9.19 billion vs $8.99
estimate. In its first report as a public company, Google
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reported 0.70, ex-items, vs. a 0.56 estimate. The stock traded up to $158 at
press time. Amazon
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by a penny, with revenue of $1.46 billion, in-line. The stock traded down after
hours. Coca-Cola
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revenues were $5.66 billion.
eBay
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rose 77% as listings rose and PayPal expanded to Europe. EBAY gained 9% at
99.59.
Initial claims for the week of 10/16 fell by
25,000 to 329,000; the 4-week moving average is 348,250 .Continuing claims fell
to 2.7 million from 2.8 million. Leading economic indicators fell -0.1%,
less than expected. It was the fourth straight month of declines. The Philly Fed
index rose to 28.5 in October, more than expected.
With 1/3 of the S&P 500 companies reporting so
far, earnings have risen 11% on average year over year. Of the companies
reporting, 138 have beat vs. 175 a year ago. Thirty-eight met estimates, a year
ago only three met. Forty seven missed, versus 45 a year ago.
Sears
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estimate was 0.01. The company saw the largest sales decline in 8 years, posting
a Q3 loss of $61 million.
AIG
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PowerRating) missed by a penny. Revenue rose 25%. The company said
they’ve seen no slowdown in business since the Spitzer investigation was
launched last week.
Caterpillar’s
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equipment sales were strong.
Eli Lilly
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reported 0.69 and said it will cut 1,000 jobs and will take a restructuring
charge of 0.19 -0.24 in Q4.
Merck ]MRK|MRK] reported 0.60 vs. 0.83 a year ago. The company said
Vioxx will affect earnings by 0.50 -0.55 this year, and also said over 300 Vioxx
lawsuits have been filed and expect more.
The 10-year note made its lowest yields in over 6
months.
| Dow | -25.52 | 9861 |
| S&P 500 | +2.81 | 1106.47 |
| Nasdaq | +20.46 | 1953.43 |
Strong sectors were:
Airlines
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XAL.X |
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Semis
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Weak sectors were:Â Healthcare Providers
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HMO.X |
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-1.46%, Health Care
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PowerRating), -0.95%.
10-year notes were: -020
at 113 180
The dollar was -0.31 at
86.04
Gold was -0.20 at 424
Crude Oil was +0.08 at 54.49
1.97 billion on the Nasdaq.
Market breadth was positive.
| NYSE | Issues | |
| Advancing | 2196 | Up Vol 986 |
| Declining | 1087 | Down Vol 504 |
| Ratio | 2.02 | 1.95 |
| Nasdaq |
||
| Advancing | 1838 | Up Vol 1313 |
| Declining | 1159 | Down Vol 531 |
| Ratio | 1.58 | 2.47 |
Stocks in the News
Amgen
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PowerRating) beat by 0.02 and raised 2004 earnings and revenue
guidance.
AT&T [T|T} posted a $7.1 loss due to a write-down.
Xerox
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Altera
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Chiron
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DeVry
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STMicroelectronics
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Primeris Airlines will buy 20 Boeing
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BA |
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Colgate
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PowerRating) goes to a buy from neutral at Merrill Lynch.
Symantec
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PowerRating) reported 0.41 vs. a 0.39 estimate and announced a
2:1 stock split.
SBC
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PowerRating) was 0.38, in-line.
Brice Wightman