Intel’s Announcement After The Close

September 4, 2003
Brice Wightman

Several reports
hit the market today with productivity, ISM Services, and factory orders all
coming in better than expected. Initial weekly jobless claims, however, climbed
back above the critical 400,000 level. Bonds were higher.

Federal prosecutors charged a
former Goldman Sachs economist and VP with securities fraud. Accused of insider
trading are John Youngdahl and Pete Davis. On the day the Treasury announced the
long bond would be discontinued, bonds posted a large one-day movement.Â
Mr. Davis is accused of tipping off Mr. Youngdahl, among others, allegedly
learning of the impending announcement an hour before the public. Goldman’s
treasury desk made about $1.6 million in trading profits on the news. In a
separate but related suit, Goldman agreed to pay $9.3 million to settle charges
that they failed to oversee Youngdahl.

In economic news, the
Initial Jobless Claims for the week ended August 30 rose by 19,000 to
413,000. Economists had predicted a drop to 393,000. The less volatile four-week
moving average rose by 15,000 to 413,000, the highest level since mid-July.
Productivity in Q2 came in at +6.8% vs. estimates of +6.4%. The ISM Services
Index for August came in flat at 65.1, while economists were expecting a drop to
62.0. Lastly, Factory Orders in July rose 1.6%, double what economists were
expecting.

The 10-year U.S. Note
was +245 at 111 110

The dollar was -0.58 at
98.13.

Gold was 1.40 at 373.40.

Crude Oil was -0.58 at
28.98

Volume was
1,456,264,000 on
the NYSE, and 1,858,761,000 on the Nasdaq.

Market breadth was positive,
with NYSE advancing issues over declining issues by 1.22, and up over down
volume by 1.10. Nasdaq advancing issues over declining issues at 1.18, and up
volume over down volume at 2.82.

Top Dow stocks were:

Stocks in the news:

After the close, Intel
(
INTC |
Quote |
Chart |
News |
PowerRating)
guided 3Q revenue higher in its mid-quarter update, to $7.6 – 7.8 billion. INTC
traded higher in after hours trading.

National Semiconductor
(
NSM |
Quote |
Chart |
News |
PowerRating)
reported a first quarter of .18/share, excluding charges (.15 after items). CEO
Brian Halla said he saw a pickup in order patterns in the first quarter. The
company cited cost-cutting, higher
average selling prices, better factory utilization and a better product mix. NSM
closed at 28.50, downÂ 0.32.

Pharmacy and health services
provider Accredo Health
(
ACDO |
Quote |
Chart |
News |
PowerRating) gained 11% after the company
reported fourth-quarter results that topped expectations. The company earned 36
cents a share compared to 18 cents a share in the year-ago quarter. Analysts had
predicted results of 32 cents a share. Revenues jumped 75% to $329.1 million and
topped estimates of $318.5 million. Accredo raised guidance for its next fiscal
year to $1.54 to $1.59 from its previous estimate of $1.53 to $1.58.

Supermarket chain
Albertson’s
(
ABS |
Quote |
Chart |
News |
PowerRating) rose 9% despite reporting a 30% drop in
quarterly earnings. The company reported second-quarter results of 44 cents a
share compared to 63 cents a share in the year-ago quarter. Albertson’s
attributed the drop in earnings to an increase in employee benefits and higher
worker’s compensation costs. However the company is backing its full-year
forecast of $1.70 to $1.75 a share.

Hotel and casino operator
MGM Mirage
(
MGG |
Quote |
Chart |
News |
PowerRating) rose after the company raised its
third-quarter forecasts. The company now expects earnings of 35 cents a share
compared to its prior forecast of 30 cents. In a statement, MGM Chairman Terry Lanni said, “Our forward room bookings and overall trends continue to show
strength.”

Drug maker Pfizer
(
PFE |
Quote |
Chart |
News |
PowerRating)
slipped after the company lowered its fiscal 2003 forecasts. Due to a
change in inventory valuation from its purchase of Pharmacia, the maker of Viagra now expects earnings of 70 cents a share. Previously the firm had
expected to earn 86 cents a share.

If you have any comments or
questions, please feel free to email me.

Brice Wightman

bricew@tradingmarkets.com

Intel’s Announcement After The Close

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