Look At These Earnings!
Stocks were
lower in a quiet session on a mix of economic data.
A last hour sell off sent the S&Ps to the lowest
close since May 25. Energy was strong, with XOM and CHV making new highs.
Business inventory rose less than expected at 0.4% with PPI that fell
unexpectedly by 0.3%. Initial claims edged up 40K to 349K with capacity
utilization falling to 77.2%. Citigroup
(
C |
Quote |
Chart |
News |
PowerRating) reported earnings fell to
$1.14 billion after a $5 billion legal charge. Excluding one-time charges,
earnings rose to $1.02 a share. Total revenue rose 15% to $22.3 billion.
Apple
(
AAPL |
Quote |
Chart |
News |
PowerRating) reported earnings that beat expectations on strong iPod sales with
overall sales up at $2 billion. Earnings rose to $61 million, iPod sales rose to
860,000 units. The company expects earnings of 16 cents for Q4 and revenue of
$2.1 billion. Sandisk
(
SNDK |
Quote |
Chart |
News |
PowerRating)
reported Q2 sales that rose 85% to $433 million with earnings at $71 million.
For Q3, it is seeking revenue of $450 million. Cypress Semiconductor
(
CY |
Quote |
Chart |
News |
PowerRating)
rose after reporting earnings of $22 million with revenue up 30% to $264.3
million with strength in its wireless terminals.
OPEC cancelled next week’s
scheduled meeting, confident they can implement a quota increases without it.
Martha Stewart is
scheduled to be sentenced on Friday.
After the bell, IBM
reported Q2 of $1.16 vs. a $1.12 estimate, but was a little light on revenues at
$23.15 billion vs. the $23.4 estimate. PMC Sierra
(
PMCS |
Quote |
Chart |
News |
PowerRating) reported
$.08 vs. $0.07, beating by a penny. Net income was $15 million, revenues were
$86 million, in-line. Aspect Communications
(
ASPT |
Quote |
Chart |
News |
PowerRating) missed by 0.03
and was light on revenues; Digi International
(
DGII |
Quote |
Chart |
News |
PowerRating) beat by 0.02;
Netflix
(
NFLX |
Quote |
Chart |
News |
PowerRating) missed by 0.02; Rambus
(
RMBS |
Quote |
Chart |
News |
PowerRating) beat by
0.02; Lexar Media
(
LEXR |
Quote |
Chart |
News |
PowerRating) missed by  0.02 and guided
lower. HotTopic
(
HOTT |
Quote |
Chart |
News |
PowerRating) lowered guidance for FY 04.
On the IPO front, Freescale
IPO lowered its price talk to $14.50- $15.00; seven other IPOs are expected to
price tonight, including flat panel display make LG Phillips; talk is
$15-$18 and symbol is LPL.
| Dow | -45.64 | 10163.16 |
| S&P 500 | -4.78 | 1106.69 |
| Nasdaq | -2.17 | 1912.71 |
Strong today were: Disk
Drives
(
DDX.X |
Quote |
Chart |
News |
PowerRating) +3.72%, Hardware
(
HWI.X |
Quote |
Chart |
News |
PowerRating) +1.80%,
Oil Services
(
OSX.X |
Quote |
Chart |
News |
PowerRating) +2.55%,.Healthcare
(
HMO.X |
Quote |
Chart |
News |
PowerRating) +1.81%.
Weak today were: Brokers
(
XBD.X |
Quote |
Chart |
News |
PowerRating) -1.18%, Banks
(
BKX.X |
Quote |
Chart |
News |
PowerRating) -1.02%, Telecom
(
XTC.X |
Quote |
Chart |
News |
PowerRating)
-0.89%.
Economic news release include
Business Inventories that rose by 0.4%, Initial Claims that rose to 349K, NY
Empire State Index rose to 36.5. PPI prices fell by 0.3% and Core PPI rose by
0.2$. Industrial Production fell by 0.3% with Capacity Utilization also falling
to 77.2%
10-year Notes were -005
at 110 125
The dollar
was +0.19 at 87.95
Gold was -0.10 at 403.50
Crude Oil was -0.27 at
40.93
Volume was 1.4 billion
on the NYSE, and 1.66 billion on the Nasdaq.
Market breadth was mixed.
| NYSE | Issues | |
| Advancing | 1757 | Up Vol 557 |
| Declining | 1491 | Down Vol 833 |
| Ratio | 1.17 | 1.49 |
| Nasdaq |
||
| Advancing | 1535 | Up Vol 752 |
| Declining | 1540 | Down Vol 853 |
| Ratio | 1.00 | 1.13 |
Stocks in the news:
Nokia
(
NOK |
Quote |
Chart |
News |
PowerRating) warned that
earnings would be below consensus and sales from April – June would be around
$8.20 billion.
Harrah’s
(
HET |
Quote |
Chart |
News |
PowerRating) said they would purchase Caesar’s
Entertainment
(
CZR |
Quote |
Chart |
News |
PowerRating) for $5.2 billion in a stock and cash deal; it would
create the world’s largest casino operator.
Fairchild Semiconductor
(
FCS |
Quote |
Chart |
News |
PowerRating) rose after posting
earnings of $17 million with revenue rising 19% to $414.3 million, which missed
estimates.
QLogic
(
QLGC |
Quote |
Chart |
News |
PowerRating) reported a profit of $32.2 million
on revenue of $129.8 million. Both numbers were either inline or beat the
consensus.
Brice Wightman
bricew@tradingmarkets.com